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

                                                  Union Calendar No. 43
111th CONGRESS
  1st Session
                                H. R. 1748

                      [Report No. 111-95, Part I]

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

                              May 4, 2009

     Reported from the Committee on the Judiciary with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                              May 4, 2009

 Additional sponsors: Mr. Gonzalez, Mr. Moore of Kansas, Mr. Walz, and 
                              Mr. Sherman

                              May 4, 2009

    The Committees on Oversight and Government Reform and Financial 
 Services discharged; committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed
 [For text of introduced bill, see copy of bill as introduced on March 
                               26, 2009]

_______________________________________________________________________

                                 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 Federal assistance in the form of financial relief or 
        stimulus provided by the Government, including through the 
        Troubled Assets Relief Program, whether through grant, 
        contract, subcontract, subsidy, loan, guarantee, insurance, 
        purchase of preferred stock, or otherwise, or any 
        procurement''; and
            (2) by striking ``the contract, subcontract'' and inserting 
        ``such grant, contract, subcontract, subsidy, loan, guarantee, 
        insurance, purchase, or other form of financial relief or 
        stimulus''.
    (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. AUTHORIZATION OF ADDITIONAL RESOURCES FOR INVESTIGATORS AND 
              PROSECUTORS FOR MORTGAGE FRAUD, SECURITIES AND 
              COMMODITIES FRAUD, AND OTHER CRIMES OF FRAUD.

    (a) Authorizations for the Department of Justice.--
            (1) In general.--There is authorized to be appropriated to 
        the Attorney General, $185,000,000 for fiscal year 2010 and 
        $175,000,000 for fiscal year 2011, for the purposes of 
        investigations, prosecutions, and civil enforcement actions 
        against possible fraud (including mortgage fraud and securities 
        and commodities fraud) relating to a financial institution, 
        including financial institutions receiving Federal assistance 
        under the Troubled Assets Relief Program or otherwise.
            (2) Allocations.--The amounts 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, an appropriate percentage of which amounts shall 
                be used to investigate mortgage fraud.
                    (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.
                    (F) The Director of the Administrative Office of 
                the United States Courts: $20,000,000.
    (b) Authorizations 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 into possible fraud described in 
subsection (a)(1).
    (c) Authorizations 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 into possible fraud described in subsection (a)(1).
    (d) Authorizations 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 into possible fraud described in 
subsection (a)(1).
    (e) Additional Authorizations; Availability.--The amounts 
authorized under this section are in addition to amounts otherwise 
authorized in other Acts, and shall remain available until expended.
    (f) Defense Services.--Funds made available under this section by 
the recipient described in subsection (a)(2)(F) shall be used to cover 
costs associated with providing defense services to defendants 
investigated for or charged with an offense described in subsection 
(a)(1).
    (g) Report to Congress.--Following the final expenditure of all 
funds appropriated pursuant to authorization under this section, 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 report to Congress identifying--
            (1) the amounts expended under each of 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.

SEC. 4. GRANTS FOR STATE AND LOCAL LAW ENFORCEMENT.

    (a) In General.--Subject to the availability of amounts provided in 
advance in appropriations Acts, the Attorney General is authorized to 
award grants to States to establish and develop programs to increase 
and enhance enforcement against mortgage fraud, securities and 
commodities fraud, and financial institution fraud, including 
enforcement against the use of computers in committing such fraud.
    (b) Application.--To be eligible to be considered for a grant under 
subsection (a), a State shall submit an application to the Attorney 
General at such time, in such manner, and containing such information, 
including as described in subsection (d), as the Attorney General may 
require.
    (c) Use of Grant Amounts.--A grant awarded to a State under 
subsection (a) shall be used by the State to establish and develop 
programs to--
            (1) assist State and local law enforcement agencies in 
        enforcing State and local criminal laws relating to criminal 
        activity described in subsection (a);
            (2) assist State and local law enforcement agencies in 
        educating the public to prevent and identify such criminal 
        activity;
            (3) educate and train State and local law enforcement 
        officers and prosecutors to conduct investigations, forensic 
        analyses of evidence, and prosecutions relating to such 
        criminal activity;
            (4) assist State and local law enforcement officers and 
        prosecutors in acquiring computer and other equipment to 
        conduct investigations and forensic analyses of evidence 
        relating to such criminal activity;
            (5) assist public defenders with providing defense services 
        to defendants in cases in which the defendant is charged with 
        any such criminal activity; and
            (6) facilitate and promote communication between Federal, 
        State, and local law enforcement to improve the sharing of 
        Federal law enforcement expertise and information about the 
        investigation, forensic analysis of evidence, and prosecution 
        relating to such criminal activity, with State and local law 
        enforcement officers and prosecutors, including through the use 
        of multi-jurisdictional task forces.
    (d) Assurances and Eligibility.--To be eligible to receive a grant 
under subsection (a), a State shall provide assurances to the Attorney 
General that the State--
            (1) will provide an assessment of the resource needs of the 
        State and units of local government within that State, 
        including criminal justice resources being devoted to the 
        investigation and enforcement of laws related to criminal 
        activity described in subsection (a);
            (2) will develop a plan for coordinating the programs 
        funded under this section with other federally funded technical 
        assistance and training programs; and
            (3) will submit to the Attorney General applicable reports 
        in accordance with subsection (f).
    (e) Matching Funds.--The Federal share of a grant received under 
this section may not exceed 75 percent of the total cost of a program 
or proposal funded under this section unless the Attorney General 
waives, wholly or in part, the requirements of this subsection.
    (f) Reports.--For each year that a State receives a grant under 
subsection (a) for a program, the State shall submit to the Attorney 
General a report on the results, including the effectiveness, of such 
program during such year.
    (g) Definition of State.--For the purposes of this section, the 
term ``State'' means each of the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, the United States Virgin 
Islands, American Samoa, Guam, and the Northern Mariana Islands.
    (h) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this section $100,000,000 for each of the fiscal 
        years 2010 through 2011.
            (2) Limitations.--Of the amount made available to carry out 
        this section in any fiscal year, not more than 3 percent may be 
        used for salaries and administrative expenses for the 
        Department of Justice.
            (3) Minimum amount.--Each State submitting an application 
        for, and eligible to receive, a grant under this section for a 
        fiscal year shall be allocated under this section, in each such 
        fiscal year, not less than 0.75 percent of the total amount 
        appropriated in such fiscal year for grants pursuant to this 
        section, except that not less than 0.25 percent of such total 
        amount shall be allocated to the United States Virgin Islands, 
        American Samoa, Guam, and the Northern Mariana Islands, 
        collectively.
            (4) Grants to indian tribes.--Subject to paragraph (3), the 
        Attorney General may use amounts made available pursuant to 
        authorizations under this section to make grants to Indian 
        tribes for use in accordance with this section.

