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: Arson for Profit: Legal Analysis. Arson for Profit: Techniques, Scope and Impact. 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..... Ehrenbard, Robert, Esq., New York, NY, on behalf of the Greyhound Corp: Eppenstein, Theodore G., attorney of record for investor respondents in 549 461 503 480 350 330 313 Feigin, Philip A., assistant securities commissioner, Division of Securities, Denver, CO, on behalf of the North American Securities Administrators 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 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 [The bills, H.R. 3240, H.R. 2983, H.R. 4920, and H.R. 4923, follow:] To amend chapter 96 of title 18, United States Code, relating to racketeering influenced and corrupt organizations, to create a new offense for fraudulent IN THE HOUSE OF REPRESENTATIVES Mr. CONYERS (for himself and Mr. EDWARDS of California) introduced the following bill; which was referred to the Committee on the Judiciary 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- 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: "(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 bribery), 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 3 659 is a felony, section 664 (relating to embezzlement from pension and welfare funds), section 666 (relating to theft or bribery in benefit programs), section 831 (relating to prohibited transactions involving nuclear material), section 844 (relating to explosive materials), section 875 (relating to interstate communications), section 876 (relating to mailing threatening communications), section 877 (relating to mailing threatening communications from foreign countries), section 878 (relating to threats), sections 891-894 (relating to extortionate credit transactions), section 929 (relating to restricted ammunition), section 1084 (relating to the transmission of gambling information), section 1203 (involving hostage taking), section 1362 (relating to communications lines), section 1363 (relating to build ings), section 1364 (relating to foreign commerce), section 1365 (relating to energy facility) sections 1461 1465 (relating to obscene matter), section 1951 (relating to interference with commerce, robbery, or extor tion), section 1952 (relating to racketeering), section 1952A (relating to murder-for-hire), section 1952B (relating to violent crime in aid of racketeering), section 1953 (relating to interstate transportation of wagering paraphernalia), section 1954 (relating to unlawful welfare fund payments), section 1955 (relating to the pro |