I

103D CONGRESS

2D SESSION H. R. 4071

To amend title 39, United States Code, to grant the United States Postal

Service the authority to issue civil investigative demands, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 17, 1994

Miss COLLINS of Michigan (by request) introduced the following bill; which

was referred jointly to the Committees on Post Office and Civil Service

and the Judiciary

A BILL

To amend title 39, United States Code, to grant the United

States Postal Service the authority to issue civil investigative demands, 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. CIVIL INVESTIGATIVE DEMANDS.

4 (a) IN GENERAL.—Chapter 30 of title 39, United

5 States Code, is amended by adding at the end the

6 following:

7 ‘‘§ 3016. Civil investigative demands

8 ‘‘(a) For purposes of this section—
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1 ‘‘(1) the term ‘person’ means any natural per2 son, partnership, corporation, association, or other

3 legal entity, including any person acting under color

4 or authority of State law;

5 ‘‘(2) the term ‘documentary material’ includes

6 the original or any copy of any book, record, report,

7 memorandum, paper, communication, tabulation,

8 chart, or other document, and any product of discov9 ery;

10 ‘‘(3) the term ‘custodian’ means the custodian

11 or any deputy custodian designated under subsection

12 (c);

13 ‘‘(4) the term ‘product of discovery’ includes—

14 ‘‘(A) the original or duplicate of any depo15 sition, interrogatory, response, document, thing,

16 result of the inspection of land or other prop17 erty, examination, or admission obtained by any

18 method of discovery in any judicial litigation or

19 in any administrative litigation of an adversar20 ial nature;

21 ‘‘(B) any digest, analysis, selection, com22 pilation, or any derivation thereof; and

23 ‘‘(C) any index or manner of access there24 in; and
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1 ‘‘(5) the term ‘agent’ includes a Postal Inspec2 tor or any person retained by the Postal Service in

3 connection with the enforcement of the laws of the

4 United States relative to the United States mails

5 and acting under the authority of section 3061 of

6 title 18.

7 ‘‘(b)(1) Whenever the Postmaster General or his dele8 gate has reason to believe that any person may be in pos9 session, custody, or control of any documentary material,

10 or may have any information, relevant to an investigation

11 of a matter arising under this chapter, he may, prior to

12 the commencement of a civil or criminal proceeding there13 on, issue in writing, and cause to be served upon such

14 person, a civil investigative demand requiring such person

15 to produce such documentary material for inspection and

16 copying or reproduction, to answer in writing written in17 terrogatories, to give oral testimony concerning documen18 tary material or information, or to furnish any combina19 tion of such material, answers, or testimony. Whenever a

20 civil investigative demand is an express demand for any

21 product of discovery, the Postmaster General or his dele22 gate shall cause to be served, in any manner authorized

23 by this section, a copy of such demand upon the person

24 from whom the discovery was obtained and notify the per-
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1 son to whom such demand is issued of the date on which

2 such copy was served.

3 ‘‘(2) Each such demand shall—

4 ‘‘(A) state the nature of the conduct under in5 vestigation and the provision of this chapter applica6 ble thereto;

7 ‘‘(B) if it is a demand for production of docu8 mentary material—

9 ‘‘(i) describe the class or classes of docu10 mentary material to be produced thereunder

11 with such definiteness and certainty as to per12 mit such material to be fairly identified;

13 ‘‘(ii) prescribe a return date or dates which

14 will provide a reasonable period of time within

15 which the material so demanded may be assem16 bled and made available for inspection and

17 copying or reproduction; and

18 ‘‘(iii) identify the custodian to whom such

19 material shall be made available;

20 ‘‘(C) if it is a demand for answers to written

21 interrogatories—

22 ‘‘(i) state with definiteness and certainty

23 the written interrogatories to be answered;
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1 ‘‘(ii) prescribe a date or dates at which

2 time answers to written interrogatories shall be

3 submitted; and

4 ‘‘(iii) identify the custodian to whom such

5 answers shall be submitted; and

6 ‘‘(D) if it is a demand for the giving of oral tes7 timony—

8 ‘‘(i) prescribe a date, time, and place at

9 which oral testimony shall be commenced; and

10 ‘‘(ii) identify the person who shall conduct

11 the examination and the custodian to whom the

12 transcript of such examination shall be submit13 ted.

