[House Report 110-353]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-353

======================================================================



 
                WAR PROFITEERING PREVENTION ACT OF 2007

                                _______
                                

 September 27, 2007.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Conyers, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 400]

      [Including cost estimate of the Congressional Budget Office]

      The Committee on the Judiciary, to whom was referred the 
bill (H.R. 400) to prohibit profiteering and fraud relating to 
military action, relief, and reconstruction efforts, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     1
Purpose and Summary..............................................     2
Background and Need for the Legislation..........................     2
Hearings.........................................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     4
Performance Goals and Objectives.................................     6
Constitutional Authority Statement...............................     6
Advisory on Earmarks.............................................     6
Section-by-Section Analysis......................................     6
Changes in Existing Law Made by the Bill, as Reported............     7

                             The Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``War Profiteering Prevention Act of 
2007''.

SEC. 2. PROHIBITION OF PROFITEERING.

    (a) Prohibition.--
            (1) In general.--Chapter 47 of title 18, United States 
        Code, is amended by adding at the end the following:

``Sec. 1040. War profiteering and fraud

    ``(a) Prohibition.--
            ``(1) In general.--Whoever, in any matter involving a 
        contract or the provision of goods or services to the United 
        States or a provisional authority, in connection with a mission 
        of the United States Government overseas, knowingly--
                    ``(A)(i) executes or attempts to execute a scheme 
                or artifice to defraud the United States or that 
                authority; or
                    ``(ii) materially overvalues any good or service 
                with the intent to defraud the United States or that 
                authority;
                shall be fined under paragraph (2), imprisoned not more 
                than 20 years, or both; or
                    ``(B) in connection with the contract or the 
                provision of those goods or services--
                            ``(i) falsifies, conceals, or covers up by 
                        any trick, scheme, or device a material fact;
                            ``(ii) makes any materially false, 
                        fictitious, or fraudulent statements or 
                        representations; or
                            ``(iii) makes or uses any materially false 
                        writing or document knowing the same to contain 
                        any materially false, fictitious or fraudulent 
                        statement or entry;
                shall be fined under paragraph (2) imprisoned not more 
                than 10 years, or both.
            ``(2) Fine.--A person convicted of an offense under 
        paragraph (1) may be fined the greater of--
                    ``(A) $1,000,000; or
                    ``(B) if such person derives profits or other 
                proceeds from the offense, not more than twice the 
                gross profits or other proceeds.
    ``(b) Extraterritorial Jurisdiction.--There is extraterritorial 
Federal jurisdiction over an offense under this section.
    ``(c) Venue.--A prosecution for an offense under this section may 
be brought--
            ``(1) as authorized by chapter 211 of this title;
            ``(2) in any district where any act in furtherance of the 
        offense took place; or
            ``(3) in any district where any party to the contract or 
        provider of goods or services is located.''.
            (2) Table of sections.--The table of sections for chapter 
        47 of title 18, United States Code, is amended by adding at the 
        end the following:

``1040. War profiteering and fraud.''.
    (b) Criminal Forfeiture.--Section 982(a)(2)(B) of title 18, United 
States Code, is amended by striking ``or 1030'' and inserting ``1030, 
or 1040''.
    (c) Money Laundering.--Section 1956(c)(7)(D) of title 18, United 
States Code, is amended by inserting ``section 1040 (relating to war 
profiteering and fraud),'' after ``liquidating agent of financial 
institution),''.
    (d) RICO.--Section 1961(1) of title 18, United States Code, is 
amended by inserting ``section 1040 (relating to war profiteering and 
fraud),'' after ``in connection with access devices),''.

                          Purpose and Summary

    H.R. 400, ``The War Profiteering Prevention Act of 2007,'' 
strengthens the tools available to Federal law enforcement to 
combat contracting fraud during times of war, military action, 
or relief or reconstruction activities. The bill creates a new 
criminal fraud offense in title 18 of the United States Code to 
prohibit fraudulent acts involving the provision of goods or 
services in connection with a mission of the United States 
Government overseas. It also makes this new offense a predicate 
crime for criminal forfeiture, as well as for Federal money 
laundering and racketeering offenses.

                Background and Need for the Legislation

    Over the past 4 years, war profiteering and reconstruction 
fraud have become a significant problem during the engagement 
of United States forces in Iraq and Afghanistan. The United 
States has devoted more than $50 billion to contractors for 
relief and reconstruction activities in Iraq alone, with 
billions of these dollars unaccounted for.\1\ For example, the 
Special Inspector General for Iraq Reconstruction outlined in a 
report that the former Coalition Provisional Authority in Iraq 
could not account for nearly $8.8 billion.\2\
---------------------------------------------------------------------------
    \1\Steve Kroft, Billions Wasted in Iraq?, 60 Minutes, Feb. 12, 
2006, available at http://www.cbsnews.com/stories/2006/02/09/60minutes/
printable1302378.shtml.
    \2\Special Inspector General for Iraq Reconstruction, Report to 
Congress (Jan. 30, 2005), available at http://www.sigir.mil/reports/
QuarterlyReports/Jan05/SIGIR%20Jan05%20-%20Report% 20to%20Congress.pdf
---------------------------------------------------------------------------
    Private contractors have been used to a greater extent 
during these war-time activities than at any time in our 
history. The exigencies of war overseas, however, often make 
oversight of these contractors more difficult, and expenditures 
are often made with fewer audit and other controls than during 
normal government procurement. As a result, the provision of 
goods and services during these military actions, as well as 
during relief and reconstruction activities, are more 
vulnerable to acts of fraud and abuse.
    Inspectors General have opened hundreds of investigations 
into fraud, waste, and abuse in Iraq, Kuwait, and Afghanistan 
involving, among other things, illegal kickbacks, bid-rigging, 
embezzlement, and fraudulent over-billing. The Special 
Inspector General for Iraq Reconstruction has more than 70 open 
and active investigations regarding contracting fraud and abuse 
in the war, with a number of them having been referred to the 
Department of Justice.\3\ These investigations have uncovered 
crimes committed by employees of large and small government 
contractors in Iraq and Afghanistan, and many of these 
investigations involve abuse of the ``cost-plus'' and ``no-
bid'' contracts used during times of emergency, such as 
military, relief, or reconstruction activities. In addition, 
private whistleblowers have filed numerous civil claims 
involving contractors in Iraq under the False Claims Act.\4\ 
Considering the vast amount of evidence and investigations, 
there have been relatively few prosecutions for reconstruction 
fraud.
---------------------------------------------------------------------------
    \3\See War Profiteering and Other Contractor Crimes Committed 
Overseas: Hearing Before the Subcomm. on Crime, Terrorism, and Homeland 
Security of the H. Comm. on the Judiciary, 110th Cong. (2007) 
(testimony of Stuart W. Bowen).
    \4\There are an estimated 50 such cases pending against Iraq 
contractors, including large firms like Kellogg Brown and Root. See 
Yochi Dreazen, Attorney Pursues Iraq Contractor Fraud, Wall St. J., 
Apr. 19, 2006, at B1.
---------------------------------------------------------------------------
    The lack of prosecutions--successful or otherwise--
underscores the inadequacies in current law. There is currently 
no Federal criminal law specifically targeted at prohibiting 
contracting fraud during times of war, military action, or 
relief or reconstruction activities. Under current law, such 
fraudulent activities do not constitute a criminal offense by 
those who take advantage of exigent circumstances in times of 
emergency. Moreover, no Federal law provides enhanced criminal 
punishment for fraudulent acts during times of war, or relief 
or reconstruction activities.
    In addition, none of the current fraud statutes explicitly 
extend extraterritorial jurisdiction for fraud offenses during 
times of war, military action, or relief or reconstruction 
activities. In the famous Custer Battles case, one contractor 
in Iraq was found guilty of 37 counts of fraud, including false 
billing, and was ordered to pay more than $10 million in 
damages. A Federal judge subsequently overturned the decision 
on a technicality that the contracts were let through the 
Coalition Provisional Authority, which the court held not to be 
part of the United States government, thereby barring the 
application of United States fraud laws.\5\
---------------------------------------------------------------------------
    \5\Renae Merle, Verdict Against Iraq Contractor Overturned, Wash. 
Post, Aug. 19, 2006, at D1.
---------------------------------------------------------------------------
    To address these gaps in existing law, Rep. Neil 
Abercrombie (D-HI) introduced H.R. 400, the ``War Profiteering 
Prevention Act of 2007,'' on February 2, 2007. A companion bill 
to this measure was introduced by Senator Patrick Leahy (D-VT) 
as S. 119.

