II 111th CONGRESS 1st Session S. 1724 IN THE SENATE OF THE UNITED STATES September 29, 2009 Mr. Schumer (for himself, Mr. Kyl, Mr. Whitehouse, and Mr. Reed) introduced the following bill; which was read twice and referred to the Committee on the Judiciary A BILL To establish a competitive grant program in the Department of Justice to be administered by the Bureau of Justice Assistance which shall assist local criminal prosecutor’s offices in investigating and prosecuting crimes of real estate fraud.

1.

Short title

This Act may be cited as the Fighting Real Estate Fraud Act of 2009.

2.

Grants

(a)

In general

The Attorney General is authorized to make grants on a competitive basis through the Bureau of Justice Assistance in accordance with the formula established in section 5 of this Act, to States, units of local government, and Indian tribal governments (referred to in this Act as the applicant) for the purpose of assisting the offices of State and local criminal prosecutors in investigating and prosecuting real estate fraud. (b)

Real estate fraud

In this Act, the term real estate fraud includes crimes involving purposeful misrepresentations, forgeries, omissions to general applications, tax returns, financial statements, appraisals and valuations, verifications of deposit and employment, escrow and closing documents, credit reports, and any actions that may defraud a secured creditor.

3.

Applications

(a)

In general

Each applicant desiring a grant under this Act shall submit an application to the Attorney General at such time, in such a manner, and accompanied by such information as the Attorney General may reasonably require. (b)

Contents

Each application submitted pursuant to subsection (a) shall— (1)describe the activities for which assistance under this Act is sought; (2)include information determined by the Attorney General to be relevant in demonstrating the applicant's need for funding; (3)attest that funds shall go only to the hiring, training, and employing of staff dedicated to the investigation and prosecution of real estate fraud; and (4)provide such additional assurances as the Attorney General determines to be essential to ensure compliance with the requirements of this Act.

4.

Limits on funding

Funds received pursuant to a grant under this Act may not be expended to offset a reduction in any other source of funds.

5.

Formula

(a)

Allocation between States and units of local government and Indian tribal governments

Of the amounts authorized to be appropriated under section 8— (1)70 percent of such amounts shall be allocated for direct grants to units of local government and Indian tribal governments; and (2)30 percent of such amounts shall be allocated for direct grants to States. (b)

Allocation between large and small localities and Indian tribal governments

Of the amounts allocated under subsection (a)(1)— (1)50 percent of such amounts shall be allocated for grants pursuant to applications submitted by units of local government or Indian tribal governments having jurisdiction over areas with populations exceeding 150,000; and (2)50 percent of such amounts shall be allocated for grants pursuant to applications submitted by units of local government or Indian tribal governments having jurisdiction over areas with populations of 150,000 or less.

6.

Rules

Not later than 180 days after the date of the enactment of this Act, the Attorney General shall promulgate rules regarding the grant program authorized by this Act.

7.

GAO report

Not later than April 1, 2012, the Comptroller General shall submit a report to Congress regarding the effectiveness of the grant program authorized by this Act as determined by the number of real estate fraud cases investigated and prosecuted resulting from this Act.

8.

Authorization of appropriations

There are authorized to be appropriated to carry out this Act $100,000,000 for each of the fiscal years 2011 and 2012.