[Senate Report 112-142]
[From the U.S. Government Publishing Office]
Calendar No. 60
112th Congress Report
SENATE
2d Session 112-142
======================================================================
FIGHTING FRAUD TO PROTECT TAXPAYERS ACT OF 2011
_______
January 30, 2012.--Ordered to be printed
_______
Mr. Leahy, from the Committee on the Judiciary,
submitted the following
R E P O R T
[To accompany S. 890]
[Including cost estimate of the Congressional Budget Office]
The Committee on the Judiciary, to which was referred the
bill (S. 890), to establish the supplemental fraud fighting
account, and for other purposes, having considered the same,
reports favorably thereon, without amendment, and recommends
that the bill do pass.
CONTENTS
Page
I. Background and Purpose of the Fighting Fraud to Protect Taxpayers
Act of 2011......................................................1
II. History of the Bill and Committee Consideration..................3
III. Section-by-Section Summary of the Bill...........................4
IV. Congressional Budget Office Cost Estimate........................6
V. Regulatory Impact Evaluation.....................................9
VI. Conclusion.......................................................9
VII. Changes to Existing Law Made by the Bill, as Reported............9
I. Background and Purpose of the Fighting Fraud to Protect Taxpayers
Act of 2011
On May 5, 2011, Chairman Leahy and Ranking Member Grassley
introduced the Fighting Fraud to Protect Taxpayers Act of 2011
(FFPTA). Senators Klobuchar and Coons subsequently joined as
cosponsors. This legislation protects taxpayers by deterring
fraud and bringing money back into our Nation's coffers. It
provides new tools for law enforcement to prosecute and punish
those responsible for fraud and does so at no added cost to
taxpayers. The bill also fills key statutory gaps to account
for modern types of fraud, including strengthening computer
fraud and identity theft statutes and giving needed authority
to the Secret Service to more effectively investigate fraud. At
the same time, the FFPTA will increase accountability by
requiring the Justice Department to better manage and account
for key spending.
A. BACKGROUND
In the last Congress, one of the first major bills the
Senate Judiciary Committee considered, and one of the first
bills President Obama signed into law, was the Leahy-Grassley
Fraud Enforcement and Recovery Act. That bill gave fraud
investigators and prosecutors additional tools and resources to
better hold those who commit fraud accountable. This renewed
focus on fraud enforcement has yielded significant results,
including an increase in fraud prosecutions and billions of
dollars in recoveries, but nevertheless, Americans have been
victimized repeatedly in recent years by waves of fraud--
mortgage fraud, foreclosure fraud, financial fraud, and health
care fraud, among others. The FFPTA reflects the ongoing need
to invest in enforcement to better protect hard-working
taxpayers from all of these insidious types of fraud.
B. PURPOSE OF THE LEGISLATION
In the fiscal year 2010 alone, the Department of Justice
recovered well over $6 billion through fines, penalties, and
recoveries from fraud cases--far more than it costs to
investigate and prosecute these matters. The recovery of these
vast sums of money demonstrates that investment in fraud
enforcement pays for itself many times over.\1\
---------------------------------------------------------------------------
\1\See Protecting American Taxpayers: Significant Accomplishments
and Ongoing Challenges in the Fight Against Fraud: Hearing Before the
S. Comm. on the Judiciary, 112th Cong. 9 (2011) (testimony of Lanny
Breuer, Asst. Att'y Gen., Crim. Div., U.S. Dept. of Justice) (stating
fraud enforcement costs the Criminal Division only a ``small, small
fraction'' when compared to the money recovered by the Division).
Available at http://www.gpo.gov/fdsys/pkg/CHRG-112shrg67415/pdf/CHRG-
112shrg67415.pdf; See also New Tools for Curbing Waste and Fraud in
Medicare and Medicaid: Hearing Before the Subcomm. On Fin. Mgmt., Gov't
Info., Fin. Serv. and Int'l Sec. of the S. Comm. on Homeland Sec. and
Gov't Affairs, 112th Cong. 2 (2011) (statement of Greg Andres, Acting
Deputy Asst. Att'y Gen., Crim. Div., U.S. Dept. of Justice) (noting the
Department of Justice estimates that the three year rolling average
return on investment in health care fraud cases is $7:$1). Available at
http://hsgac.senate.gov/public/
index.cfm?FuseAction=Files.View&FileStore_id=f9e14825-581c-4f5d-b1ba-
ef486d852cd8. The Department of Justice estimates that the Criminal
Division's overall return on investment is $10:$1.
