Telemarketing Fraud Prevention Act of 1998

Summary: Telemarketing Fraud Prevention Act of 1997 - Amends the Federal criminal code to require the court, in sentencing a defendant for specified offenses of fraud involving telemarketing, or conspiracies to commit such offenses, to order that the defendant forfeit to the United States any real or personal property:  (1) used or intended to be used in the commission of such offense; and (2) constituting, derived from, or traceable to the gross proceeds of the offense. 
(Sec. 3) Requires (current law permits) persons convicted of fraud in connection with telemarketing to be imprisoned for specified terms in addition to any term imposed for the fraud. 
(Sec. 4) Makes telemarketing fraud enhanced penalty provisions applicable to conspiracies to commit such offenses. 
(Sec. 5) Revises mandatory restitution provisions under the code to:  (1) direct the court to order restitution to all victims of any offense of fraud for which an enhanced penalty is provided in connection with telemarketing; and (2) define "victim" to have the meaning given that term in code provisions regarding orders of restitution. 
(Sec. 6) Directs the United States Sentencing Commission to:  (1) promulgate Federal sentencing guidelines or amend existing guidelines and policy statements, if appropriate (in accordance with specified requirements), to provide for substantially increased penalties for persons convicted of offenses of fraud for which an enhanced penalty is provided in connection with telemarketing; and (2) submit to the Congress an explanation of each action taken and any additional policy recommendations for combating such offenses. 
(Sec. 7) Prohibits use of the name "United States Marshals Service" or specified derivations thereof in a manner reasonably calculated to convey endorsement, approval, or authorization by the Service except with the written permission of the Director of the Service. 
(Sec. 8) Directs a provider of an electronic communication or remote computing service to disclose records or information pertaining to a subscriber to or customer of such service to a governmental entity when such entity submits a formal written request, relevant to a law enforcement investigation concerning telemarketing fraud.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Telemarketing Fraud Prevention Act 
of 1998''.

SEC. 2. CRIMINAL FORFEITURE OF FRAUD PROCEEDS.

    Section 982 of title 18, United States Code, is amended--
        (1) in subsection (a)--
            (A) by redesignating the second paragraph designated as 
        paragraph (6) as paragraph (7); and
            (B) by adding at the end the following:
    ``(8) The Court, in sentencing a defendant convicted of an offense 
under section 1028, 1029, 1341, 1342, 1343, or 1344, or of a conspiracy 
to commit such an offense, if the offense involves telemarketing (as 
that term is defined in section 2325), shall order that the defendant 
forfeit to the United States any real or personal property--
        ``(A) used or intended to be used to commit, to facilitate, or 
    to promote the commission of such offense; and
        ``(B) constituting, derived from, or traceable to the gross 
    proceeds that the defendant obtained directly or indirectly as a 
    result of the offense.''; and
        (2) in subsection (b)(1)(A), by striking ``(a)(1) or (a)(6)'' 
    and inserting ``(a)(1), (a)(6), or (a)(8)''.

SEC. 3. PENALTY FOR TELEMARKETING FRAUD.

    Section 2326 of title 18, United States Code, is amended by 
striking ``may'' each place it appears and inserting ``shall''.

SEC. 4. ADDITION OF CONSPIRACY OFFENSES TO SECTION 2326 ENHANCEMENT.

    Section 2326 of title 18, United States Code, is amended by 
inserting ``, or a conspiracy to commit such an offense,'' after ``or 
1344''.

SEC. 5. CLARIFICATION OF MANDATORY RESTITUTION.

    Section 2327 of title 18, United States Code, is amended--
        (1) in subsection (a), by striking ``for any offense under this 
    chapter'' and inserting ``to all victims of any offense for which 
    an enhanced penalty is provided under section 2326''; and
        (2) by striking subsection (c) and inserting the following:
    ``(c) Victim Defined.--In this section, the term `victim' has the 
meaning given that term in section 3663A(a)(2).''.

SEC. 6. AMENDMENT OF FEDERAL SENTENCING GUIDELINES.

