[Congressional Record Volume 143, Number 54 (Wednesday, April 30, 1997)]
[House]
[Pages H2052-H2053]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         INTRODUCTION OF ``APPREHENSION OF TAINTED MONEY'' BILL

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Pennsylvania [Mr. Gekas] is recognized for 5 minutes.
  Mr. GEKAS. Mr. Speaker, today I have introduced a special piece of 
legislation that goes to the heart of campaign finance reform about 
which we hear so much.
  How many will recall that during the election and immediately 
following there were revelations of moneys being contributed to the 
Democratic National Committee, and then a decision made by the 
Democratic National Committee to return the funds to X, Y, and Z 
because the Democratic National Committee determined that they were 
illegally contributed?
  Now, the question arises, does this money go back to the people who 
may have violated the law in making the contribution to the Democratic 
National Committee?
  We have a situation, for instance, of a drug dealer who took 
thousands of dollars from profits made in the drug business and used 
that money to make a $20,000 contribution to the Democratic National 
Committee. Now we hear announcement by the Democratic National 
Committee that it will return that money.
  Well, is that not wonderful. That money will be returned to a drug 
dealer to be reused, perhaps, in the drug business or to make some 
other kind of contribution. Who knows what.
  I have introduced a bill here today which we call the ATM bill, 
believe it or not. Apprehension of Tainted Money. ATM. What does it do? 
It says that if, indeed, a national committee, the Republican committee 
or the Democrat committee, should receive contributions and they are 
questionable donations, questionable contributions, where the committee 
believes it may come from a tainted source, a criminal source, some 
illegal contributor, then instead of returning it back for further 
possible illegal spending, my bill would call for this money to go to 
the Federal Elections Commission in an escrow account, and the Federal 
Elections Commission then would investigate the source of this 
contribution.
  If it is determined that indeed this is drug money or illegal money 
or some other tainted source of money, then the Federal Government, our 
Government, can latch onto this money and use it for fines and 
penalties against those people who violated the law in that instance. 
In this way we would be preventing the possibility of impacting on our 
election system by foreign sources and illegal sources.
  At the same time, if indeed those contributions have been illegal, we 
could use that money to help defray the expense of the investigation 
and the prosecution and the restitution that must be made by the 
wrongdoers.
  We believe that it fills a large gap in the election process and in 
the question of who can contribute what to what entity. We have strong 
laws on the books right at this moment, as we speak, but we fail in 
many instances to enforce the law. We fail to bring wrongdoers to 
justice in the hundreds of different ways that they can violate the 
election laws and the criminal laws of our Nation.
  We believe that this could be a gigantic step towards signaling to 
the American people that we will not countenance violation of the 
criminal laws or violation of the election laws.
  Every day the news brings us more revelations--and more lurid 
details--about the lengths to which some people went during the 1996 
election to gain victory for their candidates. Unfortunately, the 
lengths to which many parties went were beyond the bounds of the law.
  Though the investigations into campaign finance law violations have 
only barely begun, and, to be sure, only scratched the surface, we know 
very well about some egregious violations of the law involving very 
large amounts

[[Page H2053]]

of money. Many more cases are rife with impropriety and unethical 
behavior, even if illegality has not yet been proven.
  Let me address just a few: Mr. Johnny Chung, described as a 
``hustler'' by a member of the National Security Council, made 
donations to the Democratic Party numerous times. Among these was a 
$50,000 check handed over to Margaret Williams on the White House 
grounds during one of his 51 visits. The Democratic National Committee 
has announced it will return contributions totaling $366,000 from 
Johnny Chung because it cannot verify the source of this money.
  Mr. Charles Yah Lin Trie raised and contributed more than $\1/2\ 
million to the Democratic National Committee. This money has been 
linked to funds transferred to him from the Bank of China, which is 
operated by the Chinese Government. The Democratic National Committee 
has returned $187,000 that Mr. Trie contributed and plans to return 
another $458,000 that he helped raise from others.
  In November, 1995, Mr. Jorge Cabrera wrote a check for $20,000 to 
the Democratic National Committee from an account that included 
proceeds from smuggling cocaine into the United States. Within 2 weeks, 
he met with Vice President Gore. He also attended a White House 
Christmas reception hosted by the First Lady. The Democratic National 
Committee returned his contribution almost a year later and he is now 
serving time in a Miami prison.

