Monster Media 1993 #2/Image.iso/text/crimftr1.zip/CRIMEFTR.019

Text File | 1993-07-06 | 22KB | 442 lines

                Miscellaneous Laws and Income Opportunities

                          Financial Institutions

There are quite a few laws pertaining to financial institutions: too many
to list each and every one in this book. Instead, just remember that when
anyone, in one way or another, violates any banking laws there are rewards
for information leading to the prosecution of lawbreakers. For example:

Title 18 USCS 3059(a) Special Rewards for Information Relating to Certain
Financial Institution Offenses.

(a)(1) In special circumstances and in the Attorney General's sole
discretion, the Attorney General may make payments to persons who furnish
information unknown to the government relating to a possible prosecution
under section 215, 287, 656, 657, 1001, 1005, 1006, 1007, 1014, 1032, 1341,
1343, or 1344 of this title affecting a depository institution insured by
the Federal Deposit Insurance Corporation or any other agency or entity of
the United States, or to a possible prosecution for conspiracy to commit
such an offense.

(2) The amount of payment under paragraph (1) shall not exceed $50,000 and
shall be paid from the Financial Institution Information Award Fund under
section 2569 of the Financial Institutions Anti-Fraud Enforcement Act of
1990 [12: USCS 4209].

(b) A person is not eligible for a payment under this section (a) if -- "

(1) The person is a current or former officer or employee of a Federal or
State government agency or instrumentality who furnishes information
discovered or gathered in the course of his government employment;
(2) the furnished information consists of allegations or transactions that
have been disclosed to a member of the public in a criminal, civil or
administrative proceeding, in a congressional, administrative, or General
Accounting Office report, hearing, audit or investigation, from any other
government source, or from the news media unless the person is the original
source of the information;

(3) the person is an institution-affiliated party (as defined in section
3(u) of the Federal Deposit Insurance Act, 12 USC 1813(u) which withheld
information during the course of any bank examination or investigation
authorized pursuant to section 10 of such Act (12 USC 1820) who such party
owed a fiduciary duty to disclose;

(4) the person is a member of the immediate family of the individual whose
activities are the subject to the declaration or where in the discretion of
the Attorney General, it appears the individual could benefit from the
award; or

(5) the person knowingly participated in the violation of this section with
respect to which the payment would be made.

(c) For the purpose of this subsection (b)(2), the term "original source"
means a person who has direct and independent knowledge of the information
on which the allegations are based and has voluntarily provided the
information to the government prior to the disclosure.

(d) Neither the failure of the Attorney General to authorize a payment nor
the amount authorized shall be subject to judicial review.

                                * * * * * *

(Comment: The remainder of this law pertains to anyone who is threatened,
harassed or fired from his job as a result of the disclosure, is entitled
to reinstatement with back pay, etc. If the reader is in this category,
look up full text of the law for details.)

And, as with many laws, legislators make a generous offer to make it sound
good, and then put vague strings on the payment so they can take it away.
Section (d) means if you provide the information you may or may not get
paid, and if you don't, there's nothing you can do about it.

Conclusion: Use other laws when there are other rewards available, or be
sure to get a promise of a reward in writing.

             Currency and Foreign Transactions Reporting Act.

To control the flow of drug-related profits to and from the U.S.A., and to
control the flow of profits from any other criminal enterprise from and to
the United States, there is a law that limits the amount of cash imported
or exported. Anyone who violates the reporting requirements of the follow-
ing law is subject to harsh penalties. And, anyone who provides information
leading to their prosecution may receive a reward.

                                * * * * * *

Title 31 USCS 5316 Reports on Exporting and Importing Monetary Instruments

(A) Except as provided in subsection (c) of this section, a person or an
agent or bailee of the person shall file a report under subsection (b) of
this section when the person, agent or bailee knowingly --

(1) transports or has transported monetary instrument of more than $5,000
at one time --

(a) from a place in the United States to or through a place outside the
United States; or

(b) to a place in the United States from or through a place outside of the
United States; or

(2) receives monetary instruments of more than $5,000 at one time
transported into the United States from or through a place outside of the
United States.

