IB 
Union Calendar No. 43 
111TH CONGRESS 
1ST SESSION H. R. 1748 
[Report No. 111–95, Part I] 
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. JACK-
SON-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 jurisdic-
tion of the committee concerned 
MAY 4, 2009 
Reported from the Committee on the Judiciary with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
MAY 4, 2009 
Additional sponsors: Mr. GONZALEZ, Mr. MOORE of Kansas, Mr. WALZ, and 
Mr. SHERMAN 
MAY 4, 2009 
The Committees on Oversight and Government Reform and Financial Services 
discharged; committed to the Committee of the Whole House on the State 
of the Union and ordered to be printed 
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[For text of introduced bill, see copy of bill as introduced on March 26, 2009] 
A BILL 
To amend title 18, United States Code, to enhance the 
investigation and prosecution of mortgage fraud and fi-
nancial institution fraud, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fight Fraud Act of 
2009’’. 
SEC. 2. AMENDMENTS TO IMPROVE MORTGAGE, SECURI-
TIES, AND FINANCIAL FRAUD RECOVERY AND 
ENFORCEMENT. 
(a) DEFINITION OF FINANCIAL INSTITUTION AMENDED 
TO INCLUDE MORTGAGE LENDING BUSINESS.—Section 20 
of title 18, United States Code, is amended— 
(1) in paragraph (8), by striking ‘‘or’’ after the 
semicolon; 
(2) in paragraph (9), by striking the period and 
inserting ‘‘; or’’; and 
(3) by inserting at the end the following: 
‘‘(10) a mortgage lending business or any person 
or entity that makes in whole or in part a federally 
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related mortgage loan as defined in section 3 of the 
Real Estate Settlement Procedures Act of 1974.’’. 
(b) MORTGAGE LENDING BUSINESS DEFINED.— 
(1) IN GENERAL.—Chapter 1 of title 18, United 
States Code, is amended by inserting after section 26 
the following: 
‘‘§ 27. Mortgage lending business defined 
‘‘In this title, the term ‘mortgage lending business’ 
means an organization which finances or refinances any 
debt secured by an interest in real estate, including private 
mortgage companies and any subsidiaries of such organiza-
tions, and whose activities affect interstate or foreign com-
merce.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 1 of title 18, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘27. Mortgage lending business defined.’’. 
(c) FALSE STATEMENTS IN MORTGAGE APPLICATIONS 
AMENDED TO INCLUDE FALSE STATEMENTS BY MORTGAGE 
BROKERS
AND AGENTS
OF MORTGAGE LENDING BUSI-
NESSES.—Section 1014 of title 18, United States Code, is 
amended— 
(1) by striking ‘‘or’’ after ‘‘the International 
Banking Act of 1978),’’; and 
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(2) by inserting after ‘‘section 25(a) of the Fed-
eral Reserve Act’’ the following: ‘‘, or a mortgage 
lending business, or any person or entity that makes 
in whole or in part a federally related mortgage loan 
as defined in section 3 of the Real Estate Settlement 
Procedures Act of 1974’’. 
(d) MAJOR
FRAUD
AGAINST
THE
GOVERNMENT 
AMENDED TO INCLUDE ECONOMIC RELIEF AND TROUBLED 
ASSET RELIEF PROGRAM FUNDS.—Section 1031(a) of title 
18, United States Code, is amended— 
(1) by striking ‘‘in any procurement’’ and in-
serting ‘‘in any Federal assistance in the form of fi-
nancial relief or stimulus provided by the Govern-
ment, including through the Troubled Assets Relief 
Program, whether through grant, contract, sub-
contract, subsidy, loan, guarantee, insurance, pur-
chase of preferred stock, or otherwise, or any procure-
ment’’; and 
(2) by striking ‘‘the contract, subcontract’’ and 
inserting ‘‘such grant, contract, subcontract, subsidy, 
loan, guarantee, insurance, purchase, or other form of 
financial relief or stimulus’’. 
(e) SECURITIES
FRAUD
AMENDED
TO
INCLUDE 
FRAUD INVOLVING OPTIONS AND FUTURES IN COMMOD-
ITIES.— 
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(1) IN
GENERAL.—Section 1348 of title 18, 
United States Code, is amended— 
(A) in the caption, by inserting ‘‘and 
commodities’’ after ‘‘Securities’’; 
(B) in paragraph (1), by inserting ‘‘any 
commodity for future delivery, or any option on 
a commodity for future delivery, or’’ after ‘‘any 
person in connection with’’; and 
(C) in paragraph (2), by inserting ‘‘any 
commodity for future delivery, or any option on 
a commodity for future delivery, or’’ after ‘‘in 
connection with the purchase or sale of’’. 
