S 890 ISRSCommentsClose CommentsPermalink

Calendar No. 60CommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 890CommentsClose CommentsPermalink

To establish the supplemental fraud fighting account, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

May 5, 2011CommentsClose CommentsPermalink

Mr. LEAHY (for himself and, Mr. GRASSLEY, Ms. KLOBUCHAR, and Mr. COONS) introduced the following bill; which was read twice and referred to the Committee on the JudiciaryCommentsClose CommentsPermalink

May 19, 2011CommentsClose CommentsPermalink

Reported by Mr. LEAHY, without amendmentCommentsClose CommentsPermalink

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A BILLCommentsClose CommentsPermalink

To establish the supplemental fraud fighting account, 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 ‘Fighting Fraud to Protect Taxpayers Act of 2011’.CommentsClose CommentsPermalink

SEC. 2. DEPARTMENT OF JUSTICE WORKING CAPITAL FUND REFORMS.

Section 11013(a) of the 21st Century Department of Justice Appropriations Authorization Act (28 U.S.C. 527 note) is amended--CommentsClose CommentsPermalink





(1) by striking ‘Notwithstanding’ and inserting the following:CommentsClose CommentsPermalink





‘(1) DEFINITIONS- In this subsection--CommentsClose CommentsPermalink





‘(A) the term ‘covered amounts’ means--CommentsClose CommentsPermalink





‘(i) the unobligated balances in the debt collection management account; andCommentsClose CommentsPermalink





‘(ii) the unobligated balances in the supplemental fraud fighting account;CommentsClose CommentsPermalink





‘(B) the term ‘debt collection management account’ means the account established in the Department of Justice Working Capital Fund under paragraph (2);CommentsClose CommentsPermalink





‘(C) the term ‘fraud offense’ includes--CommentsClose CommentsPermalink





‘(i) an offense under section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd-1) and an offense under section 104 or 104A of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-2 and 78dd-3);CommentsClose CommentsPermalink





‘(ii) a securities fraud offense, as defined in section 3301 of title 18, United States Code;CommentsClose CommentsPermalink





‘(iii) a fraud offense relating to a financial institution or a federally related mortgage loan, as defined in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602), including an offense under section 152, 157, 1004, 1005, 1006, 1007, 1011, or 1014 of title 18, United States Code;CommentsClose CommentsPermalink





‘(iv) an offense involving procurement fraud, including defective pricing, bid rigging, product substitution, misuse of classified or procurement sensitive information, grant fraud, fraud associated with labor mischarging, and fraud involving foreign military sales;CommentsClose CommentsPermalink





‘(v) an offense under the Internal Revenue Code of 1986 involving fraud;CommentsClose CommentsPermalink





‘(vi) an action under subchapter III of chapter 37 of title 31, United States Code (commonly known as the ‘False Claims Act’), and an offense under chapter 15 of title 18, United States Code;CommentsClose CommentsPermalink





‘(vii) an offense under section 1029, 1030, or 1031 of title 18, United States Code; andCommentsClose CommentsPermalink





‘(viii) an offense under chapter 63 of title 18, United States Code; andCommentsClose CommentsPermalink





‘(D) the term ‘supplemental fraud fighting account’ means the supplemental fraud fighting account established in the Department of Justice Working Capital Fund under paragraph (3)(A).CommentsClose CommentsPermalink





‘(2) DEBT COLLECTION MANAGEMENT ACCOUNT- Notwithstanding’;CommentsClose CommentsPermalink





(2) by striking ‘Such amounts’ and inserting ‘Subject to paragraph (4), such amounts’; andCommentsClose CommentsPermalink





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





‘(3) SUPPLEMENTAL FRAUD FIGHTING ACCOUNT-CommentsClose CommentsPermalink





‘(A) ESTABLISHMENT- There is established as a separate account in the Department of Justice Working Capital Fund established under section 527 of title 28, United States Code, a supplemental fraud fighting account.CommentsClose CommentsPermalink





