Subtitle G-Authorizations

SEC. 2559. ADDITIONAL FUNDING FOR INVESTIGATORS AND PROSECU-
TORS FOR BANK CRIME CASES.

(a) ADDITIONAL APPROPRIATION FOR DEPARTMENT OF JUSTICE.— Section 966(a) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (103 Stat. 506) is amended to read as follows:

"(a) IN GENERAL.—

“(1) AUTHORIZATION.-There is authorized to be appropriated to the Attorney General, without fiscal year limitation, $162,500,000 for each of fiscal years 1991 through 1993, for purposes of investigations, prosecutions, and civil proceedings involving financial institutions to which the Act and amendments made by this Act apply.

"(2) ALLOCATIONS.-With respect to fiscal years 1991 and 1992, the amount authorized to be appropriated under paragraph (1) shall be allocated as follows:

"(A) Federal Bureau of Investigation: $78,300,000.

"(B) The offices of the United States attorneys: $65,000,000.

"(C) The criminal division of the Department of Justice: $8,800,000.

"(D) The civil division of the Department of Justice: $7,000,000.

"(E) The tax division of the Department of Justice: $3,400,000.".

(b) ADDITIONAL APPROPRIATIONS FOR THE INTERNAL REVENUE SERVICE.-There is authorized to be appropriated to the Internal Revenue Service, Department of the Treasury, $16,000,000 for fiscal year 1991 for investigation of violations of the Internal Revenue Code of 1986, and related statutes, involving insured depository institutions.

(c) ADDITIONAL FUNDS FOR THE FEDERAL JUDICIARY.-Section 967 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (103 Stat. 506) is amended to read as follows:

“SEC. 967. AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR THE FEDERAL JUDICIARY.

"(a) IN GENERAL.-There are authorized to be appropriated to the Federal court system $25,000,000 for fiscal year 1991 and $28,000,000 for each of fiscal years 1992 and 1993 to carry out such system's duties under this Act.".

Subtitle H-Actions Against Persons
Committing Bank Fraud Crimes

SEC. 2560. SHORT TITLE.

This subtitle may be cited as the "Financial Institutions AntiFraud Enforcement Act of 1990".

Financial

Institutions
Anti-Fraud
Enforcement

Act of 1990.

12 USC 4201 note.

12 USC 4201.

12 USC 4202.

12 USC 4203.

CHAPTER 1-DECLARATIONS PROVIDING NEW CLAIMS TO
THE UNITED STATES

SEC. 2561. FILING OF CONFIDENTIAL DECLARATIONS BY PRIVATE PER-
SONS.

(a) IN GENERAL.-Any person may file a declaration of a violation giving rise to an action for civil penalties under section 951 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 affecting a depository institution insured by the Federal Deposit Insurance Corporation or any other agency or entity of the United States.

(b) PLACE OF FILING.-A declaration under subsection (a) shall be filed with the Attorney General of the United States or with an agent designated by the Attorney General for receiving declarations under this section.

SEC. 2562. CONTENTS OF DECLARATIONS.

A declaration filed pursuant to section 2561 shall

(1) set forth the name and address of the declarant and the basis for the declarant's knowledge of the facts alleged;

(2) allege under oath or affirmation specific facts, relating to a particular transaction or transactions, which constitute a prima facie case of a violation giving rise to an action for civil penalties under section 951 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 affecting a depository institution insured by the Federal Deposit Insurance Corporation or any other agency or entity of the United States;

(3) contain at least 1 new factual element necessary to establish a prima facie case that was unknown to the Government at the time of filing; and

(4) set forth all facts supporting the allegation of a violation described in paragraph (2) known to the declarant, along with the names of material witnesses and the nature and location of documentary evidence known to the declarant.

SEC. 2563. CONFIDENTIALITY OF DECLARATIONS.

(a) PERIOD OF CONFIDENTIALITY.-A declarant and the declarant's agents shall not disclose the existence or filing of a declaration filed pursuant to section 2561 until

(1) the declarant receives notice that the Attorney General has concluded that an action should not be pursued under section 2566(b);

(2) the declarant receives notice of an award pursuant to section 2566(c); or

(3) the declarant is granted a contract to pursue an action under section 2565(b) or 2567.