14 Any such demand which is an express demand for any

15 product of discovery shall not be returned or returnable

16 until 20 days after a copy of such demand has been served

17 upon the person from whom the discovery was obtained.

18 ‘‘(3)(A) No such demand shall require the production

19 of any documentary material, the submission of any an20 swers to written interrogatories, or the giving of any oral

21 testimony, if such material, answers, or testimony would

22 be protected from disclosure under—

23 ‘‘(i) the standards applicable to subpoenas or

24 subpoenas duces tecum issued by a court of the
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1 United States in aid of a grand jury investigation;

2 or

3 ‘‘(ii) the standards applicable to discovery re4 quests under the Federal Rules of Civil Procedure,

5 to the extent that the application of such standards

6 to any such demand is appropriate and consistent

7 with the provisions and purposes of this section.

8 ‘‘(B) Any such demand which is an express demand

9 for any product of discovery supersedes any inconsistent

10 order, rule, or provision of law (other than this section)

11 preventing or restraining disclosure of such product of dis12 covery to any person. Disclosure of any product of discov13 ery pursuant to any such express demand does not con14 stitute a waiver of any right or privilege, including any

15 right or privilege which may be invoked to resist discovery

16 of trial preparation materials, to which the person making

17 such disclosure may be entitled.

18 ‘‘(4)(A) Any such demand may be served by a Postal

19 Service agent at any place within the territorial jurisdic20 tion of any court of the United States.

21 ‘‘(B) Any such demand or any petition filed under

22 subsection (d) may be served upon any person who is not

23 to be found within the territorial jurisdiction of any court

24 of the United States, in such manner as the Federal Rules

25 of Civil Procedure prescribe for service in a foreign coun-
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1 try. To the extent that the courts of the United States

2 can assert jurisdiction over such person consistent with

3 due process, the United States District Court for the Dis4 trict of Columbia shall have the same jurisdiction to take

5 any action respecting compliance with this section by such

6 person that such court would have if such person were

7 personally within the jurisdiction of such court.

8 ‘‘(5)(A) Service of any such demand or of any peti9 tion filed under subsection (d) may be made upon a part10 nership, corporation, association, or other legal entity

11 by—

12 ‘‘(i) delivering a duly executed copy thereof to

13 any partner, executive officer, managing agent, or

14 general agent thereof, or to any agent thereof au15 thorized by appointment or by law to receive service

16 of process on behalf of such partnership, corpora17 tion, association or entity;

18 ‘‘(ii) delivering a duly executed copy thereof to

19 the principal office or place of business of the part20 nership, corporation, association, or entity; or

21 ‘‘(iii) depositing such copy in the United States

22 mails, by registered or certified mail, return receipt

23 requested, duly addressed to such partnership, cor24 poration, association, or entity at its principal office

25 or place of business.
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1 ‘‘(B) Service of any such demand or of any petition

2 filed under subsection (d) may be made upon any natural

3 person by—

4 ‘‘(i) delivering a duly executed copy thereof to

5 the person to be served; or

6 ‘‘(ii) depositing such copy in the United States

7 mails by registered or certified mail, return receipt

8 requested, duly addressed to such person at his resi9 dence or principal office or place of business.

10 ‘‘(6) A verified return by the individual serving any

11 such demand or petition setting forth the matter of such

12 service shall be proof of such service. In the case of service

13 by registered or certified mail, such return shall be accom14 panied by the return post office receipt of delivery of such

15 demand.

