H. R. 1847
One Hundred Fifth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-eight
An Act
To improve the criminal law relating to fraud against consumers.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Telemarketing Fraud Prevention
Act of 1998’’.
SEC. 2. CRIMINAL FORFEITURE OF FRAUD PROCEEDS.
Section 982 of title 18, United States Code, is amended—
(1) in subsection (a)—
(A) by redesignating the second paragraph designated
as paragraph (6) as paragraph (7); and
(B) by adding at the end the following:
‘‘(8) The Court, in sentencing a defendant convicted of an offense
under section 1028, 1029, 1341, 1342, 1343, or 1344, or of a conspir-
acy to commit such an offense, if the offense involves telemarketing
(as that term is defined in section 2325), shall order that the
defendant forfeit to the United States any real or personal
property—
‘‘(A) used or intended to be used to commit, to facilitate,
or to promote the commission of such offense; and
‘‘(B) constituting, derived from, or traceable to the gross
proceeds that the defendant obtained directly or indirectly as
a result of the offense.’’; and
(2) in subsection (b)(1)(A), by striking ‘‘(a)(1) or (a)(6)’’ and
inserting ‘‘(a)(1), (a)(6), or (a)(8)’’.
SEC. 3. PENALTY FOR TELEMARKETING FRAUD.
Section 2326 of title 18, United States Code, is amended by
striking ‘‘may’’ each place it appears and inserting ‘‘shall’’.
SEC. 4. ADDITION OF CONSPIRACY OFFENSES TO SECTION 2326
ENHANCEMENT.
Section 2326 of title 18, United States Code, is amended by
inserting ‘‘, or a conspiracy to commit such an offense,’’ after ‘‘or
1344’’.
SEC. 5. CLARIFICATION OF MANDATORY RESTITUTION.
Section 2327 of title 18, United States Code, is amended—
(1) in subsection (a), by striking ‘‘for any offense under
this chapter’’ and inserting ‘‘to all victims of any offense for
which an enhanced penalty is provided under section 2326’’;
and
(2) by striking subsection (c) and inserting the following:
H. R. 1847—2
‘‘(c) VICTIM DEFINED.—In this section, the term ‘victim’ has
the meaning given that term in section 3663A(a)(2).’’.
SEC. 6. AMENDMENT OF FEDERAL SENTENCING GUIDELINES.
(a) DEFINITION OF TELEMARKETING.—In this section, the term
‘‘telemarketing’’ has the meaning given that term in section 2326
of title 18, United States Code.
(b) DIRECTIVE TO SENTENCING COMMISSION.—Pursuant to its
authority under section 994(p) of title 28, United States Code,
and in accordance with this section, the United States Sentencing
Commission shall—
(1) promulgate Federal sentencing guidelines or amend
existing sentencing guidelines (and policy statements, if appro-
priate) to provide for substantially increased penalties for per-
sons convicted of offenses described in section 2326 of title
18, United States Code, as amended by this Act, in connection
with the conduct of telemarketing; and
(2) submit to Congress an explanation of each action taken
under paragraph (1) and any additional policy recommendations
for combating the offenses described in that paragraph.
(c) 
REQUIREMENTS.—In 
carrying 
out 
this 
section, 
the
Commission shall—
(1) ensure that the guidelines and policy statements
promulgated or amended pursuant to subsection (b)(1) and
any recommendations submitted thereunder reflect the serious
nature of the offenses;
(2) provide an additional appropriate sentencing enhance-
ment, if the offense involved sophisticated means, including
but not limited to sophisticated concealment efforts, such as
perpetrating the offense from outside the United States;
(3) provide an additional appropriate sentencing enhance-
ment for cases in which a large number of vulnerable victims,
including but not limited to victims described in section 2326(2)
of title 18, United States Code, are affected by a fraudulent
scheme or schemes;
(4) ensure that guidelines and policy statements promul-
gated or amended pursuant to subsection (b)(1) are reasonably
consistent with other relevant statutory directives to the
Commission and with other guidelines;
(5) account for any aggravating or mitigating circumstances
that might justify upward or downward departures;
(6) ensure that the guidelines adequately meet the purposes
of sentencing as set forth in section 3553(a)(2) of title 18,
United States Code; and
(7) take any other action the Commission considers
necessary to carry out this section.
(d) EMERGENCY AUTHORITY.—The Commission shall promulgate
the guidelines or amendments provided for under this subsection
as soon as practicable, and in any event not later than 120 days
after the date of the enactment of the Telemarketing Fraud Preven-
tion Act of 1998, in accordance with the procedures set forth in
section 21(a) of the Sentencing Reform Act of 1987, as though
the authority under that authority had not expired, except that
the Commission shall submit to Congress the emergency guidelines
or amendments promulgated under this section, and shall set an
effective date for those guidelines or amendments not earlier than
30 days after their submission to Congress.
H. R. 1847—3
SEC. 7. FALSE ADVERTISING OR MISUSE OF NAME TO INDICATE
UNITED STATES MARSHALS SERVICE.
Section 709 of title 18, United States Code, is amended by
inserting after the thirteenth undesignated paragraph the following:
‘‘Whoever, except with the written permission of the Director
of the United States Marshals Service, knowingly uses the words
‘United States Marshals Service’, ‘U.S. Marshals Service’, ‘United
States Marshal’, ‘U.S. Marshal’, ‘U.S.M.S.’, or any colorable imita-
tion of any such words, or the likeness of a United States Marshals
Service badge, logo, or insignia on any item of apparel, in connection
with any advertisement, circular, book, pamphlet, software, or other
publication, or any play, motion picture, broadcast, telecast, or
other production, in a manner that is reasonably calculated to
convey the impression that the wearer of the item of apparel is
acting pursuant to the legal authority of the United States Marshals
Service, or to convey the impression that such advertisement, cir-
cular, book, pamphlet, software, or other publication, or such play,
motion picture, broadcast, telecast, or other production, is approved,
endorsed, or authorized by the United States Marshals Service;’’.
SEC. 8. DISCLOSURE OF CERTAIN RECORDS FOR INVESTIGATIONS OF
TELEMARKETING FRAUD.
Section 2703(c)(1)(B) of title 18, United States Code, is
amended—
(1) by striking ‘‘or’’ at the end of clause (ii);
(2) by striking the period at the end of clause (iii) and
inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(iv) submits a formal written request relevant to a law
enforcement investigation concerning telemarketing fraud for
the name, address, and place of business of a subscriber or
customer of such provider, which subscriber or customer is
engaged in telemarketing (as such term is defined in section
2325 of this title).’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.