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      TITLE XXV-SENIOR CITIZENS AGAINST MARKETING SCAMS





   SEC. 250001. SHORT TITLE.



   This Act may be cited as the "Senior Citizens Against
   Act of 1994".



   SEC. 250002. ENHANCED PENALTIES FOR TELEMARKETING FRAUD.



   (a) Offense .-Part I of title 18, United States Code, is amended-



   (1) by redesignating chapter 113A as chapter 113B; and



   (2) by inserting after chapter 113 the following new chapter:



   "CHAPTER 113A-TELEMARKETING FRAUD



   "Sec.



   "2325. Definition.



   "2326. Enhanced penalties.



   "2327. Mandatory restitution.



   " 2325. Definition



   "In this chapter, 'telemarketing'-



   "(1) means a plan, program, promotion, or campaign that is conducted
   to induce-



   "(A) purchases of goods or services; or



   "(B) participation in a contest or sweepstakes,



   by use of 1 or more interstate telephone calls initiated either by a
   person who is conducting the plan, program, promotion, or campaign or
   by a prospective purchaser or contest or sweepstakes participant; but



   "(2) does not include the solicitation of sales through the mailing of
   a catalog that-



   "(A) contains a written description or illustration of the goods or
   services offered for sale;



   "(B) includes the business address of the seller;



   "(C) includes multiple pages of written material or illustration; and



   "(D) has been issued not less frequently than once a year,



   if the person making the solicitation does not solicit customers by
   telephone but only receives calls initiated by customers in response
   to the catalog and during those calls take orders without further
   solicitation.



   " 2326. Enhanced penalties



   "A person who is convicted of an offense under section 1028, 1029,
   1341, 1342, 1343, or 1344 in connection with the conduct of
   telemarketing-



   "(1) may be imprisoned for a term of up to 5 years in addition to any
   term of imprisonment imposed under any of those sections,
   respectively; and



   "(2) in the case of an offense under any of those sections that- "(A)
   victimized ten or more persons over the age of 55; or



   "(B) targeted persons over the age of 55,



   may be imprisoned for a term of up to 10 years in addition to any term
   of imprisonment imposed under any of those sections, respectively.



   " 2327. Mandatory restitution



   "(a) In General .-Notwithstanding section 3663, and in addition to any
   other civil or criminal penalty authorized by law, the court shall
   order restitution for any offense under this chapter.



   "(b) Scope and Nature of Order .-



   "(1) Directions .-The order of restitution under this section shall
   direct that-



   "(A) the defendant pay to the victim (through the appropriate court
   mechanism) the full amount of the victim's losses as determined by the
   court, pursuant to paragraph (3); and



   "(B) the United States Attorney enforce the restitution order by all
   available and reasonable means.



   "(2) Enforcement by victim .-An order of restitution may be enforced
   by a victim named in the order to receive the restitution as well as
   by the United States Attorney, in the same manner as a judgment in a
   civil action.



   "(3) Definition .-For purposes of this subsection, the term 'full
   amount of the victim's losses' means all losses suffered by the victim
   as a proximate result of the offense.



   "(4) Order mandatory .-(A) The issuance of a restitution order under
   this section is mandatory.



   "(B) A court may not decline to issue an order under this section
   because of-



   "(i) the economic circumstances of the defendant; or



   "(ii) the fact that a victim has, or is entitled to, receive
   compensation for his or her injuries from the proceeds of insurance or
   any other source.



   "(C)(i) Notwithstanding subparagraph (A), the court may take into
   account the economic circumstances of the defendant in determining the
   manner in which and the schedule according to which the restitution is
   to be paid.



   "(ii) For purposes of this subparagraph, the term 'economic
   circumstances' includes-



   "(I) the financial resources and other assets of the defendant;



   "(II) projected earnings, earning capacity, and other income of the
   defendant; and



   "(III) any financial obligations of the defendant, including
   obligations to dependents.