16 ‘‘(7) The production of documentary material in re17 sponse to a demand served pursuant to this section shall

18 be made under a sworn certificate, in such form as the

19 demand designates, by the person, if a natural person, to

20 whom the demand is directed or, if not a natural person,

21 by a person or persons having knowledge of the facts, and

22 circumstances relating to such production, to the effect

23 that all of the documentary material required by the de24 mand and in the possession, custody, or control of the per-
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1 son to whom the demand is directed has been produced

2 and made available to the custodian.

3 ‘‘(8) Each interrogatory in a demand served pursuant

4 to this section shall be answered separately and fully in

5 writing under oath, unless it is objected to, in which event

6 the reasons for the objection shall be stated in lieu of an

7 answer, and it shall be submitted under a sworn certifi8 cate, in such form as the demand designates, by the per9 son, if a natural person, to whom the demand is directed

10 or, if not a natural person, by a person or persons respon11 sible for answering each interrogatory, to the effect that

12 all information required by the demand and in the posses13 sion, custody, control, or knowledge of the person to whom

14 the demand is directed has been submitted.

15 ‘‘(9)(A) The examination of any person pursuant to

16 a demand for oral testimony served under this section

17 shall be taken before an officer authorized to administer

18 oaths and affirmations by the laws of the United States

19 or of the place where the examination is held. The officer

20 before whom the testimony is to be taken shall put the

21 witness on oath or affirmation and shall personally, or by

22 someone acting under his direction and in his presence,

23 record the testimony of the witness. The testimony shall

24 be taken stenographically and transcribed. When the testi25 mony is fully transcribed, the officer before whom the tes-
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1 timony is taken shall promptly transmit a copy of the

2 transcript of the testimony to the custodian.

3 ‘‘(B) The officer conducting the examination shall ex4 clude from the place where the examination is held all

5 other persons except the person being examined, his coun6 sel, counsel for the Postal Service, the officer before whom

7 the testimony is to be taken, and any stenographer taking

8 such testimony. The provisions of the Act of March 3,

9 1913 (Chapter 114; 37 Stat. 731; 15 U.S.C. 30) shall not

10 apply to such examination.

11 ‘‘(C) The oral testimony of any person taken pursu12 ant to a demand served under this section shall be taken

13 in the judicial district of the United States within which

14 such person resides, is found, or transacts business, or in

15 such other place as may be agreed upon by the officer

16 conducting the examination and such person.

17 ‘‘(D) When the testimony is fully transcribed, the of18 ficer shall afford the witness (who may be accompanied

19 by counsel) a reasonable opportunity to examine the tran20 script, and the transcript shall be read to or by the wit21 ness, unless such examination and reading are waived by

22 the witness. Any changes in form or substance which the

23 witness desires to make shall be entered and identified

24 upon the transcript by the officer with a statement of the

25 reasons given by the witness for making such changes.
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1 The transcript shall then be signed by the witness, unless

2 the witness in writing waives the signing, is ill, cannot be

3 found, or refuses to sign. If the transcript is not signed

4 by the witness within 30 days after being afforded a rea5 sonable opportunity to examine it, the officer shall sign

6 it and state on the record the fact of the waiver, illness,

7 absence of the witness, or the refusal to sign, together with

8 the reason, if any, given therefor.

9 ‘‘(E) The officer shall certify on the transcript that

10 the witness was duly sworn by him and that the transcript

11 is a true record of the testimony given by the witness, and

12 the officer or agent shall promptly deliver it or send it

13 by registered or certified mail to the custodian.

14 ‘‘(F) Upon payment of reasonable charges therefor,

15 the Postal Service shall furnish a copy of the transcript

16 to the witness only, except that the Postmaster General

17 or his delegate may for good cause limit such witness to

18 inspection of the official transcript of his testimony.

