HR 1748 IHRHCommentsClose CommentsPermalink

To amend title 18, United States Code, to enhance the investigation and prosecution of mortgage fraud and financial institution fraud, and for other purposes.CommentsClose CommentsPermalink

March 26, 2009CommentsClose CommentsPermalink

Mr. CONYERS (for himself, Mr. SMITH of Texas, Mr. DELAHUNT, Ms. JACKSON-LEE of Texas, and Mrs. BIGGERT) introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committees on Oversight and Government Reform and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To amend title 18, United States Code, to enhance the investigation and prosecution of mortgage fraud and financial institution fraud, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Fight Fraud Act of 2009’. CommentsClose CommentsPermalink

SEC. 2. AMENDMENTS TO IMPROVE MORTGAGE, SECURITIES, AND FINANCIAL FRAUD RECOVERY AND ENFORCEMENT.

(a) Definition of Financial Institution Amended To Include Mortgage Lending Business-Section 20 of title 18, United States Code, is amended-- CommentsClose CommentsPermalink





(1) in paragraph (8), by striking ‘or’ after the semicolon; CommentsClose CommentsPermalink





(2) in paragraph (9), by striking the period and inserting ‘; or’; and CommentsClose CommentsPermalink





(3) by inserting at the end the following: CommentsClose CommentsPermalink





‘(10) a mortgage lending business or any person or entity that makes in whole or in part a federally related mortgage loan as defined in section 3 of the Real Estate Settlement Procedures Act of 1974.’. CommentsClose CommentsPermalink





(b) Mortgage Lending Business Defined- CommentsClose CommentsPermalink





(1) IN GENERAL- Chapter 1 of title 18, United States Code, is amended by inserting after section 26 the following: CommentsClose CommentsPermalink

‘Sec. 27. Mortgage lending business defined

‘In this title, the term ‘mortgage lending business’ means an organization which finances or refinances any debt secured by an interest in real estate, including private mortgage companies and any subsidiaries of such organizations, and whose activities affect interstate or foreign commerce.’. CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 1 of title 18, United States Code, is amended by adding at the end the following: CommentsClose CommentsPermalink





‘27. Mortgage lending business defined.’. CommentsClose CommentsPermalink





(c) False Statements in Mortgage Applications Amended To Include False Statements by Mortgage Brokers and Agents of Mortgage Lending Businesses-Section 1014 of title 18, United States Code, is amended-- CommentsClose CommentsPermalink





(1) by striking ‘or’ after ‘the International Banking Act of 1978),’; and CommentsClose CommentsPermalink





(2) by inserting after ‘section 25(a) of the Federal Reserve Act’ the following: ‘, or a mortgage lending business, or any person or entity that makes in whole or in part a federally related mortgage loan as defined in section 3 of the Real Estate Settlement Procedures Act of 1974’. CommentsClose CommentsPermalink





(d) Major Fraud Against the Government Amended To Include Economic Relief and Troubled Asset Relief Program Funds-Section 1031(a) of title 18, United States Code, is amended-- CommentsClose CommentsPermalink





(1) by striking ‘in any procurement’ and inserting ‘in any grant, contract, subcontract, subsidy, loan, guarantee, insurance or other form of Federal assistance in the form of financial relief or stimulus provided by the Government, including through the Troubled Assets Relief Program, an economic stimulus, recovery or rescue plan provided by the Government, or the Government’swhether through grant, contract, subcontract, subsidy, loan, guarantee, insurance, purchase of any preferred stock in a company, or otherwise, or any procurement’; and CommentsClose CommentsPermalink





(2) by striking ‘the contract, subcontract’ and inserting ‘such grant, contract, subcontract, subsidy, loan, guarantee, insurance, purchase, or other form of Federal assistancefinancial relief or stimulus’. CommentsClose CommentsPermalink





(e) Securities Fraud Amended To Include Fraud Involving Options and Futures in Commodities- CommentsClose CommentsPermalink





(1) IN GENERAL-Section 1348 of title 18, United States Code, is amended-- CommentsClose CommentsPermalink





(A) in the caption, by inserting ‘and commodities’ after ‘Securities’; CommentsClose CommentsPermalink





(B) in paragraph (1), by inserting ‘any commodity for future delivery, or any option on a commodity for future delivery, or’ after ‘any person in connection with’; and CommentsClose CommentsPermalink





(C) in paragraph (2), by inserting ‘any commodity for future delivery, or any option on a commodity for future delivery, or’ after ‘in connection with the purchase or sale of’. CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The item relating to section 1348 in the table of sections at the beginning of chapter 63 of title 18, United States Code, is amended by inserting ‘and commodities’ after ‘Securities’. CommentsClose CommentsPermalink

SEC. 3. AUTHORIZATION OF ADDITIONAL FUNDINGRESOURCES FOR INVESTIGATORS AND PROSECUTORS FOR MORTGAGE FRAUD, SECURITIES AND COMMODITIES FRAUD, AND OTHER CASES INVOLVING FEDERAL ECONOMIC ASSISTANCERIMES OF FRAUD.

