19–010 

Calendar No. 60 

112TH CONGRESS REPORT " ! SENATE 2d Session 112–142 

FIGHTING FRAUD TO PROTECT TAXPAYERS ACT OF 2011 

JANUARY 30, 2012.—Ordered to be printed 

Mr. LEAHY, from the Committee on the Judiciary, 

submitted the following 

R E P O R T 

[To accompany S. 890] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on the Judiciary, to which was referred the bill 

(S. 890), to establish the supplemental fraud fighting account, and 

for other purposes, having considered the same, reports favorably 

thereon, without amendment, and recommends that the bill do 

pass. 

CONTENTS 

Page 

I. Background and Purpose of the Fighting Fraud to Protect Taxpayers 

Act of 2011 .................................................................................................. 1 

II. History of the Bill and Committee Consideration ....................................... 3 

III. Section-by-Section Summary of the Bill ...................................................... 4 

IV. Congressional Budget Office Cost Estimate ................................................ 6 

V. Regulatory Impact Evaluation ...................................................................... 9 

VI. Conclusion ...................................................................................................... 9 

VII. Changes to Existing Law Made by the Bill, as Reported ........................... 9 

I. BACKGROUND AND PURPOSE OF THE FIGHTING FRAUD TO PROTECT

TAXPAYERS ACT OF 2011 

On May 5, 2011, Chairman Leahy and Ranking Member Grassley introduced the Fighting Fraud to Protect Taxpayers Act of 2011 

(FFPTA). Senators Klobuchar and Coons subsequently joined as cosponsors. This legislation protects taxpayers by deterring fraud and 

bringing money back into our Nation’s coffers. It provides new tools 

for law enforcement to prosecute and punish those responsible for 

fraud and does so at no added cost to taxpayers. The bill also fills 

key statutory gaps to account for modern types of fraud, including 

strengthening computer fraud and identity theft statutes and giving needed authority to the Secret Service to more effectively invesVerDate Mar 15 2010 01:36 Feb 01, 2012 Jkt 019010 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\SR142.XXX SR142

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1See Protecting American Taxpayers: Significant Accomplishments and Ongoing Challenges 

in the Fight Against Fraud: Hearing Before the S. Comm. on the Judiciary, 112th Cong. 9 (2011) 

(testimony of Lanny Breuer, Asst. Att’y Gen., Crim. Div., U.S. Dept. of Justice) (stating fraud 

enforcement costs the Criminal Division only a ‘‘small, small fraction’’ when compared to the 

money recovered by the Division). Available at http://www.gpo.gov/fdsys/pkg/CHRG112shrg67415/pdf/CHRG-112shrg67415.pdf; See also New Tools for Curbing Waste and Fraud 

in Medicare and Medicaid: Hearing Before the Subcomm. On Fin. Mgmt., Gov’t Info., Fin. Serv. 

and Int’l Sec. of the S. Comm. on Homeland Sec. and Gov’t Affairs, 112th Cong. 2 (2011) (statement of Greg Andres, Acting Deputy Asst. Att’y Gen., Crim. Div., U.S. Dept. of Justice) (noting 

the Department of Justice estimates that the three year rolling average return on investment 

in health care fraud cases is $7:$1). Available at http://hsgac.senate.gov/public/ 

index.cfm?FuseAction=Files.View&FileStorelid=f9e14825-581c-4f5d-b1ba-ef486d852cd8. The 

Department of Justice estimates that the Criminal Division’s overall return on investment is 

$10:$1. 2The Congressional Budget Office has given this legislation a modest score because CBO rules 

require scoring of money allocated that would otherwise go to the general Treasury even if that 

money does not come from taxpayers. Congressional Budget Office rules do not allow credit for 

the return on investment from spending on fraud. This score does not change the fact that this 

bill requires no new taxpayer spending, and will lead to a net increase in funds going to the 

Treasury as the fraud prosecutions and litigation funded by this bill lead to fines, penalties, and 

other returns. 

tigate fraud. At the same time, the FFPTA will increase accountability by requiring the Justice Department to better manage and 

account for key spending. 

A. BACKGROUND

In the last Congress, one of the first major bills the Senate Judiciary Committee considered, and one of the first bills President 

Obama signed into law, was the Leahy-Grassley Fraud Enforcement and Recovery Act. That bill gave fraud investigators and 

prosecutors additional tools and resources to better hold those who 

commit fraud accountable. This renewed focus on fraud enforcement has yielded significant results, including an increase in fraud 

prosecutions and billions of dollars in recoveries, but nevertheless, 

Americans have been victimized repeatedly in recent years by 

waves of fraud—mortgage fraud, foreclosure fraud, financial fraud, 

and health care fraud, among others. The FFPTA reflects the ongoing need to invest in enforcement to better protect hard-working 

taxpayers from all of these insidious types of fraud. 

