II Calendar No. 148 110th CONGRESS 1st Session S. 119 [Report No. 110–66] IN THE SENATE OF THE UNITED STATES January 4, 2007 Mr. Leahy (for himself, Mr. Bingaman, Mr. Harkin, Mr. Kerry, Mr. Lautenberg, Mr. Rockefeller, Mr. Dorgan, Mr. Schumer, Mr. Wyden, Ms. Cantwell, Mrs. Clinton, Mr. Menendez, Mr. Nelson of Florida, Mr. Durbin, Mrs. Feinstein, Ms. Landrieu, Mr. Feingold, Ms. Mikulski, Mrs. Boxer, Mr. Cardin, and Mr. Byrd) introduced the following bill; which was read twice and referred to the Committee on the Judiciary May 15, 2007 Reported by Mr. Leahy, with amendments Omit the part struck through and insert the part printed in italic A BILL To prohibit profiteering and fraud relating to military action, relief, and reconstruction efforts, and for other purposes.

1.

Short title

This Act may be cited as the War Profiteering Prevention Act of 2007.

2.

Prohibition of profiteering

(a)

Prohibition

(1)

In general

Chapter 47 of title 18, United States Code, is amended by adding at the end the following:

1039.

War profiteering and fraud relating to military action, relief, and reconstruction efforts

(a)

Prohibition

(1)

In general

Whoever, in any matter involving a contract or the provision of goods or services, directly or indirectly, in connection with a war, military action, or relief or reconstruction activities within the jurisdiction of the United States Government, knowingly and willfully— (A)(i)executes or attempts to execute a scheme or artifice to defraud the United States; or (ii)materially overvalues any good or service with the specific intent to defraudand excessively profit from the war, military action, or relief or reconstruction activities;; shall be fined under paragraph (2), imprisoned not more than 20 years, or both; or(B)(i)falsifies, conceals, or covers up by any trick, scheme, or device a material fact; (ii)makes any materially false, fictitious, or fraudulent statements or representations; or (iii)makes or uses any materially false writing or document knowing the same to contain any materially false, fictitious or fraudulent statement or entry; shall be fined under paragraph (2) imprisoned not more than 10 years, or both.(2)

Fine

A person convicted of an offense under paragraph (1) may be fined the greater of— (A)$1,000,000; or (B)if such person derives profits or other proceeds from the offense, not more than twice the gross profits or other proceeds. (b)

Extraterritorial jurisdiction

There is extraterritorial Federal jurisdiction over an offense under this section. (c)

Venue

A prosecution for an offense under this section may be brought— (1)as authorized by chapter 211 of this title; (2)in any district where any act in furtherance of the offense took place; or (3)in any district where any party to the contract or provider of goods or services is located.

. (2)

Table of sections

The table of sections for chapter 47 of title 18, United States Code, is amended by adding at the end the following: 1039. War profiteering and fraud relating to military action, relief, and reconstruction efforts. . (b)

Civil forfeiture

Section 981(a)(1)(C) of title 18, United States Code, is amended by inserting 1039, after 1032,. (c)

Criminal forfeiture

Section 982(a)(2)(B) of title 18, United States Code, is amended by striking or 1030 and inserting 1030, or 1039. (d)

RICO

Section 1956(c)(7)(D) of title 18, United States Code, is amended by inserting the following: , section 1039 (relating to war profiteering and fraud relating to military action, relief, and reconstruction efforts) after liquidating agent of financial institution),. (d)

Money laundering

Section 1956(c)(7)(D) of title 18, United States Code, is amended by inserting after liquidating agent of financial institution), the following: section 1039 (relating to war profiteering and fraud relating to military action, relief, and reconstruction efforts),. (e)

RICO

Section 1961(1) of title 18, United States Code, is amended by inserting after in connection with access devices), the following: section 1039 (relating to war profiteering and fraud relating to military action, relief, and reconstruction efforts),.

May 15, 2007 Reported with amendments