[Congressional Record Volume 148, Number 47 (Wednesday, April 24, 2002)]
[Senate]
[Pages S3310-S3316]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY (for himself, Mr. Daschle, Mr. Torricelli, Mr. 
        Kennedy, Mr. Harkin, Mr. Bingaman, Mr. Feingold, and Mr. 
        Johnson):
  S. 2240. A bill to combat nursing home fraud and abuse, increase 
protections for victims of telemarketing fraud, enhance safeguards for 
pension plans and health care benefit programs, and enhance penalties 
for crimes against seniors, and for other purposes; to the Committee on 
the Judiciary.
  Mr. LEAHY. Madam President, today I am introducing the Seniors Safety 
Act of 2002, a bill to protect older Americans from crime. I am pleased 
to have Senators Daschle, Kennedy, Torricelli, Harkin, Bingaman, 
Feingold, and Johnson as cosponsors for this anti-crime bill.
  The Seniors Safety Act contains a comprehensive package of proposals 
to address the most prevalent crimes perpetrated against seniors, 
including proposals to reduce health care fraud and abuse, combat 
nursing home fraud and abuse, prevent telemarketing fraud, and 
safeguard pension and employee benefit plans from fraud, bribery, and 
graft. In addition, this legislation would help seniors obtain 
restitution if their pension plans are defrauded.
  Older Americans are the most rapidly growing population group in our 
society, making them an even more attractive target for criminals. The 
Department of Health and Human Services has predicted that the number 
of older Americans will grow from 13 percent of the U.S. population in 
2000 to 20 percent by 2030. In Vermont, seniors comprise about 12 
percent of the population, and it is expected that that number will 
increase to 20 percent by 2025.
  As the Nation's crime rates dropped dramatically during the 1990s, 
crime against seniors remained stubbornly resistant. This may be 
because elders are susceptible to more fraud crimes and fewer violent 
crimes than younger Americans. According to a 2000 Justice Department 
study, more than 9 out of 10 crimes committed against older Americans 
were property crimes, most especially theft. As our Nation addressed 
our violent crime problem, we did not take a comprehensive approach to 
deterring the crimes that so affect the elderly, like telemarketing 
fraud, health care fraud, and pension fraud. The Seniors Safety Act 
provides such a comprehensive approach, and I urge the Senate to do its 
part to make it law.
  The Seniors Safety Act instructs the U.S. Sentencing Commission to 
review current sentencing guidelines and, if appropriate, amend the 
guidelines to include the age of a crime victim as a criterion for 
determining whether a sentencing enhancement is proper. The bill also 
requires the Commission to review sentencing guidelines for health care 
benefit fraud, increases statutory penalties both for fraud resulting 
in serious injury or death and for bribery and graft in connection with 
employee benefit plans, and increases criminal and civil penalties for 
defrauding pension plans.
  One particular form of criminal activity, telemarketing fraud, 
disproportionately impacts Americans over the age of 50, who account 
for over a third of the estimated $40 billion lost to telemarketing 
fraud each year. The Seniors Safety Act continues the progress we made 
in the 105th Congress with passage of the Telemarketing Fraud 
Prevention Act and in the 106th Congress with the Protecting Seniors 
from Fraud Act, which included provisions from the Seniors Safety Act 
that I introduced in the last Congress. The legislation I introduce 
today addresses the problem of telemarketing fraud schemes that too 
often succeed in swindling seniors of their life savings. Some of these 
schemes are directed from outside the United States, making criminal 
prosecution more difficult.
  The act would provide the Attorney General with a new, significant 
crime-fighting tool to prevent telemarketing fraud. Specifically, the 
act would authorize the Attorney General to block or terminate 
telephone service to telephone facilities that are being used to 
conduct such fraudulent activities. The Justice Department could use 
this authority to disrupt telemarketing fraud schemes directed from 
foreign sources by cutting off the swindlers' telephone service. Even 
if the criminals manage to acquire a new telephone number, temporary 
interruptions will prevent some seniors from being victimized.
  The bill also establishes a ``Better Business Bureau''-style 
clearinghouse at the Federal Trade Commission to provide seniors, their 
families, and others who may be concerned about a telemarketer with 
information about prior fraud convictions and/or complaints against the 
particular company. In addition, the FTC would refer seniors and other 
consumers who believe they have been swindled to the appropriate law 
enforcement authorities.
  Criminal activity that undermines the safety and integrity of pension 
plans and health benefit programs threatens all Americans, but most 
especially those seniors who have relied on promised benefits in 
planning their retirements. Seniors who have worked faithfully and 
honestly for years should not reach their retirement years only to find 
that the funds they relied upon were stolen. This is a significant 
problem. According to the Attorney General's 1997 Annual Report, an 
interagency working group on pension abuse brought 70 criminal cases 
representing more than $90 million in losses to pension plans in 29 
districts around the country in 1997 alone.
  The Seniors Safety Act would add to the arsenal that Federal 
prosecutors have to prevent and punish fraud against retirement plans. 
Specifically, the Act would create new criminal and civil penalties for 
defrauding pension plans or obtaining money or property from such plans 
by means of false or fraudulent pretenses. In addition, the act would 
enhance penalties for bribery and graft in connection with employee 
benefit plans. The only people enjoying the benefits of pension plans 
should be the people who have worked hard to fund those plans, not 
crooks who get the money by fraud.
  Health care spending consists of about 15 percent of the gross 
national product, or more than $1 trillion each year. Estimated losses 
due to fraud and abuse are astronomical. A December 1998 report by the 
National Institute of Justice, NIJ, states that these losses ``may 
exceed 10 percent of annual health care spending, or $100 billion per 
year.''
  As more health care claims are processed electronically, without 
human involvement, more sophisticated computer-generated fraud schemes 
are surfacing. Some of these schemes generate thousands of false claims 
designed to pass through automated claims processing to payment, 
and result in the theft of millions of dollars from Federal and private 
health care programs. Defrauding Medicare, Medicaid and private health 
plans increases the financial burden on taxpayers and beneficiaries 
alike. In addition, some forms of fraud may result in inadequate 
medical care, harming patients' health as well. Unfortunately, the NIJ 
reports that many health care fraud schemes ``deliberately target 
vulnerable populations, such as the elderly or Alzheimer's patients, 
who are less willing or able to complain or alert law enforcement.''