---------------------------------------------------------------------------
The centerpiece provision of the FFTPA capitalizes on this
rate of return by ensuring that a percentage of money recovered
by the Government through fines and penalties is reinvested in
the investigation and prosecution of fraud cases. This will
ensure more fraud enforcement, which in turn will result in
more returns to the Government, and more savings to taxpayers,
all without spending new taxpayer money.\2\ The bill will take
approximately $15 million each year that is collected by the
Government through civil debt collection activities and
redirect those funds into investigating, prosecuting, and
litigating fraud cases.
---------------------------------------------------------------------------
\2\The Congressional Budget Office has given this legislation a
modest score because CBO rules require scoring of money allocated that
would otherwise go to the general Treasury even if that money does not
come from taxpayers. Congressional Budget Office rules do not allow
credit for the return on investment from spending on fraud. This score
does not change the fact that this bill requires no new taxpayer
spending, and will lead to a net increase in funds going to the
Treasury as the fraud prosecutions and litigation funded by this bill
lead to fines, penalties, and other returns.
---------------------------------------------------------------------------
The bill also makes modest changes to ensure that
prosecutors and investigators have the tools they need to
combat fraud. It extends the international money laundering
statute to tax evasion crimes. This will deter individuals from
evading our tax laws by hiding their money overseas. It also
protects American consumers from identity theft by
strengthening the prohibition against trafficking in passwords
and the Federal identity theft statute. As more and more
business is conducted online, we must ensure that consumers'
personal information remains protected.
The Secret Service has responsibility for investigating a
variety of complex financial fraud crimes, including identity
theft. This bill gives the Secret Service additional tools to
conduct critical undercover investigations. Fraud cases are
often complex and difficult to prove, so undercover
investigations can be a key way to ferret out criminal
activity.
In the last Congress, Congress strengthened the False
Claims Act, which empowers whistleblowers to shine a light on
fraud and recover stolen tax dollars that would otherwise go
undiscovered. These new laws are already paying off. In 2009
and 2010, the Department of Justice has recovered more than
$6.8 billion in False Claims Act cases, far more than any other
two-year period.\3\ The FFPTA asks the Attorney General to
report to Congress on False Claims Act settlements, which will
help ensure that the False Claims Act remains a valuable tool
for fighting fraud.
---------------------------------------------------------------------------
\3\See Protecting American Taxpayers: Significant Accomplishments
and Ongoing Challenges in the Fight Against Fraud: Hearing Before the
S. Comm. on the Judiciary, 112th Cong. 89 (2011) (testimony of Tony
West, Asst. Att'y Gen., Civ. Div., U.S. Dept. of Justice).
---------------------------------------------------------------------------
The FFPTA also promotes accountability within Government.
Along with requiring reporting, it takes modest steps to ensure
that the resources already entrusted to the Justice Department
are used responsibly by strengthening oversight of the
Department's Working Capital Fund.
We must continue to strengthen the tools that law
enforcement has to root out fraud. Taxpaying Americans deserve
to know that their Government is doing all it can to prevent
fraud and hold those who commit fraud accountable for their
crimes. The FFPTA will provide new tools needed for law
enforcement to prosecute and punish those responsible for
fraud, and will do so at no added cost to taxpayers.
II. History of the Bill and Committee Consideration
A. INTRODUCTION OF THE BILL
On May 5, 2011, Chairman Leahy introduced the bill, S. 890,
with Senator Grassley. Senators Klobuchar and Coons have joined
as cosponsors.
B. COMMITTEE CONSIDERATION
1. Committee hearing
On January 25, 2011, the Committee held a hearing entitled
``Protecting American Taxpayers: Significant Accomplishments
and Ongoing Challenges in the Fight Against Fraud'' to, among
other things, explore whether new resources and tools for fraud
enforcement were needed. At the hearing, two witnesses
testified: Assistant Attorney General Lanny Breuer of the
Criminal Division of the Department of Justice, and Assistant
Attorney General Tony West of the Civil Division of the
Department of Justice. Both witnesses described the benefits of
increasing resources for fraud enforcement.