SEC. 5. AUTHORIZATION AND EXPANSION OF NATIONAL WHITE COLLAR CRIME 
              CENTER.

    (a) In General.--Title I of the Omnibus Crime Control and Safe 
Streets Act of 1968 (42 U.S.C. 3711 et seq.) is amended--
            (1) by redesignating part JJ, as added by section 952 of 
        Public Law 110-315 (relating to Loan Repayment for Prosecutors 
        and Public Defenders), as part LL, and moving such part so that 
        such part follows part KK;
            (2) in part LL, as so redesignated and moved by paragraph 
        (1), by redesignating section 3001 as section 3021; and
            (3) by adding at the end the following new part:

          ``PART MM--NATIONAL WHITE COLLAR CRIME CENTER GRANTS

``SEC. 3031. ESTABLISHMENT OF GRANTS PROGRAM.

    ``(a) Authorization.--The Attorney General is authorized to award 
grants and enter into contracts with State and local criminal justice 
agencies and nonprofit organizations for the purpose of improving the 
detection, investigation, and prosecution of covered criminal 
activities.
    ``(b) Covered Criminal Activities Defined.--For purposes of this 
part, the term `covered criminal activity' means a criminal conspiracy 
or activity or a terrorist conspiracy or activity that spans 
jurisdictional boundaries, including the following:
            ``(1) Terrorism.
            ``(2) Economic crime, including financial fraud and 
        mortgage fraud.
            ``(3) High-tech crime, also known as cybercrime or computer 
        crime, including internet-based crime against children and 
        child pornography.
    ``(c) Criminal Justice Agency Defined.--For purposes of this part, 
the term `criminal justice agency', with respect to a State or a unit 
of local government within such State, includes a law enforcement 
agency, a State regulatory body with criminal investigative authority, 
and a State or local prosecution office to the extent that such agency, 
body, or office, respectively, is involved in the prevention, 
investigation, and prosecution of covered criminal activities.

``SEC. 3032. AUTHORIZED PROGRAMS.

    ``Grants and contracts awarded under this part may be made only for 
the following programs, with respect to the prevention, investigation, 
and prosecution of covered criminal activities:
            ``(1) Programs to provide a nationwide support system for 
        State and local criminal justice agencies.
            ``(2) Programs to assist State and local criminal justice 
        agencies to develop, establish, and maintain intelligence-
        focused policing strategies and related information sharing.
            ``(3) Programs to provide training and investigative 
        support services to State and local criminal justice agencies 
        to provide such agencies with skills and resources needed to 
        investigate and prosecute such criminal activities and related 
        criminal activities.
            ``(4) Programs to provide research support, to establish 
        partnerships, and to provide other resources to aid State and 
        local criminal justice agencies to prevent, investigate, and 
        prosecute such criminal activities and related problems.
            ``(5) Programs to provide information and research to the 
        general public to facilitate the prevention of such criminal 
        activities.
            ``(6) Programs to establish National training and research 
        centers regionally, including within Virginia, Texas, and 
        Michigan, to provide training and research services for State 
        and local criminal justice agencies.
            ``(7) Any other programs specified by the Attorney General 
        as furthering the purposes of this part.

``SEC. 3033. APPLICATION.

    ``To be eligible to be considered for an award of a grant or 
contract under this part, an entity shall submit to the Attorney 
General an application in such form and manner, and containing such 
information, as required by the Attorney General.

``SEC. 3034. RULES AND REGULATIONS.

    ``The Attorney General shall promulgate such rules and regulations 
as are necessary to carry out this part, including rules and 
regulations for submitting and reviewing applications under section 
3033.''.
    (b) Authorization of Appropriation.--Section 1001(a) of such Act 
(42 U.S.C. 3793) is amended by adding at the end the following new 
paragraph:
    ``(27) There is authorized to be appropriated to carry out part 
MM--
            ``(A) $25,000,000 for fiscal year 2010;
            ``(B) $28,000,000 for fiscal year 2011;
            ``(C) $31,000,000 for fiscal year 2012;
            ``(D) $34,000,000 for fiscal year 2013;
            ``(E) $37,000,000 for fiscal year 2014; and
            ``(F) $40,000,000 for fiscal year 2015.''.
                                                  Union Calendar No. 43

111th CONGRESS

  1st Session

                               H. R. 1748

                      [Report No. 111-95, Part I]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                              May 4, 2009

     Reported from the Committee on the Judiciary with an amendment

                              May 4, 2009

    The Committees on Oversight and Government Reform and Financial 
 Services discharged; committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed