I 

111TH CONGRESS 

1ST SESSION H. R. 1748 

To amend title 18, United States Code, to enhance the investigation and 

prosecution of mortgage fraud and financial institution fraud, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 26, 2009 

Mr. CONYERS (for himself, Mr. SMITH of Texas, Mr. DELAHUNT, Ms. JACKSON-LEE of Texas, and Mrs. BIGGERT) introduced the following bill; 

which was referred to the Committee on the Judiciary, and in addition 

to the Committees on Oversight and Government Reform and Financial 

Services, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend title 18, United States Code, to enhance the 

investigation and prosecution of mortgage fraud and financial institution fraud, 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 ‘‘Fight Fraud Act of 

5 2009’’. 


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1 SEC. 2. AMENDMENTS TO IMPROVE MORTGAGE, SECURI2 TIES, AND FINANCIAL FRAUD RECOVERY AND 

3 ENFORCEMENT. 

4 (a) DEFINITION OF FINANCIAL INSTITUTION

5 AMENDED TO INCLUDE MORTGAGE LENDING BUSI6 NESS.—Section 20 of title 18, United States Code, is 

7 amended— 

8 (1) in paragraph (8), by striking ‘‘or’’ after the 

9 semicolon; 

10 (2) in paragraph (9), by striking the period and 

11 inserting ‘‘; or’’; and 

12 (3) by inserting at the end the following: 

13 ‘‘(10) a mortgage lending business or any per14 son or entity that makes in whole or in part a feder15 ally related mortgage loan as defined in section 3 of 

16 the Real Estate Settlement Procedures Act of 

17 1974.’’. 

18 (b) MORTGAGE LENDING BUSINESS DEFINED.— 

19 (1) IN GENERAL.—Chapter 1 of title 18, United 

20 States Code, is amended by inserting after section 

21 26 the following: 

22 ‘‘§ 27. Mortgage lending business defined 

23 ‘‘In this title, the term ‘mortgage lending business’ 

24 means an organization which finances or refinances any 

25 debt secured by an interest in real estate, including private 

26 mortgage companies and any subsidiaries of such organiVerDate Nov 24 2008 07:26 Mar 27, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1748.IH H1748

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1 zations, and whose activities affect interstate or foreign 

2 commerce.’’. 

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions at the beginning of chapter 1 of title 18, 

5 United States Code, is amended by adding at the 

6 end the following: 

‘‘27. Mortgage lending business defined.’’. 

7 (c) FALSE STATEMENTS IN MORTGAGE APPLICA8 TIONS AMENDED TO INCLUDE FALSE STATEMENTS BY

9 MORTGAGE BROKERS AND AGENTS OF MORTGAGE LEND10 ING BUSINESSES.—Section 1014 of title 18, United States 

11 Code, is amended— 

12 (1) by striking ‘‘or’’ after ‘‘the International 

13 Banking Act of 1978),’’; and 

14 (2) by inserting after ‘‘section 25(a) of the Fed15 eral Reserve Act’’ the following: ‘‘or a mortgage 

16 lending business, or any person or entity that makes 

17 in whole or in part a federally related mortgage loan 

18 as defined in section 3 of the Real Estate Settlement 

19 Procedures Act of 1974’’. 

20 (d) MAJOR FRAUD AGAINST THE GOVERNMENT

21 AMENDED TO INCLUDE ECONOMIC RELIEF AND TROU22 BLED ASSET RELIEF PROGRAM FUNDS.—Section 1031(a) 

23 of title 18, United States Code, is amended— 

24 (1) by striking ‘‘in any procurement’’ and in25 serting ‘‘in any grant, contract, subcontract, subVerDate Nov 24 2008 07:26 Mar 27, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1748.IH H1748

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1 sidy, loan, guarantee, insurance or other form of 

2 Federal assistance, including through the Troubled 

3 Assets Relief Program, an economic stimulus, recov4 ery or rescue plan provided by the Government, or 

5 the Government’s purchase of any preferred stock in 

6 a company, or any procurement’’; and 

7 (2) by striking ‘‘the contract, subcontract’’ and 

8 inserting ‘‘such grant, contract, subcontract, sub9 sidy, loan, guarantee, insurance or other form of 

10 Federal assistance’’. 

11 (e) SECURITIES FRAUD AMENDED TO INCLUDE

12 FRAUD INVOLVING OPTIONS AND FUTURES IN COMMOD13 ITIES.— 

14 (1) IN GENERAL.—Section 1348 of title 18, 

15 United States Code, is amended— 

16 (A) in the caption, by inserting ‘‘and 

17 commodities’’ after ‘‘Securities’’; 

18 (B) in paragraph (1), by inserting ‘‘any 

19 commodity for future delivery, or any option on 

20 a commodity for future delivery, or’’ after ‘‘any 

21 person in connection with’’; and 

22 (C) in paragraph (2), by inserting ‘‘any 

23 commodity for future delivery, or any option on 

24 a commodity for future delivery, or’’ after ‘‘in 

25 connection with the purchase or sale of’’. 


