[House Report 115-599]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-599
======================================================================
PREVENTING CRIMES AGAINST VETERANS ACT OF 2017
_______
March 14, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Goodlatte, from the Committee on the Judiciary, submitted the
following
R E P O R T
[To accompany H.R. 506]
[Including cost estimate of the Congressional Budget Office]
The Committee on the Judiciary, to whom was referred the
bill (H.R. 506) to amend title 18, United States Code, to
provide an additional tool to prevent certain frauds against
veterans, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
The Amendment.................................................... 1
Purpose and Summary.............................................. 2
Background and Need for the Legislation.......................... 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
New Budget Authority and Tax Expenditures........................ 3
Congressional Budget Office Cost Estimate........................ 3
Duplication of Federal Programs.................................. 4
Disclosure of Directed Rule Makings.............................. 5
Performance Goals and Objectives................................. 5
Advisory on Earmarks............................................. 5
Section-by-Section Analysis...................................... 5
Changes in Existing Law Made by the Bill, as Reported............ 5
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 ``Preventing Crimes Against Veterans Act
of 2017''.
SEC. 2. ADDITIONAL TOOL TO PREVENT CERTAIN FRAUDS AGAINST VETERANS.
(a) In General.--Chapter 63 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 1352. Fraud regarding veterans' benefits
``(a) Whoever knowingly executes, or attempts to execute, any scheme
or artifice to defraud an individual of veterans' benefits, or in
connection with obtaining veteran's benefits for that individual, shall
be fined under this title, imprisoned not more than five years, or
both.
``(b) In this section--
``(1) the term `veteran' has the meaning given that term in
section 101 of title 38; and
``(2) the term `veterans' benefits' means any benefit
provided by Federal law for a veteran or a dependent or
survivor of a veteran.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 63 of title 18, United States Code, is amended by adding at the
end the following new item:
``1352. Fraud regarding veterans' benefits.''.
Purpose and Summary
H.R. 506 creates a new section 1352 in chapter 63 of title
18, United States Code, to penalize fraudsters that knowingly
execute, or attempt to execute, a scheme or artifice to defraud
a veteran of his or her benefits, or in connection with
obtaining that veteran's benefits, by imposing a fine,
imprisonment of up to five years, or both.
Background and Need for the Legislation
Under current law, only agents or attorneys who have met
all standard qualifications and standards prescribed by the
U.S. Department of Veterans Affairs may charge a small fee to
assist a veteran or claimant in an appeals case.\1\ A person
who is not a VA-approved agent or attorney is prohibited from
charging any fee for assisting a veteran in filing a claim or
appeal with the VA. However, there is no criminal or financial
penalty for breaking this law.
---------------------------------------------------------------------------
\1\ 38 U.S.C. Sec. 5904.
---------------------------------------------------------------------------
Consequently, in recent years financial predators across
the country have targeted veterans, many of whom are elderly
and live in low-income housing. These criminals offer to help
veterans with their cases, claim to get their benefits approved
in record time, charge fees that are often in the thousands of
dollars, and then provide them with little or no assistance.
This specific conduct--holding in-person seminars or meetings
at a veteran's home or assisted living facility--probably does
not fall within the confines of the mail or wire fraud
statutes, as it would if the fraudster called a veteran on the
phone, sent them an email, or mailed them a letter with the
intent to defraud.
The introduced version of H.R. 506 addressed this problem
by creating a new section 1041 in chapter 47 of title 18, U.S.
Code, to penalize fraudsters who knowingly engage in a scheme
to defraud a veteran of his or her benefits, or in connection
with obtaining that veteran's benefits, by imposing a fine,
imprisonment of up to five years, or both.
During markup, the Committee adopted a manager's amendment,
offered by Chairman Goodlatte, which made two major changes to
the bill. The manager's amendment was developed following
technical assistance provided by the Department of Justice.
First, the amendment replaced the phrase ``engages in a scheme
or artifice to defraud'' with the phrase ``executes or attempts
to execute a scheme or artifice to defraud.'' That latter
phrase, ``executes,'' is more commonly understood by the courts
and is well-defined in case law. In contrast, the term
``engage'' is vague and could lead to unnecessary litigation.
The term ``executes'' is also the term currently used in
existing fraud offenses. This change was made for clarity and
to ensure consistent application of the statute.
