[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1057 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1057

   To amend section 1956 of title 18, United States Code, to include 
equity skimming as a predicate offense, to amend section 1516 of title 
18, United States Code, to curtail delays in the performance of audits, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 21 (legislative day, July 10), 1995

 Mr. Cohen (for himself, Mr. D'Amato, Mr. Bond, Mr. Faircloth, and Mr. 
Mack) introduced the following bill; which was read twice and referred 
        to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend section 1956 of title 18, United States Code, to include 
equity skimming as a predicate offense, to amend section 1516 of title 
18, United States Code, to curtail delays in the performance of audits, 
                        and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. FINDINGS.

    The Congress finds that--
            (1) the Federal Government makes available mortgage 
        insurance and other assistance to encourage investors and 
        lending institutions to provide housing to low-income 
        individuals and families;
            (2) in general, this current system functions well;
            (3) some unscrupulous owners of federally assisted housing, 
        however, have diverted Federal housing subsidies and other 
        funds to personal and other improper uses, while failing to 
        make payments on their insured mortgages or maintain the 
        assisted housing;
            (4) this practice of diverting funds, known as equity 
        skimming, has cost the Nation's taxpayers an estimated 
        $6,000,000,000; and
            (5) current law is inadequate to deter or prevent the 
        practice of equity skimming.

SEC. 2. INCLUSION OF EQUITY SKIMMING AS A LAUNDERING OFFENSE.

    Section 1956(c)(7)(D) of title 18, United States Code, is amended 
by inserting ``section 254 of the National Housing Act (relating to 
equity skimming),'' before ``or any felony violation of the Foreign 
Corrupt Practices Act''.

SEC. 3. OBSTRUCTION OF FEDERAL AUDIT.

    Section 1516(a) of title 18, United States Code, is amended by 
inserting ``or relating to any property that is security for a mortgage 
that is insured, guaranteed, acquired, or held by the Secretary of 
Housing and Urban Development pursuant to any provision of law 
described in section 254(a) of the National Housing Act,'' after 
``under a contract or subcontract,''.

SEC. 4. EFFECT OF EQUITY SKIMMING ON MORTGAGE INSURANCE.

    Section 254 of the National Housing Act (12 U.S.C. 1715z-19) is 
amended--
            (1) by striking ``Whoever'' and inserting the following:
    ``(a) In General.--Whoever''; and
            (2) by adding at the end the following new subsection:
    ``(b) Effect of Violation.--Each contract for insurance under any 
provision of law described in subsection (a) shall provide that if an 
owner, agent, manager, or other person who is otherwise in custody, 
control, or possession of any property described in subsection (a) is 
convicted of a violation of that subsection, the Secretary may recover 
from such owner, agent, manager, or other person an amount equal to the 
sum of--
            ``(1) any benefit of insurance conferred on the mortgagee 
        by the Secretary with respect to such property; and
            ``(2) any loss incurred by the Secretary in connection with 
        such property;
if the Secretary determines that the violation contributed to such 
conferred benefit or incurred loss. Any recovery under this subsection 
shall be in addition to any fine, imprisonment, or other penalty 
imposed under subsection (a).''.
                                 <all>