‘(B) CREDITING OF AMOUNTS- Notwithstanding section 3302 of title 31, United States Code, or any other statute affecting the crediting of collections, the Attorney General may credit, as an offsetting collection, to the supplemental fraud fighting account up to 0.5 percent of all amounts collected pursuant to civil debt collection litigation activities of the Department of Justice.CommentsClose CommentsPermalink





‘(C) USE OF FUNDS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Subject to clause (ii), the Attorney General may use amounts in the supplemental fraud fighting account for the cost (including equipment, salaries and benefits, travel and training, and interagency task force operations) of the investigation of and conduct of criminal, civil, or administrative proceedings relating to fraud offenses.CommentsClose CommentsPermalink





‘(ii) LIMITATION- The Attorney General may not use amounts in the supplemental fraud fighting account for the cost of the investigation of or the conduct of criminal, civil, or administrative proceedings relating to--CommentsClose CommentsPermalink





‘(I) an offense under section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd-1); orCommentsClose CommentsPermalink





‘(II) an offense under section 104 or 104A of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-2 and 78dd-3).CommentsClose CommentsPermalink





‘(D) CONDITIONS- Subject to paragraph (4), amounts in the supplemental fraud fighting account shall remain available until expended and shall be subject to the terms and conditions of the Department of Justice Working Capital Fund.CommentsClose CommentsPermalink





‘(4) MAXIMUM AMOUNT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- There are rescinded all covered amounts in excess of $175,000,000 at the end of fiscal year 2012 and the end of each fiscal year thereafter.CommentsClose CommentsPermalink





‘(B) RATIO- For any rescission under subparagraph (A), the Secretary of the Treasury shall rescind amounts from the debt collection management account and the supplemental fraud fighting account in a ratio of 6 dollars to 1 dollar, respectively.CommentsClose CommentsPermalink





‘(5) ANNUAL REPORT- Not later than 6 months after the date of enactment of the Taxpayer Protection and Fraud Enforcement Act of 2011, and every year thereafter, the Attorney General shall submit to Congress a report that identifies, for the most recent fiscal year before the date of the report--CommentsClose CommentsPermalink





‘(A) the amount credited to the debt collection management account and the amount credited to the supplemental fraud fighting account from civil debt collection litigation, which shall include, for each account--CommentsClose CommentsPermalink





‘(i) a comprehensive description of the source of the amount credited; andCommentsClose CommentsPermalink





‘(ii) a list the civil actions and settlements from which amounts were collected and credited to the account;CommentsClose CommentsPermalink





‘(B) the amount expended from the debt collection management account for civil debt collection, which shall include a comprehensive description of the use of amounts in the account that identifies the amount expended for--CommentsClose CommentsPermalink





‘(i) paying the costs of processing and tracking civil and criminal debt-collection litigation;CommentsClose CommentsPermalink





‘(ii) financial systems;CommentsClose CommentsPermalink





‘(iii) debt-collection-related personnel expenses;CommentsClose CommentsPermalink





‘(iv) debt-collection-related administrative expenses; andCommentsClose CommentsPermalink





‘(v) debt-collection-related litigation expenses;CommentsClose CommentsPermalink





‘(C) the amounts expended from the supplemental fraud fighting account and the justification for the expenditure of such amounts; andCommentsClose CommentsPermalink





‘(D) the unobligated balance in the debt collection management account and the unobligated balance in the supplemental fraud fighting account at the end of the fiscal year.’.CommentsClose CommentsPermalink

SEC. 3. REIMBURSEMENT OF COSTS AWARDED IN FALSE CLAIMS ACT PROSECUTIONS.

Section 3729(a)(3) of title 31, United States Code, is amended by adding at the end the following: ‘Any costs paid under this paragraph shall be credited to the appropriations accounts of the executive agency from which the funds used for the costs of the civil action were paid.’.CommentsClose CommentsPermalink

SEC. 4. INTERLOCUTORY APPEALS OF SUPPRESSION OR EXCLUSION OF EVIDENCE.

