[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 386 Reported in Senate (RS)]
Calendar No. 28
111th CONGRESS
1st Session
S. 386
To improve enforcement of mortgage fraud, securities fraud, financial
institution fraud, and other frauds related to federal assistance and
relief programs, for the recovery of funds lost to these frauds, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 5, 2009
Mr. Leahy (for himself, Mr. Grassley, Mr. Kaufman, Ms. Klobuchar, and
Mr. Schumer) introduced the following bill; which was read twice and
referred to the Committee on the Judiciary
March 5, 2009
Reported by Mr. Leahy, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To improve enforcement of mortgage fraud, securities fraud, financial
institution fraud, and other frauds related to federal assistance and
relief programs, for the recovery of funds lost to these frauds, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Fraud Enforcement and
Recovery Act of 2009'' or ``FERA''.</DELETED>
<DELETED>SEC. 2. AMENDMENTS TO IMPROVE MORTGAGE, SECURITIES, AND
FINANCIAL FRAUD RECOVERY AND ENFORCEMENT.</DELETED>
<DELETED> (a) Definition of Financial Institution Amended To Include
Mortgage Lending Business.--Section 20 of title 18, United States Code,
is amended--</DELETED>
<DELETED> (1) in paragraph (8), by striking ``or'' after the
semicolon;</DELETED>
<DELETED> (2) in paragraph (9), by striking the period and
inserting ``; or''; and</DELETED>
<DELETED> (3) by inserting at the end the
following:</DELETED>
<DELETED> ``(10) a mortgage lending business (as defined in
section 27 of this title) or any person or entity that makes in
whole or in part a federally-related mortgage loan as defined
in 12 U.S.C. 2602(1).''.</DELETED>
<DELETED> (b) Mortgage Lending Business Defined.--</DELETED>
<DELETED> (1) In general.--Chapter 1 of title 18, United
States Code, is amended by inserting after section 26 the
following:</DELETED>
<DELETED>``Sec. 27. Mortgage lending business defined</DELETED>
<DELETED> ``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.''.</DELETED>
<DELETED> (2) Chapter analysis.--The chapter analysis for
chapter 1 of title 18, United States Code, is amended by adding
at the end the following:</DELETED>
<DELETED>``27. Mortgage lending business defined.''.
<DELETED> (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 by--</DELETED>
<DELETED> (1) striking ``or'' after ``the International
Banking Act of 1978),''; and</DELETED>
<DELETED> (2) inserting after ``section 25(a) of the Federal
Reserve Act'' the following: ``or a mortgage lending business
whose activities affect interstate or foreign commerce, or any
person or entity that makes in whole or in part a federally-
related mortgage loan as defined in 12 U.S.C.
2602(1)''.</DELETED>
<DELETED> (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 by--</DELETED>
<DELETED> (1) inserting after ``or promises, in'' the
following: ``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''; and</DELETED>
<DELETED> (2) striking ``the contract, subcontract'' and
inserting ``such grant, contract, subcontract, subsidy, loan,
guarantee, insurance or other form of Federal
assistance,''.</DELETED>
<DELETED> (e) Securities Fraud Amended To Include Fraud Involving
Options and Futures in Commodities.--</DELETED>
<DELETED> (1) In general.--Section 1348 of title 18, United
States Code, is amended--</DELETED>
<DELETED> (A) in the caption, by inserting ``and
commodities'' after ``Securities'';</DELETED>
<DELETED> (B) by inserting ``any commodity for
future delivery, or any option on a commodity or a
commodity for future delivery, or'' after ``any person
in connection with'' ; and</DELETED>
<DELETED> (C) by inserting ``any commodity for
future delivery, or any option on a commodity or a
commodity for future delivery, or'' after ``in
connection with the purchase or sale of''.</DELETED>
<DELETED> (2) Chapter analysis.--The item for section 1348
in the chapter analysis for chapter 63 of title 18, United
States Code, is amended by inserting ``and commodities'' after
``Securities''.</DELETED>
<DELETED> (f) Money Laundering Amended To Define Proceeds of
Specified Unlawful Activity.--Section 1956(c) of title 18, United
States Code, is amended--</DELETED>
<DELETED> (1) in paragraph (8), by striking the period and