                                Hearings

    The Committee's Subcommittee on Crime, Terrorism, and 
Homeland Security held 1 day of hearings on H.R. 400 on June 
19, 2007. Testimony was received from the Honorable Stuart W. 
Bowen, Jr., Special Inspector General for Iraq Reconstruction; 
Thomas F. Gimble, Principal Deputy Inspector General, United 
States Department of Defense; Barry M. Sabin, Deputy Assistant 
Attorney General, United States Department of Justice; and Alan 
Grayson, Grayson & Kubli, P.C.

                        Committee Consideration

    On July 24, 2007, the Subcommittee on Crime, Terrorism, and 
Homeland Security met in open session and ordered the bill, 
H.R. 400, favorably reported, by voice vote, a quorum being 
present. On August 1, 2007, the Committee met in open session 
and ordered the bill, favorably reported with an amendment, by 
voice vote, a quorum being present.

                            Committee Votes

    In compliance with clause 3(b) of Rule XIII of the Rules of 
the House of Representatives, the Committee advises that there 
were no recorded votes during the Committee's consideration of 
H.R. 400.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of Rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of Rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of Rule XIII of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of Rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 400, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 10, 2007.
Hon. John Conyers, Jr., Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 400, the War 
Profiteering Prevention Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz, who can be reached at 226-2860.
            Sincerely,
                                           Peter R. Orszag,
                                                  Director.

Enclosure

cc:
        Honorable Lamar S. Smith.
        Ranking Member
H.R. 400--War Profiteering Prevention Act of 2007.
    CBO estimates that implementing H.R. 400 would have no 
significant cost to the Federal Government. Enacting the bill 
could affect direct spending and revenues, but CBO estimates 
that any such effects would not be significant.
    H.R. 400 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on State, local, or tribal governments.
    H.R. 400 would make it a Federal crime to commit fraudulent 
acts while providing goods or services for a U.S. mission 
overseas. Because the bill would establish a new offense, the 
Government would be able to pursue cases that it otherwise 
would not be able to prosecute. We expect that H.R. 400 would 
apply to a relatively small number of offenders, so any 
increase in costs for law enforcement, court proceedings, or 
prison operations would not be significant. Any such costs 
would be subject to the availability of appropriated funds.
    Because those prosecuted and convicted under H.R. 400 could 
be subject to criminal fines, the Federal Government might 
collect additional fines if the legislation is enacted. 
Criminal fines are recorded as revenues, deposited in the Crime 
Victims Fund, and later spent. CBO expects that any additional 
revenues and direct spending would not be significant because 
of the small number of cases likely to be affected.
    Persons prosecuted and convicted under the bill also could 
be subject to the seizure of certain assets by the Federal 
Government. Proceeds from the sale of such assets would be 
deposited into the Assets Forfeiture Fund and spent from that 
fund, mostly in the same year. Thus, enacting H.R. 400 could 
increase both revenues deposited into the fund and direct 
spending from the fund. However, CBO estimates that any 
increased revenues or spending would be negligible.
    On May 2, 2007, CBO transmitted a cost estimate for S. 119, 
the War Profiteering Prevention Act of 2007, as ordered 
reported by the Senate Committee on the Judiciary on April 25, 
2007. The two bills are similar and the cost estimates are 
identical.
    The CBO staff contact for this estimate is Mark Grabowicz, 
who can be reached at 226-2860. This estimate was approved by 
Peter H. Fontaine, Assistant Director for Budget Analysis.

                    Performance Goals and Objectives

    The Committee states that pursuant to clause 3(c)(4) of 
Rule XIII of the Rules of the House of Representatives, H.R. 
400, as amended, is intended to punish and deter the practice 
of profiteering and fraud relating to military action, relief, 
and reconstruction efforts.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of Rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article 1, section 8, clauses 10, 14, 16, 
and 18 of the Constitution.

                          Advisory on Earmarks

    In accordance with clause 9 of Rule XXI of the Rules of the 
House of Representatives, H.R. 400 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of Rule XXI.