B. PURPOSE OF THE LEGISLATION

In the fiscal year 2010 alone, the Department of Justice recov- ered well over $6 billion through fines, penalties, and recoveries 

from fraud cases—far more than it costs to investigate and prosecute these matters. The recovery of these vast sums of money 

demonstrates that investment in fraud enforcement pays for itself 

many times over.1

The centerpiece provision of the FFTPA capitalizes on this rate 

of return by ensuring that a percentage of money recovered by the 

Government through fines and penalties is reinvested in the investigation and prosecution of fraud cases. This will ensure more 

fraud enforcement, which in turn will result in more returns to the 

Government, and more savings to taxpayers, all without spending 

new taxpayer money.2 The bill will take approximately $15 million 

each year that is collected by the Government through civil debt 

collection activities and redirect those funds into investigating, 

prosecuting, and litigating fraud cases. 

The bill also makes modest changes to ensure that prosecutors 

and investigators have the tools they need to combat fraud. It extends the international money laundering statute to tax evasion 


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3See Protecting American Taxpayers: Significant Accomplishments and Ongoing Challenges 

in the Fight Against Fraud: Hearing Before the S. Comm. on the Judiciary, 112th Cong. 89 

(2011) (testimony of Tony West, Asst. Att’y Gen., Civ. Div., U.S. Dept. of Justice). 

crimes. This will deter individuals from evading our tax laws by 

hiding their money overseas. It also protects American consumers 

from identity theft by strengthening the prohibition against trafficking in passwords and the Federal identity theft statute. As 

more and more business is conducted online, we must ensure that 

consumers’ personal information remains protected. 

The Secret Service has responsibility for investigating a variety 

of complex financial fraud crimes, including identity theft. This bill 

gives the Secret Service additional tools to conduct critical undercover investigations. Fraud cases are often complex and difficult to 

prove, so undercover investigations can be a key way to ferret out 

criminal activity. 

In the last Congress, Congress strengthened the False Claims 

Act, which empowers whistleblowers to shine a light on fraud and 

recover stolen tax dollars that would otherwise go undiscovered. 

These new laws are already paying off. In 2009 and 2010, the Department of Justice has recovered more than $6.8 billion in False 

Claims Act cases, far more than any other two-year period.3 The 

FFPTA asks the Attorney General to report to Congress on False 

Claims Act settlements, which will help ensure that the False 

Claims Act remains a valuable tool for fighting fraud. 

The FFPTA also promotes accountability within Government. 

Along with requiring reporting, it takes modest steps to ensure 

that the resources already entrusted to the Justice Department are 

used responsibly by strengthening oversight of the Department’s 

Working Capital Fund. 

We must continue to strengthen the tools that law enforcement 

has to root out fraud. Taxpaying Americans deserve to know that 

their Government is doing all it can to prevent fraud and hold 

those who commit fraud accountable for their crimes. The FFPTA 

will provide new tools needed for law enforcement to prosecute and 

punish those responsible for fraud, and will do so at no added cost 

to taxpayers. 

II. HISTORY OF THE BILL AND COMMITTEE CONSIDERATION

A. INTRODUCTION OF THE BILL

On May 5, 2011, Chairman Leahy introduced the bill, S. 890, 

with Senator Grassley. Senators Klobuchar and Coons have joined 

as cosponsors. 

B. COMMITTEE CONSIDERATION

1. Committee hearing 

On January 25, 2011, the Committee held a hearing entitled 

‘‘Protecting American Taxpayers: Significant Accomplishments and 

Ongoing Challenges in the Fight Against Fraud’’ to, among other 

things, explore whether new resources and tools for fraud enforcement were needed. At the hearing, two witnesses testified: Assistant Attorney General Lanny Breuer of the Criminal Division of the 

Department of Justice, and Assistant Attorney General Tony West 

of the Civil Division of the Department of Justice. Both witnesses 


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described the benefits of increasing resources for fraud enforcement. 

Assistant Attorney General Breuer testified that in fiscal year 

2010 alone, in criminal matters in which the Criminal Division 

participated, the Justice Department obtained approximately $3.4 

billion in judgments and settlements, with more than $1 billion in 

restitution ordered, $570 million in fines, $914 million in forfeiture, 

and $828 million in other settlements. He reiterated that Congress’s financial support of criminal investigations and prosecutions 

is critical to protecting American taxpayers’ hard earned money. 

He also reaffirmed that the amount of taxpayer money restored to 

the United States Treasury through criminal fraud enforcement efforts far exceeds what the Department of Justice spends to recover 

that money. As a result of criminal fraud prosecutions, the Department is transferring to the U.S. Treasury far more money than the 

amount budgeted by Congress to support the Department’s criminal fraud and corporate corruption investigations and prosecutions. 

