September 21, 2020 - Issue: Vol. 166, No. 163 — Daily Edition116th Congress (2019 - 2020) - 2nd Session

[Pages H4605-H4606]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     COVID-19 FRAUD PREVENTION ACT

  Mr. SHERMAN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 6735) to establish the Consumer and Investor Fraud Working 
Group to help protect consumers and investors from fraud during the 
COVID-19 pandemic, to assist consumers and investors affected by such 
fraud, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6735

       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 ``COVID-19 Fraud Prevention 
     Act''.

     SEC. 2. CONSUMER AND INVESTOR FRAUD WORKING GROUP.

       (a) Establishment.--Not later than the end of the 30-day 
     period beginning on the date of enactment of this Act, the 
     Director of the Bureau of Consumer Financial Protection and 
     the Securities and Exchange Commission shall, jointly, 
     establish a working group to be known as the ``Consumer and 
     Investor Fraud Working Group'' (the ``Working Group'').
       (b) Duties.--The Working Group shall facilitate 
     collaboration between the Bureau of Consumer Financial 
     Protection and the Securities and Exchange Commission on--
       (1) providing resources to consumers and investors to avoid 
     fraud during the COVID-19 pandemic;
       (2) providing resources, including information on the 
     availability of legal aid resources, to consumers and 
     investors who have been adversely impacted by such fraud; and
       (3) such other topics as the Working Group determines 
     appropriate.
       (c) Coordination With Other Agencies.--In carrying out the 
     duties described under subsection (b), the Working Group 
     shall coordinate and collaborate with other Federal and State 
     government agencies, as appropriate.
       (d) Quarterly Report.--The Working Group shall issue a 
     quarterly report to the Committee on Financial Services of 
     the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate on the progress of 
     the Working Group and summarizing--
       (1) the resources made publicly available to consumers by 
     the Working Group;
       (2) any public enforcement action taken jointly or 
     individually by any member of the Working Group;
       (3) the number and description of consumer complaints 
     received by the Bureau of Consumer Financial Protection and 
     the Securities and Exchange Commission regarding fraud 
     related to the COVID-19 pandemic; and
       (4) any other actions of the Working Group.
       (e) Sunset.--This section shall cease to have any force or 
     effect on and after December 31, 2021.

     SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Sherman) and the gentleman from South Carolina (Mr. 
Timmons) each will control 20 minutes.
  The Chair recognizes the gentleman from California.


                             General Leave

  Mr. SHERMAN. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days within which to revise and extend their remarks 
on this legislation and insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. SHERMAN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise to commend the gentleman from Utah on the passage 
of his bill, and I rise to support H.R. 6735, the COVID-19 Fraud 
Prevention Act, which is authored and put forward by Congresswoman 
Cindy Axne.
  I support this legislation and I thank my colleague from Iowa for her 
leadership in bringing it forward. Congresswoman Axne's legislation 
will mark a major step in improving efforts to protect consumers and 
investors alike by requiring the Consumer Financial Protection Bureau, 
the CFPB, and the Securities and Exchange Commission, the SEC, to 
establish a joint working group with the purpose of addressing and 
preventing predatory and deceptive financial practices during this 
COVID-19 crisis.
  Under this bill, this joint CFPB-SEC working group will be required 
to consult and collaborate with other Federal and State agencies, where 
appropriate, to ensure fraud does not slip through the cracks during 
this COVID-19 pandemic and appropriately report their efforts to 
Congress.
  As we know, unfortunately, in times of uncertainty like the one we 
face today, predatory actors can and have sought to take advantage of 
confusion and financial vulnerability, and to take advantage even of 
desperation from struggling consumers and struggling homeowners who 
need help. These actors cause even further damage to communities that 
are already hit by the crisis of the pandemic and the economic 
downturn.
  The 2008 crisis is an example of how much financial devastation that 
predatory and deceitful actors can wreak on our communities, especially 
when Federal regulators don't have the tools to cooperate and put a 
stop to it. Families that are still impacted by that phase of 
unchecked, toxic lending now have yet another crisis to contend to as 
we must deal with the COVID crisis.
  As chair of the Subcommittee on Investor Protection, 
Entrepreneurship, and Capital Markets, I note that investors, too, are 
at risk of being defrauded and mislead by fraudulent investment 
schemes.
  As during other times of crises, investors are at risk of being 
defrauded and mislead by so-called investment opportunities claiming to 
have some novel information, cures, or vaccines, but are really part of 
a pump-and-dump scheme where fraudsters intentionally use false and 
misleading information to boost the price of a stock or other 
investment and then sell the shares when the stock rises but before the 
manipulation is detected.
  Congresswoman Axne's legislation will help ensure that the CFPB and 
the SEC, as well as other Federal and State agencies they work with, 
will work collaboratively to identify problematic patterns and work to 
prevent future schemes where consumers and investors get ripped off.
  I commend Mrs. Axne for her work in drafting this legislation, and if 
I may be a little premature, I also commend the gentlewoman on getting 
this legislation passed through the House today.
  I urge Members to support this legislation, and I reserve the balance 
of my time.

[[Page H4606]]

  

  Mr. TIMMONS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank the gentlewoman from Iowa for introducing this 
bill.
  At the beginning of the pandemic I was concerned about COVID-19-
related fraudulent schemes, particularly those targeting seniors who 
have been disproportionately impacted by the virus.
  The Federal regulators tasked with weeding out fraud and providing 
resources for consumers impacted by scams--the CFPB, SEC, and FTC--have 
been particularly supportive of consumers during this time.
  To further support this coordinated effort, H.R. 6735 establishes the 
Consumer and Investor Fraud Working Group, which will include 
representatives from the CFPB and SEC, among others.
  The working group will work to provide resources to consumers and 
investors to avoid fraud during the COVID-19 pandemic and to those who 
have been impacted by these types of scams.
  In addition, the working group is required to produce a quarterly 
report to the House Financial Services Committee and Senate Committee 
on Banking, Housing, and Urban Affairs so that Congress can monitor its 
actions and resources made available to the public.

  Finally, the bill will ensure robust government coordination to 
protect consumers and investors from fraudsters looking to take 
advantage of the crisis.
  Mr. Speaker, I urge my colleagues to support this bill, and I yield 
back the balance of my time.
  Mr. SHERMAN. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I thank the gentleman from South Carolina for his work 
on all of these bills and his work here today.
  In closing, Congress must do more to ensure that communities are 
protected from deceitful actors during the COVID-19 period. As we have 
seen in our immediate past, bad actors often try to take advantage of 
people in crisis and the consequences can be significant unless the 
Federal Government, working with the States, actively monitors and 
prevents such deceitful practices.
  H.R. 6735 will encourage key regulators to share information and work 
together to identify scams while keeping Congress informed as to how 
these agencies are addressing fraud during the pandemic.
  This bill has the support of consumer and investor advocate 
organizations including: Americans for Financial Reform, Center for 
Responsible Lending, Consumer Federation of America, National Consumer 
Law Center, and Public Citizen.
  I would like to thank the author of this bill, Representative Axne, 
for her efforts. I urge all Members to support H.R. 6735, and I yield 
back the balance of my time.

                              {time}  1645

  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Sherman) that the House suspend the 
rules and pass the bill, H.R. 6735, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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