   "(D) Subparagraph (A) does not apply if-



   "(i) the court finds on the record that the economic circumstances of
   the defendant do not allow for the payment of any amount of a
   restitution order, and do not allow for the payment of any or some
   portion of the amount of a restitution order in the foreseeable future
   (under any reasonable schedule of payments); and



   "(ii) the court enters in its order the amount of the victim's losses,
   and provides a nominal restitution award.



   "(5) More than 1 offender .-When the court finds that more than 1
   offender has contributed to the loss of a victim, the court may make
   each offender liable for payment of the full amount of restitution or
   may apportion liability among the offenders to reflect the level of
   contribution and economic circumstances of each offender.



   "(6) More than 1 victim .-When the court finds that more than 1 victim
   has sustained a loss requiring restitution by an offender, the court
   shall order full restitution of each victim but may provide for
   different payment schedules to reflect the economic circumstances of
   each victim.



   "(7) Payment schedule .-An order under this section may direct the
   defendant to make a single lump- sum payment or partial payments at
   specified intervals.



   "(8) Setoff .-Any amount paid to a victim under this section shall be
   set off against any amount later recovered as compensatory damages by
   the victim from the defendant in-



   "(A) any Federal civil proceeding; and



   "(B) any State civil proceeding, to the extent provided by the law of
   the State.



   "(9) Effect on other sources of compensation .-The issuance of a
   restitution order shall not affect the entitlement of a victim to
   receive compensation with respect to a loss from insurance or any
   other source until the payments actually received by the victim under
   the restitution order fully compensate the victim for the loss.



   "(10) Condition of probation or supervised release .-Compliance with a
   restitution issued under this section shall be a condition of any
   probation or supervised release of a defendant. The court may revoke
   probation or a term of supervised release, modify the terms or
   conditions of probation or a term of supervised release, hold the
   defendant in contempt pursuant to section 3583(e), or suspend the
   offender's eligibility for any grant, contract, loan, professional
   license, or commercial license provided by an agency of the United
   States or with appropriated funds of the United States if the
   defendant fails to comply with the order. In determining whether to
   revoke probation or a term of supervised release, modify the terms or
   conditions of probation or supervised release or hold a defendant
   serving a term of supervised release in contempt, the court shall
   consider the defendant's employment status, earning ability and
   financial resources, the willfulness of the defendant's failure to
   comply, and any other circumstances that may have a bearing on the
   defendant's ability to comply.



   "(c) Proof of Claim .-



   "(1) Affidavit .-Within 60 days after conviction and, in any event,
   not later than 10 days prior to sentencing, the United States Attorney
   (or the United States Attorney's delegee), after consulting with the
   victim, shall prepare and file an affidavit with the court listing the
   amounts subject to restitution under this section. The affidavit shall
   be signed by the United States Attorney (or the United States
   Attorney's delegee) and the victim. Should the victim object to any of
   the information included in the affidavit, the United States Attorney
   (or the United States Attorney's delegee) shall advise the victim that
   the victim may file a separate affidavit and shall provide the victim
   with an affidavit form which may be used to do so.



   "(2) Objection .-If, after the defendant has been notified of the
   affidavit, no objection is raised by the defendant, the amounts
   attested to in the affidavit filed pursuant to paragraph (1) shall be
   entered in the court's restitution order. If objection is raised, the
   court may require the victim or the United States Attorney (or the
   United States Attorney's delegee) to submit further affidavits or
   other supporting documents, demonstrating the victim's losses.



   "(3) Additional documentation and testimony .-If the court concludes,
   after reviewing the supporting documentation and considering the
   defendant's objections, that there is a substantial reason for
   doubting the authenticity or veracity of the records submitted, the
   court may require additional documentation or hear testimony on those
   questions. The privacy of any records filed, or testimony heard,
   pursuant to this section shall be maintained to the greatest extent
   possible, and such records may be filed or testimony heard in camera.