Assistant Attorney General West testified that each year the attorneys from the Civil Division of the Department of Justice handle 

thousands of cases that collectively involve billions of dollars in 

claims and recoveries. Over the last year, the Department of Justice has made significant strides in protecting taxpayer dollars—as 

well as the integrity of Government programs that depend on those 

dollars—through aggressive civil enforcement actions aimed at 

rooting out waste, fraud, and abuse. For fiscal year 2010, the Civil 

Division secured $3 billion in civil settlements and judgments in 

cases involving fraud against the Government. 

2. Executive business meetings 

On May 12, 2011, the Committee held an executive committee 

business meeting to consider S. 890 and other measures, and the 

bill was held over for further consideration at the request of the 

Ranking Member. 

On May 19, 2011, the Committee considered S. 890. No amendments were offered, and the Committee voted to report S. 890, the 

Fighting Fraud to Protect Taxpayers Act of 2011, favorably to the 

Senate. The Committee proceeded by roll call vote as follows: 

Tally: 16 Yeas, 2 Nays 

Yeas (16): Kohl (D–WI), Feinstein (D–CA), Schumer (D–NY), 

Durbin (D–IL), Whitehouse (D–RI), Klobuchar (D–MN), Franken 

(D–MN), Coons (D–DE), Blumenthal (D–CT), Grassley (R–IA), 

Hatch (R–UT), Sessions (R–AL), Graham (R–SC), Cornyn (R–TX), 

Coburn (R–OK), Leahy (D–VT). 

Nays (2): Kyl (R–AZ), Lee (R–UT). 

III. SECTION-BY-SECTION SUMMARY OF THE BILL

Section 1. Short title 

This section provides that the legislation may be cited as the 

‘‘Fighting Fraud to Protect Taxpayers Act of 2011.’’ 

Section 2. Department of Justice Working Capital Fund reforms to 

support fraud enforcement 

Currently, the Department of Justice is authorized to keep in its 

Working Capital Fund up to 3 percent of the money it collects purVerDate Mar 15 2010 01:36 Feb 01, 2012 Jkt 019010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\SR142.XXX SR142

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suant to its civil debt collection litigation activities. This section increases that amount to 3.5 percent and directs that the additional 

.5 percent must be spent on the investigation and prosecution of 

fraud. This should result in approximately $15 million additional 

dollars spent on fraud enforcement each year. The section also increases accountability by capping the amount of the 3.5 percent collected each year that the Justice Department can carry over to 

spend in subsequent years and requiring the Justice Department 

to report to Congress on how the Working Capital Fund operates 

each year. 

Section 3. Reimbursement of costs awarded if False Claims Act 

prosecutions 

Civil False Claims Act recoveries are deposited in the General 

Fund of the Treasury after relators are paid, victim agencies are 

refunded for their loss, and 3 percent is deducted for the Department of Justice’s Working Capital Fund. This section authorizes an 

additional deduction to allow the Department of Justice or any 

other investigating agency to recoup its investigation and prosecution costs related to the False Claims Act matter being resolved. 

Section 4. Interlocutory appeals of suppression or exclusion of evidence 

This section amends 18 U.S.C. § 3731 to expressly permit Assistant Attorneys General, the Deputy Attorney General, and the Attorney General to certify interlocutory appeals from district court 

orders suppressing or excluding evidence. As it is currently written, 

section 3731 requires a certification by the United States Attorney, 

and at least one appellate court has held that the language does 

not permit certification by others. This creates a vacuum in cases 

that are handled by Department of Justice components other than 

the United States Attorneys’ Offices, including the litigating units 

that handle fraud cases. 

Section 5. Extension of the international money laundering statute 

to tax evasion crimes 

This section extends the money laundering statute to cover tax 

evasion crimes. Doing so will allow criminals who hide money overseas to be charged with money laundering, which can result in increased sentences, which in turn acts as a deterrent to fraud 

crimes. 

Section 6. Strengthening the prohibition against trafficking in passwords 

Currently, it is criminal to knowingly traffic in passwords that 

can be used to access computers without authorization. The current 

prohibition applies, however, only where the trafficking itself affects interstate or foreign commerce, or where the passwords could 

access a Government computer. This section amends 18 U.S.C. 

§ 1030(a)(6) to criminalize trafficking in passwords that could access any protected computer as defined by section 1030(e)(2) (computers for the use of a financial institution or the Government, or 

which are used in or affecting interstate or foreign commerce or 

communication). 


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Section 7. Clarifying venue for Federal mail fraud offenses 

This section amends the general venue statute, 18 U.S.C. § 3237, 

to clarify that, in the context of mail fraud schemes, venue exists 

in any district in which any act in furtherance of the offense is 

committed. This fix permits venue in the district where the bulk 

of the fraudulent conduct occurs, regardless of where a letter is 

mailed. 

Section 8. Expansion of authority of the Secret Service 

The U.S. Secret Service is one of the only Federal law enforcement agencies that lacks the permanent authority to use either appropriated funds or proceeds received from criminal investigations 

for some activities to advance undercover operations. This section 

grants the Secret Service the same permanent authority to conduct 

undercover operations that is given to other law enforcement entities. 

