Conyers, Hon. John, Jr., a Representative in Congress from the State of
Michigan, and chairman, Subcommittee on Criminal Justice ......

1

Blakey, Prof. G. Robert, Notre Dame University School of Law, Notre Dame,

IN.........

WITNESSES

79

Burke, Edward J., on behalf of John E. Washburn, director, Department of

Insurance for the State of Illinois.

646

Don, Michael E., deputy general counsel and secretary, Securities Investor
Protection Corp., Washington, DC.

310

Ehrenbard, Robert, Esq., New York, NY, on behalf of the Greyhound Corp.......
Eppenstein, Theodore G., attorney of record for investor respondents in
Shearson/American Express v. McMahon

696

247

Feigin, Philip A., assistant securities commissioner, Division of Securities,

Denver, CO, on behalf of the North American Securities Administrators

Association.....

211

Gilbert, Pamela, Esq., U.S. Public Interest Research Group and Public Citi-

zen's Congress Watch, Washington, DC..

662

Hanburg, Marshall E., General Counsel, Commodity Futures Trading Com-

mission, Washington, DC..............

182

Keeney, John C., Acting Assistant Attorney General, U.S. Department of

Justice

Long, James E., insurance commissioner for the State of North Carolina

Montague, H. Laddie, Esq., Berger & Montague, P.C., Philadelphia, PA

Nader, Ralph, Esq., Center for the Study of Responsive Law, Washington, DC.

Skirnick, Robert A., Esq., Kaplan, Kilsheimer & Foley, New York, NY.

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARINGS
Blakey, Prof. G. Robert, Notre Dame University School of Law, Notre Dame,
IN: Prepared statement.......

Boucher, Hon. Rick, a Representative in Congress from the State of Virginia:
Information concerning civil RICO cases.....

604

Burke, Edward J., on behalf of John E. Washburn, director, Department of
Insurance for the State of Illinois: Prepared statement.............

649

(III)

Page

Conyers, Hon. John, Jr., a Representative in Congress from the State of

Michigan, and chairman, Subcommittee on Criminal Justice:

Comparative analysis, S. 1523, H.R. 4923, and H.R. 4920......

Library of Congress, Congressional Research Service Studies:

Airline Ticket Fraud.....

Arson for Profit: Legal Analysis...........

Arson for Profit: Techniques, Scope and Impact............

Bank Fraud...

Fraud Against Insurance Companies

Fraud By Insurance Companies.....

Fraud in Defense Procurement...

Money Laundering: Legal Analysis ......

Record, Tape and Film Piracy and Counterfeiting

Securities and Commodities Fraud

White Collar Crime: The Problem and the Federal Response..

325

574

523

535

450

598

584

549

461

503

480

350

White Collar Crime: The Problem and the Federal Response Update

330

Don, Michael E., deputy general counsel and secretary, Securities Investor
Protection Corp., Washington, DC: Prepared statement.....

313

Ehrenbard, Robert, Esq., New York, NY, on behalf of the Greyhound Corp:

Prepared statement

Eppenstein, Theodore G., attorney of record for investor respondents in

Shearson/American Express v. McMahon: Prepared statement.

Feigin, Philip A., assistant securities commissioner, Division of Securities,

Denver, CO, on behalf of the North American Securities Administrators

Association: Prepared statement.

703

258

214

Gilbert, Pamela, Esq., U.S. Public Interest Research Group, Washington, DC:

Prepared statement..........

666

Hanburg, Marshall E., General Counsel, Commodity Futures Trading Com-

mission, Washington, DC: Prepared statement......

184

Keeney, John C., Acting Assistant Attorney General, U.S. Department of

Justice: Prepared statement............

611

Long, James E., insurance commissioner for the State of North Carolina:

Prepared statement

639

Montague, H. Laddie, Esq., Berger & Montague, P.C., Philadelphia, PA: Pre-

pared statement.........

730

Skirnick, Robert A., Esq., Kaplan, Kilsheimer & Foley, New York, NY: Pre-

pared statement..

750

Waldman, Michael, legislative director, Public Citizen's Congress Watch,

Washington, DC.............

666

APPENDIX

Material submitted for the hearings record

769

RICO REFORM

THURSDAY, APRIL 9, 1987

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON CRIMINAL JUSTICE,

COMMITTEE ON THE JUDICIARY,

Washington, DC.

The subcommittee met, pursuant to notice, at 10:20 a.m., in room

2226, Rayburn House Office Building, Hon. John Conyers, Jr.

(chairman of the subcommitte) presiding.

Present: Representatives Conyers, Edwards, and Gekas.

Staff present: Thomas W. Hutchison, counsel; Raymond V.

Smietanka, associate counsel; Bennie Williams, clerk; and Cara

Goldberg, staff assistant.

OPENING STATEMENT OF CHAIRMAN CONYERS

Mr. CONYERS. Good morning. The subcommittee will come to

order and we are very delighted to begin the 100th Congress with a

continuation of one of the more important subject matters that

came before this subcommittee in the 99th Congress. We continue

the consideration of the civil provisions of the Racketeer Influenced

and Corrupt Organizations chapter of the Federal Criminal Code,

more commonly known as RICO. It was enacted in 1970 as a part

of the Organized Crime Control Act, and the Congress drafted the

offense in a very broad manner in order to give the Department of

Justice the strongest possible tools with which to fight organized

crime.

[The bills, H.R. 3240, H.R. 2983, H.R. 4920, and H.R. 4923, follow:]

I

100TH CONGRESS

1ST SESSION

H.R. 3240

To amend chapter 96 of title 18, United States Code, relating to racketeering

influenced and corrupt organizations, to create a new offense for fraudulent

activity, and to restructure the civil claims procedures.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 9, 1987

Mr. CONYERS (for himself and Mr. EDWARDS of California) introduced the

following bill; which was referred to the Committee on the Judiciary

A BILL

To amend chapter 96 of title 18, United States Code, relating

to racketeering influenced and corrupt organizations, to

create a new offense for fraudulent activity, and to restruc-

ture the civil claims procedures.

1

Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4

This Act may be cited as the "Racketeer Influenced and

2

1 SEC. 2. NEW OFFENSE FOR FRAUDULENT ACTIVITY.

2

(a) NEW PREDICATE OFFENSES.-Section 1961 of title

3 18, United States Code, is amended by striking out para

4 graph (1) and inserting in lieu thereof the following:

5

6

7

8

9

10
11.

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

"(1) 'racketeering activity' means (A) any act involving murder, kidnapping, prostitution involving minors, gambling, arson, robbery, bribery, extortion, dealing in obscene matter, or dealing in narcotic or other dangerous drugs, which is chargeable under State law and punishable by imprisonment for more than one year; (B) any act which is indictable under any of the following provisions of title 18, United States Code: chapter 51 (homicide), chapter 73 (obstruction of justice), and chapter 110 (sexual exploitation of children), section 32 (relating to destruction of aircraft facilities), section 81 (relating to arson), section 112 (relating to protection of foreign officials and other persons), section 115 (relating to assaults and other acts against Federal and other persons), section 201 (relating to bribery), section 215 (relating to bank brib

ery), section 224 (relating to sports bribery), section 373 (relating to solicitation to commit a crime of violence), sections 471, 472, and 473 (relating to counterfeiting), section 511 (relating to forgery of State and other securities), section 659 (relating to theft from interstate shipment) if the act indictable under section