  We saw a dramatic increase in criminal convictions for health care 
fraud cases during the 1990s. These cases included convictions for 
submitting false claims to Medicare, Medicaid, and private insurance 
plans; fake billings by foreign doctors; and needless prescriptions for 
durable medical equipment by doctors in exchange for kickbacks from 
manufacturers. In 1997 alone, $1.2 billion was awarded or negotiated as 
a result of criminal fines, civil settlements and judgments in health 
care fraud matters.
  We can and must do more. The Seniors Safety Act would allow the 
Attorney General to bring injunctive actions to stop false claims and 
illegal kickback schemes involving Federal health care programs. The 
bill would also provide law enforcement authorities with additional 
investigatory tools to uncover, investigate, and prosecute health care 
offenses in both criminal and civil proceedings.
  In addition, whistle-blowers who tip off law enforcement about health 
care fraud would be authorized under the Seniors Safety Act to seek 
court permission to review information obtained by the Government to 
enhance their assistance in False Claims Act lawsuits. Such qui tam, or 
whistle-blower, suits have dramatically enhanced the Government's 
ability to uncover health

[[Page S3311]]

care fraud. The act would allow whistle-blowers and their qui tam suits 
to become even more effective.
  Finally, the act would extend anti-fraud and anti-kickback safeguards 
to the Federal Employees Health Benefits program. These are all 
important steps that will help cut down on the enormous health care 
fraud losses.
  As life expectancies continue to increase, long-term care planning 
specialists estimate that over 40 percent of those turning 65 
eventually will need nursing home care, and that 20 percent of those 
seniors will spend 5 years or more in homes. Indeed, many of us already 
have experienced having our parents, family members or other loved ones 
spend time in a nursing home. We owe it to them and to ourselves to 
give the residents of nursing homes the best care they can get.
  The Justice Department has cited egregious examples of nursing homes 
that pocketed Medicare funds instead of providing residents with 
adequate care. In one case, five patients died as result of the 
inadequate provision of nutrition, wound care and diabetes management 
by three Pennsylvania nursing homes. Yet another death occurred when a 
patient, who was unable to speak, was placed in a scalding tub of 138-
degree water.
  This act provides additional peace of mind to residents of nursing 
homes and those of us who may have loved ones there by giving Federal 
law enforcement the authority to investigate and prosecute operators of 
nursing homes for willfully engaging in patterns of health and safety 
violations in the care of nursing home residents. The act also protects 
whistle-blowers from retaliation for reporting such violations.
  I ask unanimous consent that the text 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. 2240

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Seniors 
     Safety Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.

               TITLE I--COMBATING CRIMES AGAINST SENIORS

Sec. 101. Enhanced sentencing penalties based on age of victim.
Sec. 102. Study and report on health care fraud sentences.
Sec. 103. Increased penalties for fraud resulting in serious injury or 
              death.
Sec. 104. Safeguarding pension plans from fraud and theft. 
Sec. 105. Additional civil penalties for defrauding pension plans. 
Sec. 106. Punishing bribery and graft in connection with employee 
              benefit plans.

                TITLE II--PREVENTING TELEMARKETING FRAUD

Sec. 201. Centralized complaint and consumer education service for 
              victims of telemarketing fraud.
Sec. 202. Blocking of telemarketing scams.

                TITLE III--PREVENTING HEALTH CARE FRAUD

Sec. 301. Injunctive authority relating to false claims and illegal 
              kickback schemes involving Federal health care programs.
Sec. 302. Authorized investigative demand procedures.
Sec. 303. Extending antifraud safeguards to the Federal employee health 
              benefits program.
Sec. 304. Grand jury disclosure.
Sec. 305. Increasing the effectiveness of civil investigative demands 
              in false claims investigations.

            TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

Sec. 401. Short title.
Sec. 402. Nursing home resident protection.

        TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

Sec. 501. Use of forfeited funds to pay restitution to crime victims 
              and regulatory agencies.
Sec. 502. Victim restitution.
Sec. 503. Bankruptcy proceedings not used to shield illegal gains from 
              false claims.
Sec. 504. Forfeiture for retirement offenses.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress makes the following findings:
       (1) The number of older Americans is rapidly growing in the 
     United States. According to the 2000 census, 21 percent of 
     the United States population is 55 years of age or older.
       (2) In 1997, 7 percent of victims of serious violent crime 
     were 50 years of age or older.
       (3) In 1997, 17.7 percent of murder victims were 55 years 
     of age or older.
       (4) According to the Department of Justice, persons 65 
     years of age and older experienced approximately 2,700,000 
     crimes a year between 1992 and 1997.
       (5) Older victims of violent crime are almost twice as 
     likely as younger victims to be raped, robbed, or assaulted 
     at or in their own homes.
       (6) Approximately half of all Americans who are 50 years of 
     age or older are afraid to walk alone at night in their own 
     neighborhoods.
       (7) Seniors over 50 years of age reportedly account for 37 
     percent of the estimated $40,000,000,000 in losses each year 
     due to telemarketing fraud.
       (8) A 1996 American Association of Retired Persons survey 
     of people 50 years of age and older showed that 57 percent 
     were likely to receive calls from telemarketers at least once 
     a week.
       (9) In 1998, Congress enacted legislation to provide for 
     increased penalties for telemarketing fraud that targets 
     seniors.
       (10) It has been estimated that--
       (A) approximately 43 percent of persons turning 65 years of 
     age can expect to spend some time in a long-term care 
     facility; and
       (B) approximately 20 percent can expect to spend 5 years or 
     more in a such a facility.
       (11) In 1997, approximately $82,800,000,000 was spent on 
     nursing home care in the United States and over half of this 
     amount was spent by the Medicaid and Medicare programs.
       (12) Losses to fraud and abuse in health care reportedly 
     cost the United States an estimated $100,000,000,000 in 1996.
       (13) The Inspector General for the Department of Health and 
     Human Services has estimated that about $12,600,000,000 in 
     improper Medicare benefit payments, due to inadvertent 
     mistake, fraud, and abuse were made during fiscal year 1998.
       (14) Incidents of health care fraud and abuse remain common 
     despite awareness of the problem.
       (b) Purposes.--The purposes of this Act are to--
       (1) combat nursing home fraud and abuse;
       (2) enhance safeguards for pension plans and health care 
     programs;
       (3) develop strategies for preventing and punishing crimes 
     that target or otherwise disproportionately affect seniors by 
     collecting appropriate data--
       (A) to measure the extent of crimes committed against 
     seniors; and
       (B) to determine the extent of domestic and elder abuse of 
     seniors; and
       (4) prevent and deter criminal activity, such as 
     telemarketing fraud, that results in economic and physical 
     harm against seniors, and ensure appropriate restitution.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Crime.--The term ``crime'' means any criminal offense 
     under Federal or State law.
       (2) Nursing home.--The term ``nursing home'' means any 
     institution or residential care facility defined as such for 
     licensing purposes under State law, or if State law does not 
     employ the term nursing home, the equivalent term or terms as 
     determined by the Secretary of Health and Human Services, 
     pursuant to section 1908(e) of the Social Security Act (42 
     U.S.C. 1396g(e)).
       (3) Senior.--The term ``senior'' means an individual who is 
     more than 55 years of age.

               TITLE I--COMBATING CRIMES AGAINST SENIORS

     SEC. 101. ENHANCED SENTENCING PENALTIES BASED ON AGE OF 
                   VICTIM.

       (a) Directive to the United States Sentencing Commission.--
     Pursuant to its authority under section 994(p) of title 28, 
     United States Code, and in accordance with this section, the 
     United States Sentencing Commission (referred to in this 
     section as the ``Commission'') shall review and, if 
     appropriate, amend section 3A1.1(a) of the Federal sentencing 
     guidelines to include the age of a crime victim as one of the 
     criteria for determining whether the application of a 
     sentencing enhancement is appropriate.
       (b) Requirements.--In carrying out this section, the 
     Commission shall--
       (1) ensure that the Federal sentencing guidelines and the 
     policy statements of the Commission reflect the serious 
     economic and physical harms associated with criminal activity 
     targeted at seniors due to their particular vulnerability;
       (2) consider providing increased penalties for persons 
     convicted of offenses in which the victim was a senior in 
     appropriate circumstances;
       (3) consult with individuals or groups representing 
     seniors, law enforcement agencies, victims organizations, and 
     the Federal judiciary as part of the review described in 
     subsection (a);
       (4) ensure reasonable consistency with other Federal 
     sentencing guidelines and directives;
       (5) account for any aggravating or mitigating circumstances 
     that may justify exceptions, including circumstances for 
     which the Federal sentencing guidelines provide sentencing 
     enhancements;
       (6) make any necessary conforming changes to the Federal 
     sentencing guidelines; and
       (7) ensure that the Federal sentencing guidelines 
     adequately meet the purposes of sentencing set forth in 
     section 3553(a)(2) of title 18, United States Code.

[[Page S3312]]

       (c) Report.--Not later than December 31, 2002, the 
     Commission shall submit to Congress a report on issues 
     relating to the age of crime victims, which shall include--
       (1) an explanation of any changes to sentencing policy made 
     by the Commission under this section; and
       (2) any recommendations of the Commission for retention or 
     modification of penalty levels, including statutory penalty 
     levels, for offenses involving seniors.

     SEC. 102. STUDY AND REPORT ON HEALTH CARE FRAUD SENTENCES.

       (a) Directive to the United States Sentencing Commission.--
     Pursuant to its authority under section 994(p) of title 28, 
     United States Code, and in accordance with this section, the 
     United States Sentencing Commission (referred to in this 
     section as the ``Commission'') shall review and, if 
     appropriate, amend the Federal sentencing guidelines and the 
     policy statements of the Commission with respect to persons 
     convicted of offenses involving fraud in connection with a 
     health care benefit program (as defined in section 24(b) of 
     title 18, United States Code).
       (b) Requirements.--In carrying out this section, the 
     Commission shall--
       (1) ensure that the Federal sentencing guidelines and the 
     policy statements of the Commission reflect the serious harms 
     associated with health care fraud and the need for aggressive 
     and appropriate law enforcement action to prevent such fraud;
       (2) consider providing increased penalties for persons 
     convicted of health care fraud in appropriate circumstances;
       (3) consult with individuals or groups representing victims 
     of health care fraud, law enforcement agencies, the health 
     care industry, and the Federal judiciary as part of the 
     review described in subsection (a);
       (4) ensure reasonable consistency with other Federal 
     sentencing guidelines and directives;
       (5) account for any aggravating or mitigating circumstances 
     that might justify exceptions, including circumstances for 
     which the Federal sentencing guidelines provide sentencing 
     enhancements;
       (6) make any necessary conforming changes to the Federal 
     sentencing guidelines; and
       (7) ensure that the Federal sentencing guidelines 
     adequately meet the purposes of sentencing as set forth in 
     section 3553(a)(2) of title 18, United States Code.
       (c) Report.--Not later than December 31, 2002, the 
     Commission shall submit to Congress a report on issues 
     relating to offenses described in subsection (a), which shall 
     include--
       (1) an explanation of any changes to sentencing policy made 
     by the Commission under this section; and
       (2) any recommendations of the Commission for retention or 
     modification of penalty levels, including statutory penalty 
     levels, for those offenses.

     SEC. 103. INCREASED PENALTIES FOR FRAUD RESULTING IN SERIOUS 
                   INJURY OR DEATH.

       Sections 1341 and 1343 of title 18, United States Code, are 
     each amended by inserting before the last sentence the 
     following: ``If the violation results in serious bodily 
     injury (as defined in section 1365), such person shall be 
     fined under this title, imprisoned not more than 20 years, or 
     both, and if the violation results in death, such person 
     shall be fined under this title, imprisoned for any term of 
     years or life, or both.''.

     SEC. 104. SAFEGUARDING PENSION PLANS FROM FRAUD AND THEFT.

       (a) In General.--Chapter 63 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1348. Fraud in relation to retirement arrangements

       ``(a) Definition.--
       ``(1) Retirement arrangement.--In this section, the term 
     `retirement arrangement' means--
       ``(A) any employee pension benefit plan subject to any 
     provision of title I of the Employee Retirement Income 
     Security Act of 1974;
       ``(B) any qualified retirement plan within the meaning of 
     section 4974(c) of the Internal Revenue Code of 1986;
       ``(C) any medical savings account described in section 220 
     of the Internal Revenue Code of 1986; or
       ``(D) a fund established within the Thrift Savings Fund by 
     the Federal Retirement Thrift Investment Board pursuant to 
     subchapter III of chapter 84 of title 5.
       ``(2) Certain arrangements included.--The term `retirement 
     arrangement' shall include any arrangement that has been 
     represented to be an arrangement described in any 
     subparagraph of paragraph (1) (whether or not so described).
       ``(3) Exception for governmental plan.--Except as provided 
     in paragraph (1)(D), the term `retirement arrangement' shall 
     not include any governmental plan (as defined in section 
     3(32) of title I of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1002(32))).
       ``(b) Prohibition and Penalties.--Whoever executes, or 
     attempts to execute, a scheme or artifice--
       ``(1) to defraud any retirement arrangement or other person 
     in connection with the establishment or maintenance of a 
     retirement arrangement; or
       ``(2) to obtain, by means of false or fraudulent pretenses, 
     representations, or promises, any of the money or property 
     owned by, or under the custody or control of, any retirement 
     arrangement or other person in connection with the 
     establishment or maintenance of a retirement arrangement;

     shall be fined under this title, imprisoned not more than 10 
     years, or both.
       ``(c) Enforcement.--
       ``(1) In general.--Subject to paragraph (2), the Attorney 
     General may investigate any violation of, and otherwise 
     enforce, this section.
       ``(2) Effect on other authority.--Nothing in this 
     subsection may be construed to preclude the Secretary of 
     Labor or the head of any other appropriate Federal agency 
     from investigating a violation of this section in relation to 
     a retirement arrangement subject to title I of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1001 et 
     seq.) or any other provision of Federal law.''.
       (b) Technical Amendment.--Section 24(a)(1) of title 18, 
     United States Code, is amended by inserting ``1348,'' after 
     ``1347,''.
       (c) Conforming Amendment.--The analysis for chapter 63 of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``1348. Fraud in relation to retirement arrangements.''.

     SEC. 105. ADDITIONAL CIVIL PENALTIES FOR DEFRAUDING PENSION 
                   PLANS.