Section 9. False Claims Act settlements 

This section requires the Attorney General to submit an annual 

report to Congress that describes in detail each settlement the Justice Department enters into that relates to an alleged violation of 

the False Claims Act. 

Section 10. Amending the title of Aggravated Identity Theft 

This section amends the title of the identity theft statute, changing it from ‘‘Aggravated Identity Theft’’ to ‘‘Aggravated Identity 

Theft and Fraud’’ to better reflect the nature of the conduct 

charged under the provision. 

Section 11. Expanding identity theft to include corporate identity 

theft 

Currently, the regular identity theft offense codified at 18 U.S.C. 

§ 1028(a)(7) does not cover the unlawful use of a corporation’s 

name. This is problematic because criminals routinely engage in 

the unauthorized use of legitimate companies’ names and logos. 

This section amends the identity theft statute to cover the unlawful 

use of legitimate corporate names and logos. 

IV. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

The Committee sets forth, with respect to the bill S. 890, the following estimate and comparison prepared by the Director of the 

Congressional Budget Office under section 402 of the Congressional 

Budget Act of 1974. 

JUNE 15, 2011. 

Hon. PATRICK J. LEAHY, 

Chairman, Committee on the Judiciary, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 890, the Fighting Fraud to 

Protect Taxpayers Act of 2011. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Mark Grabowicz. 

Sincerely, 

DOUGLAS W. ELMENDORF. 


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Enclosure. 

S. 890—Fighting Fraud to Protect Taxpayers Act of 2011 

Summary: S. 890 would increase the funds available to the Department of Justice (DOJ) each year for investigating and prosecuting fraud offenses. The bill would establish a new federal crime 

relating to international money laundering. S. 890 also would require DOJ to prepare annual reports on settlements of certain 

fraud cases and funding of its debt collection and antifraud efforts. 

CBO estimates that enacting S. 890 would increase direct spend- ing by $69 million over the 2012–2021 period. In addition, we estimate that enacting the bill would affect revenues, but such effects 

would not be significant. Because enacting the legislation would affect direct spending and revenues, pay-as-you-go procedures apply. 

We also estimate that implementing the bill would have discretionary costs of about $1 million annually over the 10-year period. 

S. 890 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act (UMRA) and 

would not affect the budgets of state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 890 is shown in the following table. The costs 

of this legislation fall within budget function 750 (administration 

of justice). 

By fiscal year, in millions of dollars— 

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012– 

2016 

2012– 

2021 

CHANGES IN DIRECT SPENDING 

Estimated Budget Authority .. 7 7 7 7 7 7 7 7 7 7 35 70 

Estimated Outlays ................. 6 7 7 7 7 7 7 7 7 7 34 69 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level 1 1 1 1 1 1 1 1 1 1 5 10 

Estimated Outlays ................. 1 1 1 1 1 1 1 1 1 1 5 10 

Basis of estimate: For this estimate, CBO assumes that S. 890 

will be enacted by the end of fiscal year 2011. 

Direct spending and revenues 

DOJ collects civil debt owed to federal agencies and returns most 

of the recovered amounts to those agencies, with remaining 

amounts deposited in the Treasury. Current law authorizes DOJ to 

retain and spend up to 3 percent of most debt it recovers to defray 

the costs of its debt collection efforts. S. 890 would permit DOJ to 

retain and spend an additional 0.5 percent annually to cover certain costs of investigating and prosecuting fraud offenses. 

Based on the amount of civil debt recovered by DOJ in recent 

years, CBO expects the department to collect between $3 billion 

and $4 billion annually over the 2012–2021 period and to retain 3 

percent of those amounts. Under current law, most of the remaining amounts will be returned to agencies and spent, so allowing 

DOJ to retain an extra 0.5 percent of those funds would have no 

significant net effect on federal spending. However, we estimate 

that each year about $1.4 billion of debt collected by DOJ will be 

deposited in the Treasury and not available to be spent. CBO estimates that allowing DOJ to spend an additional 0.5 percent of 


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those funds would increase direct spending by about $7 million annually over the 2012–2021 period. 

S. 890 would establish a new federal crime relating to international money laundering. Because those prosecuted and convicted 

under S. 890 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. 