                      Section-by-Section Analysis

    The following discussion describes the bill as reported by 
the Committee.
    Sec. 1. Short title. Section 1 sets forth the short title 
of the bill as the ``War Profiteering Prevention Act of 2007.''
    Sec. 2. Prohibition of Profiteering. Section 2 creates a 
new criminal offense in title 18 of the United States Code for 
fraudulent acts involving contracts or the provision of goods 
or services in connection with a mission of the United States 
Government overseas. Such missions would include war, military 
actions, and relief or reconstruction activities. This would 
include circumstances where war was declared, or where the 
Executive Branch was engaged in any military action with or 
without congressional authorization. This would also include 
relief or reconstruction activities, whether or not a war or 
military action was undertaken. This provision applies not only 
to any contract with the United States government overseas, but 
also to any provisional authority, such as the Coalition 
Provisional Authority in Iraq.
    An offense under this provision may be committed by 
engaging in fraudulent conduct or making a materially false 
statement. Pursuant to this provision, it is a crime to execute 
or attempt to execute a scheme or artifice to defraud the 
United States or to materially overvalue any good or service 
with the specific intent to defraud.
    Section 2 is intended to prohibit schemes to defraud the 
United States, including efforts to exploit ``cost plus'' or 
``no-bid'' contracts by materially overvaluing goods or 
services with the specific intent to defraud. On the other 
hand, section 2 is not intended to prohibit or punish 
contractors providing goods or services in the normal course of 
business. To that end, the legislation specifically provides 
that violators may only be criminally liable if they materially 
overvalue any good or service ``with the intent to defraud.'' 
This requirement ensures that no contractor may be prosecuted 
for this offense based on the contractor's merely negligent or 
innocently mistaken conduct. Accordingly, a person's conduct 
must be undertaken knowingly to constitute an offense under 
this provision.
    The material false statement provisions make it a crime to: 
(1) falsify, conceal, or coverup by any trick, scheme, or 
device a material fact; (2) make any materially false, 
fictitious, or fraudulent statements or representations; or (3) 
make or use any materially false writing or document knowing it 
contains a false, fictitious, or fraudulent statement. This 
language is consistent with other materially-false-statement 
provisions under Federal law such as sections 1001 and 1035 of 
title 18 of the United States Code.
    Section 2 explicitly provides for extraterritorial 
jurisdiction, and the provision is intended to extend 
jurisdiction for such offenses to the full extent of United 
States law. This is intended to ensure that offenses committed 
outside the United States, even by non-United States nationals, 
can be prosecuted. Furthermore, consistent with other Federal 
fraud provisions, the United States Government need not be a 
victim or incur any losses from an offense under this 
provision, provided the conduct satisfies the other requisite 
elements of the offense.
    Section 2 establishes venue for the offense as authorized 
by existing Federal statutes,\6\ including extradition, in any 
district where any act in furtherance of the offense took 
place, or where any party to the contract or the provider of 
goods or services is located.
---------------------------------------------------------------------------
    \6\See 18 U.S.C.A. Sec. Sec. 3231-3244 (2006).
---------------------------------------------------------------------------
    A violation of the fraud component of this provision is 
punishable by imprisonment for up to 20 years, and a violation 
of the materially-false-statement component of this provision 
is punishable by imprisonment for up to 10 years. All 
violations are subject to fines of up to $1 million, or twice 
the gross profits or other proceeds of the offense, whichever 
is greater. In addition, any unlawful proceeds may be subject 
to criminal forfeiture, and the new offense constitutes a 
predicate crime for money laundering (18 U.S.C. 
Sec. 1956(c)(7)) and for racketeering offenses (18 U.S.C. 
Sec. 1961(1)).

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of Rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

TITLE 18, UNITED STATES CODE

           *       *       *       *       *       *       *


PART I--CRIMES

           *       *       *       *       *       *       *


CHAPTER 46--FORFEITURE

           *       *       *       *       *       *       *


Sec. 982. Criminal forfeiture

    (a)(1) * * *
    (2) The court, in imposing sentence on a person convicted 
of a violation of, or a conspiracy to violate--
            (A) * * *
            (B) section 471, 472, 473, 474, 476, 477, 478, 479, 
        480, 481, 485, 486, 487, 488, 501, 502, 510, 542, 545, 
        842, 844, 1028, 1029, [or 1030] 1030, or 1040 of this 
        title, shall order that the person forfeit to the 
        United States any

           *       *       *       *       *       *       *


                 CHAPTER 47--FRAUD AND FALSE STATEMENTS

Sec.
1001.    Statements or entries generally.
     * * * * * * *
1040.    War profiteering and fraud.

