II 

109TH CONGRESS 

2D SESSION S. 2356 

To prohibit profiteering and fraud relating to military action, relief, and 

reconstruction efforts, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 2, 2006 

Mr. LEAHY introduced the following bill; which was read twice and referred 

to the Committee on the Judiciary 

A BILL 

To prohibit profiteering and fraud relating to military action, 

relief, and reconstruction efforts, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘War Profiteering Pre5 vention Act of 2006’’. 

6 SEC. 2. PROHIBITION OF PROFITEERING. 

7 (a) PROHIBITION.— 

8 (1) IN GENERAL.—Chapter 47 of title 18, 

9 United States Code, is amended by adding at the 

10 end the following: 


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1 ‘‘§ 1039. War profiteering and fraud relating to mili2 tary action, relief, and reconstruction ef3 forts 

4 ‘‘(a) PROHIBITION.— 

5 ‘‘(1) IN GENERAL.—Whoever, in any matter in6 volving a contract or the provision of goods or serv7 ices, directly or indirectly, in connection with a war, 

8 military action, or relief or reconstruction activities 

9 within the jurisdiction of the United States Govern10 ment, knowingly and willfully— 

11 ‘‘(A)(i) executes or attempts to execute a 

12 scheme or artifice to defraud the United States; 

13 or 

14 ‘‘(ii) materially overvalues any good or 

15 service with the specific intent to defraud and 

16 excessively profit from the war, military action, 

17 or relief or reconstruction activities; 

18 shall be fined under paragraph (2), imprisoned not 

19 more than 20 years, or both; or 

20 ‘‘(B)(i) falsifies, conceals, or covers up by 

21 any trick, scheme, or device a material fact; 

22 ‘‘(ii) makes any materially false, fictitious, 

23 or fraudulent statements or representations; or 

24 ‘‘(iii) makes or uses any materially false 

25 writing or document knowing the same to conVerDate Aug 31 2005 23:42 Mar 06, 2006 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2356.IS S2356

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1 tain any materially false, fictitious or fraudu2 lent statement or entry; 

3 shall be fined under paragraph (2) imprisoned not 

4 more than 10 years, or both. 

5 ‘‘(2) FINE.—A person convicted of an offense 

6 under paragraph (1) may be fined the greater of— 

7 ‘‘(A) $1,000,000; or 

8 ‘‘(B) if such person derives profits or other 

9 proceeds from the offense, not more than twice 

10 the gross profits or other proceeds. 

11 ‘‘(b) EXTRATERRITORIAL JURISDICTION.—There is 

12 extraterritorial Federal jurisdiction over an offense under 

13 this section. 

14 ‘‘(c) VENUE.—A prosecution for an offense under 

15 this section may be brought— 

16 ‘‘(1) as authorized by chapter 211 of this title; 

17 ‘‘(2) in any district where any act in further18 ance of the offense took place; or 

19 ‘‘(3) in any district where any party to the con20 tract or provider of goods or services is located.’’. 

21 (2) TABLE OF SECTIONS.—The table of sections 

22 for chapter 47 of title 18, United States Code, is 

23 amended by adding at the end the following: 

‘‘1039. War profiteering and fraud relating to military action, relief, and reconstruction efforts.’’. 


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1 (b) CIVIL FORFEITURE.—Section 981(a)(1)(C) of 

2 title 18, United States Code, is amended by inserting 

3 ‘‘1039,’’ after ‘‘1032,’’. 

4 (c) CRIMINAL FORFEITURE.—Section 982(a)(2)(B) 

5 of title 18, United States Code, is amended by striking 

6 ‘‘or 1030’’ and inserting ‘‘1030, or 1039’’. 

7 (d) RICO.—Section 1956(c)(7)(D) of title 18, United 

8 States Code, is amended by inserting the following: ‘‘, sec9 tion 1039 (relating to war profiteering and fraud relating 

10 to military action, relief, and reconstruction efforts)’’ after 

11 ‘‘liquidating agent of financial institution),’’. 

Æ 


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