inserting ``; and''; and</DELETED>
<DELETED> (2) by inserting at the end the
following:</DELETED>
<DELETED> ``(9) the term `proceeds' means any property
derived from or obtained or retained, directly or indirectly,
through the commission of a specified unlawful activity,
including the gross receipts of such specified unlawful
activity.''.</DELETED>
<DELETED> (g) Making the International Money Laundering Statute
Apply to Tax Evasion.--Section 1956(a)(2)(A) of title 18, United States
Code, is amended by--</DELETED>
<DELETED> (1) inserting ``(i)'' before ``with the intent to
promote''; and</DELETED>
<DELETED> (2) adding at the end the following:</DELETED>
<DELETED> ``(ii) with the intent to engage
in conduct constituting a violation of section
7201 or 7206 of the Internal Revenue Code of
1986; or''.</DELETED>
<DELETED>SEC. 3. ADDITIONAL FUNDING FOR INVESTIGATORS AND PROSECUTORS
FOR MORTGAGE FRAUD, SECURITIES FRAUD, AND OTHER CASES
INVOLVING FEDERAL ECONOMIC ASSISTANCE.</DELETED>
<DELETED> (a) In General.--</DELETED>
<DELETED> (1) Authorization.--There is authorized to be
appropriated to the Attorney General, to remain available until
expended, $155,000,000 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.</DELETED>
<DELETED> (2) Allocations.--With respect to fiscal years
2010 and 2011, the amount authorized to be appropriated under
paragraph (1) shall be allocated as follows:</DELETED>
<DELETED> (A) Federal Bureau of Investigation:
$65,000,000.</DELETED>
<DELETED> (B) The offices of the United States
Attorneys: $50,000,000.</DELETED>
<DELETED> (C) The criminal division of the
Department of Justice: $20,000,000.</DELETED>
<DELETED> (D) The civil division of the Department
of Justice: $15,000,000.</DELETED>
<DELETED> (E) The tax division of the Department of
Justice: $5,000,000.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (c) Additional Appropriations for the Inspector General
for the Housing and Urban Development Department.--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.</DELETED>
<DELETED> (d) Use of Funds.--The funds authorized to be appropriated
under subsections (a), (b), and (c), 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</DELETED>
<DELETED> (e) Report to Congress.--Following the final expenditure
of all funds appropriated under this section that were authorized by
subsections (a), (b), and (c), the Attorney General, in consultation
with the United States Postal Inspection Service and the Inspector
General for the Department of Housing and Urban Development, shall
submit a joint report to Congress identifying--</DELETED>
<DELETED> (1) the amounts expended under subsections (a),
(b), and (c) and a certification of compliance with the
requirements listed in subsection (d); and</DELETED>
<DELETED> (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.</DELETED>
<DELETED>SEC. 4. CLARIFICATIONS TO THE FALSE CLAIMS ACT TO REFLECT THE
ORIGINAL INTENT OF THE LAW.</DELETED>
<DELETED> (a) Clarification of the False Claims Act.--Section 3729
of title 31, United States Code, is amended--</DELETED>
<DELETED> (1) by striking subsection (a) and inserting the
following:</DELETED>
<DELETED> ``(a) Liability for Certain Acts.--</DELETED>
<DELETED> ``(1) In general.--Subject to paragraph (2), any
person who--</DELETED>
<DELETED> ``(A) knowingly presents, or causes to be
presented, a false or fraudulent claim for payment or
approval;</DELETED>
<DELETED> ``(B) knowingly makes, uses, or causes to
be made or used, a false record or statement to get a
false or fraudulent claim paid or approved;</DELETED>
<DELETED> ``(C) conspires to commit a violation of
subparagraph (A), (B), (D), (E), (F), or (G) or
otherwise to get a false or fraudulent claim paid or
approved;</DELETED>
<DELETED> ``(D) has possession, custody, or control
of property or money used, or to be used, by the
Government and knowingly delivers, or causes to be
delivered, less than all of that money or
property;</DELETED>
<DELETED> ``(E) is authorized to make or deliver a
document certifying receipt of property used, or to be
used, by the Government and, intending to defraud the
Government, makes or delivers the receipt without
completely knowing that the information on the receipt
is true;</DELETED>
<DELETED> ``(F) knowingly buys, or receives as a