(b) MAINTENANCE OF CONFIDENTIALITY TO PREVENT PREJUDICE.—(1) Notwithstanding any other law, the contents of a declaration shall not be disclosed by the declarant if the disclosure would prejudice or compromise in any way the completion of any government investigation or any criminal or civil case that may arise out of, or make use of, information contained in a declaration, but information contained in a declaration may be disclosed as required by duly issued and authorized legal process.

(2) The Attorney General may in a circumstance described in paragraph (1) notify a declarant that continued confidentiality is

required under this subsection notwithstanding paragraph (1) or (2) of subsection (a).

(c) LOSS OF RIGHTS.-A declarant who discloses, except as provided by this title, the existence or filing of a declaration or the contents thereof to anyone other than a duly authorized Federal or State investigator or the declarant's attorney shall immediately lose all rights under this chapter.

SEC. 2564. INELIGIBILITY TO FILE VALID DECLARATIONS.

(a) IN GENERAL.-A declaration filed pursuant to section 811 and in accordance with sections 2562 and 2563 is valid unless

(1) the declaration is filed by a current or former officer or employee of a Federal or State government agency or instrumentality who discovered or gathered the information in the declaration, in whole or in part, while acting within the course of the declarant's government employment;

(2) the declaration is filed by a person who knowingly participated in the violation of section 1517 of title 18, United States Code, or any of the sections of title 18, United States Code, referred to in section 951(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, or any other fraudulent conduct with respect to which the declaration is made;

(3) the declaration is filed by an institution-affiliated party (as defined in section 3(u) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(u)) who withheld information during the course of any bank examination or investigation authorized pursuant to section 10 of such Act (12 U.S.C. 1820) which such party owed a fiduciary duty to disclose;

(4) the declaration is filed by a member of the immediate family of the individual whose activities are the subject of the declaration or where, in the discretion of the Attorney General, it appears the individual could benefit from the award; or (5) the declaration consists of allegations or transactions that have been disclosed to a member of the public in a criminal, civil, or administrative proceeding, in a congressional, administrative, or General Accounting Office report, hearing, audit or investigation, by any other government source, or by the news media, unless the person providing the declaration is the original source of the information.

(b) DEFINITION.-For the purposes of subsection (a)(5), the term "original source" means a person who has direct and independent knowledge of the information contained in the declaration and who voluntarily provided the information to the government prior to the disclosure.

(c) NOTICE OF INVALIDITY.-If the Attorney General determines at any time that a declaration is invalid under this section, that a declaration fails to meet the requirements of section 2562, or that a declaration has been disclosed in violation of section 2563, the Attorney General shall notify the person who filed the declaration in writing that the declaration is invalid, and the declarant shall not enjoy any of the rights of the declarant listed in section 2565 or 2566.

12 USC 4204.

12 USC 4205.

SEC. 2565. RIGHTS OF DECLARANTS; PARTICIPATION IN ACTIONS,
AWARDS.

(a) IN GENERAL.-A person who has filed a declaration that meets the requirements of sections 2561 through 2564 shall have the rights stated in this section.

(b) CIVIL ACTION.-If the Attorney General determines that a cause of action referred to in section 2561 based on the declaration should be referred to private counsel pursuant to chapter 4, the declarant, after consultation with the Attorney General, shall have the right to select counsel to prosecute the action, and the declarant and the declarant's counsel shall act in accordance with chapter 4. (c) CRIMINAL CONVICTION.-(1) When the United States obtains a criminal conviction and the Attorney General determines that the conviction was based in whole or in part on the information contained in a valid declaration filed under section 2561, the declarant shall have the right to receive not less than $5,000 and not more than $100,000, any such award to be paid from the Financial Institution Information Award Fund established under section 2569.

