To establish a Financial Services Crime Division in the Department of Justice. (Introduced in Senate)

S 2712 IS

101st CONGRESS

2d Session

S . 2712

To establish a Financial Services Crime Division in the Department of Justice.

IN THE SENATE OF THE UNITED STATES

June 7 (legislative day, APRIL 18), 1990

Mr. GRAHAM (for himself, Mr. DIXON, Mr. WIRTH, Mr. SASSER, Mr. PRYOR, Mr. BRADLEY, Mr. KERREY, Mr. KERRY, Mr. SIMON, Mr. LEVIN, Mr. BRYAN, Mr. PELL, Mr. RIEGLE, Mr. CONRAD, and Mr. HARKIN) introduced the following bill; which was read twice and referred to the Committee on the Judiciary

A BILL

To establish a Financial Services Crime Division in the Department of Justice.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. ESTABLISHMENT OF FINANCIAL SERVICES CRIME DIVISION.

There is established within the Department of Justice, the Financial Services Crime Division.

SEC. 2. ASSISTANT ATTORNEY GENERAL FOR FINANCIAL SERVICES CRIME.

(a) ASSISTANT ATTORNEY GENERAL- There shall be at the head of the Financial Services Crime Division established by this Act, an Assistant Attorney General of the Department of Justice for the Financial Services Crime Division, who shall--

(1) be appointed by the President, by and with the advise and consent of the Senate;

(2) report directly to the Attorney General of the United States; and

(3) be responsible for ensuring that--

(A) all investigations and prosecutions are coordinated within the Department of Justice to provide the greatest use of civil proceedings and forfeitures to attack the financial resources of those who have committed fraud or engaged in other criminal activity in or against the financial services industry; and

(B) all investigations and prosecutions are coordinated within the Department of Justice to ensure that adequate resources are made available in connection with criminal investigations and prosecution of fraud and other criminal activity in the financial services industry.

(b) COMPENSATION- (1) Section 5315 of title 5, United States Code, is amended by striking `Assistant Attorneys General (10).' and inserting `Assistant Attorneys General (11).'.

(2) The Assistant Attorney General of the Financial Services Crime Division shall be paid at the basic pay payable for level IV of the Executive Schedule.

SEC. 3. DEPUTY ASSISTANT ATTORNEY GENERAL.

(a) ESTABLISHMENT- There is established the position of Deputy Assistant Attorney General of the Financial Services Crime Division, who shall report directly and be responsible to the Assistant Attorney General of the Financial Services Crime Division.

(b) COMPENSATION- The Deputy Assistant Attorney General of the Financial Services Crime Division shall be paid at the rate of basic pay payable for level V of the Executive Schedule.

SEC. 4. ADMINISTRATIVE OFFICE OF THE DIVISION; PERSONNEL.

There shall be established within the Financial Services Crime Division such sections, offices, and personnel as the Attorney General shall deem appropriate to maintain or increase the level of enforcement activities in the area of fraud and other criminal activity in and against the financial services industry.

SEC. 5. COORDINATION AND ENHANCEMENT OF FIELD ACTIVITIES.

(a) STRIKE FORCES- The Attorney General shall establish such number of field offices as shall be necessary to carry out the purposes of this Act. All such field offices of the Division shall be known as the Financial Services Crime Strike Forces.

(b) COORDINATION WITH AGENCIES- In investigating and prosecuting crime in the financial services industry, the Division shall coordinate its activities with appropriate officials of the Federal Bureau of Investigation, the Resolution Trust Corporation, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the Office of Comptroller of the Currency, the Federal Reserve Board and the Securities Exchange Commission.

SEC. 6. REPORTS.

(a) IN GENERAL- (1) The Division shall compile and collect data concerning--

(A) the nature and quantity of investigations, prosecutions, and enforcement proceedings in progress;

(B) the nature and quantity of such matters closed, settled or litigated to conclusion; and

(C) the outcomes achieved, including fines and penalties levied, prison sentences imposed and damages recovered.

(2) The Division shall make the raw data collected available to any committee of Congress or congressional agency.

(3) The Division shall analyze and report to the Senate Banking, Housing, and Urban Affairs Committee and the House Banking, Finance and Urban Affairs Committee semi-annually on the data described in paragraph (1), and its own coordination activities with the agencies identified in section 5(b).

(b) SPECIFICS OF REPORT- The report required by this section shall identify, with respect to the activities of the Division and its sections and offices--

(1) the institutions in which evidence of significant fraud or insider abuse has been detected;

(2) the Federal administrative enforcement actions brought against parties;

(3) the claims for monetary damages or other relief sought, and any settlements or judgments against parties;

(4) indictments, guilty pleas or verdicts obtained against parties; and

(5) the resources allocated in pursuit of such claims, actions, settlements, indictments or verdicts.

SEC. 7. APPROPRIATIONS.

There is hereby authorized to be appropriated such sums as shall be necessary to carry out the purposes of this Act.