           *       *       *       *       *       *       *


Sec. 1040. War profiteering and fraud

    (a) Prohibition.--
            (1) In general.--Whoever, in any matter involving a 
        contract or the provision of goods or services to the 
        United States or a provisional authority, in connection 
        with a mission of the United States Government 
        overseas, knowingly--
                    (A)(i) executes or attempts to execute a 
                scheme or artifice to defraud the United States 
                or that authority; or
                    (ii) materially overvalues any good or 
                service with the intent to defraud the United 
                States or that authority;
                shall be fined under paragraph (2), imprisoned 
                not more than 20 years, or both; or
                    (B) in connection with the contract or the 
                provision of those goods or services--
                            (i) falsifies, conceals, or covers 
                        up by any trick, scheme, or device a 
                        material fact;
                            (ii) makes any materially false, 
                        fictitious, or fraudulent statements or 
                        representations; or
                            (iii) makes or uses any materially 
                        false writing or document knowing the 
                        same to contain any materially false, 
                        fictitious or fraudulent statement or 
                        entry;
                shall be fined under paragraph (2) imprisoned 
                not more than 10 years, or both.
            (2) Fine.--A person convicted of an offense under 
        paragraph (1) may be fined the greater of--
                    (A) $1,000,000; or
                    (B) if such person derives profits or other 
                proceeds from the offense, not more than twice 
                the gross profits or other proceeds.
    (b) Extraterritorial Jurisdiction.--There is 
extraterritorial Federal jurisdiction over an offense under 
this section.
    (c) Venue.--A prosecution for an offense under this section 
may be brought--
            (1) as authorized by chapter 211 of this title;
            (2) in any district where any act in furtherance of 
        the offense took place; or
            (3) in any district where any party to the contract 
        or provider of goods or services is located.

           *       *       *       *       *       *       *


CHAPTER 95--RACKETEERING

           *       *       *       *       *       *       *


Sec. 1956. Laundering of monetary instruments

    (a) * * *

           *       *       *       *       *       *       *

    (c) As used in this section--
            (1) * * *

           *       *       *       *       *       *       *

            (7) the term ``specified unlawful activity'' 
        means--
                    (A) * * *

