In the United States, unaccredited degrees may not be acceptable for civil service or other employment; criminal penalties sometimes apply should such a degree be presented in lieu of one from an accredited school. The use of such degrees are restricted in Oregon, New Jersey, Indiana, Illinois, North Dakota, Nevada and Washington where improper usage can result in misdemeanor charges punishable by fines. For instance, the state of Washington passed a bill in March 2006 "prohibiting false or misleading college degrees.". The state senate "unanimously amended and approved a bill that would make issuing or using a false degree a class C felony, a crime of fraud that could warrant five years in prison and a $10,000 fine" unless the degree were accredited or otherwise recognized. Oregon has a procedure in which unaccredited schools can apply for authorization from the state, which maintains a list of approved and exempt unaccredited schools which are permitted there. An Oregonian wishing to use an unaccredited degree not approved by the state must make it clear that the school is not accredited.
Some state laws allow authorities to shut down large illegal operations of unaccredited schools or diploma mills. In November 2005, a group of operators in Seattle was caught running several diploma mills. The group was indicted after a Secret Service investigation. In 1998, Tyndale Theological Seminary was fined $173,000 for issuing degrees as a seminary without a license.