Assistant Attorney General Breuer testified that in fiscal
year 2010 alone, in criminal matters in which the Criminal
Division participated, the Justice Department obtained
approximately $3.4 billion in judgments and settlements, with
more than $1 billion in restitution ordered, $570 million in
fines, $914 million in forfeiture, and $828 million in other
settlements. He reiterated that Congress's financial support of
criminal investigations and prosecutions is critical to
protecting American taxpayers' hard earned money. He also
reaffirmed that the amount of taxpayer money restored to the
United States Treasury through criminal fraud enforcement
efforts far exceeds what the Department of Justice spends to
recover that money. As a result of criminal fraud prosecutions,
the Department is transferring to the U.S. Treasury far more
money than the amount budgeted by Congress to support the
Department's criminal fraud and corporate corruption
investigations and prosecutions.
Assistant Attorney General West testified that each year
the attorneys from the Civil Division of the Department of
Justice handle thousands of cases that collectively involve
billions of dollars in claims and recoveries. Over the last
year, the Department of Justice has made significant strides in
protecting taxpayer dollars--as well as the integrity of
Government programs that depend on those dollars--through
aggressive civil enforcement actions aimed at rooting out
waste, fraud, and abuse. For fiscal year 2010, the Civil
Division secured $3 billion in civil settlements and judgments
in cases involving fraud against the Government.
2. Executive business meetings
On May 12, 2011, the Committee held an executive committee
business meeting to consider S. 890 and other measures, and the
bill was held over for further consideration at the request of
the Ranking Member.
On May 19, 2011, the Committee considered S. 890. No
amendments were offered, and the Committee voted to report S.
890, the Fighting Fraud to Protect Taxpayers Act of 2011,
favorably to the Senate. The Committee proceeded by roll call
vote as follows:
Tally: 16 Yeas, 2 Nays
Yeas (16): Kohl (D-WI), Feinstein (D-CA), Schumer (D-NY),
Durbin (D-IL), Whitehouse (D-RI), Klobuchar (D-MN), Franken (D-
MN), Coons (D-DE), Blumenthal (D-CT), Grassley (R-IA), Hatch
(R-UT), Sessions (R-AL), Graham (R-SC), Cornyn (R-TX), Coburn
(R-OK), Leahy (D-VT).
Nays (2): Kyl (R-AZ), Lee (R-UT).
III. Section-by-Section Summary of the Bill
Section 1. Short title
This section provides that the legislation may be cited as
the ``Fighting Fraud to Protect Taxpayers Act of 2011.''
Section 2. Department of Justice Working Capital Fund reforms to
support fraud enforcement
Currently, the Department of Justice is authorized to keep
in its Working Capital Fund up to 3 percent of the money it
collects pursuant to its civil debt collection litigation
activities. This section increases that amount to 3.5 percent
and directs that the additional .5 percent must be spent on the
investigation and prosecution of fraud. This should result in
approximately $15 million additional dollars spent on fraud
enforcement each year. The section also increases
accountability by capping the amount of the 3.5 percent
collected each year that the Justice Department can carry over
to spend in subsequent years and requiring the Justice
Department to report to Congress on how the Working Capital
Fund operates each year.
Section 3. Reimbursement of costs awarded if False Claims Act
prosecutions
Civil False Claims Act recoveries are deposited in the
General Fund of the Treasury after relators are paid, victim
agencies are refunded for their loss, and 3 percent is deducted
for the Department of Justice's Working Capital Fund. This
section authorizes an additional deduction to allow the
Department of Justice or any other investigating agency to
recoup its investigation and prosecution costs related to the
False Claims Act matter being resolved.
Section 4. Interlocutory appeals of suppression or exclusion of
evidence
This section amends 18 U.S.C. Sec. 3731 to expressly permit
Assistant Attorneys General, the Deputy Attorney General, and
the Attorney General to certify interlocutory appeals from
district court orders suppressing or excluding evidence. As it
is currently written, section 3731 requires a certification by
the United States Attorney, and at least one appellate court
has held that the language does not permit certification by
others. This creates a vacuum in cases that are handled by
Department of Justice components other than the United States
Attorneys' Offices, including the litigating units that handle
fraud cases.
Section 5. Extension of the international money laundering statute to
tax evasion crimes
This section extends the money laundering statute to cover
tax evasion crimes. Doing so will allow criminals who hide
money overseas to be charged with money laundering, which can
result in increased sentences, which in turn acts as a
deterrent to fraud crimes.