(B) A report under this section shall be filed at the time and place the
Secretary of the Treasury prescribes. The report shall contain the
following information to the extent the Secretary of the Treasury
prescribes:

(1) the legal capacity in which the person filing the report is acting.
(2) the origin, destination, and route of the monetary instruments.
(3) when the monetary instruments are not legally and beneficially owned by
the person transporting the instruments personally is not going to use
them, the identity of the person that gave the instruments to the person
transporting them, the identity of the person who is to receive them, or
both.
(4) the amount and kind on monetary instruments transported.
(5) additional information.

(C) This section or a regulation under this section does not apply to a
common carrier of passengers when a passenger possesses a monetary
instrument, or to a common carrier of goods if the shipper does not declare
the instrument.
                               * * * * * **

Comment: the last provision means the common carrier is not held
responsible for the violations of this law by passengers.

The above law pertains to "persons". There is another law (31 USCS 5321)
that provides civil penalties to financial institutions and officers and
directors for failing to comply with the reporting requirements.

                                * * * * * *

Title 31 USCS 5322 Criminal Penalties

(a) A person willfully violating this subchapter [31 USCS 5311 et seq] or a
regulation prescribed under this subchapter [31 USCS 5311 et seq] (except
section 5315 of this title [ 31 USCS 5315] or a regulation prescribed under
sections 5315 shall be fined not more than $1,000, imprisoned for not more
than one year, or both.

(b) A person willfully violating this subchapter [31 USCS 5311 et seq] or a
regulation prescribed under this subchapter [31 USCS 5311 et seq] (except
section 5315 of this title [ 31 USCS 5315] or a regulation prescribed under
sections 5315, while violating another law of the United States or as part
of a pattern of illegal activity involving transactions of more than
$100,000 in a 12-month period, shall be fined not more than $500,000,
imprisoned for not more than five years, or both.

(c) For a violation of section 5318(2) of this title [31 USCS 5318(2)] or a
regulation prescribed under section 5318(2), a separate violation occurs
for each day the violation continues and at each office, branch, or place
of business at which a violation occurs or continues.

                                * * * * * *

Title 31 USCS 5323  Money and Finance. (Reward)

(a) The Secretary may pay a reward to an individual who provides original
information which leads to a recovery of a criminal fine, civil penalty or
forfeiture, which exceeds $50,000, for a violation of this chapter.

(b) The Secretary shall determine the amount of a reward under this
section. The Secretary may not award more than 25 per centum of the net
amount of the fine, penalty, or forfeiture collected or $150,000, whichever
is less.

(c) An officer or employee of the United States, a State, or a local
government who provides information described in subsection (a) in the
performance of official duties is not eligible for a reward under this
section."
                                * * * * * *

                    Food and Drug Administration (FDA)

The Generic Drug Enforcement Act of 1991 should put some teeth into the
FDA's control over false advertising and swindling by generic drug makers.
A recent news article mentioned that many makers of generic drugs (mainly
medical suppliers) are touted as good as or better than name brands and
advertised and marketed as such when they're not. People who buy them
(mostly seniors) are not only short-changed but their health, pain, and
suffering may be adversely affected too.

The new bill, if it becomes law (and it probably will) will pay rewards up
to $250,000.  Companies convicted of falsification of reports, lying, or
bribery of FDA officials to get their products approved could be fined up
to $250,000 each.

Workers at such chemical companies and independent chemists should be on
the alert. If you know of any false claims or skullduggery by Generic drug
manufacturers, or false and misleading advertising claims, blow the whistle
on the perps.

You don't have to wait until this bill becomes law. RICO laws and Qui Tam
also apply. Always negotiate for 50% of the huge fines and forfeitures.
Rewards that say "up to" should be interpreted as "maybe." When a reward
law says 50 percent, it means 50 percent. Look for and use those laws that
state a specific amount -- when you have a choice.

                                * * * * * *

U.S. Securities & Exchange Commission

"Section 21A(e) of the Securities Exchange Act of 1934 ("Exchange Act")
Title 15 USCS 78u-1(e) authorizes the Securities and Exchange Commission
("Commission") to award a bounty to a person who provides information
leading to the recovery of a civil penalty from an insider trader, from a
person who "tipped" information to an insider trader, or from a person who
directly or indirectly controlled an insider trader."


Comment: "Insider trading" generally refers to buying and selling a
security (stocks and bonds of corporations) in breach of a fiduciary duty
or other relationship of trust and confidence while in possession of any
material or nonpublic information about the security. Insider tipping
violations may also include "tipping" such information, securities trading
by the person "tipped" (the recipient of nonpublic, insider information)
and securities trading by those who misappropriate (steal) the information.

