[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2717 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2717

To increase criminal penalties relating to conspiracy, mail fraud, wire 
      fraud, and certain ERISA violations, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 10, 2002

 Mr. Biden (for himself and Mr. Hatch) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To increase criminal penalties relating to conspiracy, mail fraud, wire 
      fraud, and certain ERISA violations, 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. SHORT TITLE.

    This Act may be cited as the ``White-Collar Crime Penalty 
Enhancement Act of 2002''.

SEC. 2. CRIMINAL PENALTIES FOR CONSPIRACY TO COMMIT OFFENSE OR TO 
              DEFRAUD THE UNITED STATES.

    Section 371 of title 18, United States Code, is amended by striking 
``If two or more'' and all that follows through ``If, however,'' and 
inserting the following:
    ``(a) In General.--If 2 or more persons--
            ``(1) conspire to commit any offense against the United 
        States, in any manner or for any purpose, and 1 or more of such 
        persons do any act to effect the object of the conspiracy, each 
        person shall be fined or imprisoned, or both, as set forth in 
        the specific substantive offense which was the object of the 
        conspiracy; or
            ``(2) conspire to defraud the United States, or any agency 
        thereof in any manner or for any purpose, and 1 or more of such 
        persons do any act to effect the object of the conspiracy, each 
        person shall be fined under this title, or imprisoned not more 
        than 10 years, or both.
    ``(b) Misdemeanor Offense.--If, however,''.

SEC. 3. CRIMINAL PENALTIES FOR MAIL AND WIRE FRAUD.

    (a) Mail Fraud.--Section 1341 of title 18, United States Code, is 
amended by striking ``five years'' and inserting ``10 years''.
    (b) Wire Fraud.--Section 1343 of title 18, United States Code, is 
amended by striking ``five years'' and inserting ``10 years''.

SEC. 4. CRIMINAL PENALTIES FOR VIOLATIONS OF THE EMPLOYEE RETIREMENT 
              INCOME SECURITY ACT OF 1974.

    Section 501 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1131) is amended--
            (1) by striking ``$5,000'' and inserting ``$100,000'';
            (2) by striking ``one year'' and inserting ``10 years''; 
        and
            (3) by striking ``$100,000'' and inserting ``$500,000''.

SEC. 5. AMENDMENT TO SENTENCING GUIDELINES RELATING TO CERTAIN WHITE-
              COLLAR OFFENSES.

    (a) Directive to the United States Sentencing Commission.--Pursuant 
to its authority under section 994(p) of title 18, United States Code, 
and in accordance with this section, the United States Sentencing 
Commission shall review and, as appropriate, amend the Federal 
Sentencing Guidelines and related policy statements to implement the 
provisions of this Act.
    (b) Requirements.--In carrying out this section, the Sentencing 
Commission shall--
            (1) ensure that the sentencing guidelines and policy 
        statements reflect the serious nature of the offenses and the 
        penalties set forth in this Act, the growing incidence of 
        serious fraud offenses which are identified above, and the need 
        to modify the sentencing guidelines and policy statements to 
        deter, prevent, and punish such offenses;
            (2) consider the extent to which the guidelines and policy 
        statements adequately address--
                    (A) whether the guideline offense levels and 
                enhancements for violations of the sections amended by 
                this Act are sufficient to deter and punish such 
                offenses, and specifically, are adequate in view of the 
                statutory increases in penalties contained in this Act; 
                and
                    (B) whether a specific offense characteristic 
                should be added in United States Sentencing Guideline 
                section 2B1.1 in order to provide for stronger 
                penalties for fraud when the crime is committed by a 
                corporate officer or director;
            (3) assure reasonable consistency with other relevant 
        directives and sentencing guidelines;
            (4) account for any additional aggravating or mitigating 
        circumstances that might justify exceptions to the generally 
        applicable sentencing ranges;
            (5) make any necessary conforming changes to the sentencing 
        guidelines; and
            (6) assure that the guidelines adequately meet the purposes 
        of sentencing as set forth in section 3553(a)(2) of title 18, 
        United States Code.

SEC. 6. CORPORATE RESPONSIBILITY FOR FINANCIAL REPORTS.

    (a) In General.--Chapter 63 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 1348. Failure of corporate officers to certify financial reports
    ``(a) Certification of Periodic Financial Reports.--Each periodic 
report containing financial statements filed by an issuer with the 
Securities Exchange Commission pursuant to section 13(a) or 15(d) of 
the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)) shall 
be accompanied by a written statement by the chairman of the board, 
chief executive officer, and chief financial officer (or equivalent 
thereof) of the issuer.
    ``(b) Content.--The statement required under subsection (a) shall 
certify the appropriateness of the financial statements and disclosures 
contained in the periodic report or financial report, and that those 
financial statements and disclosures fairly present, in all material 
respects, the operations and financial condition of the issuer.
    ``(c) Criminal Penalties.--Notwithstanding any other provision of 
law--
            ``(1) any person who recklessly and knowingly violates any 
        provision of this section shall upon conviction be fined not 
        more than $500,000, or imprisoned not more than 5 years, or 
        both; or
            ``(2) any person who willfully violates any provision of 
        this section shall upon conviction be fined not more than 
        $1,000,000, or imprisoned not more than 10 years, or both.''.
    (b) Technical and Conforming Amendment.--The section analysis for 
chapter 63 of title 18, United States Code, is amended by adding at the 
end the following:

``1348. Failure of corporate officers to certify financial reports.''.
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