(a) In GeneralAuthorizations for the Department of Justice- CommentsClose CommentsPermalink





(1) AUTHORIZATION- There is authorized to be appropriated to the Attorney General, to remain available until expended, $165,000,000 for each of the fiscal years IN GENERAL- There is authorized to be appropriated to the Attorney General, $185,000,000 for fiscal year 2010 and $175,000,000 for fiscal year 2011, for the purposes of investigations, prosecutions, and civil proceedings involenforcement actions against possible fraud (including mortgage fraud and securities and commodities fraud) relating to a financial institution, including financial institutions receiving Federal assistance programs and financial institutions, including financial institutions to which this Act and amendments made by this Act applyunder the Troubled Assets Relief Program or otherwise. CommentsClose CommentsPermalink





(2) ALLOCATIONS- With respect to fiscal years 2010 and 2011, the amountThe amounts authorized to be appropriated under paragraph (1) shall be allocated as follows: CommentsClose CommentsPermalink





(A) Federal Bureau of Investigation: $75,000,000 for fiscal year 2010 and $65,000,000 for fiscal year 2011.(B) , an appropriate percentage of which amounts shall be used to investigate mortgage fraud. CommentsClose CommentsPermalink





(B) The offices of the United States Attorneys: $50,000,000. CommentsClose CommentsPermalink





(C) The criminal division of the Department of Justice: $20,000,000. CommentsClose CommentsPermalink





(D) The civil division of the Department of Justice: $15,000,000. CommentsClose CommentsPermalink





(E) The tax division of the Department of Justice: $5,000,000. CommentsClose CommentsPermalink





(F) The Director of the Administrative Office of the United States Courts: $20,000,000. CommentsClose CommentsPermalink





(b) Additional Appropriuthorizations for the Postal Inspection Service- There is authorized to be appropriated to the Postal Inspection Service of the United States Postal Service, $30,000,000 for each of the fiscal years 2010 and 2011 for investigations involving Federal assistance programs and financial institutions, including financial institutions to which this Act and amendments made by this Act applyto possible fraud described in subsection (a)(1). CommentsClose CommentsPermalink





(c) Additional Appropriations for the Inspector General for the uthorizations for the Inspector General for the Department of Housing and Urban Development- There is authorized to be appropriated to the Inspector General of the Department of Housing and Urban Development, $30,000,000 for each of the fiscal years 2010 and 2011 for investigations involving Federal assistance programs and financial institutions, including financial institutions to which this Act and amendments made by this Act applyto possible fraud described in subsection (a)(1). CommentsClose CommentsPermalink





(d) Additional Appropriuthorizations for the United States Secret Service- There is authorized to be appropriated to the United States Secret Service of the Department of Homeland Security, $20,000,000 for each of the fiscal years 2010 and 2011 for investigations involving Federal assistance programs and financial institutions, including financial institutions to which this Act and amendments made by this Act applyto possible fraud described in subsection (a)(1). CommentsClose CommentsPermalink





(e) Use of FundsAdditional Authorizations; Availability- The funds authorized to be appropriated under subsections (a), (b), (c), and (d) shall be limited to cover the costs of each listed agency or department for investigating possible criminal, civil, or administrative violations and for prosecuting criminal, civil, or administrative proceedings involving financial crimes and crimes against Federal assistance programs, including mortgage fraud, securities fraud, financial institution fraud, andamounts authorized under this section are in addition to amounts otherwise authorized in other frauds related to Federal assistance and relief programsActs, and shall remain available until expended. CommentsClose CommentsPermalink





(f) Defense Services- Funds made available under this section by the recipient described in subsection (a)(2)(F) shall be used to cover costs associated with providing defense services to defendants investigated for or charged with an offense described in subsection (a)(1). CommentsClose CommentsPermalink





(g) Report to Congress- Following the final expenditure of all funds appropriated under this section that were authorized by subsections (a), (b), (c), and (d)pursuant to authorization under this section, the Attorney General, in consultation with the United States Postal Inspection Service, the Inspector General for the Department of Housing and Urban Development, and the Secretary of Homeland Security, shall submit a joint report to Congress identifying-- CommentsClose CommentsPermalink