       (a) In General.--
       (1) Action by attorney general.--Except as provided in 
     subsection (b)--
       (A) the Attorney General may bring a civil action in the 
     appropriate district court of the United States against any 
     person who engages in conduct constituting an offense under 
     section 1348 of title 18, United States Code, or conspiracy 
     to violate such section 1348; and
       (B) upon proof of such conduct by a preponderance of the 
     evidence, such person shall be subject to a civil penalty in 
     an amount equal to the greatest of--
       (i) the amount of pecuniary gain to that person;
       (ii) the amount of pecuniary loss sustained by the victim; 
     or
       (iii) not more than--

       (I) $50,000 for each such violation in the case of an 
     individual; or
       (II) $100,000 for each such violation in the case of a 
     person other than an individual.

       (2) No effect on other remedies.--The imposition of a civil 
     penalty under this subsection does not preclude any other 
     statutory, common law, or administrative remedy available by 
     law to the United States or any other person.
       (b) Exception.--No civil penalty may be imposed pursuant to 
     subsection (a) with respect to conduct involving a retirement 
     arrangement that--
       (1) is an employee pension benefit plan subject to title I 
     of the Employee Retirement Income Security Act of 1974; and
       (2) for which the civil penalties may be imposed under 
     section 502 of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1132).
       (c) Determination of Penalty Amount.--In determining the 
     amount of the penalty under subsection (a), the district 
     court may consider the effect of the penalty on the violator 
     or other person's ability to--
       (1) restore all losses to the victims; or
       (2) provide other relief ordered in another civil or 
     criminal prosecution related to such conduct, including any 
     penalty or tax imposed on the violator or other person 
     pursuant to the Internal Revenue Code of 1986.

     SEC. 106. PUNISHING BRIBERY AND GRAFT IN CONNECTION WITH 
                   EMPLOYEE BENEFIT PLANS.

       (a) In General.--Section 1954 of title 18, United States 
     Code, is amended to read as follows:

     ``Sec. 1954. Bribery and graft in connection with employee 
       benefit plans

       ``(a) Definitions.--In this section--
       ``(1) the term `employee benefit plan' means any employee 
     welfare benefit plan or employee pension benefit plan subject 
     to any provision of title I of the Employee Retirement Income 
     Security Act of 1974;
       ``(2) the terms `employee organization', `administrator', 
     and `employee benefit plan sponsor' mean any employee 
     organization, administrator, or plan sponsor, as defined in 
     title I of the Employment Retirement Income Security Act of 
     1974; and
       ``(3) the term `applicable person' means--
       ``(A) an administrator, officer, trustee, custodian, 
     counsel, agent, or employee of any employee benefit plan;
       ``(B) an officer, counsel, agent, or employee of an 
     employer or an employer any of whose employees are covered by 
     such plan;
       ``(C) an officer, counsel, agent, or employee of an 
     employee organization any of whose members are covered by 
     such plan;
       ``(D) a person who, or an officer, counsel, agent, or 
     employee of an organization that, provides benefit plan 
     services to such plan; or
       ``(E) a person with actual or apparent influence or 
     decisionmaking authority in regard to such plan.
       ``(b) Bribery and Graft.--Whoever--
       ``(1) being an applicable person, receives or agrees to 
     receive or solicits, any fee, kickback, commission, gift, 
     loan, money, or thing of value, personally or for any other 
     person, because of or with the intent to be corruptly 
     influenced with respect to any action, decision, or duty of 
     that applicable person relating to any question or matter 
     concerning an employee benefit plan;
       ``(2) directly or indirectly, gives or offers, or promises 
     to give or offer, any fee, kickback, commission, gift, loan, 
     money, or

[[Page S3313]]

     thing of value, to any applicable person, because of or with 
     the intent to be corruptly influenced with respect to any 
     action, decision, or duty of that applicable person relating 
     to any question or matter concerning an employee benefit 
     plan; or
       ``(3) attempts to give, accept, or receive any thing of 
     value with the intent to be corruptly influenced in violation 
     of this section;

     shall be fined under this title, imprisoned not more than 5 
     years, or both.
       ``(c) Exceptions.--Nothing in this section may be construed 
     to apply to any--
       ``(1) payment to, or acceptance by, any person of bona fide 
     salary, compensation, or other payments made for goods or 
     facilities actually furnished or for services actually 
     performed in the regular course of his duties as an 
     applicable person; or
       ``(2) payment to, or acceptance in good faith by, any 
     employee benefit plan sponsor, or person acting on behalf of 
     the sponsor, of anything of value relating to the decision or 
     action of the sponsor to establish, terminate, or modify the 
     governing instruments of an employee benefit plan in a manner 
     that does not violate--
       ``(A) title I of the Employee Retirement Income Security 
     Act of 1974;
       ``(B) any regulation or order promulgated under title I of 
     the Employee Retirement Income Security Act of 1974; or
       ``(C) any other provision of law governing the plan.''.
       (b) Conforming Amendment.--The analysis for chapter 95 of 
     title 18, United States Code, is amended by striking the item 
     relating to section 1954 and inserting the following:

``1954. Bribery and graft in connection with employee benefit plans.''.

                TITLE II--PREVENTING TELEMARKETING FRAUD

     SEC. 201. CENTRALIZED COMPLAINT AND CONSUMER EDUCATION 
                   SERVICE FOR VICTIMS OF TELEMARKETING FRAUD.

       (a) Centralized Service.--
       (1) Requirement.--The Federal Trade Commission shall, after 
     consultation with the Attorney General, establish procedures 
     to--
       (A) log and acknowledge the receipt of complaints by 
     individuals who certify that they have a reasonable belief 
     that they have been the victim of fraud in connection with 
     the conduct of telemarketing (as that term is defined in 
     section 2325 of title 18, United States Code, as amended by 
     section 202(a) of this Act);
       (B) provide to individuals described in subparagraph (A), 
     and to any other persons, information on telemarketing fraud, 
     including--
       (i) general information on telemarketing fraud, including 
     descriptions of the most common telemarketing fraud schemes;
       (ii) information on means of referring complaints on 
     telemarketing fraud to appropriate law enforcement agencies, 
     including the Director of the Federal Bureau of 
     Investigation, the attorneys general of the States, and the 
     national toll-free telephone number on telemarketing fraud 
     established by the Attorney General; and
       (iii) information, if available, on the number of 
     complaints of telemarketing fraud against particular 
     companies and any record of convictions for telemarketing 
     fraud by particular companies for which a specific request 
     has been made; and
       (C) refer complaints described in subparagraph (A) to 
     appropriate entities, including State consumer protection 
     agencies or entities and appropriate law enforcement 
     agencies, for potential law enforcement action.
       (2) Central location.--The service under the procedures 
     under paragraph (1) shall be provided at and through a single 
     site selected by the Commission for that purpose.
       (3) Commencement.--The Federal Trade Commission shall 
     commence carrying out the service not later than 1 year after 
     the date of enactment of this Act.
       (b) Creation of Fraud Conviction Database.--
       (1) Establishment.--The Attorney General shall establish 
     and maintain a computer database containing information on 
     the corporations and companies convicted of offenses for 
     telemarketing fraud under Federal and State law.
       (2) Database.--The database established under paragraph (1) 
     shall include a description of the type and method of the 
     fraud scheme for which each corporation or company covered by 
     the database was convicted.
       (3) Use of database.--The Attorney General shall make 
     information in the database available to the Federal Trade 
     Commission for purposes of providing information as part of 
     the service under subsection (a).
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 202. BLOCKING OF TELEMARKETING SCAMS.