Generally, people who violate this law are corporate officers and directors
who are privileged to know in advance certain corporate plans before they
are publicly announced. But "insiders" could include employees of the firm
who might be privy to the confidential information, lawyers, accountants,
engineers, business consultants who are part of the decision making group,
or outsiders who may accidentally, or through illegal means, obtain such
insider information.

Anyone having this insider knowledge could purchase or sell large numbers
of shares in the company in anticipation of their increase or decrease in
value after public disclosure of the confidential information. To allow
that would encourage manipulation of the stock market where a few people
could take unfair advantage of the public who bought and sold shares on the
open market without the same privileged information. In the vernacular of
politicians, that's not playing on a level playing field. If inside trading
were allowed it would undermine the confidence in the stock market, which
is essential to business and world commerce. Accordingly, insider trading
is illegal and punishable by very large fines -- often in the millions of
dollars.

The Commission is permitted to make bounty awards from the civil penalties
that are actually recovered from violators. Except for employees of the
Commission or Justice Department, any person who provides information
leading to the imposition of a civil penalty may be paid a bounty. However,
the total amount of bounties that may be paid from a civil penalty may not
exceed 10% of that penalty.

Insider trading on publicly traded stocks and bonds ar usually in the
megabuck range. Fines and forfeitures are scaled in direct proportion.
Ten percent of a $5 million fine is still a very nice $500,000!

For more information on this law, and how and where to submit the
information and application for the reward, write to the Office of the
Secretary, Securities and Exchange Commission, 450 Fifth Street, N.W.,
Washington, D.C. 20549

(Use Qui Tam law and this law, or Qui Tam and RICO laws and prosecute the
case yourself to protect your interests from a D.A.'s plea bargaining.)

                                * * * * * *

22: USCS 401 Illegal exportation of war material

(a) Seizure and forfeiture of materials and carriers.

Whenever an attempt is made to export or ship from or take out of the
United States any arms or munitions of war or other articles in violation
of law, or whenever it is known or there shall be probable cause to believe
that any arms or munitions of war or other articles are intended to be or
are being or have been exported or removed from the United States in
violation of law, the Secretary of the Treasury, or any person duly author-
ized for the purpose by the President, may seize and detain such arms or
munitions of war or other articles and may seize and detain any vessel,
vehicle, or aircraft containing the same or which have been or is being
used in exporting or attempting to export such arms or munitions of war or
other articles. All arms or munitions of war and other articles, vessels,
vehicles, and aircraft seized pursuant to this sub section shall be
forfeited.

(b) Applicability of laws relating to seizure, forfeiture, and
condemnation,

All provisions of law relating to seizure, summary and judicial forfeiture
and condemnation for violation of the customs laws, the disposition of the
property forfeited or condemned or the proceeds from the sale thereof; the
remission or mitigation of such forfeitures; and the compromise of claims
and the award of compensation to informers in respect of such forfeitures
shall apply to seizures and forfeitures incurred, or alleged to have
incurred, under the provisions of this section, insofar as applicable and
not inconsistent with the provisions hereof. Awards of compensation to
informers under this section may be paid only out of funds specifically
appropriated therefore.

(c) Disposition of forfeited materials.

Arms and munitions of war forfeited under subsection (b) of this section
shall be delivered to the Secretary of Defense for such use or disposition
as he may deem in the public interest, or in the event that the Secretary
of Defense refuses to accept such arms and munitions of war, they shall be
sold or otherwise disposed of as prescribed under existing laws in the case
of forfeitures for violation of the customs laws.
(Last amendment Aug. 13, 1953)

                                * * * * * *

Comment: The awards to informers mentioned above, are 25%, and authorized
by Title 19, Section 1619. If the contraband items are on a ship or
aircraft and outward bound, Customs agents may be the ones to notify. Check
with the FBI first via a partial confidential disclosure to see if they're
interested. If not, contact Customs agents and after negotiating for a
reward, give them the full (original) disclosure.

                                * * * * * *

                           Government & Military

There are a few minor reward laws that are offered by the Military forces
for recovery of stolen material and equipment. Most of them are piddly
amounts (by RICO standards) and not worth listing in detail this book.
Remember, there are more generous Federal rewards relating to the same
criminal activity. Title 18: 3059 can pay as much or more than the Armed
Forces offer. And, a criminal prosecution with a civil suit will probably
obtain more financial rewards/awards than the Military would pay.

