[Congressional Record Volume 144, Number 65 (Wednesday, May 20, 1998)]
[Extensions of Remarks]
[Page E917]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


  INTRODUCTION OF THE ``NIGERIAN ADVANCE FEE FRAUD PREVENTION ACT OF 
                                 1998''

                                 ______
                                 

                         HON. EDWARD J. MARKEY

                            of massachusetts

                    in the house of representatives

                        Wednesday, May 20, 1998

  Mr. MARKEY. Mr. Speaker, today, I am joining with a bipartisan group 
of colleagues in introducing legislation to prevent further growth of 
the international crime, Nigerian Advance Fee Fraud.
  Every day, thousands of Americans fall subject to get rich quick 
schemes. Unfortunately, Nigerian Advance Fee Fraud is a whole new era 
of scamming money out of innocent people. Known internationally as ``4-
1-9'' fraud after the section in the Nigerian Penal Code which 
addresses fraud schemes, these scams have reached epidemic proportions.
  As a personal target of such scams, I am introducing the Nigerian 
Advance Fee Fraud Prevention Act of 1998 to bring this swindle and its 
perpetrators into the forefront of the American public, and focus the 
Government on implementing a national and international strategy to 
combat these shams.
  This form of bilk is widespread, targeting over 60 countries 
worldwide. The perpetrators of these hoax's don't discriminate when 
choosing their targets, everyone from small to large corporations, 
religious organizations, and individuals are all fair game to these 
criminals. I myself have been targeted four times by these flimflams in 
just over 7 months.
  The perpetrators of this swindle will send letters to unknowing 
victims, mostly senior citizens, claiming that the Nigerian Government 
overpaid the Nigerian National Petroleum Corporation on a contract. 
Instead of giving the money back to the government, the scammer 
indicates they need a foreign bank account to deposit $50 million, of 
which 30% would remain in the victims' bank account for them to keep.
  So, what is the actual scam? The scam does not actually require the 
transmission of a bank account number (although many victims obligingly 
provide it). The victim supplies a letterhead, which is used to forge 
letters of recommendation to the American Embassy for travel visas and 
it is also used to persuade other prospective victims.
  They way they get money from the victims is much craftier. Victims 
are pressured into sending money for unforeseen taxes, fees to the 
Nigerian Government, and attorney fees. These fees can reach hundreds 
of thousands of dollars. The perpetrators of these scams often allege 
that the victim must travel to Nigeria in order to complete the 
transaction. If the victim is unable to travel to Nigeria, they proceed 
to demand more money from them for power of attorney fees and other 
associated taxes. Often when a victim does travel to Nigeria, the 
scammer explains to them that there is no need for a visa. In fact, a 
visa is required by the Nigerian Government. The perpetrators then 
bribe airport officials to bypass immigration, and use this illegal 
entry as leverage to coerce the traveler into releasing more money.
  Violence and threats of physical harm may also occur. To date, 15 
foreign businessmen and two United States citizens have been murdered 
in Nigeria in connection with a ``4-1-9'' scam. Perpetrators of these 
scams are rarely prosecuted or jailed by the Nigerian government, which 
is also suspected of playing a role in these schemes.
  Money garnered from these schemes is used to fund other illegal 
activities, including drug trafficking or violent crimes. This is a 
growing concern to the international community, and among the thousands 
of Americans who fall victim to these scams.
  The Nigerian Advance Fee Fraud Prevention Act of 1998 will direct the 
Secretary of State and the Secretary of the Treasury to jointly report 
on actions taken by the Nigerian Government in apprehending the 
perpetrators of 4-1-9 scams, efforts taken by the United States to 
inform American about such schemes, and other such actions which are or 
should be undertaken to end of these schemes, including the imposition 
of sanctions on the Nigerian Government.

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