Section 6. Strengthening the prohibition against trafficking in
passwords
Currently, it is criminal to knowingly traffic in passwords
that can be used to access computers without authorization. The
current prohibition applies, however, only where the
trafficking itself affects interstate or foreign commerce, or
where the passwords could access a Government computer. This
section amends 18 U.S.C. Sec. 1030(a)(6) to criminalize
trafficking in passwords that could access any protected
computer as defined by section 1030(e)(2) (computers for the
use of a financial institution or the Government, or which are
used in or affecting interstate or foreign commerce or
communication).
Section 7. Clarifying venue for Federal mail fraud offenses
This section amends the general venue statute, 18 U.S.C.
Sec. 3237, to clarify that, in the context of mail fraud
schemes, venue exists in any district in which any act in
furtherance of the offense is committed. This fix permits venue
in the district where the bulk of the fraudulent conduct
occurs, regardless of where a letter is mailed.
Section 8. Expansion of authority of the Secret Service
The U.S. Secret Service is one of the only Federal law
enforcement agencies that lacks the permanent authority to use
either appropriated funds or proceeds received from criminal
investigations for some activities to advance undercover
operations. This section grants the Secret Service the same
permanent authority to conduct undercover operations that is
given to other law enforcement entities.
Section 9. False Claims Act settlements
This section requires the Attorney General to submit an
annual report to Congress that describes in detail each
settlement the Justice Department enters into that relates to
an alleged violation of the False Claims Act.
Section 10. Amending the title of Aggravated Identity Theft
This section amends the title of the identity theft
statute, changing it from ``Aggravated Identity Theft'' to
``Aggravated Identity Theft and Fraud'' to better reflect the
nature of the conduct charged under the provision.
Section 11. Expanding identity theft to include corporate identity
theft
Currently, the regular identity theft offense codified at
18 U.S.C. Sec. 1028(a)(7) does not cover the unlawful use of a
corporation's name. This is problematic because criminals
routinely engage in the unauthorized use of legitimate
companies' names and logos. This section amends the identity
theft statute to cover the unlawful use of legitimate corporate
names and logos.
IV. Congressional Budget Office Cost Estimate
The Committee sets forth, with respect to the bill S. 890,
the following estimate and comparison prepared by the Director
of the Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
June 15, 2011.
Hon. Patrick J. Leahy,
Chairman, Committee on the Judiciary,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 890, the Fighting
Fraud to Protect Taxpayers Act of 2011.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
S. 890--Fighting Fraud to Protect Taxpayers Act of 2011
Summary: S. 890 would increase the funds available to the
Department of Justice (DOJ) each year for investigating and
prosecuting fraud offenses. The bill would establish a new
federal crime relating to international money laundering. S.
890 also would require DOJ to prepare annual reports on
settlements of certain fraud cases and funding of its debt
collection and antifraud efforts.
CBO estimates that enacting S. 890 would increase direct
spending by $69 million over the 2012-2021 period. In addition,
we estimate that enacting the bill would affect revenues, but
such effects would not be significant. Because enacting the
legislation would affect direct spending and revenues, pay-as-
you-go procedures apply. We also estimate that implementing the
bill would have discretionary costs of about $1 million
annually over the 10-year period.
S. 890 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 890 is shown in the following table. The
costs of this legislation fall within budget function 750
(administration of justice).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2016 2012-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority........................ 7 7 7 7 7 7 7 7 7 7 35 70
Estimated Outlays................................. 6 7 7 7 7 7 7 7 7 7 34 69
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level..................... 1 1 1 1 1 1 1 1 1 1 5 10
Estimated Outlays................................. 1 1 1 1 1 1 1 1 1 1 5 10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that S.
890 will be enacted by the end of fiscal year 2011.
Direct spending and revenues
DOJ collects civil debt owed to federal agencies and
returns most of the recovered amounts to those agencies, with
remaining amounts deposited in the Treasury. Current law
authorizes DOJ to retain and spend up to 3 percent of most debt
it recovers to defray the costs of its debt collection efforts.
S. 890 would permit DOJ to retain and spend an additional 0.5
percent annually to cover certain costs of investigating and
prosecuting fraud offenses.
Based on the amount of civil debt recovered by DOJ in
recent years, CBO expects the department to collect between $3
billion and $4 billion annually over the 2012-2021 period and
to retain 3 percent of those amounts. Under current law, most
of the remaining amounts will be returned to agencies and
spent, so allowing DOJ to retain an extra 0.5 percent of those
funds would have no significant net effect on federal spending.
