Text: H.R.2090 — 101st Congress (1989-1990)All Information (Except Text)

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HR 2090 IH
101st CONGRESS
1st Session
 H. R. 2090
To amend title 18, United States Code, to provide civil and criminal
forfeitures for mail and wire fraud, and to compensate victims of those
offenses.
IN THE HOUSE OF REPRESENTATIVES
April 25, 1989
Mr. PEPPER introduced the following bill; which was referred to the Committee
on the Judiciary
A BILL
To amend title 18, United States Code, to provide civil and criminal
forfeitures for mail and wire fraud, and to compensate victims of those
offenses.
  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 `Fraud Victims Restitution Act of 1989'.
SEC. 2. CHAPTER 63 AMENDMENTS.
  (a) IN GENERAL- Chapter 63 of title 18, United States Code, is amended by
  adding at the end the following:
`Sec. 1346. Criminal forfeiture
  `(a) IN GENERAL- A person convicted of a violation of section 1341 or 1343
  of this title shall, notwithstanding any provision of State law, forfeit
  to the United States any property constituting or derived from any proceeds
  which the person obtained directly or indirectly from such violation.
  `(b) PROCEDURES OF CONTROLLED SUBSTANCES ACT APPLICABLE- With respect
  to a forfeiture under this section for a violation of this chapter, the
  provisions of subsections (b), (c), (e), (f), (g), (i), (k), (l), (m), (n),
  and (o) of section 413 of the Controlled Substances Act (21 U.S.C. 853)
  apply as they would to a forfeiture under that section for a violation of
  the Controlled Substances Act.
  `(c) DISPOSITION OF PROPERTY- After a seizure of property ordered forfeited
  under this section, the Attorney General shall dispose of the property
  under section 1348 of this title. The Postal Service shall turn any such
  seized property over to the Attorney General for disposal under such section.
  `(d) SUBSTITUTE ASSETS- If any of the property subject to forfeiture under
  this section, as a result of conduct of the defendant--
  `(1) cannot be located upon the exercise of due diligence;
  `(2) has been transferred or sold to, or deposited with, a third party;
  `(3) has been placed beyond the jurisdiction of the court;
  `(4) has been substantially diminished in value; or
  `(5) has been commingled with other property which cannot be divided
  without difficulty;
the court shall order the forfeiture of any other property of the defendant
up to the value of any property described in paragraphs (1) through (5)
of this subsection.
`Sec. 1347. Civil forfeiture
  `(a) PROPERTY SUBJECT TO CIVIL FORFEITURE- Any property constituting or
  derived from any proceeds of a violation of section 1341 or 1343 of this
  title shall be subject to forfeiture to the United States.
  `(b) SEIZURE- (1) Except as provided in paragraph (2), any property subject
  to forfeiture to the United States under this section may be seized by
  the Attorney General or the Postal Service upon process issued pursuant
  to the Supplemental Rules for Certain Admiralty and Maritime Claims by any
  district court of the United States having jurisdiction over the property.
  `(2) The Attorney General or the Postal Service may seize such property
  without such process when--
  `(A) the seizure is incident to an arrest or a search under a search
  warrant; or
  `(B) such property has been the subject of a prior judgment in favor of
  the United States in a criminal injunction or forfeiture proceeding under
  section 1346 of this title.
  `(3) The Government may seek the issuance of a warrant authorizing the
  seizure of property subject to forfeiture under this section in the same
  manner as provided for a search warrant under the Federal Rules of Criminal
  Procedure.
  `(c) PROCEDURAL MATTERS- (1) With respect to a forfeiture of property
  under this section, the provisions of subsections (c), (d), (h), and (j)
  of section 511 of the Controlled Substances Act (21 U.S.C. 881) apply as
  they would to a forfeiture of property under that section, and the Postal
  Service may also perform any of the functions the Attorney General may
  perform under such subsections.
  `(2) The filing of an indictment or information alleging a violation
  of section 1341 or 1343 of this title which is also related to a civil
  forfeiture proceeding under either section shall, upon motion of the United
  States and for good cause shown, stay the civil forfeiture proceeding.
  `(d) DISPOSITION OF PROPERTY- After a seizure of property ordered forfeited
  under this section, the Attorney General shall dispose of the property
  under section 1348 of this title. The Postal Service shall turn any such
  seized property over to the Attorney General for disposal under such section.
`Sec. 1348. Disposition of forfeited property
  `(a) IN GENERAL- After making due provision for the rights of any innocent
  persons, the Attorney General, after deducting the costs incurred by the
  United States in conducting the seizure, forfeiture, and identification
  of victims, shall deposit the proceeds from the sale of property forfeited
  under section 1346 or 1347 of this title in the fund established by section
  524 of title 28. Any property right or interest not exercisable by, or
  transferable for value to, the United States shall expire and shall not
  revert to the defendant. Neither the defendant nor any person acting in
  concert with the defendant or on the defendant's behalf is eligible to
  purchase forfeited property sold by the United States.
  `(b) RESTRAINT PENDING APPEAL- Upon application of a person other than
  the defendant or a person acting in concert with the defendant or on the
  defendant's behalf, the court may restrain or stay the sale or disposition
  of the property pending the conclusion of any appeal in the case giving
  rise to the forfeiture, if the applicant demonstrates that proceeding with
  the sale or disposition will result in irreparable harm to the applicant.
  `(c) RULES FOR DISPOSITION- The Attorney General shall make rules providing
  for the disposition of such property and proceeds. Such rules shall
  provide that--
  `(1) proceeds from such property be first made available on a pro rata
  basis to reimburse the losses of victims of the violation of this chapter
  in connection with which such forfeiture arose; and
  `(2) then any remaining property or proceeds be--
  `(A) retained for official use;
  `(B) transferred to Federal, State, or local law enforcement agencies so
  as to reflect generally the contribution of such agencies to the seizure
  or forfeiture of such property;
  `(C) in the case of property--
  `(i) sold, if not required to be destroyed by law or harmful to the
  public; or
  `(ii) destroyed, if not sold, or if the expenses of sale would exceed the
  amount realized from the sale; or
  `(D) as otherwise provided by law.'.
  (b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter
  63 of title 18, United States Code, is amended by adding at the end the
  following new items:
`1346. Criminal forfeiture.
`1347. Civil forfeiture.
`1348. Disposition of forfeited property.'.
SEC. 3. ASSETS FORFEITURE FUND AMENDMENT.
  Section 524(c)(8) of title 28, United States Code, is amended inserting
  `or the Postal Service' before the semicolon at the end of subparagraph (C).