                              Atomic Weapons

50 USCS Section 47a  Reward for information concerning specified violations
of nuclear material or atomic weapons.

"Any person who furnishes original information to the United States-

(a) leading to the finding or other acquisition by the United States of
special nuclear material or an atomic weapon which has been introduced into
the United States or manufactured or acquired therein contrary to the laws
of the United States, or

(b) with respect to the introduction or attempted introduction into the
United States or the manufacture or acquisition or attempted manufacture or
acquisition of, or a conspiracy to introduce into the United States or to
manufacture or acquire, special nuclear material or an atomic weapon
contrary to the laws of the United States, or

(c) with respect to the export or attempted export, or a conspiracy to
export, special nuclear material or an atomic weapon from the United States
contrary to the laws of the United States,

shall be rewarded by the payment of an amount not to exceed $50,000."

                            Oil and Gas Leases

30 USCS Section 1723 Reward for information leading to recovery of oil and
gas revenues due under oil and gas lease on federal lands.

"Where amounts representing royalty or other payments owed to the United
States with respect to any oil and gas lease on Federal lands or the Outer
Continental Shelf are recovered pursuant to any action taken by the Secre-
tary under this Act as a result of information provided to the Secretary by
any person, the Secretary is authorized to pay to such person an amount
equal to not more than 10% of such recovered amounts. The preceding
sentence shall not apply to information provided by an officer or employee
of the United States, an officer or employee of a State or Indian tribe
acting pursuant to a cooperative agreement or delegation under this Act,
or any person acting pursuant to a contract authorized by this Act."

                            Indian Related Laws

"18 USCS 3113 Reward for information concerning Liquor violations in Indian
Country.

If any superintendent of Indian Affairs, or commanding officer of a
military post, or special agent of the Office of Indian Affairs for the
suppression of liquor traffic among Indians and in the Indian country and
any authorized deputies under his supervision has probable cause to believe
that any person is about to introduce or has introduced any spirituous
liquor, beer, wine or other intoxicating liquors named in sections 1154 and
1156 of this title into the Indian country in violation of law, he may
cause the places, conveyances, and packages of such person to be searched.
If any such intoxicating liquor is found therein, the same, together with
such conveyances and packages of such person, shall be seized and delivered
to the proper officer, and shall be proceeded against by libel in the
proper court, and forfeited, one-half to the informer and one-half to the
use of the United States. If such person be a trader, his license shall be
revoked and his bond put in suit.

Any person in the service of the United States authorized by this section
to make searches and seizures, or any Indian may take and destroy any
ardent spirits or wine found in the Indian country, except such as are kept
or used for scientific, sacramental, medicinal, or mechanical purposes or
such as may be introduced therein by the Department of the Army.

In all cases arising under this section and sections 1154 and 1156 of this
title, Indians shall be competent witnesses."

                                * * * * * *

                 Privately Funded Rewards from Businesses

Convenience stores such as 7-11, and ARCO am-pm stores have a sticker on
their stores' windows and doors offering rewards up to $25,000 for
information leading to the conviction of robbers.

Banks and financial institutions also pay rewards for information on
robbers and pay up to $25,000.

Security Guard firms, such as Pinkertons, Burns, Wells Fargo, and similar
companies who transport cash and securities in armored trucks, also offer
large rewards for recovery and/or convictions.

Insurance companies, especially those who sell policies on personal
possessions (jewelry, furs, stamp collections, etc.), and life insurance,
are interested in recovering the property or proving fraudulent intent on
insurance claims.

Most large insurance firms have full-time investigators. They are also
known to pay rewards up to 50% of the insurance claim. Keep that in mind if
you know of any fraud that uses insurance as a means to collect money.
Arson is the main insurance fraud, auto "theft" is another high volume
insurance fraud. If you want leads, contact the insurance company's fraud
investigators, and be a free-lance insurance fraud investigator. (A license
may be required if you solicit private investigator business from the
public.)

You may be able to collect from the insurance company if you provide them
with the information first. But reserve the (Qui Tam) right to be the
prosecutor under RICO civil and criminal suits, or get a written guarantee
that you will receive similar benefits from RICO laws if they want their
lawyers to do the legal work.

                            F9 for next Chapter