If, however, the offense, the commission of which is the object of the conspiracy, is a misdemeanor only, the punishment for such conspiracy shall not exceed the maximum punishment provided for such misdemeanor. June 25, 1948, c. 645, 62 Stat. 701. HISTORICAL AND REVISION NOTES Reviser's Note. Based on Title 18, U.S.C., 1940 ed., §§ 88, 294 (Mar. 4, 1909. c. 321, $37, 35 Stat. 1096 [derived from R.S. § 5440]; Mar. 4, 1909, c. 321, § 178a, as added Sept. 27, 1914, c. 425, 58 Stat. 752). This section consolidates said sections 88 and 294 of Title 18 U.S.C., 1940 ed. To reflect the construction placed upon said section 88 by the courts the words "or any agency thereof" were inserted. (See Haas v. Henkel, 1909, 30 S.Ct. 249. 216 U.S. 412, 54 L.Ed. 569, 17 Ann.Cas. 1112, where court said: "The statute is broad enough in its terms to include any conspiracy for the purpose of impairing, obstructing, or defeating the lawful functions of any department of government." Also, see United States v. Walter, 1923, 44 S.Ct. 10, 263 U.S. 15, 68 L.Ed. 137, and definitions of department and agency in section 6 of this title.) The punishment provision is completely rewritten to increase the penalty from 2 years to 5 years except where the object of the conspiracy is a misdemeanor. If the object is a misdemeanor, the maximum imprisonment for a conspiracy to commit that offense. under the revised section, cannot exceed 1 year. The injustice of permitting a felony punishment on conviction for conspiracy to commit a misdemeanor is described by the late Hon. Grover M. Moscowitz. United States district judge for the eastern district of New York, in an address delivered March 14. 1944, before the section on Federal Practice of the New York Bar Association, reported in 3 Federal Rules Decisions, pages 380-392. Hon. John Paul, United States district judge for the western district of Virginia, in a letter addressed to Congressman Eugene J. Keogh dated January 27, 1944, stresses the inadequacy of the 2-year sentence prescribed by existing law in cases where the object of the conspiracy is the commission of a very serious offense. The punishment provision of said section 294 was considered for inclusion in this revised section. It provided the same penalties for conspiracy to violate the provisions of certain counterfeiting laws, as are applicable in the case of conviction for the specific violations. Such a punishment would seem as desirable for all conspiracies as for such offenses as counterfeiting and transporting stolen property in interstate commerce. A multiplicity of unnecessary enactments inevitably leads to confusion and disregard of law. (See reviser's note under section 493 of this title.) Since consolidation was highly desirable and because of the strong objections of prosecutors to the general application of the punishment provision of said section 294. the revised section represents the best compromise that could be devised between sharply conflicting views. A number of special conspiracy provisions, relating to specific offenses, which were contained in various sections incorporated in this title, were omitted because adequately covered by this section. A few exceptions were made. (1) where the conspiracy would constitute the only offense, or (2) where the punishment provided in this section would not be commensurate with the gravity of the offense. Special conspiracy provisions were retained in sections 241, 286, 372, 757, 794, 956, 1201, 2271, 2384 and 2388 of this title. Special conspiracy provisions were added to sections 2153 and 2154 of this title. 80th Congress House Report No. 304. Canal Zone. Applicability of section to Canal Zone, see section 14 of this title. Legislative History Same as 18 U.S. Code 43. Judicial Interpretation of this Statute In United States v. Newton, 52 F. 275 (S.D. Iowa 1892), when charging the jury in a trial for violation of a statute which was a predecessor of § 371, the court said: "While knowledge of the commission of the unlawful acts may properly be take into consideration by the jury in connection with whatever facts or circumstances may be proven, to aid in determining whether or not any other person was connected with the defendant. Newton, as a participant in or a party to the alleged unlawful acts, if any such acts are proven, yet such mere knowledge, without more, by another person, that is, knowledge that defendant, Newton, was attempting to defraud the United States, (if you find the evidence shows he was so attempting to