pledge of an obligation or debt, public property from
an officer or employee of the Government, or a member
of the Armed Forces, who lawfully may not sell or
pledge property; or</DELETED>
<DELETED> ``(G) knowingly makes, uses, or causes to
be made or used, a false record or statement to
conceal, avoid, or decrease an obligation to pay or
transmit money or property to the Government, or
knowingly conceals, avoids, or decreases an obligation
to pay or transmit money or property to the
Government,</DELETED>
<DELETED>is liable to the United States Government for a civil
penalty of not less than $5,000 and not more than $10,000, as
adjusted by the Federal Civil Penalties Inflation Adjustment
Act of 1990 (28 U.S.C. 2461 note; Public Law 104-410), plus 3
times the amount of damages which the Government sustains
because of the act of that person.</DELETED>
<DELETED> ``(2) Reduced damages.--If the court finds that--
</DELETED>
<DELETED> ``(A) the person committing the violation
of this subsection furnished officials of the United
States responsible for investigating false claims
violations with all information known to such person
about the violation within 30 days after the date on
which the defendant first obtained the
information;</DELETED>
<DELETED> ``(B) such person fully cooperated with
any Government investigation of such violation;
and</DELETED>
<DELETED> ``(C) at the time such person furnished
the United States with the information about the
violation, no criminal prosecution, civil action, or
administrative action had commenced under this title
with respect to such violation, and the person did not
have actual knowledge of the existence of an
investigation into such violation,</DELETED>
<DELETED>the court may assess not less than 2 times the amount
of damages which the Government sustains because of the act of
that person.</DELETED>
<DELETED> ``(3) Costs of civil actions.--A person violating
this subsection shall also be liable to the United States
Government for the costs of a civil action brought to recover
any such penalty or damages.'';</DELETED>
<DELETED> (2) by striking subsections (b) and (c) and
inserting the following:</DELETED>
<DELETED> ``(b) Definitions.--For purposes of this section--
</DELETED>
<DELETED> ``(1) the terms `knowing' and `knowingly' mean
that a person, with respect to information--</DELETED>
<DELETED> ``(A) has actual knowledge of the
information;</DELETED>
<DELETED> ``(B) acts in deliberate ignorance of the
truth or falsity of the information; or</DELETED>
<DELETED> ``(C) acts in reckless disregard of the
truth or falsity of the information, and no proof of
specific intent to defraud is required;</DELETED>
<DELETED> ``(2) the term `claim'--</DELETED>
<DELETED> ``(A) means any request or demand, whether
under a contract or otherwise, for money or property
and whether or not the United States has title to the
money or property, that--</DELETED>
<DELETED> ``(i) is presented to an officer,
employee, or agent of the United States;
or</DELETED>
<DELETED> ``(ii) is made to a contractor,
grantee, or other recipient if the United
States Government--</DELETED>
<DELETED> ``(I) provides or has
provided any portion of the money or
property requested or demanded;
or</DELETED>
<DELETED> ``(II) will reimburse such
contractor, grantee, or other recipient
for any portion of the money or
property which is requested or
demanded; and</DELETED>
<DELETED> ``(B) does not include requests or demands
for money or property that the Government has paid to
an individual as compensation for Federal employment or
as an income subsidy with no restrictions on that
individual's use of the money or property;
and</DELETED>
<DELETED> ``(3) the term `obligation' means a fixed duty, or
a contingent duty arising from an express or implied
contractual, quasi-contractual, grantor-grantee, licensor-
licensee, fee-based, or similar relationship, and the retention
of any overpayment.'';</DELETED>
<DELETED> (3) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively; and</DELETED>
<DELETED> (4) in subsection (c), as redesignated, by
striking ``subparagraphs (A) through (C) of subsection (a)''
and inserting ``subsection (a)(2)''.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fraud Enforcement and Recovery Act
of 2009'' or ``FERA''.