  Mr. Speaker, these are just three examples, but they serve to 
illustrate a situation that is intolerable. The Democratic National 
Committee has given, and plans to give, huge sums of money back to the 
drug dealers, international hustlers, and foreign agents who broke the 
law in giving that money in the first place.
  The penalty being suffered by Mr. Johnny Chung, Mr. Charlie Trie, and 
Mr. Jorge Cabrera is to have mountains of tainted money given back to 
them to use as they wish.
  Mr. Speaker, these people are criminals. The American people, and 
particularly the people I represent, will not stand for it when the law 
allows them to be rewarded with hundreds of thousands of dollars in 
cash.
  Mr. Speaker, I am introducing a bill today to remedy this 
extraordinary situation. The Apprehension of Tainted Money Act would 
require political committees that intend to return certain 
contributions to transfer those contributions to the Federal Election 
Commission.
  The Commission would establish an interest-bearing escrow account, 
deposit returned contributions in it, and notify the Attorney General. 
The Commission and the Attorney General would be able to apply this 
money toward any fine or penalty imposed against the contributor under 
Federal election or criminal law. In addition, if a fine or penalty is 
imposed, the Commission or Attorney General could use deposited funds 
to cover the costs incurred in investigating the contribution. If the 
contributor were cleared, if the Commission and Attorney General failed 
to act, or if some portion of the money was used, the remaining 
contribution would be returned.

  Mr. Speaker, my bill would prevent the Johnny Chungs, the Charlie 
Tries, and the Jorge Cabreras from getting their dirty money back and 
spending it--or making it disappear--before Federal officials have a 
chance to investigate them and apply appropriate fines and penalties.
  Let me make one other point that I think is very important: We are 
seeing that, in many instances, the tainted money is being returned 
after an election has intervened. This means that money from an 
unknown, possible illegal source has been used by a campaign to 
influence an election. Anyone with a healthy skepticism and sense of 
watchfulness about our Government could not help but want to 
investigate whether there has been collusion between questionable 
campaign contributors and the individuals and parties to whom they 
gave. This makes the apprehension of tainted money bill all the more 
important.
  I urge my colleagues in the House to join me in passing this 
legislation and getting it before the President for signature. There 
can be no time lost, because each returned contribution gives undue 
benefit to some of our Nation's most pernicious lawbreakers.
  Let me briefly describe the bill in some more detail: The 
Apprehension of Tainted Money Act adds a new section to the Federal 
Election Campaign Act. the new section provides the following:
  When a political committee intends to return a contribution of more 
than $500, it must transfer the contribution to the Federal Election 
Commission [Commission] and ask the Commission to return it. This 
requirement does not apply to contributions returned within the times 
set by Commission rules for return or reattribution of contributions, 
but it does apply to contributions that a political committee discovers 
to be illegal after the Commission's deadline for return of illegal and 
nonreattributable contributions.

  The Commission must establish an interest-bearing escrow account, 
deposit returned contributions in it, and notify the Attorney General 
when it receives such contributions. Interest from the funds placed in 
the escrow account shall be used to cover administrative costs of the 
account, all excess going to the U.S. Treasury.
  The Commission must consider the return of the contribution in 
determining whether it has reason to believe that election laws have 
been violated.
  The Commission or the Attorney General may apply returned 
contributions toward any fine or penalty imposed against the 
contributor under Federal election or criminal law. If a fine or 
penalty is imposed, the Commission or Attorney General may use 
deposited funds to cover the costs incurred in investigating the 
contribution.
  The Commission must return the contribution if: First, the Commission 
and Attorney General certify that the contribution is not the subject 
of an investigation; second, the contribution will not be applied to 
any fine, penalty, or charge for cost of investigation, or the portion 
to be used has been subtracted from the returnable amount; or third, 
for any 120-day period, neither the Commission nor the Attorney General 
have pursued an investigation of the contribution.
  The act applies from the date it is enacted, whether or not the 
Commission or Attorney General have issued regulations. Notwithstanding 
the Administrative Procedures Act, the Commission and Attorney General 
must issue final regulations within 30 days of the enactment of the 
act.

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