(2) CLERICAL AMENDMENT.—The item relating 
to section 1348 in the table of sections at the begin-
ning of chapter 63 of title 18, United States Code, is 
amended by inserting ‘‘and commodities’’ after ‘‘Secu-
rities’’. 
SEC. 3. AUTHORIZATION OF ADDITIONAL RESOURCES FOR 
INVESTIGATORS 
AND 
PROSECUTORS 
FOR 
MORTGAGE FRAUD, SECURITIES AND COM-
MODITIES FRAUD, AND OTHER CRIMES OF 
FRAUD. 
(a) AUTHORIZATIONS FOR THE DEPARTMENT OF JUS-
TICE.— 
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(1) IN GENERAL.—There is authorized to be ap-
propriated to the Attorney General, $185,000,000 for 
fiscal year 2010 and $175,000,000 for fiscal year 
2011, for the purposes of investigations, prosecutions, 
and civil enforcement actions against possible fraud 
(including mortgage fraud and securities and com-
modities fraud) relating to a financial institution, in-
cluding financial institutions receiving Federal as-
sistance under the Troubled Assets Relief Program or 
otherwise. 
(2) ALLOCATIONS.—The amounts authorized to 
be appropriated under paragraph (1) shall be allo-
cated as follows: 
(A) 
Federal 
Bureau 
of 
Investigation: 
$75,000,000 for fiscal year 2010 and $65,000,000 
for fiscal year 2011, an appropriate percentage 
of which amounts shall be used to investigate 
mortgage fraud. 
(B) The offices of the United States Attor-
neys: $50,000,000. 
(C) The criminal division of the Depart-
ment of Justice: $20,000,000. 
(D) The civil division of the Department of 
Justice: $15,000,000. 
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(E) The tax division of the Department of 
Justice: $5,000,000. 
(F) The Director of the Administrative Of-
fice of the United States Courts: $20,000,000. 
(b) AUTHORIZATIONS FOR THE POSTAL INSPECTION 
SERVICE.—There is authorized to be appropriated to the 
Postal Inspection Service of the United States Postal Serv-
ice, $30,000,000 for each of the fiscal years 2010 and 2011 
for investigations into possible fraud described in subsection 
(a)(1). 
(c) AUTHORIZATIONS FOR THE INSPECTOR GENERAL 
FOR THE DEPARTMENT OF HOUSING AND URBAN DEVEL-
OPMENT.—There is authorized to be appropriated to the In-
spector General of the Department of Housing and Urban 
Development, $30,000,000 for each of the fiscal years 2010 
and 2011 for investigations into possible fraud described 
in subsection (a)(1). 
(d) AUTHORIZATIONS FOR THE UNITED STATES SE-
CRET SERVICE.—There is authorized to be appropriated to 
the United States Secret Service of the Department of 
Homeland Security, $20,000,000 for each of the fiscal years 
2010 and 2011 for investigations into possible fraud de-
scribed in subsection (a)(1). 
(e) ADDITIONAL AUTHORIZATIONS; AVAILABILITY.— 
The amounts authorized under this section are in addition 
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to amounts otherwise authorized in other Acts, and shall 
remain available until expended. 
(f) DEFENSE SERVICES.—Funds made available under 
this section by the recipient described in subsection 
(a)(2)(F) shall be used to cover costs associated with pro-
viding defense services to defendants investigated for or 
charged with an offense described in subsection (a)(1). 
(g) REPORT TO CONGRESS.—Following the final ex-
penditure of all funds appropriated pursuant to authoriza-
tion under this section, the Attorney General, in consulta-
tion with the United States Postal Inspection Service, the 
Inspector General for the Department of Housing and 
Urban Development, and the Secretary of Homeland Secu-
rity, shall submit a report to Congress identifying— 
(1) the amounts expended under each of sub-
sections (a), (b), (c), and (d) and a certification of 
compliance with the requirements listed in subsection 
(e); and 
(2) the amounts recovered as a result of criminal 
or civil restitution, fines, penalties, and other mone-
tary recoveries resulting from criminal, civil, or ad-
ministrative proceedings and settlements undertaken 
with funds authorized by this Act. 
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SEC. 4. GRANTS FOR STATE AND LOCAL LAW ENFORCE-
MENT. 