       (a) Expansion of Scope of Telemarketing Fraud Subject to 
     Enhanced Criminal Penalties.--Section 2325(1) of title 18, 
     United States Code, is amended by striking ``telephone 
     calls'' and inserting ``wire communications utilizing a 
     telephone service''.
       (b) Blocking or Termination of Telephone Service Associated 
     With Telemarketing Fraud.--
       (1) In general.--Chapter 113A of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 2328. Blocking or termination of telephone service

       ``(a) Definitions.--In this section:
       ``(1) Reasonable notice to the subscriber.--
       ``(A) In general.--The term `reasonable notice to the 
     subscriber', in the case of a subscriber of a common carrier, 
     means any information necessary to provide notice to the 
     subscriber that--
       ``(i) the wire communications facilities furnished by the 
     common carrier may not be used for the purpose of 
     transmitting, receiving, forwarding, or delivering a wire 
     communication in interstate or foreign commerce for the 
     purpose of executing any scheme or artifice to defraud in 
     connection with the conduct of telemarketing; and
       ``(ii) such use constitutes sufficient grounds for the 
     immediate discontinuance or refusal of the leasing, 
     furnishing, or maintaining of the facilities to or for the 
     subscriber.
       ``(B) Included matter.--The term includes any tariff filed 
     by the common carrier with the Federal Communications 
     Commission that contains the information specified in 
     subparagraph (A).
       ``(2) Wire communication.--The term `wire communication' 
     has the same meaning given that term in section 2510(1).
       ``(3) Wire communications facility.--The term `wire 
     communications facility' means any facility (including 
     instrumentalities, personnel, and services) used by a common 
     carrier for purposes of the transmission, receipt, 
     forwarding, or delivery of wire communications.
       ``(b) Blocking or Terminating Telephone Service.--If a 
     common carrier subject to the jurisdiction of the Federal 
     Communications Commission is notified in writing by the 
     Attorney General, acting within the jurisdiction of the 
     Attorney General, that any wire communications facility 
     furnished by that common carrier is being used or will be 
     used by a subscriber for the purpose of transmitting or 
     receiving a wire communication in interstate or foreign 
     commerce for the purpose of executing any scheme or artifice 
     to defraud, or for obtaining money or property by means of 
     false or fraudulent pretenses, representations, or promises, 
     in connection with the conduct of telemarketing, the common 
     carrier shall discontinue or refuse the leasing, furnishing, 
     or maintaining of the facility to or for the subscriber after 
     reasonable notice to the subscriber.
       ``(c) Prohibition on Damages.--No damages, penalty, or 
     forfeiture, whether civil or criminal, shall be found or 
     imposed against any common carrier for any act done by the 
     common carrier in compliance with a notice received from the 
     Attorney General under this section.
       ``(d) Relief.--
       ``(1) In general.--Nothing in this section may be construed 
     to prejudice the right of any person affected thereby to 
     secure an appropriate determination, as otherwise provided by 
     law, in a Federal court, that--
       ``(A) the leasing, furnishing, or maintaining of a facility 
     should not be discontinued or refused under this section; or
       ``(B) the leasing, furnishing, or maintaining of a facility 
     that has been so discontinued or refused should be restored.
       ``(2) Supporting information.--In any action brought under 
     this subsection, the court may direct that the Attorney 
     General present evidence in support of the notice made under 
     subsection (b) to which such action relates.''.
       (2) Conforming amendment.--The analysis for chapter 113A of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``2328. Blocking or termination of telephone service.''.

                TITLE III--PREVENTING HEALTH CARE FRAUD

     SEC. 301. INJUNCTIVE AUTHORITY RELATING TO FALSE CLAIMS AND 
                   ILLEGAL KICKBACK SCHEMES INVOLVING FEDERAL 
                   HEALTH CARE PROGRAMS.

       (a) In General.--Section 1345(a) of title 18, United States 
     Code, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``, or'' and inserting 
     a semicolon;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(D) committing or about to commit an offense under 
     section 1128B of the Social Security Act (42 U.S.C. 1320a-
     7b),''; and
       (2) in paragraph (2), by inserting ``a violation of 
     paragraph (1)(D), or'' before ``a banking''.
       (b) Civil Actions.--
       (1) In general.--Section 1128B of the Social Security Act 
     (42 U.S.C. 1320a-7b) is amended by adding at the end the 
     following:
       ``(g) Civil Actions.--
       ``(1) In general.--The Attorney General may bring an action 
     in the appropriate district court of the United States to 
     impose upon any person who carries out any activity in 
     violation of this section with respect to a Federal health 
     care program a civil penalty of not more than $50,000 for 
     each such violation, or damages of 3 times the total 
     remuneration offered, paid, solicited, or received, whichever 
     is greater.
       ``(2) Existence of violation.--A violation exists under 
     paragraph (1) if 1 or more purposes of the remuneration is 
     unlawful, and the damages shall be the full amount of such 
     remuneration.
       ``(3) Procedures.--An action under paragraph (1) shall be 
     governed by--
       ``(A) the procedures with regard to subpoenas, statutes of 
     limitations, standards of proof, and collateral estoppel set 
     forth in section 3731 of title 31, United States Code; and

[[Page S3314]]

       ``(B) the Federal Rules of Civil Procedure.
       ``(4) No effect on other remedies.--Nothing in this section 
     may be construed to affect the availability of any other 
     criminal or civil remedy.
       ``(h) Injunctive Relief.--The Attorney General may commence 
     a civil action in an appropriate district court of the United 
     States to enjoin a violation of this section, as provided in 
     section 1345 of title 18, United States Code.''.
       (2) Conforming amendment.--The heading of section 1128B of 
     the Social Security Act (42 U.S.C. 1320a-7b) is amended by 
     inserting ``AND CIVIL'' after ``CRIMINAL''.

     SEC. 302. AUTHORIZED INVESTIGATIVE DEMAND PROCEDURES.

