1 3 (5) The term "person" means any individual, and any 2 partnership, corporation, association, or other legal entity. 3 (6) The term "income" means any income which is 4 required by the Internal Revenue Code of 1954 to be re5 ported as such for purposes of income taxation. 6 (7) The term “intentionally unreported income" means 7 any income of any person which is subject to income taxation 8 under the provisions of the Internal Revenue Code of 1954, 9 but which with intent to evade the requirements of such 10 code is not reported by such person as income within the 11 time prescribed by such code. 13 SEC. 2. (a) Whoever, being a person who has received 14 any income derived directly or indirectly from any criminal 15 activity in which such person has participated as a principal 16 within the meaning of section 2, title 18, United States Code 17 applies any part of such income or the proceeds of any such 18 income to the acquisition by or on behalf of such person of 19 legal title to or any beneficial interest in any of the assets, 20 liabilities, or capital of any business enterprise which is 21 2 2 2 22 engaged in, or the activities of which affect, interstate or foreign commerce shall be guilty of a felony and shall be 23 fined not more than $10,000, or imprisoned not more than 4 1 (b) Whoever, being a director, officer, or agent of a cor2 poration who has authorized, ordered, or performed any act 3 which constitutes in whole or in part a violation of sub4 section (a) by such corporation, shall be guilty of a misdemeanor and shall be fined not more than $5,000, or im6 prisoned not more than one year, or both. 5 7 (c) Whoever (1) invests directly or indirectly any in 8 tentionally unreported income derived by such person from 9 a proprietary interest in any business enterprise in any pecu10 niary interest in any other business enterprise which is en11 gaged in, or the activities of which affect, interstate or foreign 12 14 15 16 17 commerce, or (2) uses any such income to establish or operate any such other business enterprise, shall be fined not more than $10,000, or imprisoned for not more than ten years, or both. INJUNCTIONS SEC. 3. (a) The district courts of the United States 18 shall have jurisdiction to prevent and restrain violations of 19 section 2. 20 (b) Under the direction of the Attorney General, it 21 shall be the duty of United States attorneys, in their respec 22 23 tive districts, to institute proceedings to prevent and restrain such violations. In any action by the United States under 24 this section, the court shall proceed as soon as may be to the 25 hearing and determination thereof. Pending final determina 5 1 tion thereof, the court may at any time enter such temporary 2 restraining order or prohibition as it shall deem proper. 3 (c) Any person (other than the United States) may 4 institute action under this section, in any district court of the 5 United States having jurisdiction over the parties, to prevent 6 and restrain threatened loss or damage to such person from a 7 violation of section 2. In any such action, relief shall be 8 granted in conformity with the principles which govern the 9 granting of injunctive relief from threatened loss or damage 10 in other cases. Upon the execution of proper bond against 11 damages for an injunction improvidently granted and a show12 ing of immediate danger of irreparable loss or damage, a pre13 liminary injunction may be issued in any such action before 14 a determination thereof upon its merits. 16 SEC. 4. (a) Any person who is injured in his busi17 ness or property by reason of any violation of section 2 may 18 institute a civil action in a district court of the United 19 States, without regard to the amount in controversy, and 20 shall recover threefold the damages sustained by him, and 21 the cost of the action, including a reasonable attorney's fee. 22 22 (b) Whenever the United States is injured in its busi 23 ness or property by reason of any violation of section 2, 24 it may institute a civil action in a district court of the 30-902 O-69-4 6 1 United States, without regard to the amount in contro 2 versy, and shall recover the actual amount of the damages 3 sustained, and the cost of the action. 4 (c) Except as otherwise provided by section 5, any 5 action under this section shall be barred unless it is com 6 menced within four years after the cause of action accrued. 7 8 EFFECT OF JUDGMENTS SEC. 5. (a) A final judgment or decree entered in any 9 civil or criminal proceeding instituted by the United States 10 under this Act to the effect that a defendant has violated 11 section 2 of this Act shall be prima facie evidence against 12 such defendant, in any action brought by any other party 13 against such defendant under this Act, as to all matters with respect to which such judgment or decree would be an 14 15 estoppel as between the parties thereto. This subsection 16 shall not apply to any consent judgment or decree entered 17 18 19 20 21 22 23 24 25. before any testimony has been taken, or to any judgment or decree entered in an action under section 4 (b). (b) Whenever any civil or criminal action (other than an action under section 4 (b)) is instituted by the United States to prevent, restrain, or punish any violation of section 2, the running of the period of limitations prescribed by section 4 (c) with respect to any private right of action arising under this Act which is based in whole or in part on any matter complained of in such action by the United States 7 1 shall be suspended during the pendency of such action by the 2 United States and for one year thereafter. Whenever the 3 running of such period of limitations is so suspended with 4 respect to any right of action arising under section 4 (a), 5 action thereon shall be barred unless it is commenced within 6 such period of suspension or within four years after the 7 accrual of the cause of action. 9 SEC. 6. (a) Except as otherwise specifically provided 10 by this Act, any civil or criminal action or proceeding under 11 this Act against any person may be instituted in the district 12 court of the United States for any district in which such person resides, is found, or has an agent, and any such action 13 14 15 16 17 18 or proceeding against a corporation also may be instituted in such court for any district in which such corporation transacts business. (b) In any action under section 3 (b) of this Act in any district court of the United States in which it is shown. 19 that the ends of justice require that other parties residing in 20 any other district be brought before the court, the court may 21 cause such parties to be summoned, and process for that pur 22 pose may be served in any judicial district of the United 23 States by the marshal thereof. 24 25 (c) In any civil or criminal action or proceeding insti tuted by the United States under this Act in the district court |