Major Fraud Act Amendments of 1989
PL 101-123 (S.248), enacted 10/23/1989

PUBLIC LAW 101-123—OCT. 23, 1989 
103 STAT. 759 
Public Law 101-128 
101st Congress 
An Act 
To amend title 18 of the United States Code to provide increased penalties for certain 
Oct. 23, 1989 
major frauds against the United States. 
[S. 248] 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Major Fraud Act 
Amendments of 
SECTION 1. SHORT TITLE. 
1989. 
This Act may be cited as the "Major Fraud Act Amendments of 
liE^ 
^^'^ 
1989". 
SEC. 2. REWARD FOR WHISTLEBLOWERS, 
(a) AMENDMENT TO TITLE 18.—Section 1031 of title 18, United 
States Code, is amended by inserting after subsection (f) the follow-
ing new subsection: 
"(g)(1) In special circumstances and in his or her sole discretion, 
the Attorney General is authorized to make payments from funds 
appropriated to the Department of Justice to persons who furnish 
information relating to a possible prosecution under this section. 
The amount of such payment shall not exceed $250,000. Upon 
application by the Attorney Greneral, the court may order that the 
Etepartment shall be reimbursed for a pajrment from a criminal fine 
imposed under this section. 
"(2) An individual is not eligible for such a payment if— 
"(A) that individual is an officer or employee of a government 
agency who furnishes information or renders service in the 
performance of official duties; 
"(B) that individual failed to furnish the information to the 
individual's employer prior to furnishing it to law enforcement 
authorities, unless the court determines the individual has 
justifiable reasons for that failure; 
"(C) the furnished information is based upon public disclosure 
of allegations or transactions in a criminal, civil, or administra-
tive hearing, in a congressional, administrative, or GAO report, 
hearing, audit or investigation, or from the news media unless 
the person is the original source of the information. For the 
purposes of this subsection, "original source" means an individ-
ual who has direct and independent knowledge of the informa-
tion on which the allegations are based and hsis voluntarily 
provided the information to the Government; or 
"(D) that individual participated in the violation of this sec-
tion with respect to which such payment would be made. 
"(3) The fsdlure of the Attorney General to authorize a payment 
shall not be subject to judicial review.". 
(b) APPUCABILITY.—The amendment made by this section shall Contracts. 
apply to contracts entered into on or after the date of the enactment 
18 USC 1031 
of this Act. 
"^^-
103 STAT. 760 
PUBLIC LAW 101-123—OCT. 23, 1989 
SEC. 3. TECHNICAL AMENDMENT. 
(a) REPEAL.—Section 3 of the Major Fraud Act of 1988 (Public Law 
18 use 293 and 100-700) and the amendment made by such section are repealed. 
^°^- 
(b) EFFECTIVE DATE.—The repeal made by this section shall be 
18 use 293 note, deemed to be effective on the date of enactment of Public Law 100-
700. 
Approved October 23, 1989. 
LEGISLATIVE HISTORY—S. 248: 
HOUSE REPORTS: No. 101-273 (Comm. on the Judiciary). 
SENATE REPORTS: No. 101-7 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
Apr. 5, considered and passed Senate. 
Oct. 10, considered and passed House.