Section 3731 of title 18, United States Code, is amended in the second undesignated paragraph by inserting ‘Attorney General, the Deputy Attorney General, an Assistant Attorney General, or the’ after ‘an indictment or information, if the’.CommentsClose CommentsPermalink

SEC. 5. EXTENSION OF INTERNATIONAL MONEY LAUNDERING STATUTE TO TAX EVASION CRIMES.

Section 1956(a)(2)(A) of title 18, United States Code, is amended--CommentsClose CommentsPermalink





(1) by striking ‘intent to promote--’ and inserting the following: ‘intent to--CommentsClose CommentsPermalink





‘(i) promote’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(ii) engage in conduct constituting a violation of section 7201 or 7206 of the Internal Revenue Code of 1986; or’.CommentsClose CommentsPermalink

SEC. 6. STRENGTHENING THE PROHIBITION AGAINST TRAFFICKING IN PASSWORDS.

Section 1030(a)(6) of title 18, United States Code, is amended--CommentsClose CommentsPermalink





(1) in the matter preceding subparagraph (A), by inserting ‘protected’ before ‘computer’; andCommentsClose CommentsPermalink





(2) by striking ‘, if--’ and all that follows and inserting ‘; or’.CommentsClose CommentsPermalink

SEC. 7. CLARIFYING VENUE FOR FEDERAL MAIL FRAUD OFFENSES.

(a) In General- Section 3237(a) of title 18, United States Code, is amended in the second undesignated paragraph by adding before the period at the end the following: ‘or in any district in which an act in furtherance of the offense is committed’.CommentsClose CommentsPermalink





(b) Section Heading- Section 3237 of title 18, United States Code, is amended in the section heading by striking ‘begun’ and all that follows and inserting ‘taking place in more than one district’.CommentsClose CommentsPermalink





(c) Table of Sections- The table of sections for chapter 211 of title 18, United States Code, is amended by striking the item relating to section 3237 and inserting the following:CommentsClose CommentsPermalink





‘3237. Offenses taking place in more than one district.’.CommentsClose CommentsPermalink

SEC. 8. EXPANSION OF AUTHORITY OF SECRET SERVICE.

Section 3056 of title 18, United States Code, is amended--CommentsClose CommentsPermalink





(1) in subsection (b)--CommentsClose CommentsPermalink





(A) in paragraph (1)--CommentsClose CommentsPermalink





(i) by inserting ‘641, 656, 657,’ after ‘510,’; andCommentsClose CommentsPermalink





(ii) by striking ‘493, 657,’ and inserting ‘493,’; andCommentsClose CommentsPermalink





(B) in paragraph (3), by striking ‘federally insured’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(h)(1) For any undercover investigative operation of the United States Secret Service that is necessary for the detection and prosecution of a crime against the United States, the United States Secret Service may--CommentsClose CommentsPermalink





‘(A) use amounts appropriated for the United States Secret Service, including unobligated balances available from prior fiscal years, to--CommentsClose CommentsPermalink





‘(i) purchase property, buildings, and other facilities and lease space within the United States (including the District of Columbia and the territories and possessions of the United States), without regard to sections 1341 and 3324 of title 31, section 8141 of title 40, and sections 3901, 4501 through 4506, 6301, and 6306(a) of title 41; andCommentsClose CommentsPermalink





‘(ii) establish, acquire, and operate on a commercial basis proprietary corporations and business entities as part of the undercover investigative operation, without regard to sections 9102 and 9103 of title 31;CommentsClose CommentsPermalink





‘(B) deposit in banks and other financial institutions amounts appropriated for the United States Secret Service, including unobligated balances available from prior fiscal years, and the proceeds from the undercover investigative operation, without regard to section 648 of this title and section 3302 of title 31; andCommentsClose CommentsPermalink