However, we estimate that each year about $1.4 billion of debt
collected by DOJ will be deposited in the Treasury and not
available to be spent. CBO estimates that allowing DOJ to spend
an additional 0.5 percent of those funds would increase direct
spending by about $7 million annually over the 2012-2021
period.
S. 890 would establish a new federal crime relating to
international money laundering. Because those prosecuted and
convicted under S. 890 could be subject to criminal fines, the
federal government might collect additional fines if the
legislation is enacted. Criminal fines are recorded as
revenues, deposited in the Crime Victims Fund, and later spent.
CBO expects that any additional revenues and direct spending
would not be significant because of the small number of cases
likely to be affected.
Spending subject to appropriation
S. 890 would direct DOJ to prepare an annual report for the
Congress on the sources of the collections that it retains each
year and on the spending of those funds. The bill also would
require DOJ to prepare an annual report on cases involving
major fraud or false claims against the United States that were
resolved through settlement. Based on the costs of similar
activities, CBO estimates that it would cost about $1 million
annually, subject to the availability of appropriated funds,
for DOJ to prepare the reports required by the bill.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. S. 890 would increase the funds available to DOJ each
year for investigating and prosecuting fraud offenses. The bill
also could affect direct spending and revenues through the
collection and spending of criminal fines. The net changes in
outlays and revenues that are subject to those pay-as-you-go
procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 890 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON THE JUDICIARY ON MAY 19, 2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011-2016 2011-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact................. 0 6 7 7 7 7 7 7 7 7 7 34 69
Memorandum:
Changes in Outlays........................... 0 6 7 7 7 7 7 7 7 7 7 34 69
Changes in Revenues.......................... 0 0 0 0 0 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated impact on state, local, and tribal governments:
S. 890 contains no intergovernmental or private-sector mandates
as defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Mark Grabowicz; Impact
on state, local, and tribal governments: Melissa Merrell;
Impact on the private sector: Marin Randall.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
V. Regulatory Impact Evaluation
In compliance with rule XXVI of the Standing Rules of the
Senate, the Committee finds that no significant regulatory
impact will result from the enactment of S. 890.
VI. Conclusion
The FFPTA will enhance and invigorate existing efforts to
investigate fraud, including the scourge of mortgage,
foreclosure, financial, and health care fraud that has
victimized thousands of unsuspecting Americans in recent years.
The legislation will fill key statutory gaps to account for
modern types of fraud and will increase accountability by
requiring the Justice Department to better manage and account
for key spending. The FFPTA reflects the ongoing need to invest
in enforcement to better protect hard-working taxpayers from
all of these insidious types of fraud.
VII. Changes to Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
S. 890, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
UNITED STATES CODE
TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
PART II--DEPARTMENT OF JUSTICE
* * * * * * *
CHAPTER 31--THE ATTORNEY GENERAL
* * * * * * *
SEC. 527. ESTABLISHMENT OF WORKING CAPITAL FUND.
STATUTORY NOTE
[Notwithstanding] (1) Definitions_In this subsection--
(A) the term `covered amounts' means--
(i) the unobligated balances in the debt
collection management account; and
(ii) the unobligated balances in the
supplemental fraud fighting account;
(B) the term `debt collection management account'
means the account established in the Department of
Justice Working Capital Fund under paragraph (2);
(C) the term `fraud offense' includes--
(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);
(ii) a securities fraud offense, as defined
in section 3301 of title 18, United States
Code;
(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;
(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;
(v) an offense under the Internal Revenue
Code of 1986 involving fraud;
(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;
(vii) an offense under section 1029, 1030, or
1031 of title 18, United States Code; and
(viii) an offense under chapter 63 of title
18, United States Code; and
(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).
(2) Debt collection management account._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
Department of Justice Working Capital Fund up to 3 percent of
all amounts collected pursuant to civil debt collection
litigation activities of the Department of Justice. [Such
amounts] Subject to paragraph (4), such amounts in the Working
Capital Fund shall remain available until expended and shall be
subject to the terms and conditions of that fund, and shall be
used first, for paying the costs of processing and tracking
civil and criminal debt-collection litigation, and, thereafter,
for financial systems and for debt-collection-related
personnel, administrative, and litigation expenses.
(3) Supplemental fraud fighting account.--
(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.
