TITLE XXV-SENIOR CITIZENS AGAINST MARKETING SCAMS SEC. 250001. SHORT TITLE. This Act may be cited as the "Senior Citizens Against Act of 1994". SEC. 250002. ENHANCED PENALTIES FOR TELEMARKETING FRAUD. (a) Offense .-Part I of title 18, United States Code, is amended- (1) by redesignating chapter 113A as chapter 113B; and (2) by inserting after chapter 113 the following new chapter: "CHAPTER 113A-TELEMARKETING FRAUD "Sec. "2325. Definition. "2326. Enhanced penalties. "2327. Mandatory restitution. " 2325. Definition "In this chapter, 'telemarketing'- "(1) means a plan, program, promotion, or campaign that is conducted to induce- "(A) purchases of goods or services; or "(B) participation in a contest or sweepstakes, by use of 1 or more interstate telephone calls initiated either by a person who is conducting the plan, program, promotion, or campaign or by a prospective purchaser or contest or sweepstakes participant; but "(2) does not include the solicitation of sales through the mailing of a catalog that- "(A) contains a written description or illustration of the goods or services offered for sale; "(B) includes the business address of the seller; "(C) includes multiple pages of written material or illustration; and "(D) has been issued not less frequently than once a year, if the person making the solicitation does not solicit customers by telephone but only receives calls initiated by customers in response to the catalog and during those calls take orders without further solicitation. " 2326. Enhanced penalties "A person who is convicted of an offense under section 1028, 1029, 1341, 1342, 1343, or 1344 in connection with the conduct of telemarketing- "(1) may be imprisoned for a term of up to 5 years in addition to any term of imprisonment imposed under any of those sections, respectively; and "(2) in the case of an offense under any of those sections that- "(A) victimized ten or more persons over the age of 55; or "(B) targeted persons over the age of 55, may be imprisoned for a term of up to 10 years in addition to any term of imprisonment imposed under any of those sections, respectively. " 2327. Mandatory restitution "(a) In General .-Notwithstanding section 3663, and in addition to any other civil or criminal penalty authorized by law, the court shall order restitution for any offense under this chapter. "(b) Scope and Nature of Order .- "(1) Directions .-The order of restitution under this section shall direct that- "(A) the defendant pay to the victim (through the appropriate court mechanism) the full amount of the victim's losses as determined by the court, pursuant to paragraph (3); and "(B) the United States Attorney enforce the restitution order by all available and reasonable means. "(2) Enforcement by victim .-An order of restitution may be enforced by a victim named in the order to receive the restitution as well as by the United States Attorney, in the same manner as a judgment in a civil action. "(3) Definition .-For purposes of this subsection, the term 'full amount of the victim's losses' means all losses suffered by the victim as a proximate result of the offense. "(4) Order mandatory .-(A) The issuance of a restitution order under this section is mandatory. "(B) A court may not decline to issue an order under this section because of- "(i) the economic circumstances of the defendant; or "(ii) the fact that a victim has, or is entitled to, receive compensation for his or her injuries from the proceeds of insurance or any other source. "(C)(i) Notwithstanding subparagraph (A), the court may take into account the economic circumstances of the defendant in determining the manner in which and the schedule according to which the restitution is to be paid. "(ii) For purposes of this subparagraph, the term 'economic circumstances' includes- "(I) the financial resources and other assets of the defendant; "(II) projected earnings, earning capacity, and other income of the defendant; and "(III) any financial obligations of the defendant, including obligations to dependents. "(D) Subparagraph (A) does not apply if- "(i) the court finds on the record that the economic circumstances of the defendant do not allow for the payment of any amount of a restitution order, and do not allow for the payment of any or some portion of the amount of a restitution order in the foreseeable future (under any reasonable schedule of payments); and "(ii) the court enters in its order the amount of the victim's losses, and provides a nominal restitution award. "(5) More than 1 offender .-When the court finds that more than 1 offender has contributed to the loss of a victim, the court may make each offender liable for payment of the full amount of restitution or may apportion liability among the offenders to reflect the level of contribution and economic circumstances of each offender. "(6) More than 1 victim .-When the court finds that more than 1 victim has sustained a loss requiring restitution by an offender, the court shall order full restitution of each victim but may provide for different payment schedules to reflect the economic circumstances of each victim. "(7) Payment schedule .-An order under this section may direct the defendant to make a single lump- sum payment or partial payments at specified intervals. "(8) Setoff .-Any amount paid to a victim under this section shall be set off against any amount later recovered as compensatory damages by the victim from the defendant in- "(A) any Federal civil proceeding; and "(B) any State civil proceeding, to the extent provided by the law of the State. "(9) Effect on other sources of compensation .