59–006 

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: 


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‘‘§ 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 reVerDate Aug 31 2005 06:31 Sep 28, 2007 Jkt 059006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6601 E:\HR\OC\HR353.XXX HR353

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1Steve Kroft, Billions Wasted in Iraq?, 60 Minutes, Feb. 12, 2006, available at http:// 

www.cbsnews.com/stories/2006/02/09/60minutes/printable1302378.shtml. 2Special 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 3See 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). 4There 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. 

construction 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

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. 

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 


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5 Renae Merle, Verdict Against Iraq Contractor Overturned, WASH. POST, Aug. 19, 2006, at D1. 

held not to be part of the United States government, thereby barring the application of United States fraud laws.5

To address these gaps in existing law, Rep. Neil Abercrombie (DHI) 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: 


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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 


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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 


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6See 18 U.S.C.A. §§ 3231–3244 (2006). 

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. 

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. 

§ 1956(c)(7)) and for racketeering offenses (18 U.S.C. § 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 

* * * * * * * 


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CHAPTER 46—FORFEITURE 

* * * * * * * 

§ 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, øor 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. 

* * * * * * * 

§ 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. 


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(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 

* * * * * * * 

§ 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 


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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, 


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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 

* * * * * * * 

§ 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 propVerDate Aug 31 2005 06:31 Sep 28, 2007 Jkt 059006 PO 00000 Frm 00011 Fmt 6659 Sfmt 6601 E:\HR\OC\HR353.XXX HR353

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erty 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); 

* * * * * * * 

Æ 


cnoel on PRODPC60 with HEARING