       Section 3486 of title 18, United States Code, is amended--
       (1) in subsection (a), by inserting ``, or any allegation 
     of fraud or false claims (whether criminal or civil) in 
     connection with a Federal health care program (as defined in 
     section 1128B(f) of the Social Security Act (42 U.S.C. 1320a-
     7b(f))),'' after ``Federal health care offense'' each place 
     it appears; and
       (2) by adding at the end the following:
       ``(f) Privacy Protection.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     record (including any book, paper, document, electronic 
     medium, or other object or tangible thing) produced pursuant 
     to a subpoena issued under this section that contains 
     personally identifiable health information may not be 
     disclosed to any person, except pursuant to a court order 
     under subsection (e)(1).
       ``(2) Exceptions.--A record described in paragraph (1) may 
     be disclosed--
       ``(A) to an attorney for the Government for use in the 
     performance of the official duty of the attorney (including 
     presentation to a Federal grand jury);
       ``(B) to government personnel (including personnel of a 
     State or subdivision of a State) as are determined to be 
     necessary by an attorney for the Government to assist an 
     attorney for the Government in the performance of the 
     official duty of that attorney to enforce Federal criminal 
     law;
       ``(C) as directed by a court preliminarily to, or in 
     connection with, a judicial proceeding;
       ``(D) as permitted by a court at the request of a defendant 
     in an administrative, civil, or criminal action brought by 
     the United States, upon a showing that grounds may exist for 
     a motion to exclude evidence obtained under this section; or
       ``(E) at the request of an attorney for the Government, 
     upon a showing that such matters may disclose a violation of 
     State criminal law, to an appropriate official of a State or 
     subdivision of a State for the purpose of enforcing such law.
       ``(3) Manner of court ordered disclosures.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     if a court orders the disclosure of any record described in 
     paragraph (1), the disclosure--
       ``(i) shall be made in such manner, at such time, and under 
     such conditions as the court may direct; and
       ``(ii) shall be undertaken in a manner that preserves the 
     confidentiality and privacy of individuals who are the 
     subject of the record.
       ``(B) Exception.--If disclosure is required by the nature 
     of the proceedings, the attorney for the Government shall 
     request that the presiding judicial or administrative officer 
     enter an order limiting the disclosure of the record to the 
     maximum extent practicable, including redacting the 
     personally identifiable health information from publicly 
     disclosed or filed pleadings or records.
       ``(4) Destruction of records.--Any record described in 
     paragraph (1), and all copies of that record, in whatever 
     form (including electronic), shall be destroyed not later 
     than 90 days after the date on which the record is produced, 
     unless otherwise ordered by a court of competent 
     jurisdiction, upon a showing of good cause.
       ``(5) Effect of violation.--Any person who knowingly fails 
     to comply with this subsection may be punished as in contempt 
     of court.
       ``(g) Personally Identifiable Health Information Defined.--
     In this section, the term `personally identifiable health 
     information' means any information, including genetic 
     information, demographic information, and tissue samples 
     collected from an individual, whether oral or recorded in any 
     form or medium, that--
       ``(1) relates to the past, present, or future physical or 
     mental health or condition of an individual, the provision of 
     health care to an individual, or the past, present, or future 
     payment for the provision of health care to an individual; 
     and
       ``(2) either--
       ``(A) identifies an individual; or
       ``(B) with respect to which there is a reasonable basis to 
     believe that the information can be used to identify an 
     individual.''.

     SEC. 303. EXTENDING ANTIFRAUD SAFEGUARDS TO THE FEDERAL 
                   EMPLOYEE HEALTH BENEFITS PROGRAM.

       Section 1128B(f)(1) of the Social Security Act (42 U.S.C. 
     1320a-7b(f)(1)) is amended by striking ``(other than the 
     health insurance program under chapter 89 of title 5, United 
     States Code)''.

     SEC. 304. GRAND JURY DISCLOSURE.

       Section 3322 of title 18, United States Code, is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Grand Jury Disclosure.--Subject to section 3486(f), 
     upon ex parte motion of an attorney for the Government 
     showing that a disclosure in accordance with that subsection 
     would be of assistance to enforce any provision of Federal 
     law, a court may direct the disclosure of any matter 
     occurring before a grand jury during an investigation of a 
     Federal health care offense (as defined in section 24(a) of 
     this title) to an attorney for the Government to use in any 
     investigation or civil proceeding relating to fraud or false 
     claims in connection with a Federal health care program (as 
     defined in section 1128B(f) of the Social Security Act (42 
     U.S.C. 1320a-7b(f))).''.

     SEC. 305. INCREASING THE EFFECTIVENESS OF CIVIL INVESTIGATIVE 
                   DEMANDS IN FALSE CLAIMS INVESTIGATIONS.

       Section 3733 of title 31, United States Code, is amended--
       (1) in subsection (a)(1), in the second sentence, by 
     inserting ``, except to the Deputy Attorney General or to an 
     Assistant Attorney General'' before the period at the end; 
     and
       (2) in subsection (i)(2)(C), by adding at the end the 
     following: ``Disclosure of information to a person who brings 
     a civil action under section 3730, or the counsel of that 
     person, shall be allowed only upon application to a United 
     States district court showing that such disclosure would 
     assist the Department of Justice in carrying out its 
     statutory responsibilities.''.

            TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Nursing Home Resident 
     Protection Act of 2002''.

     SEC. 402. NURSING HOME RESIDENT PROTECTION.

       (a) Protection of Residents in Nursing Homes and Other 
     Residential Health Care Facilities.--Chapter 63 of title 18, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 1349. Pattern of violations resulting in harm to 
       residents of nursing homes and related facilities

       ``(a) Definitions.--In this section:
       ``(1) Entity.--The term `entity' means--
       ``(A) any residential health care facility (including 
     facilities that do not exclusively provide residential health 
     care services);
       ``(B) any entity that manages a residential health care 
     facility; or
       ``(C) any entity that owns, directly or indirectly, a 
     controlling interest or a 50 percent or greater interest in 1 
     or more residential health care facilities including States, 
     localities, and political subdivisions thereof.
       ``(2) Federal health care program.--The term `Federal 
     health care program' has the same meaning given that term in 
     section 1128B(f) of the Social Security Act.
       ``(3) Pattern of violations.--The term `pattern of 
     violations' means multiple violations of a single Federal or 
     State law, regulation, or rule or single violations of 
     multiple Federal or State laws, regulations, or rules, that 
     are widespread, systemic, repeated, similar in nature, or 
     result from a policy or practice.
       ``(4) Residential health care facility.--The term 
     `residential health care facility' means any facility 
     (including any facility that does not exclusively provide 
     residential health care services), including skilled and 
     unskilled nursing facilities and mental health and mental 
     retardation facilities, that--
       ``(A) receives Federal funds, directly from the Federal 
     Government or indirectly from a third party on contract with 
     or receiving a grant or other monies from the Federal 
     Government, to provide health care; or
       ``(B) provides health care services in a residential 
     setting and, in any calendar year in which a violation 
     occurs, is the recipient of benefits or payments in excess of 
     $10,000 from a Federal health care program.
       ``(5) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     any commonwealth, territory, or possession of the United 
     States.
       ``(b) Prohibition and Penalties.--Whoever knowingly and 
     willfully engages in a pattern of violations that affects the 
     health, safety, or care of individuals residing in a 
     residential health care facility or facilities, and that 
     results in significant physical or mental harm to 1 or more 
     of such residents, shall be punished as provided in section 
     1347, except that any organization shall be fined not more 
     than $2,000,000 per residential health care facility.
       ``(c) Civil Provisions.--
       ``(1) In general.--The Attorney General may bring an action 
     in a district court of the United States to impose on any 
     individual or entity that engages in a pattern of violations 
     that affects the health, safety, or care of individuals 
     residing in a residential health care facility, and that 
     results in physical or mental harm to 1 or more such 
     residents--
       ``(A) a civil penalty; or
       ``(B) in the case of--
       ``(i) an individual (other than an owner, operator, 
     officer, or manager of such a residential health care 
     facility), not more than $10,000;
       ``(ii) an individual who is an owner, operator, officer, or 
     manager of such a residential health care facility, not more 
     than $100,000 for each separate facility involved in the 
     pattern of violations under this section;
       ``(iii) a residential health care facility, not more than 
     $1,000,000 for each pattern of violations; or