-The issuance of a restitution order shall not affect the entitlement of a victim to receive compensation with respect to a loss from insurance or any other source until the payments actually received by the victim under the restitution order fully compensate the victim for the loss. "(10) Condition of probation or supervised release .-Compliance with a restitution issued under this section shall be a condition of any probation or supervised release of a defendant. The court may revoke probation or a term of supervised release, modify the terms or conditions of probation or a term of supervised release, hold the defendant in contempt pursuant to section 3583(e), or suspend the offender's eligibility for any grant, contract, loan, professional license, or commercial license provided by an agency of the United States or with appropriated funds of the United States if the defendant fails to comply with the order. In determining whether to revoke probation or a term of supervised release, modify the terms or conditions of probation or supervised release or hold a defendant serving a term of supervised release in contempt, the court shall consider the defendant's employment status, earning ability and financial resources, the willfulness of the defendant's failure to comply, and any other circumstances that may have a bearing on the defendant's ability to comply. "(c) Proof of Claim .- "(1) Affidavit .-Within 60 days after conviction and, in any event, not later than 10 days prior to sentencing, the United States Attorney (or the United States Attorney's delegee), after consulting with the victim, shall prepare and file an affidavit with the court listing the amounts subject to restitution under this section. The affidavit shall be signed by the United States Attorney (or the United States Attorney's delegee) and the victim. Should the victim object to any of the information included in the affidavit, the United States Attorney (or the United States Attorney's delegee) shall advise the victim that the victim may file a separate affidavit and shall provide the victim with an affidavit form which may be used to do so. "(2) Objection .-If, after the defendant has been notified of the affidavit, no objection is raised by the defendant, the amounts attested to in the affidavit filed pursuant to paragraph (1) shall be entered in the court's restitution order. If objection is raised, the court may require the victim or the United States Attorney (or the United States Attorney's delegee) to submit further affidavits or other supporting documents, demonstrating the victim's losses. "(3) Additional documentation and testimony .-If the court concludes, after reviewing the supporting documentation and considering the defendant's objections, that there is a substantial reason for doubting the authenticity or veracity of the records submitted, the court may require additional documentation or hear testimony on those questions. The privacy of any records filed, or testimony heard, pursuant to this section shall be maintained to the greatest extent possible, and such records may be filed or testimony heard in camera. "(4) Final determination of losses .-If the victim's losses are not ascertainable by the date that is 10 days prior to sentencing as provided in paragraph (1), the United States Attorney (or the United States Attorney's delegee) shall so inform the court, and the court shall set a date for the final determination of the victim's losses, not to exceed 90 days after sentencing. If the victim subsequently discovers further losses, the victim shall have 60 days after discovery of those losses in which to petition the court for an amended restitution order. Such order may be granted only upon a showing of good cause for the failure to include such losses in the initial claim for restitutionary relief. "(d) Modification of Order .-A victim or the offender may petition the court at any time to modify a restitution order as appropriate in view of a change in the economic circumstances of the offender. "(e) Reference to Magistrate or Special Master .-The court may refer any issue arising in connection with a proposed order of restitution to a magistrate or special master for proposed findings of fact and recommendations as to [*H8850] disposition, subject to a de novo determination of the issue by the court. "(f) Definition .-For purposes of this section, the term 'victim' includes the individual harmed as a result of a commission of a crime under this chapter, including, in the case of a victim who is incompetent, incapacitated, or deceased, the legal guardian of the victim or representative of the victim's estate, another family member, or any other person appointed as suitable by the court, but in no event shall the defendant be named as such representative or guardian.". (b) Technical Amendments .- (1) Part analysis .-The part analysis for part I of title 18, United States Code, is amended by striking the item relating to chapter 113A and inserting the following: "113A. Telemarketing fraud 2325 "113B. Terrorism 2331". (2) Chapter 113b .-The chapter heading for chapter 113B of title 18, United States Code, as redesignated by subsection (a)(1), is amended to read as follows: "CHAPTER 113B-TERRORISM". SEC. 250003. INCREASED PENALTIES FOR FRAUD AGAINST OLDER VICTIMS. (a) Review .-The United States Sentencing Commission shall review and, if necessary, amend the sentencing guidelines to ensure that victim related adjustments for fraud offenses against older victims over the age of 55 are adequate. (b) Report .