defraud,)-would not make such other person a party to the acts. The proof must go further. Knowledge of the attempt must combine with an intent to defraud. If Mr. Oxford or any other person knew that defendant, Newton, was doing any act with intent to defraud the United States, and having such knowledge aided in doing those acts, assisted defendant, Newton, in the commission of the acts, if any such were being committed, (the intent wherein was to defraud the United States,) and in so assisting intended to aid the defendant in carrying out such intent, then I say to you, that Mr. Oxford, or such other person as the proof may show, by thus participating while having such knowledge, becomes and is in law a party to a conspiracy to so defraud” at 282. CHAPTER 25-COUNTERFEITING AND FORGERY § 486. UTTERING COINS OF GOLD, SILVER OR OTHER METAL Whoever, except as authorized by law, makes or utters or passes, or attempts to utter or pass, any coins of gold or silver or other metal, or alloys of metals, intended for use as current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design, shall be fined not more than $3,000 or imprisoned not more than five years, or both. June 25, 1948, c. 645, 62 Stat. 709. HISTORICAL AND REVISION NOTES Reviser's Note. Based on Title 18, U.S.C., 1940 ed., § 281 (Mar. 4, 1909, c. 321, § 167, 35 Stat. 1120 [Derived from R.S. § 5461]). Reference to persons causing or procuring was omitted as unnecessary in view of definition of "principal" in section 2 of this title. Changes were made in phraseology, 80th Congress House Report No. 304. Canal Zone. Applicability of section to Canal Zone, see section 14 of this title. Legislative History Same as 18 U.S. Code 43. Judicial Interpretation of this Statute In Anchorage Centennial Development Co. v. Van Wormer & Rodriques, Inc. -Alaska443 P. 2nd 596 (1968), an action for breach of contract to buy coins manufactured for a city celebration where the defendant contended that it (as buyer of coins) did not have to perform as the subject matter of the contract was illegal under 18 U.S. Code 486, 491 (a), the court said: "In essence, we affirm the trial court's ruling that before the contract could be declared illegal under either section 486 or 491 (a), the commission had the burden of persuading the court, as trier of fact, that Van Wormer either intended, or had knowledge that the commission intended, that the coins in question be used as "current money" at 597. 8491. TOKENS OR PAPER USED AS MONEY (a) Whoever, being 18 years of age or over, not lawfully authorized, makes, issues, or passes any coin, card, token, or device in metal, or its compounds, intended to be used as money, or whoever, being 18 years of age or over, with intent to defraud, makes, utters, inserts, or uses any card, token, slug, disk, device, paper, or other thing similar in size and shape to any of the lawful coins or other currency of the United States or any coin or other currency not legal tender in the United States, to procure anything of value, or the use or enjoyment of any property or service from any automatic merchandise vending machine, postage-stamp machine, turnstile, fare box, coinbox telephone, parking meter or other lawful receptacle, depository, or contrivance designed to receive or to be operated by lawful coins or other currency of the United States, shall be fined not more than $1,000, or imprisoned not more than one year, or both. (b) Whoever manufactures, sells, offers, or advertises for sale, or exposes or keeps with intent to furnish or sell any token, slug, disk, device, paper, or other thing similar in size and shape to any of the lawful coins or other currency of the United States, or any token, disk, paper, or other device issued or authorized in connection with rationing or food and fiber distribution by any agency of the United States, with knowledge or reason to believe that such tokens, slugs, disks, devices, papers, or other things are intended to be used unlawfully or fraudulently to procure anything of value, or the use or enjoyment of any property or service from any automatic merchandise vending machine, postage-stamp machine, turnstile, fare box, coin-box telephone, parking meter, or other lawful receptacle, depository, or contrivance designed to receive or to be operated by lawful coins or other currency of the United States shall be fined not more than $1,000 or imprisoned not more than one year, or both. Nothing contained in this section shall create immunity from criminal prosecution