19 ‘‘(G)(i) Any person compelled to appear under a de20 mand for oral testimony pursuant to this section may be

21 accompanied, represented, and advised by counsel. Coun22 sel may advise such person, in confidence, either upon the

23 request of such person or upon counsel’s own initiative,

24 with respect to any question asked of such person. Such

25 person or counsel may object on the record to any ques-
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1 tion, in whole or in part, and shall briefly state for the

2 record the reason for the objection. Any objection may

3 properly be made, received, and entered upon the record

4 when it is claimed that such person is entitled to refuse

5 to answer the question on grounds of any constitutional

6 or other legal right or privilege, including the privilege

7 against self-incrimination. Such person shall not otherwise

8 object to or refuse to answer any question, and shall not

9 by himself or through counsel otherwise interrupt the oral

10 examination. If such person refuses to answer any ques11 tion, the Postal Service may petition the district court of

12 the United States pursuant to subsection (d) for an order

13 compelling such person to answer such question.

14 ‘‘(ii) If such person refuses to answer any question

15 on grounds of the privilege against self-incrimination, the

16 testimony of such person may be compelled in accordance

17 with the provisions of part V of title 18.

18 ‘‘(c)(1) The Postmaster General or his delegate shall

19 designate an agent to serve as custodian of documentary

20 material, answers to interrogatories, and transcripts of

21 oral testimony received under this section and such addi22 tional agents as he shall determine from time to time

23 to be necessary to serve as deputies to the custodian of

24 documents.
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1 ‘‘(2) Any person, upon whom any demand under sub2 section (b) for the production of documentary material has

3 been duly served, shall make such material available for

4 inspection and copying or reproduction to the custodian

5 designated therein at the principal place of business of

6 such person (or at such other place as such custodian and

7 such person thereafter may agree and prescribe in writing

8 or as the court may direct) pursuant to subsection (d) on

9 the return date specified in such demand (or on such later

10 date as such custodian may prescribe in writing). Such

11 person may upon written agreement between such person

12 and the custodian substitute copies for originals of all or

13 any part of such material.

14 ‘‘(3)(A) The custodian to whom any documentary

15 material, answers to interrogatories, or transcripts of oral

16 testimony are delivered shall take physical possession

17 thereof, and shall be responsible for the use made thereof

18 and for the return of documentary material, pursuant to

19 this section.

20 ‘‘(B) The custodian may cause the preparation of

21 such copies of such documentary material, answers to in22 terrogatories, or transcripts of oral testimony as may be

23 required for official use by any duly authorized official,

24 employee, or agent of the Postal Service or the Depart25 ment of Justice under regulations which shall be promul-
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1 gated by the Postal Service. Notwithstanding subpara2 graph (C), such material, answers, and transcripts may

3 be used by any such official employee, or agent in connec4 tion with the taking of oral testimony pursuant to this

5 section.

6 ‘‘(C) Except as otherwise provided in this section,

7 while in the possession of the custodian, no documentary

8 material, answers to interrogatories, or transcripts of oral

9 testimony, or copies thereof, so produced shall be available

10 for examination, without the consent of the person who

11 produced such material, answers or transcripts, and, in

12 the case of any product of discovery produced pursuant

13 to an express demand for such material, of the person

14 from whom the discovery was obtained by an individual

15 other than a duly authorized official, employee, or agent

16 of the Postal Service or the Department of Justice. Noth17 ing in this section shall prevent disclosure to either body

18 of the Congress or to any authorized committee or sub19 committee thereof.

20 ‘‘(D) While in the possession of the custodian and

21 under such reasonable terms and conditions as the Postal

22 Service shall prescribe—

23 ‘‘(i) documentary material and answers to inter24 rogatories shall be available for examination by the

25 person who produced such material or answers, or
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1 by any duly authorized representative of such per2 son; and

3 ‘‘(ii) transcripts of oral testimony shall be avail4 able for examination by the person who produced

5 such testimony or his counsel.