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1 (2) CLERICAL AMENDMENT.—The item relating 

2 to section 1348 in the table of sections at the begin3 ning of chapter 63 of title 18, United States Code, 

4 is amended by inserting ‘‘and commodities’’ after 

5 ‘‘Securities’’. 

6 SEC. 3. ADDITIONAL FUNDING FOR INVESTIGATORS AND 

7 PROSECUTORS FOR MORTGAGE FRAUD, SE8 CURITIES FRAUD, AND OTHER CASES IN9 VOLVING FEDERAL ECONOMIC ASSISTANCE. 

10 (a) IN GENERAL.— 

11 (1) AUTHORIZATION.—There is authorized to 

12 be appropriated to the Attorney General, to remain 

13 available until expended, $165,000,000 for each of 

14 the fiscal years 2010 and 2011, for the purposes of 

15 investigations, prosecutions, and civil proceedings in16 volving Federal assistance programs and financial 

17 institutions, including financial institutions to which 

18 this Act and amendments made by this Act apply. 

19 (2) ALLOCATIONS.—With respect to fiscal years 

20 2010 and 2011, the amount authorized to be appro21 priated under paragraph (1) shall be allocated as 

22 follows: 

23 (A) Federal Bureau of Investigation: 

24 $75,000,000 for fiscal year 2010 and 

25 $65,000,000 for fiscal year 2011. 


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1 (B) The offices of the United States Attor2 neys: $50,000,000. 

3 (C) The criminal division of the Depart4 ment of Justice: $20,000,000. 

5 (D) The civil division of the Department of 

6 Justice: $15,000,000. 

7 (E) The tax division of the Department of 

8 Justice: $5,000,000. 

9 (b) ADDITIONAL APPROPRIATIONS FOR THE POSTAL

10 INSPECTION SERVICE.—There is authorized to be appro11 priated to the Postal Inspection Service of the United 

12 States Postal Service, $30,000,000 for each of the fiscal 

13 years 2010 and 2011 for investigations involving Federal 

14 assistance programs and financial institutions, including 

15 financial institutions to which this Act and amendments 

16 made by this Act apply. 

17 (c) ADDITIONAL APPROPRIATIONS FOR THE INSPEC18 TOR GENERAL FOR THE DEPARTMENT OF HOUSING AND

19 URBAN DEVELOPMENT.—There is authorized to be appro20 priated to the Inspector General of the Department of 

21 Housing and Urban Development, $30,000,000 for each 

22 of the fiscal years 2010 and 2011 for investigations involv23 ing Federal assistance programs and financial institutions, 

24 including financial institutions to which this Act and 

25 amendments made by this Act apply. 


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1 (d) ADDITIONAL APPROPRIATIONS FOR THE UNITED

2 STATES SECRET SERVICE.—There is authorized to be ap3 propriated to the United States Secret Service of the De4 partment of Homeland Security, $20,000,000 for each of 

5 the fiscal years 2010 and 2011 for investigations involving 

6 Federal assistance programs and financial institutions, in7 cluding financial institutions to which this Act and amend8 ments made by this Act apply. 

9 (e) USE OF FUNDS.—The funds authorized to be ap10 propriated under subsections (a), (b), (c), and (d) shall 

11 be limited to cover the costs of each listed agency or de12 partment for investigating possible criminal, civil, or ad13 ministrative violations and for prosecuting criminal, civil, 

14 or administrative proceedings involving financial crimes 

15 and crimes against Federal assistance programs, including 

16 mortgage fraud, securities fraud, financial institution 

17 fraud, and other frauds related to Federal assistance and 

18 relief programs. 

19 (f) REPORT TO CONGRESS.—Following the final ex20 penditure of all funds appropriated under this section that 

21 were authorized by subsections (a), (b), (c), and (d) the 

22 Attorney General, in consultation with the United States 

23 Postal Inspection Service, the Inspector General for the 

24 Department of Housing and Urban Development, and the 


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1 Secretary of Homeland Security, shall submit a joint re2 port to Congress identifying— 

3 (1) the amounts expended under subsections 

4 (a), (b), (c), and (d) and a certification of compli5 ance with the requirements listed in subsection (e); 

6 and 

7 (2) the amounts recovered as a result of crimi8 nal or civil restitution, fines, penalties, and other 

9 monetary recoveries resulting from criminal, civil, or 

10 administrative proceedings and settlements under11 taken with funds authorized by this Act. 

Æ 


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