under the laws of any State, Commonwealth of Puerto Rico, territory, possession, or the District of Columbia. (c) "Knowledge or reason to believe", within the meaning of paragraph (b) of this section, may be shown by proof that any law enforcement officer has, prior to the commission of the offense with which the defendant is charged, informed the defendant that tokens, slugs, disks, or other devices of the kind manufactured, sold, offered, or advertised for sale by him or exposed or kept with intent to furnish or sell, are being used unlawfully or fraudulently to operate certain specified automatic merchandise vending machines, postage-stamp machines, turnstile, fare boxes, coin-box telephones, parking meters, or other receptacles, depositories, or contrivances, designed to receive or to be operated by lawful coins of the United States. June 25, 1948, c. 645, 62 Stat. 710; Sept. 19, 1962, Pub.L. 87-667, 76 stat 555. HISTORICAL AND REVISION NOTES Reviser's Note. Based on Title 18, U.S.C., 1940 ed., §§ 282, 282a (Mar. 4, 1909, c. 321. § 168, 35 Stat. 1120 [Derived from R.S. § 5462], and § 168a as added Apr. 1, 1944, c. 151, 58 Stat. 149). Mandatory punishment provision in subsection (a) was rephrased in the alternative. Sections were consolidated and changes were made in phraseology. Reference to persons causing or procuring was omitted as unnecessary in view of definition of "principal" in section 2 of this title. Punishment provision in paragraph (a) of 5 years was changed to 1 year to make the offense a misdemeanor as was done in paragraph (b) of this section, which represents the latest expression of the intention of Congress. See definition of felony and misdemeanor in section 1 of this title and note thereunder. In paragraph (b) the $3,000 fine was reduced to $1,000 to conform to paragraph (a) and as more in keeping with the gravity of offense. 80th Congress House Report No. 304. 1962 Amendment. Subsec. (a). Pub.L. 87-667 inserted "being 18 years of age or over," preceding "not lawfully authorized", and "or whoever, being 18 years of age or over, with intent to defraud, makes, utters, inserts, or uses any card, token, slug, disk. device, paper, or other thing similar in size and shape to any of the lawful coins or other currency of the United States or any coin or other currency not legal tender in the United States, to procure anything of value, or the use or enjoyment of any property or service from any automatic merchandise vending machine, postagestamp machine, turnstile, fare box, coinbox telephone, parking meter or other lawful receptacle. depository, or contrivance designed to receive or to be operated by lawful coins or other currency of the United States," and deleted "for any 1-cent, 2-cent, 3-cent, or 5-cent piece, authorized by law, or for coins of equal value" which followed "intended to be used as money." Subsec. (b), Pub. L. 87-667 substituted "device, paper, or other thing similar" for "device similar", "paper, or other device issued or authorized in connection with rationing or food and fiber distribution" for "or other devices issued or authorized in connection with rationing", and "devices, papers, or other things are intended to be used unlawfully for "or other devices may be used unlawfully", inserted "or other currency" preceding "of the United States" in two places, and "lawful" preceding "receptacle, depository", and provided that nothing in this section shall create immunity from criminal prosecution under the laws of any State, Commonwealth of Puerto Rico, territory, possession, or the District of Columbia. Canal Zone. Applicability of section to Canal Zone, see section 14 of this title. Legislative History. For legislative history and purpose of Pub.L. 87-667, see 1962 U.S.Code Cong. and Adm.News, p. 2581. Legislative History Except for the 1962 amendment, noted supra, the legislative history of this section is the same as that of 18 U.S. Code 43., Judicial Interpretation of this Statute Same as that of 18 U.S. Code 486. CHAPTER 25 COUNTERFEITING AND FORGERY § 494. CONTRACTORS' BONDS, BIDS AND PUBLIC RECORDS Whoever falsely makes, alters, forges, or counterfeits any bond, bid, proposal, contract, guarantee, security, official bond, public record, affidavit, or other writing for the purpose of defrauding the United States; or Whoever utters or publishes as true or possesses with intent to utter or publish as true, any such false, forged, altered, or counterfeited writing knowing the same to be false, forged, altered, or counterfeited; or