(2) In determining the size of any award under paragraph (1), the Attorney General may, in the Attorney General's discretion, consider any appropriate factor, including

(A) the seriousness of the offense for which the conviction was obtained;

(B) the extent to which the facts alleged in the declaration contributed to the conviction;

(C) the number of offenders apprehended pursuant to information provided by the declarant;

(D) whether or not the offender was previously under investigation by any law enforcement agency when the declaration was filed;

(E) the extent to which the declarant cooperated in the development of the Government's case and its presentation at trial; (F) the sentences and fines imposed on the offender and other offenders in related cases;

(G) the extent to which other sources of private information were relied upon; and

(H) the hardship to the declarant and any expenses the declarant incurred in preparing the declaration.

(d) SHARE OF FUNDS AND ASSETS.-(1) When the United States acquires funds or assets pursuant to the execution of a judgment, order, or settlement and the Attorney General determines that the judgment, order, or settlement was based in whole or in part on the information contained in a valid declaration filed under section 2561, the declarant shall have the right to share in the recovery as follows:

(A)(i) The declarant shall be entitled to 20 percent to 30 percent of any recovery up to the first $1,000,000 recovered, 10 percent to 20 percent of the next $4,000,000 recovered, and 5 percent to 10 percent of the next $5,000,000 recovered.

(ii) In calculating an award under clause (i), the Attorney General may consider the size of the overall recovery and the usefulness of the information provided by the declarant.

(B) When a declarant has received an award under subsection (c), the Attorney General may subtract the amount of that reward from any recovery under this subsection.

(2)(A) When more than 1 declarant has provided information leading to a recovery under this subsection, the Attorney General shall first calculate the size of the total award under paragraph (1)(A) and then distribute that amount according to the contribution made by each declarant.

(B) In distributing any such award between 2 or more declarants, the Attorney General may, in the Attorney General's discretion, consider any appropriate factor.

(e) PROHIBITION OF DOUBLE AWARDS.—(1) No person shall receive both an award under this section and a reward under either section 34 of the Federal Deposit Insurance Act or section 3509A of title 18, United States Code, for providing the same or substantially similar information.

(2) When a person qualifies for both an award under this section and a reward under either section 34 of the Federal Deposit Insurance Act or section 3509A of title 18, United States Code, for providing the same or substantially similar information, the person may notify the Attorney General in writing of the person's election to seek an award under this section or a reward under such other section.

(f) APPROPRIATE FEDERAL BANKING AGENCY EXCEPTION.-For purposes of this section, funds or assets acquired by the United States shall not include any funds or assets acquired by any appropriate Federal banking agency acting in any capacity or the Resolution Trust Corporation acting in any capacity, except for any civil money penalties recovered by a Federal banking agency through a final judgment, order or settlement.

SEC. 2566. RIGHTS OF DECLARANTS; NOTIFICATIONS; GOVERNMENT 12 USC 4206. ACCOUNTABILITY.

(a) IN GENERAL.-A person who has filed a declaration that meets the requirements of sections 2561 through 2564 shall have the rights stated in this section.

(b) NOTICE OF DECISION NOT TO PURSUE.-If, after review, the Attorney General concludes that the information contained in a declaration should not be pursued in a civil or criminal proceeding, the Attorney General shall so notify the declarant in writing and shall provide a brief statement of the reasons that the declaration will not be pursued.

(c) JUDGMENT, ORDER, OR SETTLEMENT.-(1) When the United States obtains a judgment, order, or settlement based in whole or in part on a valid declaration filed under section 2561, the Attorney General shall notify the declarant in writing of such fact.

(2) A notice described in paragraph (1) shall contain

(A) the Attorney General's determination of the amount of the award due the declarant under subsection (c) or (d) of section 2565 upon recovery by the United States; and

(B) a short statement of reasons for the amount of the award. (d) NOTICE OF PENDENCY OF INVESTIGATION OR PROCEEDING.-If the Attorney General has not provided the declarant with notice under subsection (b) or a notice of invalidity pursuant to section 2564 within the time period set forth in subsection (e), the Attorney General shall notify the declarant in writing that—

(1) there is a pending investigation or proceeding in the course of which the declarant's allegations are being addressed; or (2) the declarant's allegations have not yet been addressed.