‘(C) use the proceeds from the undercover investigative operation to offset necessary and reasonable expenses incurred in the undercover investigative operation, without regard to section 3302 of title 31.CommentsClose CommentsPermalink





‘(2) The authority under paragraph (1) may be exercised only upon a written determination by the Director of the United States Secret Service (in this subsection referred to as the ‘Director’) that the action being authorized under paragraph (1) is necessary for the conduct of an undercover investigative operation. A determination under this paragraph may continue in effect for the duration of an undercover investigative operation, without fiscal year limitation.CommentsClose CommentsPermalink





‘(3) If the Director authorizes the proceeds from an undercover investigative operation to be used as described in subparagraph (B) or (C) of paragraph (1), as soon as practicable after the proceeds are no longer necessary for the conduct of the undercover investigative operation, the proceeds remaining shall be deposited in the general fund of the Treasury as miscellaneous receipts.CommentsClose CommentsPermalink





‘(4) As early as the Director determines practicable before the date on which a corporation or business entity established or acquired under paragraph (1)(A)(ii) with a net value of more than $50,000 is to be liquidated, sold, or otherwise disposed of, the Director shall notify the Secretary of Homeland Security regarding the circumstances of the corporation or business entity and the liquidation, sale, or other disposition. The proceeds of the liquidation, sale, or other disposition, after obligations are met, shall be deposited in the general fund of the Treasury as miscellaneous receipts.CommentsClose CommentsPermalink





‘(5)(A) The Director shall--CommentsClose CommentsPermalink





‘(i) on a quarterly basis, conduct detailed financial audits of closed undercover investigative operations for which a written determination is made under paragraph (2); andCommentsClose CommentsPermalink





‘(ii) submit to the Secretary of Homeland Security a written report of the results of each audit conducted under clause (i).CommentsClose CommentsPermalink





‘(B) On the date on which the budget of the President is submitted under section 1105(a) of title 31 for each year, the Secretary of Homeland Security shall submit to the Committee on Appropriations of the Senate and the Committee on Appropriations of the House of Representatives a report summarizing the audits conducted under subparagraph (A)(i) relating to the previous fiscal year.’.CommentsClose CommentsPermalink

SEC. 9. FALSE CLAIMS SETTLEMENTS.

(a) Reports by Attorney General- Not later than November 1 of each year, the Attorney General shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report that describes each settlement or compromise of any claim, suit, or other action entered into with the Department of Justice that--CommentsClose CommentsPermalink





(1) relates to an alleged violation of section 1031 of title 18, United States Code, or section 3729 of title 31, United States Code (including all settlements of alternative remedies); andCommentsClose CommentsPermalink





(2) results from a claim for damages of more than $100,000.CommentsClose CommentsPermalink





(b) Contents of Reports- The description of each settlement or compromise required to be included in an annual report under subsection (a) shall include--CommentsClose CommentsPermalink





(1) the total amount of the settlement or compromise and the portions of the settlement attributable to violations of various statutory authorities;CommentsClose CommentsPermalink





(2) the amount of actual damages, or if the amount of actual damages is not available a good faith estimate of the damages, that have been sustained and the minimum and maximum potential civil penalties that may be incurred as a consequence of the conduct of the defendant that is the subject of the settlement or compromise;CommentsClose CommentsPermalink





(3) the basis for any estimate of damages sustained and the potential civil penalties incurred;CommentsClose CommentsPermalink





(4) the amount of the settlement that represents damages and the multiplier or percentage of the actual damages used in determining the amount to be paid under the settlement or compromise;CommentsClose CommentsPermalink





(5) the amount of the settlement that represents civil penalties and the percentage of the maximum potential civil penalty to be paid under the settlement or compromise;CommentsClose CommentsPermalink





(6) the amount of the settlement that represents criminal fines and a statement of the basis for the fines;CommentsClose CommentsPermalink





(7) a description of the period during which the matter to which the settlement or compromise relates was pending, including--CommentsClose CommentsPermalink





