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U.S. Sen. Grassley: Anti-fraud legislation headed to president's desk
5/19/2009

For Immediate Release

Monday, May 18, 2009

Leahy-Grassley-Kaufman Anti-Fraud Legislation Clears Final Hurdle Headed To President’s Desk For Signature

WASHINGTON – Legislation to strengthen tools and increase resources available to federal prosecutors to combat fraud cleared a final hurdle in Congress Monday when the House of Representatives approved the Fraud Enforcement and Recovery Act. On May 14, the Senate unanimously passed the amended bipartisan legislation. The bill will now head to the President’s desk to be signed into law.

The Fraud Enforcement and Recovery Act (FERA) will help both to protect Americans from fraud and recover taxpayers’ money lost to fraud. The bill was introduced by Senators Patrick Leahy (D-Vt.), Chuck Grassley (R-Iowa), and Ted Kaufman (D-Del.) on February 5.

Leahy said, “The Fraud Enforcement and Recovery Act is a major step toward holding accountable those who have caused so much damage to our economy. It will also help protect our economic recovery efforts from the scourge of fraud. This is and has been bipartisan legislation. No one should want to see taxpayer money intended to fund economic recovery efforts diverted by fraud. No one should want to see those who engaged in mortgage fraud escape accountability. I look forward to the President signing this bill into law.”

Grassley said, “This legislation will send a message to those who have defrauded homeowners and mortgage lenders and will send an even stronger message to those who are thinking about committing a future fraud. It includes the most significant amendments to the False Claims Act since 1986, which will ensure that court decisions that limit the FCA are overturned and congressional intent is restored. Congress has done the right thing by passing this legislation, and I hope the president signs it as quickly as possible.”

Kaufman said, “For investors and the public to again have confidence in the financial markets, our law enforcement agents and prosecutors must have the resources and training they need to find, prosecute, and jail those who committed financial fraud. Those who illegally lined their pockets and left investors – and millions of Americans – with the devastating consequences, should pay the price. This bill will help get that job done, with real benefits for all those who participate in the financial markets and want them to be free and fair. I am proud that I could join with Senators Leahy and Grassley and that Congress would pass this important legislation.”

Reports of mortgage and corporate fraud are at an all-time high, and law enforcement expects a significant increase in fraud in connection with the economic recovery efforts. The Fraud Enforcement and Recovery Act will rebuild the nation’s capacity to investigate and prosecute the mortgage and corporate frauds that have undermined the economy and hurt working people.

* FERA provides resources for the Department of Justice, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the U.S. Secret Service, and the Inspector General for the Department of Housing and Urban Development to hire additional fraud agents, analysts, investigators, prosecutors, and support staff to combat fraud. * FERA makes important improvements to fraud and money laundering statutes to strengthen prosecutors’ ability to combat the growing wave of fraud. * FERA strengthens the False Claims Act, one of the best civil tools available to root out fraud in government. From 2000-2008, the Justice Department recovered more than $15 billion in fraud for the government using the False Claims Act. * Establishes a Financial Crisis Inquiry Commission to examine the domestic and global causes of the financial and economic crisis.

The bipartisan Fraud Enforcement and Recovery Act was cosponsored by nearly 30 senators, and has received the support of the Obama administration, the Department of Justice, the Federal Bureau of Investigation, the U.S. Secret Service, the U.S Postal Inspection Service, and the Inspector General of the Department of the Housing and Urban Development. The bill has also been endorsed by the Fraternal Order of Police, the Federal Law Enforcement Officers Association, the National Association of Assistant U.S. Attorneys, and Taxpayers Against Fraud.

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