Second, the amendment placed the new criminal statute in
chapter 63, ``Mail Fraud and Other Fraud Offenses,'' rather
than in title 47, which is home to false statement crimes. This
change will promote consistency in title 18, by ensuring the
statute (which will be section 1352 of title 18) is
appropriately placed alongside other offenses criminalizing
fraudulent conduct.
Hearings
The Committee on the Judiciary held no hearings on H.R.
506. However, nearly identical legislation passed the full
House in the 114th Congress, by a vote of 411-0.
Committee Consideration
On January 12, 2018, the Committee met in open session and
ordered the bill (H.R. 506) 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. 506.
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 H.R. 506, 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, January 18, 2018.
Hon. Bob Goodlatte,
Chairman, Committee on the Judiciary,
U.S. House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 506, the
Preventing Crimes Against Veterans Act of 2017.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
Keith Hall.
Enclosure.
cc:
Honorable Jerrold Nadler
Ranking Member
H.R. 506--Preventing Crimes Against Veterans Act of 2017
As ordered reported by the House Committee on the Judiciary on January
10, 2018
H.R. 506 would establish a new federal crime against
defrauding individuals of veterans' benefits. As a result, the
government might be able to pursue cases that it otherwise
would not be able to prosecute. CBO expects that the bill would
apply to a relatively small number of offenders, however, so
any increase in costs for law enforcement, court proceedings,
or prison operations would not be significant. Any such
spending would be subject to the availability of appropriated
funds.
Because those prosecuted and convicted under H.R. 506 could
be subject to criminal fines, the federal government might
collect additional fines under the bill. Criminal fines are
recorded as revenues, deposited in the Crime Victims Fund, and
later spent without further appropriation action. CBO expects
that any additional revenues and direct spending would not be
significant because the legislation would probably affect only
a small number of cases.
Because enacting H.R. 506 would affect direct spending and
revenues, pay-as-you-go procedures apply. However, CBO
estimates that any such effects would be insignificant in any
year.
CBO estimates that enacting H.R. 506 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
H.R. 506 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Mark Grabowicz.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Duplication of Federal Programs
No provision of H.R. 506 establishes or reauthorizes a
program of the Federal government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee finds that H.R. 506 contains no directed rule
making within the meaning of 5 U.S.C. Sec. 551.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee states that H.R. 506
creates a new section in title 18, United States Code, to
penalize fraudsters who knowingly execute, or attempt to
execute, a scheme or artifice to defraud a veteran of his or
her benefits, or in connection with obtaining that veteran's
benefits.
Advisory on Earmarks
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 506 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI.
Section-by-Section Analysis
The following discussion describes the bill as reported by
the Committee.
Section 1. Short Title. This section cites the short title
of the bill as the ``Preventing Crimes Against Veterans Act of
2017.''
Sec. 2. Additional Tool to Prevent Certain Frauds Against
Veterans. This section creates a new section in the ``Mail
Fraud and Other Fraud Offenses'' chapter of title 18, United
States Code, to prevent certain frauds against veterans, i.e.:
``1352. Frauds regarding veterans' benefits.
``(a) Whoever knowingly executes, or attempts to execute,
any scheme or artifice to defraud a veteran of veterans'
benefits, or in connection with obtaining veteran's benefits
for that veteran, shall be fined under this title, imprisoned
not more than five years, or both.
``(b) In this section--
``(1) the term `veteran' has the meaning given that
term in section 101 of title 38; and
``(2) the term `veterans' benefits' means any benefit
provided by Federal law for a veteran.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 63 of title 18, United States Code, is
amended by adding at the end the following new item:
``1352. Frauds regarding veterans' benefits.''.
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 (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
TITLE 18, UNITED STATES CODE
* * * * * * *
PART I--CRIMES
* * * * * * *
CHAPTER 63--MAIL FRAUD AND OTHER FRAUD OFFENSES
Sec.
1341. Frauds and swindles.
* * * * * * *
1352. Fraud regarding veterans' benefits.
* * * * * * *
Sec. 1352. Fraud regarding veterans' benefits
(a) Whoever knowingly executes, or attempts to execute, any
scheme or artifice to defraud an individual of veterans'
benefits, or in connection with obtaining veteran's benefits
for that individual, shall be fined under this title,
imprisoned not more than five years, or both.
(b) In this section--
(1) the term ``veteran'' has the meaning given that
term in section 101 of title 38; and
(2) the term ``veterans' benefits'' means any benefit
provided by Federal law for a veteran or a dependent or
survivor of a veteran.
* * * * * * *