[[Page S3315]]

       ``(iv) an entity, not more than $1,000,000 for each 
     separate residential health care facility involved in the 
     pattern of violations owned or managed by that entity.
       ``(2) Other appropriate relief.--If the Attorney General 
     has reason to believe that an individual or entity is 
     engaging in or is about to engage in a pattern of violations 
     that would affect the health, safety, or care of individuals 
     residing in a residential health care facility, and that 
     results in or has the potential to result in physical or 
     mental harm to 1 or more such residents, the Attorney General 
     may petition an appropriate district court of the United 
     States for appropriate equitable and declaratory relief to 
     eliminate the pattern of violations.
       ``(3) Procedures.--In any action under this subsection--
       ``(A) a subpoena requiring the attendance of a witness at a 
     trial or hearing may be served at any place in the United 
     States;
       ``(B) the action may not be brought more than 6 years after 
     the date on which the violation occurred;
       ``(C) the United States shall be required to prove each 
     charge by a preponderance of the evidence;
       ``(D) the civil investigative demand procedures set forth 
     in the Antitrust Civil Process Act (15 U.S.C. 1311 et seq.) 
     and regulations promulgated pursuant to that Act shall apply 
     to any investigation; and
       ``(E) the filing or resolution of a matter shall not 
     preclude any other remedy that is available to the United 
     States or any other person.
       ``(d) Prohibition Against Retaliation.--Any person who is 
     the subject of retaliation, either directly or indirectly, 
     for reporting a condition that may constitute grounds for 
     relief under this section may bring an action in an 
     appropriate district court of the United States for damages, 
     attorneys' fees, and other relief.''.
       (b) Authorized Investigative Demand Procedures.--Section 
     3486(a)(1) of title 18, United States Code, as amended by 
     section 402 of this Act, is amended by inserting ``, act or 
     activity involving section 1349 of this title'' after 
     ``Federal health care offense''.
       (c) Conforming Amendment.--The analysis for chapter 63 of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``1349. Pattern of violations resulting in harm to residents of nursing 
              homes and related facilities.''.

        TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

     SEC. 501. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME 
                   VICTIMS AND REGULATORY AGENCIES.

       Section 981(e) of title 18, United States Code, is 
     amended--
       (1) in each of paragraphs (3), (4), and (5), by striking 
     ``in the case of property referred to in subsection 
     (a)(1)(C)'' and inserting ``in the case of property forfeited 
     in connection with an offense resulting in a pecuniary loss 
     to a financial institution or regulatory agency,''; and
       (2) in paragraph (7), by striking ``In the case of property 
     referred to in subsection (a)(1)(D)'' and inserting ``in the 
     case of property forfeited in connection with an offense 
     relating to the sale of assets acquired or held by any 
     Federal financial institution or regulatory agency, or person 
     appointed by such agency, as receiver, conservator, or 
     liquidating agent for a financial institution''.

     SEC. 502. VICTIM RESTITUTION.

       Section 413 of the Controlled Substances Act (21 U.S.C. 
     853) is amended by adding at the end the following:
       ``(r) Victim Restitution.--
       ``(1) Satisfaction of order of restitution.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a defendant may not use property subject to forfeiture under 
     this section to satisfy an order of restitution.
       ``(B) Exception.--If there are 1 or more identifiable 
     victims entitled to restitution from a defendant, and the 
     defendant has no assets other than the property subject to 
     forfeiture with which to pay restitution to the victim or 
     victims, the attorney for the Government may move to dismiss 
     a forfeiture allegation against the defendant before entry of 
     a judgment of forfeiture in order to allow the property to be 
     used by the defendant to pay restitution in whatever manner 
     the court determines to be appropriate if the court grants 
     the motion. In granting a motion under this subparagraph, the 
     court shall include a provision ensuring that costs 
     associated with the identification, seizure, management, and 
     disposition of the property are recovered by the United 
     States.
       ``(2) Restoration of forfeited property.--
       ``(A) In general.--If an order of forfeiture is entered 
     pursuant to this section and the defendant has no assets 
     other than the forfeited property to pay restitution to 1 or 
     more identifiable victims who are entitled to restitution, 
     the Government shall restore the forfeited property to the 
     victims pursuant to subsection (i)(1) once the ancillary 
     proceeding under subsection (n) has been completed and the 
     costs of the forfeiture action have been deducted.
       ``(B) Distribution of property.--On a motion of the 
     attorney for the Government, the court may enter any order 
     necessary to facilitate the distribution of any property 
     restored under this paragraph.
       ``(3) Victim defined.--In this subsection, the term 
     `victim'--
       ``(A) means a person other than a person with a legal 
     right, title, or interest in the forfeited property 
     sufficient to satisfy the standing requirements of subsection 
     (n)(2) who may be entitled to restitution from the forfeited 
     funds pursuant to section 9.8 of part 9 of title 28, Code of 
     Federal Regulations (or any successor to that regulation); 
     and
       ``(B) includes any person who is the victim of the offense 
     giving rise to the forfeiture, or of any offense that was 
     part of the same scheme, conspiracy, or pattern of criminal 
     activity, including, in the case of a money laundering 
     offense, any offense constituting the underlying specified 
     unlawful activity.''.

     SEC. 503. BANKRUPTCY PROCEEDINGS NOT USED TO SHIELD ILLEGAL 
                   GAINS FROM FALSE CLAIMS.

       (a) Certain Actions Not Stayed by Bankruptcy Proceedings.--
       (1) In general.--Notwithstanding any other provision of 
     law, the commencement or continuation of an action under 
     section 3729 of title 31, United States Code, does not 
     operate as a stay under section 105(a) or 362(a)(1) of title 
     11, United States Code.
       (2) Conforming amendment.--Section 362(b) of title 11, 
     United States Code, is amended--
       (A) in paragraph (17), by striking ``or'' at the end;
       (B) in paragraph (18), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(19) the commencement or continuation of an action under 
     section 3729 of title 31.''.
       (b) Certain Debts Not Dischargeable in Bankruptcy.--Section 
     523 of title 11, United States Code, is amended by adding at 
     the end the following:
       ``(f) A discharge under section 727, 1141, 1228(a), 
     1228(b), or 1328(b) does not discharge a debtor from a debt 
     owed for violating section 3729 of title 31.''.
       (c) Repayment of Certain Debts Considered Final.--
       (1) In general.--Chapter 1 of title 11, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 111. False claims

       ``No transfer on account of a debt owed to the United 
     States for violating section 3729 of title 31, or under a 
     compromise order or other agreement resolving such a debt may 
     be avoided under section 544, 545, 547, 548, 549, 553(b), or 
     742(a).''.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 11, United States Code, is amended by adding at the end 
     the following:

``111. False claims.''.