(A) the date on which the complaint was originally filed;CommentsClose CommentsPermalink





(B) a description of the period the matter remained under seal;CommentsClose CommentsPermalink





(C) the date on which the Department of Justice determined whether to intervene in the case; andCommentsClose CommentsPermalink





(D) the date on which the settlement or compromise was finalized;CommentsClose CommentsPermalink





(8) whether a defendant or any division, subsidiary, affiliate, or related entity of a defendant had previously entered into a settlement or compromise relating to section 1031 of title 18, United States Code, or section 3730(b) of title 31, United States Code, and, if so, the date of and amount to be paid under each such settlement or compromise;CommentsClose CommentsPermalink





(9) whether a defendant or any division, subsidiary, affiliate, or related entity of a defendant--CommentsClose CommentsPermalink





(A) entered into a corporate integrity agreement relating to the settlement or compromise;CommentsClose CommentsPermalink





(B) entered into a deferred prosecution agreement or nonprosecution agreement relating to the settlement or compromise; orCommentsClose CommentsPermalink





(C)(i) previously entered into--CommentsClose CommentsPermalink





(I) a corporate integrity agreement relating to a settlement or compromise relating to a different violation of section 3730(b) of title 31, United States Code; orCommentsClose CommentsPermalink





(II) a deferred prosecution agreement or nonprosecution agreement relating to a settlement or compromise relating to a different violation of section 1031 of title 18, United States Code; andCommentsClose CommentsPermalink





(ii) if the defendant had entered an agreement described in clause (i), whether the agreement applied to the conduct that is the subject of the settlement or compromise described in the report or similar conduct;CommentsClose CommentsPermalink





(10) for a settlement involving Medicaid, the amounts paid to the Federal Government and to each State participating in the settlement or compromise;CommentsClose CommentsPermalink





(11) whether civil investigative demands were issued in process of investigating the matter to which the settlement or compromise relates;CommentsClose CommentsPermalink





(12) for a qui tam action--CommentsClose CommentsPermalink





(A) the percentage of the settlement amount awarded to the relator; andCommentsClose CommentsPermalink





(B) whether the relator requested a fairness hearing relating to the percentage received by the relator or the total amount of the settlement;CommentsClose CommentsPermalink





(13) the extent to which officers of the agency that was the victim of the loss resolved by the settlement or compromise participated in the settlement negotiations; andCommentsClose CommentsPermalink





(14) the extent to which a relator or counsel for a relators participated in the settlement negotiations.CommentsClose CommentsPermalink

SEC. 10. AGGRAVATED IDENTITY THEFT AND FRAUD.

(a) In General- Section 1028A of title 18, United States Code, is amended in the section heading by adding ‘and fraud’ at the end.CommentsClose CommentsPermalink





(b) Technical and Conforming Amendment- The table of sections for chapter 47 of title 18, United States Code, is amended by striking the item relating to section 1028A and inserting the following:CommentsClose CommentsPermalink





‘1028A. Aggravated identity theft and fraud.’.CommentsClose CommentsPermalink

SEC. 11. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH IDENTIFICATION DOCUMENTS, AUTHENTICATION FEATURES, AND INFORMATION.

(a) In General- Section 1028(a)(7) of title 18, United States Code, is amended by inserting ‘(including an organization)’ after ‘person’.CommentsClose CommentsPermalink





(b) Technical and Conforming Amendment- The table of sections for chapter 47 of title 18, United States Code, is amended by striking the item relating to section 1028 and inserting the following:CommentsClose CommentsPermalink





‘1028. Fraud and related activity in connection with identification documents, authentication features, and information.’.CommentsClose CommentsPermalink

Calendar No. 60CommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 890CommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To establish the supplemental fraud fighting account, and for other purposes.CommentsClose CommentsPermalink

---

May 19, 2011CommentsClose CommentsPermalink

Reported without amendmentCommentsClose CommentsPermalink