Spending subject to appropriation 

S. 890 would direct DOJ to prepare an annual report for the Congress on the sources of the collections that it retains each year and 

on the spending of those funds. The bill also would require DOJ to 

prepare an annual report on cases involving major fraud or false 

claims against the United States that were resolved through settlement. Based on the costs of similar activities, CBO estimates that 

it would cost about $1 million annually, subject to the availability 

of appropriated funds, for DOJ to prepare the reports required by 

the bill. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. S. 890 would 

increase the funds available to DOJ each year for investigating and 

prosecuting fraud offenses. The bill also could affect direct spending and revenues through the collection and spending of criminal 

fines. The net changes in outlays and revenues that are subject to 

those pay-as-you-go procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 890 AS ORDERED REPORTED BY THE SENATE 

COMMITTEE ON THE JUDICIARY ON MAY 19, 2011 

By fiscal year, in millions of dollars— 

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011– 

2016 

2011– 

2021 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-As-You-Go 

Impact ............................ 0 6 7 7 7 7 7 7 7 7 7 34 69 

Memorandum: 

Changes in Outlays ........ 0 6 7 7 7 7 7 7 7 7 7 34 69 

Changes in Revenues .... 0 0 0 0 0 0 0 0 0 0 0 0 0 

Estimated impact on state, local, and tribal governments: S. 890 

contains no intergovernmental or private-sector mandates as defined in UMRA and would not affect the budgets of state, local, or 

tribal governments. 

Estimate prepared by: Federal costs: Mark Grabowicz; Impact on 

state, local, and tribal governments: Melissa Merrell; Impact on the 

private sector: Marin Randall. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 


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V. REGULATORY IMPACT EVALUATION

In compliance with rule XXVI of the Standing Rules of the Senate, the Committee finds that no significant regulatory impact will 

result from the enactment of S. 890. 

VI. CONCLUSION

The FFPTA will enhance and invigorate existing efforts to investigate fraud, including the scourge of mortgage, foreclosure, financial, and health care fraud that has victimized thousands of 

unsuspecting Americans in recent years. The legislation will fill 

key statutory gaps to account for modern types of fraud and will 

increase accountability by requiring the Justice Department to better manage and account for key spending. The FFPTA reflects the 

ongoing need to invest in enforcement to better protect hard-working taxpayers from all of these insidious types of fraud. 

VII. CHANGES TO EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by S. 890, as reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new matter is printed in italic, and 

existing law in which no change is proposed is shown in roman): 

UNITED STATES CODE 

TITLE 28—JUDICIARY AND JUDICIAL 

PROCEDURE 

PART II—DEPARTMENT OF JUSTICE 

* * * * * * * 

CHAPTER 31—THE ATTORNEY GENERAL 

* * * * * * * 

SEC. 527. ESTABLISHMENT OF WORKING CAPITAL FUND. 

Statutory Note 

øNotwithstanding¿ (1) DEFINITIONS—In this subsection— 

(A) the term ‘covered amounts’ means— 

(i) the unobligated balances in the debt collection management account; and 

(ii) the unobligated balances in the supplemental fraud 

fighting account; 

(B) the term ‘debt collection management account’ means the 

account established in the Department of Justice Working Capital Fund under paragraph (2); 

(C) the term ‘fraud offense’ includes— 

(i) an offense under section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd–1) and an offense 

under section 104 or 104A of the Foreign Corrupt Practices 

Act of 1977 (15 U.S.C. 78dd–2 and 78dd–3); 

(ii) a securities fraud offense, as defined in section 3301 

of title 18, United States Code; 


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(iii) a fraud offense relating to a financial institution or 

a federally related mortgage loan, as defined in section 3 

of the Real Estate Settlement Procedures Act of 1974 (12 

U.S.C. 2602), including an offense under section 152, 157, 

1004, 1005, 1006, 1007, 1011, or 1014 of title 18, United 

States Code; 

(iv) an offense involving procurement fraud, including 

defective pricing, bid rigging, product substitution, misuse 

of classified or procurement sensitive information, grant 

fraud, fraud associated with labor mischarging, and fraud 

involving foreign military sales; 

(v) an offense under the Internal Revenue Code of 1986 

involving fraud; 

(vi) an action under subchapter III of chapter 37 of title 

31, United States Code (commonly known as the ‘False 

Claims Act’), and an offense under chapter 15 of title 18, 

United States Code; 

(vii) an offense under section 1029, 1030, or 1031 of title 

18, United States Code; and 

(viii) an offense under chapter 63 of title 18, United 

States Code; and 

(D) the term ‘supplemental fraud fighting account’ means the 

supplemental fraud fighting account established in the Department of Justice Working Capital Fund under paragraph (3)(A). 

(2) DEBT COLLECTION MANAGEMENT ACCOUNT.—Notwithstanding 

section 3302 of title 31, United States Code, or any other statute 

affecting the crediting of collections, the Attorney General may 

credit, as an offsetting collection, to the Department of Justice 

Working Capital Fund up to 3 percent of all amounts collected pursuant to civil debt collection litigation activities of the Department 

of Justice. øSuch amounts¿ Subject to paragraph (4), such amounts 

in the Working Capital Fund shall remain available until expended 

and shall be subject to the terms and conditions of that fund, and 

shall be used first, for paying the costs of processing and tracking 

civil and criminal debt-collection litigation, and, thereafter, for financial systems and for debt-collection-related personnel, administrative, and litigation expenses. 

