[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1748 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1748

To amend title 18, United States Code, to enhance the investigation and 
prosecution of mortgage fraud and financial institution fraud, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 26, 2009

    Mr. Conyers (for himself, Mr. Smith of Texas, Mr. Delahunt, Ms. 
Jackson-Lee of Texas, and Mrs. Biggert) introduced the following bill; 
 which was referred to the Committee on the Judiciary, and in addition 
  to the Committees on Oversight and Government Reform and Financial 
Services, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend title 18, United States Code, to enhance the investigation and 
prosecution of mortgage fraud and financial institution fraud, 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 ``Fight Fraud Act of 2009''.

SEC. 2. AMENDMENTS TO IMPROVE MORTGAGE, SECURITIES, AND FINANCIAL FRAUD 
              RECOVERY AND ENFORCEMENT.

    (a) Definition of Financial Institution Amended To Include Mortgage 
Lending Business.--Section 20 of title 18, United States Code, is 
amended--
            (1) in paragraph (8), by striking ``or'' after the 
        semicolon;
            (2) in paragraph (9), by striking the period and inserting 
        ``; or''; and
            (3) by inserting at the end the following:
            ``(10) a mortgage lending business or any person or entity 
        that makes in whole or in part a federally related mortgage 
        loan as defined in section 3 of the Real Estate Settlement 
        Procedures Act of 1974.''.
    (b) Mortgage Lending Business Defined.--
            (1) In general.--Chapter 1 of title 18, United States Code, 
        is amended by inserting after section 26 the following:
``Sec. 27. Mortgage lending business defined
    ``In this title, the term `mortgage lending business' means an 
organization which finances or refinances any debt secured by an 
interest in real estate, including private mortgage companies and any 
subsidiaries of such organizations, and whose activities affect 
interstate or foreign commerce.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1 of title 18, United States Code, is 
        amended by adding at the end the following:

``27. Mortgage lending business defined.''.
    (c) False Statements in Mortgage Applications Amended To Include 
False Statements by Mortgage Brokers and Agents of Mortgage Lending 
Businesses.--Section 1014 of title 18, United States Code, is amended--
            (1) by striking ``or'' after ``the International Banking 
        Act of 1978),''; and
            (2) by inserting after ``section 25(a) of the Federal 
        Reserve Act'' the following: ``or a mortgage lending business, 
        or any person or entity that makes in whole or in part a 
        federally related mortgage loan as defined in section 3 of the 
        Real Estate Settlement Procedures Act of 1974''.
    (d) Major Fraud Against the Government Amended To Include Economic 
Relief and Troubled Asset Relief Program Funds.--Section 1031(a) of 
title 18, United States Code, is amended--
            (1) by striking ``in any procurement'' and inserting ``in 
        any grant, contract, subcontract, subsidy, loan, guarantee, 
        insurance or other form of Federal assistance, including 
        through the Troubled Assets Relief Program, an economic 
        stimulus, recovery or rescue plan provided by the Government, 
        or the Government's purchase of any preferred stock in a 
        company, or any procurement''; and
            (2) by striking ``the contract, subcontract'' and inserting 
        ``such grant, contract, subcontract, subsidy, loan, guarantee, 
        insurance or other form of Federal assistance''.
    (e) Securities Fraud Amended To Include Fraud Involving Options and 
Futures in Commodities.--
            (1) In general.--Section 1348 of title 18, United States 
        Code, is amended--
                    (A) in the caption, by inserting ``and 
                commodities'' after ``Securities'';
                    (B) in paragraph (1), by inserting ``any commodity 
                for future delivery, or any option on a commodity for 
                future delivery, or'' after ``any person in connection 
                with''; and
                    (C) in paragraph (2), by inserting ``any commodity 
                for future delivery, or any option on a commodity for 
                future delivery, or'' after ``in connection with the 
                purchase or sale of''.
            (2) Clerical amendment.--The item relating to section 1348 
        in the table of sections at the beginning of chapter 63 of 
        title 18, United States Code, is amended by inserting ``and 
        commodities'' after ``Securities''.

SEC. 3. ADDITIONAL FUNDING FOR INVESTIGATORS AND PROSECUTORS FOR 
              MORTGAGE FRAUD, SECURITIES FRAUD, AND OTHER CASES 
              INVOLVING FEDERAL ECONOMIC ASSISTANCE.

    (a) In General.--
            (1) Authorization.--There is authorized to be appropriated 
        to the Attorney General, to remain available until expended, 
        $165,000,000 for each of the fiscal years 2010 and 2011, for 
        the purposes of investigations, prosecutions, and civil 
        proceedings involving Federal assistance programs and financial 
        institutions, including financial institutions to which this 
        Act and amendments made by this Act apply.
            (2) Allocations.--With respect to fiscal years 2010 and 
        2011, the amount authorized to be appropriated under paragraph 
        (1) shall be allocated as follows:
                    (A) Federal Bureau of Investigation: $75,000,000 
                for fiscal year 2010 and $65,000,000 for fiscal year 
                2011.
                    (B) The offices of the United States Attorneys: 
                $50,000,000.
                    (C) The criminal division of the Department of 
                Justice: $20,000,000.
                    (D) The civil division of the Department of 
                Justice: $15,000,000.
                    (E) The tax division of the Department of Justice: 
                $5,000,000.
    (b) Additional Appropriations for the Postal Inspection Service.--
There is authorized to be appropriated to the Postal Inspection Service 
of the United States Postal Service, $30,000,000 for each of the fiscal 
years 2010 and 2011 for investigations involving Federal assistance 
programs and financial institutions, including financial institutions 
to which this Act and amendments made by this Act apply.
    (c) Additional Appropriations for the Inspector General for the 
Department of Housing and Urban Development.--There is authorized to be 
appropriated to the Inspector General of the Department of Housing and 
Urban Development, $30,000,000 for each of the fiscal years 2010 and 
2011 for investigations involving Federal assistance programs and 
financial institutions, including financial institutions to which this 
Act and amendments made by this Act apply.
    (d) Additional Appropriations for the United States Secret 
Service.--There is authorized to be appropriated to the United States 
Secret Service of the Department of Homeland Security, $20,000,000 for 
each of the fiscal years 2010 and 2011 for investigations involving 
Federal assistance programs and financial institutions, including 
financial institutions to which this Act and amendments made by this 
Act apply.
    (e) Use of Funds.--The funds authorized to be appropriated under 
subsections (a), (b), (c), and (d) shall be limited to cover the costs 
of each listed agency or department for investigating possible 
criminal, civil, or administrative violations and for prosecuting 
criminal, civil, or administrative proceedings involving financial 
crimes and crimes against Federal assistance programs, including 
mortgage fraud, securities fraud, financial institution fraud, and 
other frauds related to Federal assistance and relief programs.
    (f) Report to Congress.--Following the final expenditure of all 
funds appropriated under this section that were authorized by 
subsections (a), (b), (c), and (d) the Attorney General, in 
consultation with the United States Postal Inspection Service, the 
Inspector General for the Department of Housing and Urban Development, 
and the Secretary of Homeland Security, shall submit a joint report to 
Congress identifying--
            (1) the amounts expended under subsections (a), (b), (c), 
        and (d) and a certification of compliance with the requirements 
        listed in subsection (e); and
            (2) the amounts recovered as a result of criminal or civil 
        restitution, fines, penalties, and other monetary recoveries 
        resulting from criminal, civil, or administrative proceedings 
        and settlements undertaken with funds authorized by this Act.
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