     SEC. 504. FORFEITURE FOR RETIREMENT OFFENSES.

       (a) Criminal Forfeiture.--Section 982(a) of title 18, 
     United States Code, is amended by adding at the end the 
     following:
       ``(9) Criminal Forfeiture.--
       ``(A) In general.--The court, in imposing a sentence on a 
     person convicted of a retirement offense, shall order the 
     person to forfeit property, real or personal, that 
     constitutes or that is derived, directly or indirectly, from 
     proceeds traceable to the commission of the offense.
       ``(B) Retirement offense defined.--In this paragraph, if a 
     violation, conspiracy, or solicitation relates to a 
     retirement arrangement (as defined in section 1348 of title 
     18, United States Code), the term `retirement offense' means 
     a violation of--
       ``(i) section 664, 1001, 1027, 1341, 1343, 1348, 1951, 
     1952, or 1954 of title 18, United States Code; or
       ``(ii) section 411, 501, or 511 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1111, 1131, 1141).''.
       (b) Civil Forfeiture.--Section 981(a)(1) of title 18, 
     United States Code, is amended by adding at the end the 
     following:
       ``(H) Any property, real or personal, that constitutes or 
     is derived, directly or indirectly, from proceeds traceable 
     to the commission of, criminal conspiracy to violate, or 
     solicitation to commit a crime of violence involving, a 
     retirement offense (as defined in section 982(a)(9)(B)).''.

  Mr. TORRICELLI. Madam President, I am pleased to join Senators Leahy 
and Daschle today as an original cosponsor of the Seniors Safety Act, 
legislation that has been referred to as ``a new safety net for 
seniors.'' It is that, but it is also much more. Indeed, this bill is a 
potent weapon designed to track down and punish those criminals who 
would prey on the trust and good will of America's seniors. This bill 
puts crooks on notice that crimes against seniors, from violent 
assaults in the streets, to abuses in nursing homes, to frauds 
perpetrated over the telephone lines, will not be tolerated.
  Seniors represent the most rapidly growing sector of our population. 
In the next 50 years, the number of Americans over the age of 65 will 
more than double. Unless we take action now, the frequency and 
sophistication of crimes against seniors will likewise skyrocket. The 
Seniors Safety Act was developed to address, head-on, the crimes which 
most directly affect the senior community, including telemarketing 
fraud, and abuse and fraud in the health care and nursing home 
industries. It increases penalties and provides enhancements to the 
sentencing guidelines for criminals who target seniors. It protects 
seniors against the

[[Page S3316]]

illegal depletion of precious pension and employee benefit plan funds 
through fraud, graft, and bribery, and helps victimized seniors obtain 
restitution. And finally, this bill authorizes the Attorney General to 
study the problem of crime against seniors, and design new techniques 
to fight it.
  Criminal enterprises that engage in telemarketing fraud are some of 
the most insidious predators out there. Americans are fleeced out of 
over $40 billion dollars every year, and the effect on seniors is 
grossly disproportionate. According to the American Association of 
Retired Persons, ``The repeated victimization of the elderly is the 
cornerstone of illegal telemarketing.'' A study has found that 56 
percent of the names on the target lists of fraudulent telemarketers 
are those of Americans aged 50 or older. Of added concern is the fact 
that many of the perpetrators have migrated out of the United States 
for fear of prosecution, and continue to conduct their illegal 
activities from abroad.
  In one heartbreaking story, a recently-widowed New Jersey woman was 
bilked out of $200,000 by a deceitful telemarketing firm from Canada, 
who claimed that the woman had won a $150,000 sweepstakes, the prize 
could be hers, for a fee. A series of these calls followed, convincing 
this poor woman, already in a fragile mind-state after her husband's 
death, to send more and more money for what they claimed was an 
increasingly large prize, which, of course, never materialized.
  Our bill authorizes the Attorney General to effectively put these 
vultures, even the international criminals, out of business by blocking 
or terminating their U.S. telephone service. In addition, it authorizes 
the FTC to create a consumer clearinghouse which would provide seniors, 
and others who might have questions about the legitimacy of a telephone 
sales pitch, with information regarding prior complaints about a 
particular telemarketing company or prior fraud convictions. 
Furthermore, this clearinghouse would give seniors who may have been 
cheated an open channel to the appropriate law enforcement authorities.
  In 1997, older Americans were victimized by violent crime over 
680,000 times. The crimes against them range from simple assault, to 
armed robbery, to rape. While national crime rates in general are 
falling, seniors have not shared in the benefits of that drop.
  This Act singles out criminals who prey on the senior population and 
penalizes them for the physical and economic harm they cause. In 
addition, we intend to place this growing problem in the spotlight, and 
urge Congress and Federal and State law enforcement agencies to 
continue to develop solutions. To this end, we have authorized a 
comprehensive examination of crimes against seniors, and the inclusion 
of data on seniors in the National Crime Victims Survey.
  Seniors across the country have worked their entire lives, secure in 
the belief that their pensions and health benefits would be there to 
provide for them in their retirement years. Unfortunately, far too 
often, seniors wake up one morning to find that their hard-earned 
benefits have been stolen. In 1997 alone, $90 million in losses to 
pension funds were uncovered. Older Americans who depend on that money 
to live are left out in the cold, while criminals enjoy the fruits of a 
lifetime of our seniors' labor. The Seniors Safety Act gives Federal 
prosecutors another powerful weapon to punish pension fund thieves. The 
Act creates new civil and criminal penalties for defrauding pension of 
benefit plans, or obtaining money from them under false or fraudulent 
pretenses.
  The defrauding of Medicare, Medicaid, and private health insurers has 
become big business for criminals who prey on the elderly. According to 
a National Institutes of Health study, losses from fraud and abuse may 
exceed $100 billion per year. Overbilling and false claims filing have 
become rampant as automated claims processing is more prevalent. 
Similarly, the Department of Justice has noted numerous cases where 
unscrupulous nursing home operators have simply pocketed Medicare 
funds, rather than providing adequate care for their residents. In one 
horrendous case, five diabetic patient died from malnutrition and lack 
of medical care. In another, a patient was burned to death when a mute 
patient was placed by untrained staff in a tub of scalding water. These 
terrible abuses would never have occurred had the facilities spent the 
Federal funds they received to implement proper health and safety 
procedures. This bill goes after fraud and abuse by providing resources 
and tools for authorities to investigate and prosecute offenses in 
civil and criminal courts, and enhances the ability of the Justice 
Department to use evidence brought in by qui tam, whistleblower, 
plaintiffs.
  Together these provisions bring much-needed protections to our 
seniors. It sends a message to the cowardly perpetrators of fraud and 
other crimes against older Americans, that their actions will be 
fiercely prosecuted, whether they be here or abroad. And it clearly 
states that we refuse to allow seniors to be victimized by this most 
heinous form of predation.
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