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 (as defined in section
27 of this title) or any person or entity that makes in whole
or in part a federally related mortgage loan as defined in 12
U.S.C. 2602(1).''.
(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) Chapter analysis.--The chapter analysis for 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
by--
(1) striking ``or'' after ``the International Banking Act
of 1978),''; and
(2) inserting after ``section 25(a) of the Federal Reserve
Act'' the following: ``or a mortgage lending business whose
activities affect interstate or foreign commerce, or any person
or entity that makes in whole or in part a federally related
mortgage loan as defined in 12 U.S.C. 2602(1)''.
(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 by--
(1) inserting after ``or promises, in'' the following:
``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''; and
(2) 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) 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) 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) Chapter analysis.--The item for section 1348 in the
chapter analysis for chapter 63 of title 18, United States
Code, is amended by inserting ``and commodities'' after
``Securities''.
(f) Money Laundering Amended To Define Proceeds of Specified
Unlawful Activity.--
(1) Money laundering.--Section 1956(c) of title 18, United
States Code, is amended--
(A) in paragraph (8), by striking the period and
inserting ``; and''; and
(B) by inserting at the end the following:
``(9) the term `proceeds' means any property derived from
or obtained or retained, directly or indirectly, through some
form of unlawful activity, including the gross receipts of such
activity.''.
(2) Monetary transactions.--Section 1957(f) of title 18,
United States Code, is amended by striking paragraph (3) and
inserting the following:
``(3) the terms `specified unlawful activity' and
`proceeds' shall have the meaning given those terms in section
1956 of this title.''.
(g) Making the International Money Laundering Statute Apply to Tax
Evasion.--Section 1956(a)(2)(A) of title 18, United States Code, is
amended by--
(1) inserting ``(i)'' before ``with the intent to
promote''; and
(2) adding at the end the following:
``(ii) with the intent to engage in conduct
constituting a violation of section 7201 or
7206 of the Internal Revenue Code of 1986;
or''.
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.
SEC. 4. CLARIFICATIONS TO THE FALSE CLAIMS ACT TO REFLECT THE ORIGINAL
INTENT OF THE LAW.
(a) Clarification of the False Claims Act.--Section 3729 of title
31, United States Code, is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Liability for Certain Acts.--
``(1) In general.--Subject to paragraph (2), any person
who--
``(A) knowingly presents, or causes to be
presented, a false or fraudulent claim for payment or
approval;
``(B) knowingly makes, uses, or causes to be made
or used, a false record or statement material to a
false or fraudulent claim;
``(C) conspires to commit a violation of
subparagraph (A), (B), (D), (E), (F), or (G);
``(D) has possession, custody, or control of
property or money used, or to be used, by the
Government and knowingly delivers, or causes to be
delivered, less than all of that money or property;
``(E) is authorized to make or deliver a document
certifying receipt of property used, or to be used, by
the Government and, intending to defraud the
Government, makes or delivers the receipt without
completely knowing that the information on the receipt
is true;
``(F) knowingly buys, or receives as a pledge of an
obligation or debt, public property from an officer or
employee of the Government, or a member of the Armed
Forces, who lawfully may not sell or pledge property;
or
``(G) knowingly makes, uses, or causes to be made
or used, a false record or statement material to an
obligation to pay or transmit money or property to the
Government, or knowingly conceals or knowingly and
improperly avoids or decreases an obligation to pay or
transmit money or property to the Government,
is liable to the United States Government for a civil penalty
of not less than $5,000 and not more than $10,000, as adjusted
by the Federal Civil Penalties Inflation Adjustment Act of 1990
(28 U.S.C. 2461 note; Public Law 104-410), plus 3 times the
amount of damages which the Government sustains because of the
act of that person.