(3) SUPPLEMENTAL FRAUD FIGHTING ACCOUNT.— 

(A) ESTABLISHMENT.—There is established as a separate account in the Department of Justice Working Capital Fund established under section 527 of title 28, United States Code, a 

supplemental fraud fighting account. 

(B) CREDITING OF AMOUNTS.—Notwithstanding section 3302 

of title 31, United States Code, or any other statute affecting the 

crediting of collections, the Attorney General may credit, as an 

offsetting collection, to the supplemental fraud fighting account 

up to 0.5 percent of all amounts collected pursuant to civil debt 

collection litigation activities of the Department of Justice. 

(C) USE OF FUNDS.— 

(i) IN GENERAL.—Subject to clause (ii), the Attorney General may use amounts in the supplemental fraud fighting 

account for the cost (including equipment, salaries and benefits, travel and training, and interagency task force operations) of the investigation of and conduct of criminal, 


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civil, or administrative proceedings relating to fraud offenses. 

(ii) LIMITATION.—The Attorney General may not use 

amounts in the supplemental fraud fighting account for the 

cost of the investigation of or the conduct of criminal, civil, 

or administrative proceedings relating to— 

(I) an offense under section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd–1); or 

(II) an offense under section 104 or 104A of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd–2 

and 78dd–3). 

(D) CONDITIONS.—Subject to paragraph (4), amounts in the 

supplemental fraud fighting account shall remain available 

until expended and shall be subject to the terms and conditions 

of the Department of Justice Working Capital Fund. 

(4) MAXIMUM AMOUNT.— 

(A) IN GENERAL.—There are rescinded all covered amounts in 

excess of $175,000,000 at the end of fiscal year 2012 and the 

end of each fiscal year thereafter. 

(B) RATIO.—For any rescission under subparagraph (A), the 

Secretary of the Treasury shall rescind amounts from the debt 

collection management account and the supplemental fraud 

fighting account in a ratio of 6 dollars to 1 dollar, respectively. 

(5) ANNUAL REPORT.—Not later than 6 months after the date of 

enactment of the Taxpayer Protection and Fraud Enforcement Act 

of 2011, and every year thereafter, the Attorney General shall submit to Congress a report that identifies, for the most recent fiscal 

year before the date of the report— 

(A) the amount credited to the debt collection management account and the amount credited to the supplemental fraud fighting account from civil debt collection litigation, which shall include, for each account— 

(i) a comprehensive description of the source of the 

amount credited; and 

(ii) a list the civil actions and settlements from which 

amounts were collected and credited to the account; 

(B) the amount expended from the debt collection management account for civil debt collection, which shall include a 

comprehensive description of the use of amounts in the account 

that identifies the amount expended for— 

(i) paying the costs of processing and tracking civil and 

criminal debt-collection litigation; 

(ii) financial systems; 

(iii) debt-collection-related personnel expenses; 

(iv) debt-collection-related administrative expenses; and 

(v) debt-collection-related litigation expenses; 

(C) the amounts expended from the supplemental fraud fighting account and the justification for the expenditure of such 

amounts; and 

(D) the unobligated balance in the debt collection management account and the unobligated balance in the supplemental 

fraud fighting account at the end of the fiscal year. 

* * * * * * * 


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TITLE 31—MONEY AND FINANCE 

* * * * * * * 

SUBTITLE III—FINANCIAL MANAGEMENT 

* * * * * * * 

CHAPTER 37—CLAIMS 

* * * * * * * 

Subchapter III—Claims Against the United States 

Government 

* * * * * * * 

SEC. 3729. FALSE CLAIMS. 

(a) LIABILITY FOR CERTAIN ACTS.— 

* * * * * * * 

(3) COSTS OF CIVIL ACTIONS.—A person violating this subsection shall also be liable to the United States Government for 

the costs of a civil action brought to recover any such penalty 

or damages. Any costs paid under this paragraph shall be credited to the appropriations accounts of the executive agency from 

which the funds used for the costs of the civil action were paid. 

* * * * * * * 

TITLE 18—CRIMES AND CRIMINAL 

PROCEDURE 

* * * * * * * 

PART II—CRIMINAL PROCEDURE 

* * * * * * * 

CHAPTER 235—APPEAL 

* * * * * * * 

SEC. 3731. APPEAL BY UNITED STATES. 

In a criminal case an appeal by the United States shall lie to a 

court of appeals from a decision, judgment, or order of a district 

court dismissing an indictment or information or granting a new 

trial after verdict or judgment, as to any one or more counts, or any 

part thereof, except that no appeal shall lie where the double jeopardy clause of the United States Constitution prohibits further 

prosecution. 

