79–006 

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: 

2 

1 38 U.S.C. § 5904. 

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: 

‘‘§ 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 VAapproved 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. 

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 

3 

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: 

4 

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 FedVerDate Sep 11 2014 06:09 Mar 15, 2018 Jkt 079006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR599.XXX HR599
5 

eral 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. § 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 

6 

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. 

* * * * * * * 

§ 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. 

* * * * * * * 

Æ