Whoever transmits to, or presents at any office or to any officer of the United States, any such false, forged, altered, or counterfeited writing, knowing the same to be false, forged, altered, or counterfeited Shall be fined not more than $1,000 or imprisoned not more than ten years, or both. June 25, 1948, c. 645, 62 Stat. 711. HISTORICAL AND REVISION NOTES Reviser's Note. Based on Title 18, U.S.C., 1940 ed., § 72 (Mar. 4, 1909, c. 321, § 28, 35 Stat. 1094 [Derived from R.S. §§ 5418, 5479]). Reference to persons causing, procuring, aiding or assisting was omitted as unnecessary as such persons are made principals by section 2 of this title. Changes were made in Phraseology. 80th Congress House Report No. 304. Legislative History Same as 18 U.S. Code 43. Judicial Interpretation of this Statute Predecessors of this statute have been interpreted as not requiring that the Federal jurisdictional base be proven as a culpable element of proscribed conduct and also as requiring it to be proven as such. In United States v. Hall, 58 F. Supp. 772 (E.D.N.Y. 1944), in a prosecution for violation of 18 U.S. Code 72 (1940 ed.), it was stated: "It is the defendant's contention that he had no intention of defrauding the United States in forging these prescriptions and uttering the same. He admits that the prescriptions were filled by a druggist and that he received the narcotic drugs. The crime is complete. The law infers the intent to defraud from the defendant's acts" at 773. In an earlier case, based upon earlier statutes preceding § 494, the Federal jurisdictional base was apparently held to be a culpable element of the crime. The court stated, in Staton v. United States, 88 F. 253 (8th Cir. 1898): "We think it clear, therefore, that the indictment must be regarded as based on sections 5418 and 5479 of the Revised Statutes, rather than on section 5421; that the element of intent was involved in the issue; and that the accused was entitled to have the jury determine, it being one of the necessary ingredients of the offense charged in the bill, whether he had been actuated with an intent to defraud the United States" at 255. $495. CONTRACTS, DEEDS, AND POWERS OF ATTORNEY Whoever falsely makes, alters, forges, or counterfeits any deed, power of attorney, order, certificate, receipt, contract or other writing for the purpose of obtaining or receiving, or of enabling any other person, either directly or indirectly, to obtain or receive from the United States or any officers or agents thereof, any sum of money; or Whoever utters or publishes as true any such false, forged, altered, or counterfeited writing, with intent to defraud the United States, knowing the same to be false, altered, forged, or counterfeited; or Whoever transmits to, or presents at any office or officer of the United States, any such writing in support of, or in relation to, any account or claim, with intent to defraud the United States, knowing the same to be false, altered, forged, or counterfeited Shall be fined not more than $1,000 or imprisoned not more than ten years, or both. June 25, 1948, c. 645, 62 Stat. 711. HISTORICAL AND REVISION NOTES Reviser's Note. Based on Title 18, U.S.C., 1940, ed., § 73 (Mar. 4, 1909, c. 321, § 29. 35 Stat.1094 [Derived from R.S. § 5421]). Reference in first paragraph to persons causing, procuring, aiding or assisting was omitted as unnecessary as such persons are made principals by section 2 of this title. Mandatory punishment provision was rephrased in the alternative. Changes were made in phraseology. 80th Congress House Report No. 304. Canal Zone. Applicability of section to Canal Zone, see section 14 of this title. Legislative History Same as 18 U.S. Code 43. Judicial Interpretation of this Statute In United States v. Sonnenberg, 158 F. 2nd 911 (3rd Cir. 1946), the court said: in order that a conviction under Section 29 [18 U.S. Code 73 (Criminal Code § 29), 1940 ed. which was a predecessor of this § 43] be sustained, there must be found an intent to defraud the United States" [footnote omitted] at 915. The same judicial interpretation was manifested in Leonard v. United States, 324 F. 911 (9th Cir. 1963) and Walker v. United States, 342 F. 2nd 22 (5th Cir. 1965). $542. ENTRY OF GOODS BY MEANS OF FALSE STATEMENTS Whoever enters or introduces, or attempts to enter or introduce, into the commerce of the United States any imported merchandise by means of any fraudulent or false invoice, declaration, affidavit, letter, paper, or by means of any false