An appeal by the United States shall lie to a court of appeals 

from a decision or order of a district court suppressing or excluding 

evidence or requiring the return of seized property in a criminal 

proceeding, not made after the defendant has been put in jeopardy 

and before the verdict or finding on an indictment or information, 

if the Attorney General, the Deputy Attorney General, an Assistant 

Attorney General, or the United States attorney certifies to the district court that the appeal is not taken for purpose of delay and 


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13 

that the evidence is a substantial proof of a fact material in the 

proceeding. 

An appeal by the United States shall lie to a court of appeals 

from a decision or order, entered by a district court of the United 

States, granting the release of a person charged with or convicted 

of an offense, or denying a motion for revocation of, or modification 

of the conditions of, a decision or order granting release. 

The appeal in all such cases shall be taken within thirty days 

after the decision, judgment or order has been rendered and shall 

be diligently prosecuted. 

The provisions of this section shall be liberally construed to effectuate its purposes. 

* * * * * * * 

PART I—CRIMES 

* * * * * * * 

CHAPTER 95—RACKETEERING 

* * * * * * * 

SEC. 1956. LAUNDERING OF MONETARY INSTRUMENTS. 

(a)(2) Whoever transports, transmits, or transfers, or attempts to 

transport, transmit, or transfer a monetary instrument or funds 

from a place in the United States to or through a place outside the 

United States or to a place in the United States from or through 

a place outside the United States— 

(A) with the øintent to promote the carrying on of specified 

unlawful activity; or¿ intent to— 

(i) promote 

(ii) engage in conduct constituting a violation of section 

7201 or 7206 of the Internal Revenue Code of 1986; or 

* * * * * * * 

CHAPTER 47—FRAUD AND FALSE STATEMENTS 

* * * * * * * 

SEC. 1030. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH 

COMPUTERS. 

(a)(6) knowingly and with intent to defraud traffics (as defined 

in section 1029) in any password or similar information through 

which a protected computer may be accessed without 

authorizationø, if—¿; or 

ø(A) such trafficking affects interstate or foreign commerce; 

or 

ø(B) such computer is used by or for the Government of the 

United States;¿ 

* * * * * * * 

PART II—CRIMINAL PROCEDURE 

* * * * * * * 


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14 

CHAPTER 211—JURISDICTION VENUE 

SEC. * * * * * * * 

3231. District courts 

3232. District of offense (Rule) 

3233. Transfer within district (Rule) 

3234. Change of venue to another district (Rule) 

3235. Venue in capital cases 

3236. Murder or manslaughter 

ø3237. Offenses begun in one district and completed in another¿ 

3237. Offenses taking place in more than one district 

3238. Offenses not committed in any district 

3239. Optional venue for espionage and related offenses 

3240. Creation of new district or division 

3241. Jurisdiction of offenses under certain sections 

3242. Indians committing certain offenses; acts on reservations 

3243. Jurisdiction of State of Kansas over offenses committed by or against Indians 

on Indian reservations 

3244. Jurisdiction of proceedings relating to transferred offenders 

* * * * * * * 

SEC. 3237. OFFENSES øBEGUN IN ONE DISTRICT AND COMPLETED IN 

ANOTHER¿ TAKING PLACE IN MORE THAN ONE DISTRICT. 

(a) Except as otherwise expressly provided by enactment of 

Congress, any offense against the United States begun in one district and completed in another, or committed in more than one district, may be inquired of and prosecuted in any district in which 

such offense was begun, continued, or completed. 

Any offense involving the use of the mails, transportation in 

interstate or foreign commerce, or the importation of an object or 

person into the United States is a continuing offense and, except 

as otherwise expressly provided by enactment of Congress, may be 

inquired of and prosecuted in any district from, through, or into 

which such commerce, mail matter, or imported object or person 

moves or in any district in which an act in furtherance of the offense is committed. 

* * * * * * * 

CHAPTER 203—ARREST AND COMMITMENT 

* * * * * * * 

SEC. 3056. POWERS, AUTHORITIES, AND DUTIES OF UNITED STATES 

SECRET SERVICE. 

* * * * * * * 

(b) Under the direction of the Secretary of Homeland Security, 

the Secret Service is authorized to detect and arrest any person 

who violates— 

(1) section 508, 509, 510, 641, 656, 657, 871, or 879 of this 

title or, with respect to the Federal Deposit Insurance Corporation, Federal land banks, and Federal land bank associations, 

section 213, 216, 433, ø493, 657,¿ 493, 709, 1006, 1007, 1011, 

1013, 1014, 1907, or 1909 of this title; 

(2) any of the laws of the United States relating to coins, obligations, and securities of the United States and of foreign 

governments; or 

(3) any of the laws of the United States relating to electronic 

fund transfer frauds, access device frauds, false identification 

documents or devices, and any fraud or other criminal or unVerDate Mar 15 2010 01:36 Feb 01, 2012 Jkt 019010 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\SR142.XXX SR142

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lawful activity in or against any øfederally insured¿ financial 

institution; except that the authority conferred by this paragraph shall be exercised subject to the agreement of the Attorney General and the Secretary of Homeland Security and shall 

not affect the authority of any other Federal law enforcement 

agency with respect to those laws. 

