[Congressional Record Volume 144, Number 65 (Wednesday, May 20, 1998)]
[Senate]
[Pages S5226-S5227]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL:
  S. 2099. A bill to provide for enhanced Federal sentencing guidelines 
for counterfeiting offenses, and for other purposes; to the Committee 
on the Judiciary.


           counterfeiting sentencing enhancement act of 1998

  Mr. CAMPBELL. Mr. President, today I introduce the Counterfeiting 
Sentencing Enhancement Act of 1998. My bill would tighten the 
sentencing guidelines' base offense level in recognition of the fact 
that advances in computer and printing technology have fundamentally 
changed the nature of counterfeiting. This bill would bring our 
nation's counterfeiting laws out of Gutenberg's printing press era and 
into the modern computer age.
  Counterfeiting of our nation's currency is a serious and growing 
problem. Incidents of computer generated counterfeiting have increased 
dramatically over the last three years. In 1995 only one half of one 
percent of counterfeit U.S. currency passed were computer generated.
  Today, just three short years later, computer generated counterfeits 
account for approximately 43 percent of the counterfeits passed.
  Traditional counterfeiters use offset printing production methods 
that require specialized equipment including printing presses, engraved 
printing press plates and green ink. These counterfeiters encounter a 
cumbersome process that is messy, is harder to conceal, and requires 
them to produce in large batches.
  However, a rapidly growing number of today's counterfeiters are using 
personal computers, scanners, digital imaging software, full color 
copiers, and laser and inkjet printers. They can also use the Internet 
to instantaneously transmit the computer images needed for 
counterfeiting. This technology, which is readily available and 
increasingly affordable, enables criminals to produce high-quality 
counterfeit currency in small batches and at a low cost. It is this 
ability for counterfeiters to easily produce in small batches that has 
rendered our sentencing guidelines outdated and less effective as a 
deterrent.
  Our sentencing guidelines under current law are based in a world 
where the realities of offset printing required counterfeiters to 
produce in rather large batches. That reality no longer exists. 
Basically, the more counterfeit currency a counterfeiter got caught 
with, the stiffer the sentence. Using computer technology, today's 
counterfeiters can simply print out smaller batches of counterfeit 
currency whenever they want to. This allows these criminals to 
effectively fly just under the radar of our sentencing guideline 
thresholds.
  The administration recently acknowledged the extent of the problem. 
In a March 5, 1998, letter to the U.S. Sentencing Commission, Treasury 
Secretary Robert E. Rubin wrote that ``increases in computer 
counterfeiting cases represent not only a threat to our law 
enforcement interests, but also seriously threaten the integrity of our 
U.S. currency. Maintaining the stability and integrity of U.S. currency 
is essential to preserving the benefits derived from the dollar's 
status as a world currency.''

  In response to these enhanced counterfeiting techniques, the 
Department of Treasury has been redesigning our nation's currency to 
make it harder to counterfeit. In addition the Secret Service has 
stepped up its battle against counterfeiters, both at home and abroad. 
But more needs to be done. This bill is another important step to 
toughen the penalties for counterfeiting.
  Specifically, my bill strengthens the sentencing guidelines so that 
increases are based on offense levels determined by the amount of 
counterfeit bills produced and a point system based on the offender's 
prior criminal history. Under current law, the base offense begins with 
level 9 for convictions involving $2,000 in counterfeit currency or 
less. Increases in this level occur according to the amount of 
counterfeit bills over $2,000. Thus a defendant's guideline

[[Page S5227]]

range in counterfeiting cases depends largely on the amount of 
counterfeit inventory seized when the operation is shut down.
  Increases in sentencing are also determined by the prior criminal 
history of the offender. Points are added for such things as: prior 
imprisonment; offenses committed while on probation, parole, or 
supervised release; offenses committed less than two years from prior 
release; and other misdemeanor and petty offenses.
  Under current law at base offense level 9, seven points are needed 
for the imposition of a prison sentence of 12 to 18 months. Without 
these points for prior criminal history many offenders simply are being 
released on probation. I believe these sentencing guidelines are too 
lenient and fail to address the growing problem of counterfeiting.
  Therefore, my bill increases the base offense level in section 2B5.1 
of the Federal Sentencing Guidelines by not less than two levels to 
level 11. Under my bill, an offender would need only four points to 
receive the same 12 to 18 month sentence which previously required 
seven points. This relates to all counterfeiting offenses to address 
the overall harm counterfeiting can have on the integrity of U.S. 
currency.
  Second, my bill adds a sentencing enhancement of not less than two 
levels for counterfeiting offenses that involve the use of computer 
printer or a color photocopying machine. This would place this new 
class of computer counterfeiters at an offense level of 13. Here, an 
offender would need zero points to receive the same 12 to 18 month 
sentence. The increase in my bill would provide for actual prison 
sentences in many of the cases where previous offenders were only 
receiving probation. I believe this legislation clearly addresses our 
growing problem with counterfeiters by imposing stricter sentencing 
penalties.
  Mr. President, counterfeiting threatens the very underpinnings of our 
economy, the American people's confidence in the integrity and value of 
our nation's currency, the U.S. dollar. The ``Counterfeiting Sentencing 
Enhancement Act of 1998'' will send a clear message to criminals who 
are even thinking about counterfeiting. I urge my colleagues to join in 
support of this legislation.
  Mr. President, I ask unanimous consent that a copy of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2099

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SENTENCING GUIDELINES FOR COUNTERFEITING OFFENSES.

       The United States Sentencing Commission shall amend the 
     Federal sentencing guidelines to provide--
       (1) a sentencing enhancement of not less than 2 levels, 
     with respect to the base level for offenses involving 
     counterfeit bearer obligations of the United States, as 
     described in section 2B5.1 of the Federal sentencing 
     guidelines; and
       (2) an additional sentencing enhancement of not less than 2 
     levels, with respect to any offense described in paragraph 
     (1) that involves the use of a computer printer or a color 
     photocopying machine.
                                 ______