   "(4) Final determination of losses .-If the victim's losses are not
   ascertainable by the date that is 10 days prior to sentencing as
   provided in paragraph (1), the United States Attorney (or the United
   States Attorney's delegee) shall so inform the court, and the court
   shall set a date for the final determination of the victim's losses,
   not to exceed 90 days after sentencing. If the victim subsequently
   discovers further losses, the victim shall have 60 days after
   discovery of those losses in which to petition the court for an
   amended restitution order. Such order may be granted only upon a
   showing of good cause for the failure to include such losses in the
   initial claim for restitutionary relief.



   "(d) Modification of Order .-A victim or the offender may petition the
   court at any time to modify a restitution order as appropriate in view
   of a change in the economic circumstances of the offender.



   "(e) Reference to Magistrate or Special Master .-The court may refer
   any issue arising in connection with a proposed order of restitution
   to a magistrate or special master for proposed findings of fact and
   recommendations as to [*H8850] disposition, subject to a de novo
   determination of the issue by the court.



   "(f) Definition .-For purposes of this section, the term 'victim'
   includes the individual harmed as a result of a commission of a crime
   under this chapter, including, in the case of a victim who is
   incompetent, incapacitated, or deceased, the legal guardian of the
   victim or representative of the victim's



   estate, another family member, or any other person appointed as
   suitable by the court, but in no event shall the defendant be named as
   such representative or guardian.".



   (b) Technical Amendments .-



   (1) Part analysis .-The part analysis for part I of title 18, United
   States Code, is amended by striking the item relating to chapter 113A
   and inserting the following:



   "113A. Telemarketing fraud 2325



   "113B. Terrorism 2331".



   (2) Chapter 113b .-The chapter heading for chapter 113B of title 18,
   United States Code, as redesignated by subsection (a)(1), is amended
   to read as follows:



   "CHAPTER 113B-TERRORISM".



   SEC. 250003. INCREASED PENALTIES FOR FRAUD AGAINST OLDER VICTIMS.



   (a) Review .-The United States Sentencing Commission shall review and,
   if necessary, amend the sentencing guidelines to ensure that victim
   related adjustments for fraud offenses against older victims over the
   age of 55 are adequate.



   (b) Report .-Not later than 180 days after the date of enactment of
   this Act, the Sentencing Commission shall report to Congress the
   result of its review under subsection (a).



   SEC. 250004. REWARDS FOR INFORMATION LEADING TO PROSECUTION AND
   CONVICTION.



   Section 3059 of title 18, United States Code, is amended by adding at
   the end the following new subsection:



   "(c)(1) In special circumstances and in the Attorney General's sole
   discretion, the Attorney General may make a payment of up to $ 10,000
   to a person who furnishes information unknown to the Government
   relating to a possible prosecution under section 2326 which results in
   a conviction.



   "(2) A person is not eligible for a payment under paragraph (1) if-
   "(A) the person is a current or former officer or employee of a
   Federal, State, or local government agency or instrumentality who
   furnishes information discovered or gathered in the course of
   government employment;



   "(B) the person knowingly participated in the offense;



   "(C) the information furnished by the person consists of an allegation
   or transaction that has been disclosed to the public-



   "(i) in a criminal, civil, or administrative proceeding;



   "(ii) in a congressional, administrative, or General Accounting Office
   report, hearing, audit, or investigation; or



   "(iii) by the news media, unless the person is the original source of
   the information; or



   "(D) when, in the judgment of the Attorney General, it appears that a
   person whose illegal activities are being prosecuted or investigated
   could benefit from the award.



   "(3) For the purposes of paragraph (2)(C)(iii), the term 'original
   source' means a person who has direct and independent knowledge of the
   information that is furnished and has voluntarily provided the
   information to the Government prior to disclosure by the news media.



   "(4) Neither the failure of the Attorney General to authorize a
   payment under paragraph (1) nor the amount authorized shall be subject
   to judicial review.".



   SEC. 250005. AUTHORIZATION OF APPROPRIATIONS.