6 ‘‘(4)(A) Whenever any attorney of the Postal Service

7 or the Department of Justice has been designated to ap8 pear before any court, grand jury, or agent of a Federal

9 administrative or regulatory agency in any case or pro10 ceeding, the custodian of any documentary material, an11 swers to interrogatories, or transcripts of oral testimony

12 may deliver to such attorney such material, answers or

13 transcripts for official use in connection with any such

14 case, a grand jury, or proceeding as such attorney or agent

15 determines to be required. Upon the completion of any

16 such case, grand jury, or proceeding, such attorney shall

17 return to the custodian any such material, answers, or

18 transcripts so delivered which have not passed into the

19 control of such court, grand jury, or agency through the

20 introduction thereof into the record of such case or

21 proceeding.

22 ‘‘(B) The custodian of any documentary material, an23 swers to interrogatories, or transcripts of oral testimony

24 may deliver to the Federal Trade Commission, in response

25 to a written request, copies of such material, answers or
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1 transcripts for use in connection with an investigation or

2 proceeding under the Commission’s jurisdiction. Such ma3 terial, answers, or transcripts may only be used by the

4 Commission in such manner and subject to such condi5 tions as apply to the Postal Service under this section.

6 ‘‘(5) If any documentary material has been produced

7 in the course of any investigation by any person pursuant

8 to a demand under this section and—

9 ‘‘(A) any case or proceeding before any court or

10 grand jury arising out of such investigation, or any

11 proceeding before any Federal administrative or reg12 ulatory agency involving such material, has been

13 completed, or

14 ‘‘(B) no case or proceeding, in which such ma15 terial may be used, has been commenced within a

16 reasonable time after completion of the examination

17 and analysis of all documentary material and other

18 information assembled in the course of such inves19 tigation,

20 the custodian shall, upon written request of the person

21 who produced such material, return to such person any

22 such material (other than copies thereof furnished to the

23 custodian pursuant to paragraph (2) or made by the Post24 al Service pursuant to paragraph (3) which has not passed

25 into the control of any court, grand jury, or agency
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1 through the introduction thereof into the record of such

2 case or proceeding.

3 ‘‘(6) In the event of the death, disability or separation

4 from service in the Postal Service of the custodian of any

5 documentary material, answers to interrogatories, or tran6 scripts of oral testimony produced under any demand is7 sued pursuant to this section, or the official relief of such

8 custodian from responsibility for the custody and control

9 of such material, answers, or transcripts, the Postmaster

10 General or his delegate shall promptly—

11 ‘‘(A) designate another agent to serve as custo12 dian of such material, answers to interrogatories, or

13 transcripts of oral testimony produced under any de14 mand issued pursuant to this section, or the official

15 relief of such custodian from the responsibility for

16 the custody and control of such material, answers,

17 or transcripts; and

18 ‘‘(B) transmit in writing to the person who pro19 duced such material, answers, or testimony notice as

20 to the identity and address of the successor so

21 designated.

22 Any successor designated under this paragraph shall have

23 with regard to such material, answers, or transcripts all

24 duties and responsibilities imposed by this section upon

25 his predecessor in office with regard thereto, except that
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1 he shall not be held responsible for any default or derelic2 tion which occurred prior to his designation.

3 ‘‘(d)(1) Whenever any person fails to comply with any

4 civil investigative demand duly served upon him under

5 subsection (b) or whenever satisfactory copying or repro6 duction of any material cannot be done and such person

7 refuses to surrender such material, the Postal Service may

8 file, in the district court of the United States for any judi9 cial district in which such person resides, is found, or

10 transacts business, and serve upon such person a petition

11 for an order of such court for the enforcement of this

12 section.

13 ‘‘(2)(A) Within 20 days after the service of any such

14 demand upon any person, or at any time before the return

15 date specified in the demand, whichever period is shorter,

16 or within such period exceeding 20 days after service or

17 in excess of such return date as may be prescribed in writ18 ing, subsequent to service, by an agent named in the de19 mand, such person may file and serve upon such agent,

20 and in the case of an express demand for any product of

21 discovery upon the person from whom such discovery was

22 obtained, a petition for an order modifying or setting aside

23 such demand—
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1 ‘‘(i) in the district court of the United States

2 for the judicial district within which such person re3 sides, is found, or transacts business; or

4 ‘‘(ii) in the case of a petition addressed to an

5 express demand for any product of discovery, only in

6 the district court of the United States for the judi7 cial district in which the proceeding in which such

8 discovery was obtained is or was last pending.