(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.
(C) Use of funds.--
(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.
(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--
(I) an offense under section 30A of
the Securities Exchange Act of 1934 (15
U.S.C. 78dd-1); or
(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).
(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.
(4) Maximum amount.--
(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.
(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.
(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--
(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--
(i) a comprehensive description of the source
of the amount credited; and
(ii) a list the civil actions and settlements
from which amounts were collected and credited
to the account;
(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--
(i) paying the costs of processing and
tracking civil and criminal debt-collection
litigation;
(ii) financial systems;
(iii) debt-collection-related personnel
expenses;
(iv) debt-collection-related administrative
expenses; and
(v) debt-collection-related litigation
expenses;
(C) the amounts expended from the supplemental fraud
fighting account and the justification for the
expenditure of such amounts; and
(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.
* * * * * * *
TITLE 31--MONEY AND FINANCE
* * * * * * *
SUBTITLE III--FINANCIAL MANAGEMENT
* * * * * * *
CHAPTER 37--CLAIMS
* * * * * * *
Subchapter III--Claims Against the United States Government
* * * * * * *
SEC. 3729. FALSE CLAIMS.
(a) Liability for Certain Acts.--
* * * * * * *
(3) Costs of civil actions.--A person violating this
subsection shall also be liable to the United States
Government for the costs of a civil action brought to
recover any such penalty or damages. 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.
* * * * * * *
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
* * * * * * *
PART II--CRIMINAL PROCEDURE
* * * * * * *
CHAPTER 235--APPEAL
* * * * * * *
SEC. 3731. APPEAL BY UNITED STATES.
In a criminal case an appeal by the United States shall lie
to a court of appeals from a decision, judgment, or order of a
district court dismissing an indictment or information or
granting a new trial after verdict or judgment, as to any one
or more counts, or any part thereof, except that no appeal
shall lie where the double jeopardy clause of the United States
Constitution prohibits further prosecution.
An appeal by the United States shall lie to a court of
appeals from a decision or order of a district court
suppressing or excluding evidence or requiring the return of
seized property in a criminal proceeding, not made after the
defendant has been put in jeopardy and before the verdict or
finding on an indictment or information, if the Attorney
General, the Deputy Attorney General, an Assistant Attorney
General, or the United States attorney certifies to the
district court that the appeal is not taken for purpose of
delay and that the evidence is a substantial proof of a fact
material in the proceeding.
An appeal by the United States shall lie to a court of
appeals from a decision or order, entered by a district court
of the United States, granting the release of a person charged
with or convicted of an offense, or denying a motion for
revocation of, or modification of the conditions of, a decision
or order granting release.
The appeal in all such cases shall be taken within thirty
days after the decision, judgment or order has been rendered
and shall be diligently prosecuted.
The provisions of this section shall be liberally construed
to effectuate its purposes.
* * * * * * *
PART I--CRIMES
* * * * * * *
CHAPTER 95--RACKETEERING
* * * * * * *
SEC. 1956. LAUNDERING OF MONETARY INSTRUMENTS.
(a)(2) Whoever transports, transmits, or transfers, or
attempts to transport, transmit, or transfer a monetary
instrument or funds from a place in the United States to or
through a place outside the United States or to a place in the
United States from or through a place outside the United
States--
(A) with the [intent to promote the carrying on of
specified unlawful activity; or] intent to--
(i) promote
(ii) engage in conduct constituting a
violation of section 7201 or 7206 of the
Internal Revenue Code of 1986; or
* * * * * * *
CHAPTER 47--FRAUD AND FALSE STATEMENTS
* * * * * * *
SEC. 1030. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH COMPUTERS.
(a)(6) knowingly and with intent to defraud traffics (as
defined in section 1029) in any password or similar information
through which a protected computer may be accessed without
authorization[, if--]; or
[(A) such trafficking affects interstate or foreign
commerce; or
[(B) such computer is used by or for the Government
of the United States;]
* * * * * * *
PART II--CRIMINAL PROCEDURE
* * * * * * *
CHAPTER 211--JURISDICTION VENUE
SEC.