           *       *       *       *       *       *       *

                    (D) an offense under section 32 (relating 
                to the destruction of aircraft), section 37 
                (relating to violence at international 
                airports), section 115 (relating to 
                influencing, impeding, or retaliating against a 
                Federal official by threatening or injuring a 
                family member), section 152 (relating to 
                concealment of assets; false oaths and claims; 
                bribery), section 175c (relating to the variola 
                virus), section 215 (relating to commissions or 
                gifts for procuring loans), section 351 
                (relating to congressional or Cabinet officer 
                assassination), any of sections 500 through 503 
                (relating to certain counterfeiting offenses), 
                section 513 (relating to securities of States 
                and private entities), section 541 (relating to 
                goods falsely classified), section 542 relating 
                to entry of goods by means of false 
                statements), section 545 (relating to smuggling 
                goods into the United States), section 549 
                (relating to removing goods from Customs 
                custody), section 554 (relating to smuggling 
                goods from the United States), section 641 
                (relating to public money, property, or 
                records), section 656 (relating to theft, 
                embezzlement, or misapplication by bank officer 
                or employee), section 657 (relating to lending, 
                credit, and insurance institutions), section 
                658 (relating to property mortgaged or pledged 
                to farm credit agencies), section 666 (relating 
                to theft or bribery concerning programs 
                receiving Federal funds), section 793, 794, or 
                798 (relating to espionage), section 831 
                (relating to prohibited transactions involving 
                nuclear materials), section 844 (f) or (i) 
                (relating to destruction by explosives or fire 
                of Government property or property affecting 
                interstate or foreign commerce), section 875 
                (relating to interstate communications), 
                section 922(1) (relating to the unlawful 
                importation of firearms), section 924(n) 
                (relating to firearms trafficking), section 956 
                (relating to conspiracy to kill, kidnap, maim, 
                or injure certain property in a foreign 
                country), section 1005 (relating to fraudulent 
                bank entries), 1006(relating to fraudulent 
                Federal credit institution entries), 
                1007(relating to Federal Deposit Insurance 
                transactions), 1014(relating to fraudulent loan 
                or credit applications), section 1030 (relating 
                to computer fraud and abuse), 1032(relating to 
                concealment of assets from conservator, 
                receiver, or liquidating agent of financial 
                institution), section 1040 (relating to war 
                profiteering and fraud), section 1111 (relating 
                to murder), section 1114 (relating to murder of 
                United States law enforcement officials), 
                section 1116 (relating to murder of foreign 
                officials, official guests, or internationally 
                protected persons), section 1201 (relating to 
                kidnaping), section 1203 (relating to hostage 
                taking), section 1361 (relating to willful 
                injury of Government property), section 1363 
                (relating to destruction of property within the 
                special maritime and territorial jurisdiction), 
                section 1708 (theft from the mail), section 
                1751 (relating to Presidential assassination), 
                section 2113 or 2114 (relating to bank and 
                postal robbery and theft), section 2280 
                (relating to violence against maritime 
                navigation), section 2281 (relating to violence 
                against maritime fixed platforms), section 2319 
                (relating to copyright infringement), section 
                2320 (relating to trafficking in counterfeit 
                goods and services), section 2332 (relating to 
                terrorist acts abroad against United States 
                nationals), section 2332a (relating to use of 
                weapons of mass destruction), section 2332b 
                (relating to international terrorist acts 
                transcending national boundaries), section 
                2332g (relating to missile systems designed to 
                destroy aircraft), section 2332h (relating to 
                radiological dispersal devices), section 2339A 
                or 2339B (relating to providing material 
                support to terrorists), section 2339C (relating 
                to financing of terrorism), or section 2339D 
                (relating to receiving military-type training 
                from a foreign terrorist organization) of this 
                title, section 46502 of title 49, United States 
                Code, a felony violation of the Chemical 
                Diversion and Trafficking Act of 1988 (relating 
                to precursor and essential chemicals), section 
                590 of the Tariff Act of 1930 (19 U.S.C. 1590) 
                (relating to aviation smuggling), section 422 
                of the Controlled Substances Act (relating to 
                transportation of drug paraphernalia), section 
                38(c) (relating to criminal violations) of the 
                Arms Export Control Act, section 11 (relating 
                to violations) of the Export Administration Act 
                of 1979, section 206 (relating to penalties) of 
                the International Emergency Economic Powers 
                Act, section 16 (relating to offenses and 
                punishment) of the Trading with the Enemy Act, 
                any felony violation of section 15 of the Food 
                Stamp Act of 1977 (relating to food stamp 
                fraud) involving a quantity of coupons having a 
                value of not less than $5,000, any violation of 
                section 543(a)(1) of the Housing Act of 1949 
                (relating to equity skimming), any felony 
                violation of the Foreign Agents Registration 
                Act of 1938, any felony violation of the 
                Foreign Corrupt Practices Act, or section 92 of 
                the Atomic Energy Act of 1954 (42 U.S.C. 2122) 
                (relating to prohibitions governing atomic 
                weapons)

