Amendment to title 18

(a)

In general

Chapter 63 of title 18, United States Code, is amended by inserting after section 1346 the following:

1346A.

Definition of scheme or artifice to defraud

(a)For purposes of this chapter, the term scheme or artifice to defraud also includes— (1)a scheme or artifice by a public official to engage in undisclosed self-dealing; or (2)a scheme or artifice by officers and directors to engage in undisclosed private self-dealing. (b)(1)In subsection (a)(1)— (A)the term undisclosed self-dealing means that— (i)a public official performs an official act for the purpose, in whole or in part, of benefitting or furthering a financial interest of— (I)the public official; (II)the public official’s spouse or minor child; (III)a general partner of the public official; (IV)a business or organization in which the public official is serving as an employee, officer, director, trustee, or general partner; (V)an individual, business, or organization with whom the public official is negotiating for, or has any arrangement concerning, prospective employment or financial compensation; or (VI)a person, business, or organization from whom the public official has received a thing of value or a series of things of value, otherwise than as provided by law for the proper discharge of official duty, or by rule or regulation; and (ii)the public official knowingly falsifies, conceals, or covers up material information that is required to be disclosed regarding that financial interest by any Federal, State, or local statute, rule, regulation, or charter applicable to the public official, or knowingly fails to disclose material information regarding that financial interest in a manner that is required by any Federal, State, or local statute, rule, regulation, or charter applicable to the public official; (B)the term public official means an officer, employee, or elected or appointed representative, or person acting for or on behalf of the United States, a State, or subdivision of a State, or any department, agency, or branch thereof, in any official function, under or by authority of any such department agency or branch of Government; (C)the term official act— (i)includes any act within the range of official duty, and any decision, recommendation, or action on any question, matter, cause, suit, proceeding, or controversy, which may at any time be pending, or which may by law be brought before any public official, in such public official’s official capacity or in such official’s place of trust or profit; (ii)can be a single act, more than one act, or a course of conduct; and (iii)includes a decision or recommendation that the Government should not take action; and (D)the term State includes a State of the United States, the District of Columbia, and any commonwealth, territory, or possession of the United States. (2)In subsection (a)(2)— (A)the term undisclosed private self-dealing means that— (i)an officer or director performs an act which causes or is intended to cause harm to the officer’s or director's employer, and which is undertaken in whole or in part to benefit or further by an actual or intended value of $5,000 or more a financial interest of— (I)the officer or director; (II)the officer or director’s spouse or minor child; (III)a general partner of the officer or director; (IV)another business or organization in which the public official is serving as an employee, officer, director, trustee, or general partner; or (V)an individual, business, or organization with whom the officer or director is negotiating for, or has any arrangement concerning, prospective employment or financial compensation; and (ii)the officer or director knowingly falsifies, conceals, or covers up material information that is required to be disclosed regarding that financial interest by any Federal, State, or local statute, rule, regulation, or charter applicable to the officer or director, or knowingly fails to disclose material information regarding that financial interest in a manner that is required by any Federal, State, or local statute, rule, regulation, or charter applicable to the officer or director; (B)the term employer includes publicly traded corporations, and private charities under section 501(c)(3) of the Internal Revenue Code of 1986; and (C)the term act includes a decision or recommendation to take, or not to take action, and can be a single act, more than one act, or a course of conduct.

(b)

Chapter analysis

The chapter analysis for chapter 63 of title 18, United States Code, is amended by inserting after the item for section 1346 the following:

Sec. 1346A. Definition of scheme or artifice to defraud.