(1) the amounts expended under each of subsections (a), (b), (c), and (d) and a certification of compliance with the requirements listed in subsection (e); and CommentsClose CommentsPermalink





(2) the amounts recovered as a result of criminal or civil restitution, fines, penalties, and other monetary recoveries resulting from criminal, civil, or administrative proceedings and settlements undertaken with funds authorized by this Act. CommentsClose CommentsPermalink

(a) In General- Subject to the availability of amounts provided in advance in appropriations Acts, the Attorney General is authorized to award grants to States to establish and develop programs to increase and enhance enforcement against mortgage fraud, securities and commodities fraud, and financial institution fraud, including enforcement against the use of computers in committing such fraud. CommentsClose CommentsPermalink





(b) Application- To be eligible to be considered for a grant under subsection (a), a State shall submit an application to the Attorney General at such time, in such manner, and containing such information, including as described in subsection (d), as the Attorney General may require. CommentsClose CommentsPermalink





(c) Use of Grant Amounts- A grant awarded to a State under subsection (a) shall be used by the State to establish and develop programs to-- CommentsClose CommentsPermalink





(1) assist State and local law enforcement agencies in enforcing State and local criminal laws relating to criminal activity described in subsection (a); CommentsClose CommentsPermalink





(2) assist State and local law enforcement agencies in educating the public to prevent and identify such criminal activity; CommentsClose CommentsPermalink





(3) educate and train State and local law enforcement officers and prosecutors to conduct investigations, forensic analyses of evidence, and prosecutions relating to such criminal activity; CommentsClose CommentsPermalink





(4) assist State and local law enforcement officers and prosecutors in acquiring computer and other equipment to conduct investigations and forensic analyses of evidence relating to such criminal activity; CommentsClose CommentsPermalink





(5) assist public defenders with providing defense services to defendants in cases in which the defendant is charged with any such criminal activity; and CommentsClose CommentsPermalink





(6) facilitate and promote communication between Federal, State, and local law enforcement to improve the sharing of Federal law enforcement expertise and information about the investigation, forensic analysis of evidence, and prosecution relating to such criminal activity, with State and local law enforcement officers and prosecutors, including through the use of multi-jurisdictional task forces. CommentsClose CommentsPermalink





(d) Assurances and Eligibility- To be eligible to receive a grant under subsection (a), a State shall provide assurances to the Attorney General that the State-- CommentsClose CommentsPermalink





(1) will provide an assessment of the resource needs of the State and units of local government within that State, including criminal justice resources being devoted to the investigation and enforcement of laws related to criminal activity described in subsection (a); CommentsClose CommentsPermalink





(2) will develop a plan for coordinating the programs funded under this section with funds authorized by this Act.other federally funded technical assistance and training programs; and CommentsClose CommentsPermalink





(3) will submit to the Attorney General applicable reports in accordance with subsection (f). CommentsClose CommentsPermalink





(e) Matching Funds- The Federal share of a grant received under this section may not exceed 75 percent of the total cost of a program or proposal funded under this section unless the Attorney General waives, wholly or in part, the requirements of this subsection. CommentsClose CommentsPermalink





(f) Reports- For each year that a State receives a grant under subsection (a) for a program, the State shall submit to the Attorney General a report on the results, including the effectiveness, of such program during such year. CommentsClose CommentsPermalink





(g) Definition of State- For the purposes of this section, the term ‘State’ means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, American Samoa, Guam, and the Northern Mariana Islands. CommentsClose CommentsPermalink





(h) Authorization of Appropriations- CommentsClose CommentsPermalink





(1) IN GENERAL- There is authorized to be appropriated to carry out this section $100,000,000 for each of the fiscal years 2010 through 2011. CommentsClose CommentsPermalink





(2) LIMITATIONS- Of the amount made available to carry out this section in any fiscal year, not more than 3 percent may be used for salaries and administrative expenses for the Department of Justice. CommentsClose CommentsPermalink





(3) MINIMUM AMOUNT- Each State submitting an application for, and eligible to receive, a grant under this section for a fiscal year shall be allocated under this section, in each such fiscal year, not less than 0.75 percent of the total amount appropriated in such fiscal year for grants pursuant to this section, except that not less than 0.25 percent of such total amount shall be allocated to the United States Virgin Islands, American Samoa, Guam, and the Northern Mariana Islands, collectively. CommentsClose CommentsPermalink





(4) GRANTS TO INDIAN TRIBES- Subject to paragraph (3), the Attorney General may use amounts made available pursuant to authorizations under this section to make grants to Indian tribes for use in accordance with this section. CommentsClose CommentsPermalink