Surcharge.
Section 104
SEC. 104. Surcharge.—When in the course of an audit under section eighty-six, or an inquiry under section ninety or an inspection under section ninety-one, or the liquidation of a co-operative, it appears that any person who has taken part in the organization or management of the co-operative or any past or present officer, director or committee member of the co-operative has at any time after the effectivity of this Act and within a period of four years prior to the date of such audit, inquiry, inspection or winding up, as the case may be, or within two years of the date on which it comes to the notice of the Administrator, whichever is earlier: Intentionally made or authorized any payment which is contrary to the provisions of this Act or the regulations or the by-laws of the co-operative, or is against the written directions or instructions of the federation of co-operatives to which the co-operative is indebted; or By reason of his culpable negligence or misconduct in respect of any prescribed matter, involved the co-operative or the federation of co-operatives to which the co-operative is indebted, in any loss or deficiency; or Failed to bring into account any sum which ought to have been brought into account; or Misappropriated or fraudulently retained any property of the co-operative or of the federation of co-operatives of which the co-operative is a member, the Administrator may, on his own initiative or on the application of the person conducting the audit, inquiry, inspection or winding up or of any creditor or contributor, inquire into the conduct of such person, officer, director or committee member and after giving him an opportunity to be heard and in the cases falling under clause (a) of this section, after affording him an opportunity to recover the amount of such payment from the payee and credit it to the funds of the co-operative, or the federation of co-operatives, as the case may be, subject to the regulations, make an order in writing requiring such person, officer, director or committee member to pay such sum to the assets of the co-operative or the federation of co-operatives, as the case may be, by way of compensation in respect of such payment or loss or deficiency or sum or to restore such property or any part thereof together with interest at such rate as the Administrator thinks just, and to pay such sum as the Administrator may fix to meet the cost of the proceedings under this section. Any person aggrieved by an order of the Administrator made under subsection (1) may, within sixty days from the date of the communication of the order to him, appeal to the Secretary of Commerce and Industry, otherwise, the order of the Administrator shall be final and conclusive and shall not be questioned in any court. Any order made under subsections (1) and (2) shall, upon the application of the Administrator, be enforced as provided in sections one hundred forty-four and one hundred forty-five. This section shall apply notwithstanding any criminal liability which may be incurred by such person, officer, director or committee member.