           *       *       *       *       *       *       *


CHAPTER 96--RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS

           *       *       *       *       *       *       *


Sec. 1961. Definitions

    As used in this chapter--
            (1) ``racketeering activity'' means (A) any act or 
        threat involving murder, kidnapping, gambling, arson, 
        robbery, bribery, extortion, dealing in obscene matter, 
        or dealing in a controlled substance or listed chemical 
        (as defined in section 102 of the Controlled Substances 
        Act), which is chargeable under State law and 
        punishable by imprisonment for more than one year; (B) 
        any act which is indictable under any of the following 
        provisions of title 18, United States Code: Section 201 
        (relating to bribery), section 224 (relating to sports 
        bribery), sections 471, 472, and 473 (relating to 
        counterfeiting), section 659 (relating to theft from 
        interstate shipment) if the act indictable under 
        section 659 is felonious, section 664 (relating to 
        embezzlement from pension and welfare funds), sections 
        891-894 (relating to extortionate credit transactions), 
        section 1028 (relating to fraud and related activity in 
        connection with identification documents), section 1029 
        (relating to fraud and related activity in connection 
        with access devices), section 1040 (relating to war 
        profiteering and fraud), section 1084 (relating to the 
        transmission of gambling information), section 1341 
        (relating to mail fraud), section 1343 (relating to 
        wire fraud), section 1344 (relating to financial 
        institution fraud), section 1425 (relating to the 
        procurement of citizenship or nationalization 
        unlawfully), section 1426 (relating to the reproduction 
        of naturalization or citizenship papers), section 1427 
        (relating to the sale of naturalization or citizenship 
        papers), sections 1461-1465 (relating to obscene 
        matter), section 1503 (relating to obstruction of 
        justice), section 1510 (relating to obstruction of 
        criminal investigations), section 1511 (relating to the 
        obstruction of State or local law enforcement), section 
        1512 (relating to tampering with a witness, victim, or 
        an informant), section 1513 (relating to retaliating 
        against a witness, victim, or an informant), section 
        1542 (relating to false statement in application and 
        use of passport), section 1543 (relating to forgery or 
        false use of passport), section 1544 (relating to 
        misuse of passport), section 1546 (relating to fraud 
        and misuse of visas, permits, and other documents), 
        sections 1581-1592 (relating to peonage, slavery, and 
        trafficking in persons)., section 1951 (relating to 
        interference with commerce, robbery, or extortion), 
        section 1952 (relating to racketeering), section 1953 
        (relating to interstate transportation of wagering 
        paraphernalia), section 1954 (relating to unlawful 
        welfare fund payments), section 1955 (relating to the 
        prohibition of illegal gambling businesses), section 
        1956 (relating to the laundering of monetary 
        instruments), section 1957 (relating to engaging in 
        monetary transactions in property derived from 
        specified unlawful activity), section 1958 (relating to 
        use of interstate commerce facilities in the commission 
        of murder-for-hire), section 1960 (relating to illegal 
        money transmitters), sections 2251, 2251A, 2252, and 
        2260 (relating to sexual exploitation of children), 
        sections 2312 and 2313 (relating to interstate 
        transportation of stolen motor vehicles), sections 2314 
        and 2315 (relating to interstate transportation of 
        stolen property) , section 2318 (relating to 
        trafficking in counterfeit labels for phonorecords, 
        computer programs or computer program documentation or 
        packaging and copies of motion pictures or other 
        audiovisual works), section 2319 (relating to criminal 
        infringement of a copyright), section 2319A (relating 
        to unauthorized fixation of and trafficking in sound 
        recordings and music videos of live musical 
        performances), section 2320 (relating to trafficking in 
        goods or services bearing counterfeit marks), section 
        2321 (relating to trafficking in certain motor vehicles 
        or motor vehicle parts), sections 2341-2346 (relating 
        to trafficking in contraband cigarettes), sections 
        2421-24 (relating to white slave traffic), sections 
        175-178 (relating to biological weapons), sections 229-
        F (relating to chemical weapons), section 831 (relating 
        to nuclear materials),(C) any act which is indictable 
        under title 29, United States Code, section 186 
        (dealing with restrictions on payments and loans to 
        labor organizations) or section 501(c) (relating to 
        embezzlement from union funds), (D) any offense 
        involving fraud connected with a case under title 11 
        (except a case under section 157 of this title), fraud 
        in the sale of securities, or the felonious 
        manufacture, importation, receiving, concealment, 
        buying, selling, or otherwise dealing in a controlled 
        substance or listed chemical (as defined in section 102 
        of the Controlled Substances Act), punishable under any 
        law of the United States, (E) any act which is 
        indictable under the Currency and Foreign Transactions 
        Reporting Act, (F) any act which is indictable under 
        the Immigration and Nationality Act, section 274 
        (relating to bringing in and harboring certain aliens), 
        section 277 (relating to aiding or assisting certain 
        aliens to enter the United States), or section 278 
        (relating to importation of alien for immoral purpose) 
        if the act indictable under such section of such Act 
        was committed for the purpose of financial gain, or (G) 
        any act that is indictable under any provision listed 
        in section 2332b(g)(5)(B);

           *       *       *       *       *       *       *


                                 