9 ‘‘(B) The time allowed for compliance with the de10 mand in whole or in part as deemed proper and ordered

11 by the court shall not run during the pendency of such

12 petition in the court, except that such person shall comply

13 with any portions of the demand not sought to be modified

14 or set aside. Such petition shall specify each ground upon

15 which the petitioner relies in seeking such relief and may

16 be based upon any failure of such demand to comply with

17 the provisions of this section or upon any constitutional

18 or other legal right or privilege of such person.

19 ‘‘(3) Whenever any such demand is an express de20 mand for any product of discovery, the person from whom

21 such discovery was obtained may file, at any time prior

22 to compliance with such express demand, in the district

23 court of the United States for the judicial district in which

24 the proceeding in which such discovery was obtained is or

25 was last pending, and serve upon any agent named in the
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1 demand and upon the recipient of the demand, a petition

2 for an order of such court modifying or setting aside those

3 portions of the demand requiring production of any such

4 product or discovery. Such petition shall specify each

5 ground upon which the petitioner relies in seeking such

6 relief and may be based upon any failure of such portions

7 of the demand to comply with the provisions of this sec8 tion, or upon any constitutional or other legal right or

9 privilege of the petitioner. During the pendency of such

10 petition, the court may stay, as it deems proper, compli11 ance with the demand and the running of the time allowed

12 for compliance with the demand.

13 ‘‘(4) At any time during which any custodian is in

14 custody or control of any documentary material or answers

15 to interrogatories delivered, or transcripts of oral testi16 mony given by any person in compliance with any such

17 demand, such person, and in the case of an express de18 mand for any product of discovery, the person from whom

19 such discovery was obtained, may file, in the district court

20 of the United States for the judicial district within which

21 the office of such custodian is situated, and serve upon

22 such custodian, a petition for an order of such court re23 quiring the performance by such custodian of any duty

24 imposed upon him by this section.
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1 ‘‘(5) Whenever any petition is filed in any district

2 court of the United States under this section, such court

3 shall have jurisdiction to hear and determine the matter

4 so presented, and to enter such order or orders as may

5 be required to carry into effect the provisions of this sec6 tion. Any final order so entered shall be subject to appeal

7 pursuant to section 1291 of title 28. Any disobedience of

8 any final order entered under this section by any court

9 shall be punished as a contempt thereof.

10 ‘‘(6) To the extent that such rules may have applica11 tion and are not inconsistent with the provisions of this

12 section, the Federal Rules of Civil Procedure shall apply

13 to any petition under this section.

14 ‘‘(7) Any documentary material, answers to written

15 interrogatories, or transcripts of oral testimony provided

16 pursuant to any demand issued under this section shall

17 be exempt from disclosure under section 552 of title 5.’’.

18 (b) CONFORMING AMENDMENT.—The table of sec19 tions for chapter 30 of title 39, United States Code, is

20 amended by adding at the end the following:

‘‘3016. Civil investigative demands.’’.

21 SEC. 2. OBSTRUCTION OF PROCEEDINGS.

22 Section 1505 of title 18, United States Code, is

23 amended to read as follows:
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1 ‘‘§ 1505. Obstruction of proceedings before depart2 ments, agencies and committees

3 ‘‘Whoever, with intent to avoid, evade, prevent, or ob4 struct compliance, in whole or in part, with any civil inves5 tigative demand duly and properly made under the Anti6 trust Civil Process Act or section 3016 of title 39, willfully

7 withholds, misrepresents, removes from any place, con8 ceals, covers up, destroys, mutilates, alters, or by other

9 means falsifies any documentary material, answers to

10 written interrogatories, or oral testimony, which is subject

11 of such demand; or attempts to do so or solicits another

12 to do so; or

13 ‘‘Whoever corruptly, or by threats or force, or by any

14 threatening letter or communication influences, obstructs,

15 or impedes or endeavors to influence, obstruct, or impede

16 the due and proper administration of the law under which

17 such proceeding is being had before such department or

18 agency of the United States, or the due and proper exer19 cise of the power of inquiry under which such inquiry or

20 investigation is being had by either House, or any commit21 tee of either House or any joint committee of the Con22 gress—

23 shall be fined not more than $5,000 or impris24 oned not more than 5 years, or both.’’.
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1 SEC. 3. CIVIL PENALTIES.