(a) IN GENERAL.—Subject to the availability of 
amounts provided in advance in appropriations Acts, the 
Attorney General is authorized to award grants to States 
to establish and develop programs to increase and enhance 
enforcement against mortgage fraud, securities and com-
modities fraud, and financial institution fraud, including 
enforcement against the use of computers in committing 
such fraud. 
(b) APPLICATION.—To be eligible to be considered for 
a grant under subsection (a), a State shall submit an appli-
cation to the Attorney General at such time, in such man-
ner, and containing such information, including as de-
scribed in subsection (d), as the Attorney General may re-
quire. 
(c) USE OF GRANT AMOUNTS.—A grant awarded to 
a State under subsection (a) shall be used by the State to 
establish and develop programs to— 
(1) assist State and local law enforcement agen-
cies in enforcing State and local criminal laws relat-
ing to criminal activity described in subsection (a); 
(2) assist State and local law enforcement agen-
cies in educating the public to prevent and identify 
such criminal activity; 
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(3) educate and train State and local law en-
forcement officers and prosecutors to conduct inves-
tigations, forensic analyses of evidence, and prosecu-
tions relating to such criminal activity; 
(4) assist State and local law enforcement offi-
cers and prosecutors in acquiring computer and other 
equipment to conduct investigations and forensic 
analyses of evidence relating to such criminal activ-
ity; 
(5) assist public defenders with providing defense 
services to defendants in cases in which the defendant 
is charged with any such criminal activity; and 
(6) facilitate and promote communication be-
tween Federal, State, and local law enforcement to 
improve the sharing of Federal law enforcement ex-
pertise and information about the investigation, fo-
rensic analysis of evidence, and prosecution relating 
to such criminal activity, with State and local law 
enforcement 
officers 
and 
prosecutors, 
including 
through the use of multi-jurisdictional task forces. 
(d) ASSURANCES AND ELIGIBILITY.—To be eligible to 
receive a grant under subsection (a), a State shall provide 
assurances to the Attorney General that the State— 
(1) will provide an assessment of the resource 
needs of the State and units of local government with-
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in that State, including criminal justice resources 
being devoted to the investigation and enforcement of 
laws related to criminal activity described in sub-
section (a); 
(2) will develop a plan for coordinating the pro-
grams funded under this section with other federally 
funded technical assistance and training programs; 
and 
(3) will submit to the Attorney General applica-
ble reports in accordance with subsection (f). 
(e) MATCHING FUNDS.—The Federal share of a grant 
received under this section may not exceed 75 percent of 
the total cost of a program or proposal funded under this 
section unless the Attorney General waives, wholly or in 
part, the requirements of this subsection. 
(f) REPORTS.—For each year that a State receives a 
grant under subsection (a) for a program, the State shall 
submit to the Attorney General a report on the results, in-
cluding the effectiveness, of such program during such year. 
(g) DEFINITION OF STATE.—For the purposes of this 
section, the term ‘‘State’’ means each of the several States, 
the District of Columbia, the Commonwealth of Puerto Rico, 
the United States Virgin Islands, American Samoa, Guam, 
and the Northern Mariana Islands. 
(h) AUTHORIZATION OF APPROPRIATIONS.— 
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(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section $100,000,000 for 
each of the fiscal years 2010 through 2011. 
(2) LIMITATIONS.—Of the amount made avail-
able to carry out this section in any fiscal year, not 
more than 3 percent may be used for salaries and ad-
ministrative expenses for the Department of Justice. 
(3) MINIMUM AMOUNT.—Each State submitting 
an application for, and eligible to receive, a grant 
under this section for a fiscal year shall be allocated 
under this section, in each such fiscal year, not less 
than 0.75 percent of the total amount appropriated in 
such fiscal year for grants pursuant to this section, 
except that not less than 0.25 percent of such total 
amount shall be allocated to the United States Virgin 
Islands, American Samoa, Guam, and the Northern 
Mariana Islands, collectively. 
(4) GRANTS
TO
INDIAN
TRIBES.—Subject to 
paragraph (3), the Attorney General may use 
amounts made available pursuant to authorizations 
under this section to make grants to Indian tribes for 
use in accordance with this section. 
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SEC. 5. AUTHORIZATION AND EXPANSION OF NATIONAL 
WHITE COLLAR CRIME CENTER. 