   There are authorized to be appropriated for the purposes of carrying
   out this Act and the amendments made by this Act-



   (1) for the Federal Bureau of Investigation to hire, equip, and train
   special agents and support staff to investigate telemarketing fraud
   cases-



   (A) $ 750,000 for fiscal year 1996;



   (B) $ 1,500,000 for fiscal year 1997;



   (C) $ 1,500,000 for fiscal year 1998;



   (D) $ 1,800,000 for fiscal year 1999; and



   (E) $ 1,950,000 for fiscal year 2000;



   (2) to hire, equip, and train Department of Justice attorneys,
   assistant United States Attorneys, and support staff to prosecute
   telemarketing fraud cases-



   (A) $ 250,000 for fiscal year 1996;



   (B) $ 500,000 for fiscal year 1997;



   (C) $ 500,000 for fiscal year 1998;



   (D) $ 600,000 for fiscal year 1999; and (E) $ 650,000 for fiscal year
   2000; and



   (3) for the Department of Justice to conduct, in cooperation with
   State and local law enforcement agencies and senior citizen advocacy
   organizations, public awareness and prevention initiatives for senior
   citizens, such as seminars and training-



   (A) $ 1,000,000 for fiscal year 1996;



   (B) $ 2,000,000 for fiscal year 1997;



   (C) $ 2,000,000 for fiscal year 1998;



   (D) $ 2,500,000 for fiscal year 1999; and



   (E) $ 2,500,000 for fiscal year 2000.



   SEC. 250006. BROADENING APPLICATION OF MAIL FRAUD STATUTE.



   Section 1341 of title 18, United States Code, is amended-



   (1) by inserting "or deposits or causes to be deposited any matter or
   thing whatever to be sent or delivered by any private or commercial
   interstate carrier," after "Postal Service,"; and



   (2) by inserting "or such carrier" after "causes to be delivered by
   mail".



   SEC. 250007. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH ACCESS
   DEVICES.



   Section 1029 of title 18, United States Code, is amended-



   (1) in subsection (a)-



   (A) by striking "or" at the end of paragraph (3); and



   (B) by inserting after paragraph (4) the following new paragraphs:



   "(5) knowingly and with intent to defraud effects transactions, with 1
   or more access devices issued to another person or persons, to receive
   payment or any other thing of value during any 1-year period the
   aggregate value of which is equal to or greater than $ 1,000;



   "(6) without the authorization of the issuer of the access device,
   knowingly and with intent to defraud solicits a person for the purpose
   of-



   "(A) offering an access device; or



   "(B) selling information regarding or an application to obtain an
   access device; or



   "(7) without the authorization of the credit card system member or its
   agent, knowingly and with intent to defraud causes or arranges for
   another person to present to the member or its agent, for payment, 1
   or more evidences or records of transactions made by an access
   device;";



   (2) in subsection (c)(1) by striking "(a)(2) or (a)(3)" and inserting
   "(a) (2), (3), (5), (6), or (7)"; and



   (3) in subsection (e)-



   (A) by striking "and" at the end of paragraph (5);



   (B) by striking the period at the end of paragraph (6) and inserting
   "; and"; and



   (C) by adding at the end the following new paragraph:



   "(7) the term 'credit card system member' means a financial
   institution or other entity that is a member of a credit card system,
   including an entity, whether affiliated with or identical to the
   credit card issuer, that is the sole member of a credit card system.".




   SEC. 250008. INFORMATION NETWORK.



   (a) Hotline .-The Attorney General shall, subject to the availability
   of appropriations, establish a national toll-free hotline for the
   purpose of-



   (1) providing general information on telemarketing fraud to interested
   persons; and



   (2) gathering information related to possible violations of this Act.



   (b) Action on Information Gathered .-The Attorney General shall work
   in cooperation with the Federal Trade Commission to ensure that
   information gathered through the hotline shall be acted on in an
   appropriate manner.