* * * * * * *
3231. District courts
3232. District of offense (Rule)
3233. Transfer within district (Rule)
3234. Change of venue to another district (Rule)
3235. Venue in capital cases
3236. Murder or manslaughter
[3237. Offenses begun in one district and completed in another]
3237. Offenses taking place in more than one district
3238. Offenses not committed in any district
3239. Optional venue for espionage and related offenses
3240. Creation of new district or division
3241. Jurisdiction of offenses under certain sections
3242. Indians committing certain offenses; acts on reservations
3243. Jurisdiction of State of Kansas over offenses committed by or
against Indians on Indian reservations
3244. Jurisdiction of proceedings relating to transferred offenders
* * * * * * *
SEC. 3237. OFFENSES [BEGUN IN ONE DISTRICT AND COMPLETED IN ANOTHER]
TAKING PLACE IN MORE THAN ONE DISTRICT.
(a) Except as otherwise expressly provided by enactment of
Congress, any offense against the United States begun in one
district and completed in another, or committed in more than
one district, may be inquired of and prosecuted in any district
in which such offense was begun, continued, or completed.
Any offense involving the use of the mails, transportation
in interstate or foreign commerce, or the importation of an
object or person into the United States is a continuing offense
and, except as otherwise expressly provided by enactment of
Congress, may be inquired of and prosecuted in any district
from, through, or into which such commerce, mail matter, or
imported object or person moves or in any district in which an
act in furtherance of the offense is committed.
* * * * * * *
CHAPTER 203--ARREST AND COMMITMENT
* * * * * * *
SEC. 3056. POWERS, AUTHORITIES, AND DUTIES OF UNITED STATES SECRET
SERVICE.
* * * * * * *
(b) Under the direction of the Secretary of Homeland
Security, the Secret Service is authorized to detect and arrest
any person who violates--
(1) section 508, 509, 510, 641, 656, 657, 871, or 879
of this title or, with respect to the Federal Deposit
Insurance Corporation, Federal land banks, and Federal
land bank associations, section 213, 216, 433, [493,
657,] 493, 709, 1006, 1007, 1011, 1013, 1014, 1907, or
1909 of this title;
(2) any of the laws of the United States relating to
coins, obligations, and securities of the United States
and of foreign governments; or
(3) any of the laws of the United States relating to
electronic fund transfer frauds, access device frauds,
false identification documents or devices, and any
fraud or other criminal or unlawful activity in or
against any [federally insured] financial institution;
except that the authority conferred by this paragraph
shall be exercised subject to the agreement of the
Attorney General and the Secretary of Homeland Security
and shall not affect the authority of any other Federal
law enforcement agency with respect to those laws.
* * * * * * *
(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--
(A) use amounts appropriated for the United States
Secret Service, including unobligated balances
available from prior fiscal years, to--
(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; and
(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;
(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;
and
(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.
(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.
(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.
(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.
(5)(A) The Director shall--
(i) on a quarterly basis, conduct detailed financial
audits of closed undercover investigative operations
for which a written determination is made under
paragraph (2); and
(ii) submit to the Secretary of Homeland Security a
written report of the results of each audit conducted
under clause (i).
(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.
* * * * * * *
PART I--CRIMES
* * * * * * *
CHAPTER 47--FRAUD AND FALSE STATEMENTS
SEC.
* * * * * * *
1020. Highway projects
1021. Title records
1022. Delivery of certificate, voucher, receipt for military or naval
property
1023. Insufficient delivery of money or property for military or naval
service
1024. Purchase or receipt of military, naval, or veteran's facilities
property
1025. False pretenses on high seas and other waters
1026. Compromise, adjustment, or cancellation of farm indebtedness
1027. False statements and concealment of facts in relation to documents
required by the Employee Retirement Income Security Act of
1974
[1028. Fraud and related activity in connection with identification
1028. Fraud and related activity in connection with formation]
identification documents, authentication features, and
information.
[1028A. Aggravated identity theft]
1028A. Aggravated identity theft and fraud.
1029. Fraud and related activity in connection with access devices
1030. Fraud and related activity in connection with computers
* * * * * * *
SEC. 1028. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH IDENTIFICATION
DOCUMENTS, AUTHENTICATION FEATURES, AND
INFORMATION.
(a)(7) knowingly transfers, possesses, or uses, without
lawful authority, a means of identification of another person
(including an organization) with the intent to commit, or to
aid or abet, or in connection with, any unlawful activity that
constitutes a violation of Federal law, or that constitutes a
felony under any applicable State or local law; or
* * * * * * *
SEC. 1028A. AGGRAVATED IDENTITY THEFT AND FRAUD.
* * * * * * *