``(2) Reduced damages.--If the court finds that--
``(A) the person committing the violation of this
subsection furnished officials of the United States
responsible for investigating false claims violations
with all information known to such person about the
violation within 30 days after the date on which the
defendant first obtained the information;
``(B) such person fully cooperated with any
Government investigation of such violation; and
``(C) at the time such person furnished the United
States with the information about the violation, no
criminal prosecution, civil action, or administrative
action had commenced under this title with respect to
such violation, and the person did not have actual
knowledge of the existence of an investigation into
such violation,
the court may assess not less than 2 times the amount of
damages which the Government sustains because of the act of
that person.
``(3) Costs of civil actions.--A person violating this
subsection shall also be liable to the United States Government
for the costs of a civil action brought to recover any such
penalty or damages.'';
(2) by striking subsections (b) and (c) and inserting the
following:
``(b) Definitions.--For purposes of this section--
``(1) the terms `knowing' and `knowingly'--
``(A) mean that a person, with respect to
information--
``(i) has actual knowledge of the
information;
``(ii) acts in deliberate ignorance of the
truth or falsity of the information; or
``(iii) acts in reckless disregard of the
truth or falsity of the information; and
``(B) require no proof of specific intent to
defraud;
``(2) the term `claim'--
``(A) means any request or demand, whether under a
contract or otherwise, for money or property and
whether or not the United States has title to the money
or property, that--
``(i) is presented to an officer, employee,
or agent of the United States; or
``(ii) is made to a contractor, grantee, or
other recipient, if the money or property is to
be spent or used on the Government's behalf or
to advance a Government program or interest,
and if the United States Government--
``(I) provides or has provided any
portion of the money or property
requested or demanded; or
``(II) will reimburse such
contractor, grantee, or other recipient
for any portion of the money or
property which is requested or
demanded; and
``(B) does not include requests or demands for
money or property that the Government has paid to an
individual as compensation for Federal employment or as
an income subsidy with no restrictions on that
individual's use of the money or property;
``(3) the term `obligation' means a fixed duty, or a
contingent duty arising from an express or implied contractual,
quasi-contractual, grantor-grantee, licensor-licensee,
statutory, fee-based, or similar relationship, and the
retention of any overpayment; and
``(4) the term `material' means having a natural tendency
to influence, or be capable of influencing, the payment or
receipt of money or property.'';
(3) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively; and
(4) in subsection (c), as redesignated, by striking
``subparagraphs (A) through (C) of subsection (a)'' and
inserting ``subsection (a)(2)''.
(b) Effective Date and Application.--The amendments made by this
section shall take effect on the date of enactment of this Act and
shall apply to conduct on or after the date of enactment, except that
subparagraph (B) of section 3729(a)(1) of title 31, United States Code,
as added by subsection (a)(1), shall take effect as if enacted on June
7, 2008, and apply to all claims under the False Claims Act (31 U.S.C.
3729 et seq.) that are pending on or after that date.
Calendar No. 28
111th CONGRESS
1st Session
S. 386
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A BILL
To improve enforcement of mortgage fraud, securities fraud, financial
institution fraud, and other frauds related to federal assistance and
relief programs, for the recovery of funds lost to these frauds, and
for other purposes.
_______________________________________________________________________
March 5, 2009
Reported with an amendment