II 

Calendar No. 148 

110TH CONGRESS 

1ST SESSION S. 119 

[Report No. 110–66] 

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

reconstruction efforts, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 4, 2007 

Mr. LEAHY (for himself, Mr. BINGAMAN, Mr. HARKIN, Mr. KERRY, Mr. LAUTENBERG, Mr. ROCKEFELLER, Mr. DORGAN, Mr. SCHUMER, Mr. WYDEN, 

Ms. CANTWELL, Mrs. CLINTON, Mr. MENENDEZ, Mr. NELSON of Florida, Mr. DURBIN, Mrs. FEINSTEIN, Ms. LANDRIEU, Mr. FEINGOLD, Ms. 

MIKULSKI, Mrs. BOXER, Mr. CARDIN, and Mr. BYRD) introduced the following bill; which was read twice and referred to the Committee on the 

Judiciary 

MAY 15, 2007 

Reported by Mr. LEAHY, with amendments 

[Omit the part struck through and insert the part printed in italic] 

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, 

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘War Profiteering Pre3 vention Act of 2007’’. 

4 SEC. 2. PROHIBITION OF PROFITEERING. 

5 (a) PROHIBITION.— 

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

7 United States Code, is amended by adding at the 

8 end the following: 

9 ‘‘§ 1039. War profiteering and fraud relating to mili10 tary action, relief, and reconstruction ef11 forts 

12 ‘‘(a) PROHIBITION.— 

13 ‘‘(1) IN GENERAL.—Whoever, in any matter in14 volving a contract or the provision of goods or serv15 ices, directly or indirectly, in connection with a war, 

16 military action, or relief or reconstruction activities 

17 within the jurisdiction of the United States Govern18 ment, knowingly and willfully— 

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

20 scheme or artifice to defraud the United States; 

21 or 

22 ‘‘(ii) materially overvalues any good or 

23 service with the specific intent to defraud and 

24 excessively profit from the war, military action, 

25 or relief or reconstruction activities; ; 

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1 shall be fined under paragraph (2), imprisoned 

2 not more than 20 years, or both; or 

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

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

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

6 or fraudulent statements or representations; or 

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

8 writing or document knowing the same to con9 tain any materially false, fictitious or fraudu10 lent statement or entry; 

11 shall be fined under paragraph (2) imprisoned 

12 not more than 10 years, or both. 

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

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

15 ‘‘(A) $1,000,000; or 

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

17 proceeds from the offense, not more than twice 

18 the gross profits or other proceeds. 

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

20 extraterritorial Federal jurisdiction over an offense under 

21 this section. 

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

23 this section may be brought— 

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

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1 ‘‘(2) in any district where any act in further2 ance of the offense took place; or 

3 ‘‘(3) in any district where any party to the con4 tract or provider of goods or services is located.’’. 

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

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

7 amended by adding at the end the following: 

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

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

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

10 ‘‘1039,’’ after ‘‘1032,’’. 

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

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

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

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

15 States Code, is amended by inserting the following: ‘‘, sec16 tion 1039 (relating to war profiteering and fraud relating 

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

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

19 (d) MONEY LAUNDERING.—Section 1956(c)(7)(D) of 

20 title 18, United States Code, is amended by inserting after 

21 ‘‘liquidating agent of financial institution),’’ the following: 

22 ‘‘section 1039 (relating to war profiteering and fraud relat23 ing to military action, relief, and reconstruction efforts),’’. 

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1 (e) RICO.—Section 1961(1) of title 18, United States 

2 Code, is amended by inserting after ‘‘in connection with 

3 access devices),’’ the following: ‘‘section 1039 (relating to 

4 war profiteering and fraud relating to military action, re5 lief, and reconstruction efforts),’’. 

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Calendar No. 148 

110TH CONGRESS 

1ST SESSION S. 119 

[Report No. 110

–66] 

A BILL 

To prohibit profiteering and fraud relating to milifor other purposes. tary action, relief, and reconstruction efforts, and 

MAY 15, 2007 

Reported with amendments 

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