statement, written or verbal, or by means of any false or fraudu 76-600-72-pt. 3—29 lent practice or appliance, or makes any false statement in any declaration without reasonable cause to believe the truth of such statement, or procures the making of any such false statement as to any matter material thereto without reasonable cause to believe the truth of such statement, whether or not the United States shall or may be deprived of any lawful duties; or Whoever is guilty of any willful act or omission whereby the United States shall or may be deprived of any lawful duties accruing upon merchandise embraced or referred to in such invoice, declaration, affidavit, letter, paper, or statement, or affected by such act or omission— Shall be fined for each offense not more than $5,000 or imprisoned not more than two years, or both. Nothing in this section shall be construed to relieve imported merchandise from forfeiture under other provisions of law. The term "commerce of the United States", as used in this section shall not include commerce with the Philippine Islands, Virgin Islands, American Samoa, Wake Island, Midway Islands, Kingman Reef, Johnston Island, or Guam. June 25, 1948, c. 645, 62 Stat. 715; June 30, 1955, c. 258, § 2(c), 69 Stat. 242. HISTORICAL AND REVISION NOTES Reviser's Note. Based on section 1591 of Title 19. U.S.C., 1940 ed., Custom's Duties (June 17, 1930, c. 497, Title IV, § 591, 46 Stat. 750; Aug. 5, 1935, c. 438, Title III, 304 (a), 49 Stat. 527). The reference in the first paragraph to persons aiding, contained in the phrase "or aids," was omitted as unnecessary as such persons are made principals by section 2 of this title. Words "upon conviction" before "be fined" were omitted as surplusage since punishment cannot be imposed until conviction is secured. Enumeration of persons at beginning of section and provision preserving forfeitures where authorized by law were omitted as surplusage. The fourth paragraph was added to the revised section to make clear the intent of Congress that forfeiture is an additional consequence independent of the criminal punishment. The final paragraph was added to conform with section_1709 of Title 19. References in Text. The Philippine Islands, referred to in the text. are now independent and known as the Republic of the Philippines. See section 1394 of Title 22. Foreign Relations and Intercourse, and 1946 Proc. No. 2695, set out as a note under that section. 1955 Amendment. Act June 30, 1955, inserted "Johnston Island". Effective Date of 1955 Amendment. Amendment of section by Act June 30, 1955 effective July 1, 1955, see note under section 1401 of Title 19, Customs Duties. Legislative History. For legislative history and purpose of Act June 30, 1955. see 1955 U.S.Code Cong. and Adm.News, p. 2303. Legislative History With the exception of the 1955 amendment, the legislative history of this section is the same as that of 18 U.S. Code 43. Judicial Interpretation of this Statute Predecessors of this statute have been interpreted as not requiring that the Federal jurisdictional base be proven as a culpable element of proscribed conduct and also as requiring it to be proven as such. In United States v. Fawcett, 86 F. 900 (C.C. S.D.N.Y. 1897), a prosecution for violation of the predecessor of that part of former section 1591 of Title 19 [now this section] relating to false statements, (Act 1890 § 6 repealed) it was stated: "I do not think an intent to defraud the United States is any essential ingredient of the offense constituted by section 6. The object of that section is to secure truthful declarations on the entries of merchandise, according to the actual fact; and to secure this, section 6 provides that any person who shall knowingly make any false statements in each declaration in any material matter shall be punished. The intent or object of the accused is not required to prove the particular intent; nor can the defendant's motive or object be a justification" at 902. Contrarily, it was held in United States v. Dixon, 7 F. Supp. 198 (S.D.N.Y. 1934) that when there was no revenue loss to the United States, there could be no offense without intent to deprive the United States of lawful revenue. (Tariff Act of 1930, § 591 [19 U.S.C.A. § 1591]). $545. SMUGGLING GOODS INTO THE UNITED STATES Whoever knowingly and willfully, with intent to defraud the United States, smuggles, or clandestinely introduces into the United States any merchandise which should have been involved, or makes out or passes, or attempts to pass, |