-Not later than 180 days after the date of enactment of this Act, the Sentencing Commission shall report to Congress the result of its review under subsection (a). SEC. 250004. REWARDS FOR INFORMATION LEADING TO PROSECUTION AND CONVICTION. Section 3059 of title 18, United States Code, is amended by adding at the end the following new subsection: "(c)(1) In special circumstances and in the Attorney General's sole discretion, the Attorney General may make a payment of up to $ 10,000 to a person who furnishes information unknown to the Government relating to a possible prosecution under section 2326 which results in a conviction. "(2) A person is not eligible for a payment under paragraph (1) if- "(A) the person is a current or former officer or employee of a Federal, State, or local government agency or instrumentality who furnishes information discovered or gathered in the course of government employment; "(B) the person knowingly participated in the offense; "(C) the information furnished by the person consists of an allegation or transaction that has been disclosed to the public- "(i) in a criminal, civil, or administrative proceeding; "(ii) in a congressional, administrative, or General Accounting Office report, hearing, audit, or investigation; or "(iii) by the news media, unless the person is the original source of the information; or "(D) when, in the judgment of the Attorney General, it appears that a person whose illegal activities are being prosecuted or investigated could benefit from the award. "(3) For the purposes of paragraph (2)(C)(iii), the term 'original source' means a person who has direct and independent knowledge of the information that is furnished and has voluntarily provided the information to the Government prior to disclosure by the news media. "(4) Neither the failure of the Attorney General to authorize a payment under paragraph (1) nor the amount authorized shall be subject to judicial review.". SEC. 250005. AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated for the purposes of carrying out this Act and the amendments made by this Act- (1) for the Federal Bureau of Investigation to hire, equip, and train special agents and support staff to investigate telemarketing fraud cases- (A) $ 750,000 for fiscal year 1996; (B) $ 1,500,000 for fiscal year 1997; (C) $ 1,500,000 for fiscal year 1998; (D) $ 1,800,000 for fiscal year 1999; and (E) $ 1,950,000 for fiscal year 2000; (2) to hire, equip, and train Department of Justice attorneys, assistant United States Attorneys, and support staff to prosecute telemarketing fraud cases- (A) $ 250,000 for fiscal year 1996; (B) $ 500,000 for fiscal year 1997; (C) $ 500,000 for fiscal year 1998; (D) $ 600,000 for fiscal year 1999; and (E) $ 650,000 for fiscal year 2000; and (3) for the Department of Justice to conduct, in cooperation with State and local law enforcement agencies and senior citizen advocacy organizations, public awareness and prevention initiatives for senior citizens, such as seminars and training- (A) $ 1,000,000 for fiscal year 1996; (B) $ 2,000,000 for fiscal year 1997; (C) $ 2,000,000 for fiscal year 1998; (D) $ 2,500,000 for fiscal year 1999; and (E) $ 2,500,000 for fiscal year 2000. SEC. 250006. BROADENING APPLICATION OF MAIL FRAUD STATUTE. Section 1341 of title 18, United States Code, is amended- (1) by inserting "or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier," after "Postal Service,"; and (2) by inserting "or such carrier" after "causes to be delivered by mail". SEC. 250007. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH ACCESS DEVICES. Section 1029 of title 18, United States Code, is amended- (1) in subsection (a)- (A) by striking "or" at the end of paragraph (3); and (B) by inserting after paragraph (4) the following new paragraphs: "(5) knowingly and with intent to defraud effects transactions, with 1 or more access devices issued to another person or persons, to receive payment or any other thing of value during any 1-year period the aggregate value of which is equal to or greater than $ 1,000; "(6) without the authorization of the issuer of the access device, knowingly and with intent to defraud solicits a person for the purpose of- "(A) offering an access device; or "(B) selling information regarding or an application to obtain an access device; or "(7) without the authorization of the credit card system member or its agent, knowingly and with intent to defraud causes or arranges for another person to present to the member or its agent, for payment, 1 or more evidences or records of transactions made by an access device;"; (2) in subsection (c)(1) by striking "(a)(2) or (a)(3)" and inserting "(a) (2), (3), (5), (6), or (7)"; and (3) in subsection (e)- (A) by striking "and" at the end of paragraph (5); (B) by striking the period at the end of paragraph (6) and inserting "; and"; and (C) by adding at the end the following new paragraph: "(7) the term 'credit card system member' means a financial institution or other entity that is a member of a credit card system, including an entity, whether affiliated with or identical to the credit card issuer, that is the sole member of a credit card system.". SEC. 250008. INFORMATION NETWORK. (a) Hotline .-The Attorney General shall, subject to the availability of appropriations, establish a national toll-free hotline for the purpose of- (1) providing general information on telemarketing fraud to interested persons; and (2) gathering information related to possible violations of this Act. (b) Action on Information Gathered .-The Attorney General shall work in cooperation with the Federal Trade Commission to ensure that information gathered through the hotline shall be acted on in an appropriate manner.