2 Section 3012 of title 39, United States Code, is

3 amended—

4 (1) by amending paragraph (1) of subsection

5 (a) to read as follows:

6 ‘‘(1) who, through the use of the mail or any

7 instrumentality of interstate commerce, evades or at8 tempts to evade the effect of an order issued under

9 section 3005(a)(1) or 3005(a)(2);’’;

10 (2) by amending subsection (b)(1) to read as

11 follows:

12 ‘‘(b)(1) Whenever, on the basis of any information

13 available to it, the Postal Service believes that any person

14 has engaged, or is engaging, in conduct described by para15 graph (1), (2) or (3) of subsection (a), the Postal Service

16 may, under the provisions of section 409(d), commence a

17 civil action to enforce the civil penalties established by

18 such subsection. Any such action shall be brought in the

19 district court of the United States for the district in which

20 the defendant resides or receives mail.’’;

21 (3) by adding at the end of subsection (b) the

22 following:

23 ‘‘(3) Any civil action commenced this subsection may

24 be brought in the district court of the United States for

25 any district in which the defendant resides, conducts busi-
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1 ness, receives mail, or into which the defendant sends

2 mail.’’; and

3 (4) by amending subsection (c) to read as fol4 lows:

5 ‘‘(c) All penalties collected under authority of this

6 section shall be paid into the Postal Service Fund, estab7 lished by section 2003.’’.

8 SEC. 4. INJUNCTIONS AGAINST FRAUD.

9 Section 1345 of title 18, United States Code, is

10 amended—

11 (1) by amending subsection (a)(1) to read as

12 follows:

13 ‘‘(a)(1) If a person is—

14 ‘‘(A) violating or about to violate this chapter

15 or section 287, 371 (insofar as such violation in16 volves a conspiracy to defraud the United States or

17 any agency thereof), or 1001 of this title; or

18 ‘‘(B) committing or about to commit a banking

19 law violation (as defined in section 3322(d) of this

20 title), the Attorney General may commence a civil

21 action in any Federal court to enjoin such violation.

22 The Attorney General may obtain temporary and prelimi23 nary injunctive relief under this section upon a showing

24 of probable cause to believe that such violation is occur25 ring, or is about to occur. Permanent relief shall be
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1 granted when a violation is established by a preponderance

2 of the evidence. A violation may be deemed to be occurring

3 or about to occur, within the meaning of this section, for

4 as long as victims of any such violation have not been re5 dressed and the statute of limitations on the violation has

6 not expired.’’; and

7 (2) by amending paragraph (2) of subsection

8 (a) to read as follows:

9 ‘‘(2) If a person is alienating or disposing of property,

10 or intends to alienate or dispose of property, obtained as

11 a result of a banking law violation (as defined in section

12 3322(d) of this title) or a violation described in paragraph

13 (1) (A) or (B), or property which is traceable to such vio14 lation, the Attorney General may commence a civil action

15 in any Federal court—

16 ‘‘(A) to enjoin such alienation or disposition of

17 property; or

18 ‘‘(B) for a restraining order to—

19 ‘‘(i) prohibit any person from withdrawing,

20 transferring, removing, dissipating, or disposing

21 of any such property or property of equivalent

22 value; and

23 ‘‘(ii) appoint a temporary receiver to ad24 minister such restraining order.’’.
26

•HR 4071 IH

Æ

HR 4071 IH——2