* * * * * * * 

(h)(1) For any undercover investigative operation of the United 

States Secret Service that is necessary for the detection and prosecution of a crime against the United States, the United States Secret 

Service may— 

(A) use amounts appropriated for the United States Secret 

Service, including unobligated balances available from prior 

fiscal years, to— 

(i) purchase property, buildings, and other facilities and 

lease space within the United States (including the District 

of Columbia and the territories and possessions of the 

United States), without regard to sections 1341 and 3324 

of title 31, section 8141 of title 40, and sections 3901, 4501 

through 4506, 6301, and 6306(a) of title 41; and 

(ii) establish, acquire, and operate on a commercial basis 

proprietary corporations and business entities as part of the 

undercover investigative operation, without regard to sections 9102 and 9103 of title 31; 

(B) deposit in banks and other financial institutions amounts 

appropriated for the United States Secret Service, including unobligated balances available from prior fiscal years, and the 

proceeds from the undercover investigative operation, without 

regard to section 648 of this title and section 3302 of title 31; 

and 

(C) use the proceeds from the undercover investigative operation to offset necessary and reasonable expenses incurred in 

the undercover investigative operation, without regard to section 

3302 of title 31. 

(2) The authority under paragraph (1) may be exercised only upon 

a written determination by the Director of the United States Secret 

Service (in this subsection referred to as the ‘Director’) that the action being authorized under paragraph (1) is necessary for the conduct of an undercover investigative operation. A determination 

under this paragraph may continue in effect for the duration of an 

undercover investigative operation, without fiscal year limitation. 

(3) If the Director authorizes the proceeds from an undercover investigative operation to be used as described in subparagraph (B) or 

(C) of paragraph (1), as soon as practicable after the proceeds are 

no longer necessary for the conduct of the undercover investigative 

operation, the proceeds remaining shall be deposited in the general 

fund of the Treasury as miscellaneous receipts. 

(4) As early as the Director determines practicable before the date 

on which a corporation or business entity established or acquired 

under paragraph (1)(A)(ii) with a net value of more than $50,000 

is to be liquidated, sold, or otherwise disposed of, the Director shall 

notify the Secretary of Homeland Security regarding the circumstances of the corporation or business entity and the liquidation, 

sale, or other disposition. The proceeds of the liquidation, sale, or 


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16 

other disposition, after obligations are met, shall be deposited in the 

general fund of the Treasury as miscellaneous receipts. 

(5)(A) The Director shall— 

(i) on a quarterly basis, conduct detailed financial audits of 

closed undercover investigative operations for which a written 

determination is made under paragraph (2); and 

(ii) submit to the Secretary of Homeland Security a written 

report of the results of each audit conducted under clause (i). 

(B) On the date on which the budget of the President is submitted 

under section 1105(a) of title 31 for each year, the Secretary of 

Homeland Security shall submit to the Committee on Appropriations of the Senate and the Committee on Appropriations of the 

House of Representatives a report summarizing the audits conducted under subparagraph (A)(i) relating to the previous fiscal 

year. 

* * * * * * * 

PART I—CRIMES 

* * * * * * * 

CHAPTER 47—FRAUD AND FALSE STATEMENTS 

SEC. 

* * * * * * * 

1020. Highway projects 

1021. Title records 

1022. Delivery of certificate, voucher, receipt for military or naval property 

1023. Insufficient delivery of money or property for military or naval service 

1024. Purchase or receipt of military, naval, or veteran’s facilities property 

1025. False pretenses on high seas and other waters 

1026. Compromise, adjustment, or cancellation of farm indebtedness 

1027. False statements and concealment of facts in relation to documents required 

by the Employee Retirement Income Security Act of 1974 

ø1028. Fraud and related activity in connection with identification documents, authentication features, and information¿ 

1028. Fraud and related activity in connection with identification documents, authentication features, and information. 

ø1028A. Aggravated identity theft¿ 

1028A. Aggravated identity theft and fraud. 

1029. Fraud and related activity in connection with access devices 

1030. Fraud and related activity in connection with computers 

* * * * * * * 

SEC. 1028. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH 

IDENTIFICATION DOCUMENTS, AUTHENTICATION FEATURES, AND INFORMATION. 

(a)(7) knowingly transfers, possesses, or uses, without lawful authority, a means of identification of another person (including an 

organization) with the intent to commit, or to aid or abet, or in connection with, any unlawful activity that constitutes a violation of 

Federal law, or that constitutes a felony under any applicable State 

or local law; or 

* * * * * * * 

SEC. 1028A. AGGRAVATED IDENTITY THEFT AND FRAUD. 

* * * * * * * 

Æ 


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