    (a) Definition of Telemarketing.--In this section, the term 
``telemarketing'' has the meaning given that term in section 2326 of 
title 18, United States Code.
    (b) Directive To 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 shall--
        (1) promulgate Federal sentencing guidelines or amend existing 
    sentencing guidelines (and policy statements, if appropriate) to 
    provide for substantially increased penalties for persons convicted 
    of offenses described in section 2326 of title 18, United States 
    Code, as amended by this Act, in connection with the conduct of 
    telemarketing; and
        (2) submit to Congress an explanation of each action taken 
    under paragraph (1) and any additional policy recommendations for 
    combating the offenses described in that paragraph.
    (c) Requirements.--In carrying out this section, the Commission 
shall--
        (1) ensure that the guidelines and policy statements 
    promulgated or amended pursuant to subsection (b)(1) and any 
    recommendations submitted thereunder reflect the serious nature of 
    the offenses;
        (2) provide an additional appropriate sentencing enhancement, 
    if the offense involved sophisticated means, including but not 
    limited to sophisticated concealment efforts, such as perpetrating 
    the offense from outside the United States;
        (3) provide an additional appropriate sentencing enhancement 
    for cases in which a large number of vulnerable victims, including 
    but not limited to victims described in section 2326(2) of title 
    18, United States Code, are affected by a fraudulent scheme or 
    schemes;
        (4) ensure that guidelines and policy statements promulgated or 
    amended pursuant to subsection (b)(1) are reasonably consistent 
    with other relevant statutory directives to the Commission and with 
    other guidelines;
        (5) account for any aggravating or mitigating circumstances 
    that might justify upward or downward departures;
        (6) ensure that the guidelines adequately meet the purposes of 
    sentencing as set forth in section 3553(a)(2) of title 18, United 
    States Code; and
        (7) take any other action the Commission considers necessary to 
    carry out this section.
    (d) Emergency Authority.--The Commission shall promulgate the 
guidelines or amendments provided for under this subsection as soon as 
practicable, and in any event not later than 120 days after the date of 
the enactment of the Telemarketing Fraud Prevention Act of 1998, in 
accordance with the procedures set forth in section 21(a) of the 
Sentencing Reform Act of 1987, as though the authority under that 
authority had not expired, except that the Commission shall submit to 
Congress the emergency guidelines or amendments promulgated under this 
section, and shall set an effective date for those guidelines or 
amendments not earlier than 30 days after their submission to Congress.

SEC. 7. FALSE ADVERTISING OR MISUSE OF NAME TO INDICATE UNITED STATES 
              MARSHALS SERVICE.

    Section 709 of title 18, United States Code, is amended by 
inserting after the thirteenth undesignated paragraph the following:
    ``Whoever, except with the written permission of the Director of 
the United States Marshals Service, knowingly uses the words `United 
States Marshals Service', `U.S. Marshals Service', `United States 
Marshal', `U.S. Marshal', `U.S.M.S.', or any colorable imitation of any 
such words, or the likeness of a United States Marshals Service badge, 
logo, or insignia on any item of apparel, in connection with any 
advertisement, circular, book, pamphlet, software, or other 
publication, or any play, motion picture, broadcast, telecast, or other 
production, in a manner that is reasonably calculated to convey the 
impression that the wearer of the item of apparel is acting pursuant to 
the legal authority of the United States Marshals Service, or to convey 
the impression that such advertisement, circular, book, pamphlet, 
software, or other publication, or such play, motion picture, 
broadcast, telecast, or other production, is approved, endorsed, or 
authorized by the United States Marshals Service;''.

SEC. 8. DISCLOSURE OF CERTAIN RECORDS FOR INVESTIGATIONS OF 
              TELEMARKETING FRAUD.

    Section 2703(c)(1)(B) of title 18, United States Code, is amended--
        (1) by striking ``or'' at the end of clause (ii);
        (2) by striking the period at the end of clause (iii) and 
    inserting ``; or''; and
        (3) by adding at the end the following:
        ``(iv) submits a formal written request relevant to a law 
    enforcement investigation concerning telemarketing fraud for the 
    name, address, and place of business of a subscriber or customer of 
    such provider, which subscriber or customer is engaged in 
    telemarketing (as such term is defined in section 2325 of this 
    title).''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.