(a) IN GENERAL.—Title I of the Omnibus Crime Con-
trol and Safe Streets Act of 1968 (42 U.S.C. 3711 et seq.) 
is amended— 
(1) by redesignating part JJ, as added by sec-
tion 952 of Public Law 110–315 (relating to Loan 
Repayment for Prosecutors and Public Defenders), as 
part LL, and moving such part so that such part fol-
lows part KK; 
(2) in part LL, as so redesignated and moved by 
paragraph (1), by redesignating section 3001 as sec-
tion 3021; and 
(3) by adding at the end the following new part: 
‘‘PART MM—NATIONAL WHITE COLLAR CRIME 
CENTER GRANTS 
‘‘SEC. 3031. ESTABLISHMENT OF GRANTS PROGRAM. 
‘‘(a) AUTHORIZATION.—The Attorney General is au-
thorized to award grants and enter into contracts with 
State and local criminal justice agencies and nonprofit or-
ganizations for the purpose of improving the detection, in-
vestigation, and prosecution of covered criminal activities. 
‘‘(b) COVERED CRIMINAL ACTIVITIES DEFINED.—For 
purposes of this part, the term ‘covered criminal activity’ 
means a criminal conspiracy or activity or a terrorist con-
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spiracy or activity that spans jurisdictional boundaries, in-
cluding the following: 
‘‘(1) Terrorism. 
‘‘(2) Economic crime, including financial fraud 
and mortgage fraud. 
‘‘(3) High-tech crime, also known as cybercrime 
or computer crime, including internet-based crime 
against children and child pornography. 
‘‘(c) CRIMINAL JUSTICE AGENCY DEFINED.—For pur-
poses of this part, the term ‘criminal justice agency’, with 
respect to a State or a unit of local government within such 
State, includes a law enforcement agency, a State regu-
latory body with criminal investigative authority, and a 
State or local prosecution office to the extent that such agen-
cy, body, or office, respectively, is involved in the preven-
tion, investigation, and prosecution of covered criminal ac-
tivities. 
‘‘SEC. 3032. AUTHORIZED PROGRAMS. 
‘‘Grants and contracts awarded under this part may 
be made only for the following programs, with respect to 
the prevention, investigation, and prosecution of covered 
criminal activities: 
‘‘(1) Programs to provide a nationwide support 
system for State and local criminal justice agencies. 
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‘‘(2) Programs to assist State and local criminal 
justice agencies to develop, establish, and maintain 
intelligence-focused policing strategies and related in-
formation sharing. 
‘‘(3) Programs to provide training and inves-
tigative support services to State and local criminal 
justice agencies to provide such agencies with skills 
and resources needed to investigate and prosecute such 
criminal activities and related criminal activities. 
‘‘(4) Programs to provide research support, to es-
tablish partnerships, and to provide other resources to 
aid State and local criminal justice agencies to pre-
vent, investigate, and prosecute such criminal activi-
ties and related problems. 
‘‘(5) Programs to provide information and re-
search to the general public to facilitate the preven-
tion of such criminal activities. 
‘‘(6) Programs to establish National training 
and research centers regionally, including within Vir-
ginia, Texas, and Michigan, to provide training and 
research services for State and local criminal justice 
agencies. 
‘‘(7) Any other programs specified by the Attor-
ney General as furthering the purposes of this part. 
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‘‘SEC. 3033. APPLICATION. 
‘‘To be eligible to be considered for an award of a grant 
or contract under this part, an entity shall submit to the 
Attorney General an application in such form and manner, 
and containing such information, as required by the Attor-
ney General. 
‘‘SEC. 3034. RULES AND REGULATIONS. 
‘‘The Attorney General shall promulgate such rules 
and regulations as are necessary to carry out this part, in-
cluding rules and regulations for submitting and reviewing 
applications under section 3033.’’. 
(b) AUTHORIZATION
OF
APPROPRIATION.—Section 
1001(a) of such Act (42 U.S.C. 3793) is amended by adding 
at the end the following new paragraph: 
‘‘(27) There is authorized to be appropriated to carry 
out part MM— 
‘‘(A) $25,000,000 for fiscal year 2010; 
‘‘(B) $28,000,000 for fiscal year 2011; 
‘‘(C) $31,000,000 for fiscal year 2012; 
‘‘(D) $34,000,000 for fiscal year 2013; 
‘‘(E) $37,000,000 for fiscal year 2014; and 
‘‘(F) $40,000,000 for fiscal year 2015.’’. 
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Union Calendar No. 43 
111TH CONGRESS 
1ST SESSION 
H. R. 1748 
[Report No. 111–95, Part I] 
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. 
MAY 4, 2009 
Reported from the Committee on the Judiciary with an 
amendment 
MAY 4, 2009 
The Committees on Oversight and Government Reform 
and Financial Services discharged; committed to the 
Committee of the Whole House on the State of the 
Union and ordered to be printed 
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