Miscellaneous Laws and Income Opportunities Financial Institutions There are quite a few laws pertaining to financial institutions: too many to list each and every one in this book. Instead, just remember that when anyone, in one way or another, violates any banking laws there are rewards for information leading to the prosecution of lawbreakers. For example: Title 18 USCS 3059(a) Special Rewards for Information Relating to Certain Financial Institution Offenses. (a)(1) In special circumstances and in the Attorney General's sole discretion, the Attorney General may make payments to persons who furnish information unknown to the government relating to a possible prosecution under section 215, 287, 656, 657, 1001, 1005, 1006, 1007, 1014, 1032, 1341, 1343, or 1344 of this title affecting a depository institution insured by the Federal Deposit Insurance Corporation or any other agency or entity of the United States, or to a possible prosecution for conspiracy to commit such an offense. (2) The amount of payment under paragraph (1) shall not exceed $50,000 and shall be paid from the Financial Institution Information Award Fund under section 2569 of the Financial Institutions Anti-Fraud Enforcement Act of 1990 [12: USCS 4209]. (b) A person is not eligible for a payment under this section (a) if -- " (1) The person is a current or former officer or employee of a Federal or State government agency or instrumentality who furnishes information discovered or gathered in the course of his government employment; (2) the furnished information 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, from any other government source, or from the news media unless the person is the original source of the information; (3) the person is an institution-affiliated party (as defined in section 3(u) of the Federal Deposit Insurance Act, 12 USC 1813(u) which withheld information during the course of any bank examination or investigation authorized pursuant to section 10 of such Act (12 USC 1820) who such party owed a fiduciary duty to disclose; (4) the person is a member of the immediate family of the individual whose activities are the subject to the declaration or where in the discretion of the Attorney General, it appears the individual could benefit from the award; or (5) the person knowingly participated in the violation of this section with respect to which the payment would be made. (c) For the purpose of this subsection (b)(2), the term "original source" means a person who has direct and independent knowledge of the information on which the allegations are based and has voluntarily provided the information to the government prior to the disclosure. (d) Neither the failure of the Attorney General to authorize a payment nor the amount authorized shall be subject to judicial review. * * * * * * (Comment: The remainder of this law pertains to anyone who is threatened, harassed or fired from his job as a result of the disclosure, is entitled to reinstatement with back pay, etc. If the reader is in this category, look up full text of the law for details.) And, as with many laws, legislators make a generous offer to make it sound good, and then put vague strings on the payment so they can take it away. Section (d) means if you provide the information you may or may not get paid, and if you don't, there's nothing you can do about it. Conclusion: Use other laws when there are other rewards available, or be sure to get a promise of a reward in writing. Currency and Foreign Transactions Reporting Act. To control the flow of drug-related profits to and from the U.S.A., and to control the flow of profits from any other criminal enterprise from and to the United States, there is a law that limits the amount of cash imported or exported. Anyone who violates the reporting requirements of the follow- ing law is subject to harsh penalties. And, anyone who provides information leading to their prosecution may receive a reward. * * * * * * Title 31 USCS 5316 Reports on Exporting and Importing Monetary Instruments (A) Except as provided in subsection (c) of this section, a person or an agent or bailee of the person shall file a report under subsection (b) of this section when the person, agent or bailee knowingly -- (1) transports or has transported monetary instrument of more than $5,000 at one time -- (a) from a place in the United States to or through a place outside the United States; or (b) to a place in the United States from or through a place outside of the United States; or (2) receives monetary instruments of more than $5,000 at one time transported into the United States from or through a place outside of the United States. (B) A report under this section shall be filed at the time and place the Secretary of the Treasury prescribes. The report shall contain the following information to the extent the Secretary of the Treasury prescribes: (1) the legal capacity in which the person filing the report is acting. (2) the origin, destination, and route of the monetary instruments. (3) when the monetary instruments are not legally and beneficially owned by the person transporting the instruments personally is not going to use them, the identity of the person that gave the instruments to the person transporting them, the identity of the person who is to receive them, or both. (4) the amount and kind on monetary instruments transported. (5) additional information. (C) This section or a regulation under this section does not apply to a common carrier of passengers when a passenger possesses a monetary instrument, or to a common carrier of goods if the shipper does not declare the instrument. * * * * * ** Comment: the last provision means the common carrier is not held responsible for the violations of this law by passengers. The above law pertains to "persons". There is another law (31 USCS 5321) that provides civil penalties to financial institutions and officers and directors for failing to comply with the reporting requirements. * * * * * * Title 31 USCS 5322 Criminal Penalties (a) A person willfully violating this subchapter [31 USCS 5311 et seq] or a regulation prescribed under this subchapter [31 USCS 5311 et seq] (except section 5315 of this title [ 31 USCS 5315] or a regulation prescribed under sections 5315 shall be fined not more than $1,000, imprisoned for not more than one year, or both. (b) A person willfully violating this subchapter [31 USCS 5311 et seq] or a regulation prescribed under this subchapter [31 USCS 5311 et seq] (except section 5315 of this title [ 31 USCS 5315] or a regulation prescribed under sections 5315, while violating another law of the United States or as part of a pattern of illegal activity involving transactions of more than $100,000 in a 12-month period, shall be fined not more than $500,000, imprisoned for not more than five years, or both. (c) For a violation of section 5318(2) of this title [31 USCS 5318(2)] or a regulation prescribed under section 5318(2), a separate violation occurs for each day the violation continues and at each office, branch, or place of business at which a violation occurs or continues. * * * * * * Title 31 USCS 5323 Money and Finance. (Reward) (a) The Secretary may pay a reward to an individual who provides original information which leads to a recovery of a criminal fine, civil penalty or forfeiture, which exceeds $50,000, for a violation of this chapter. (b) The Secretary shall determine the amount of a reward under this section. The Secretary may not award more than 25 per centum of the net amount of the fine, penalty, or forfeiture collected or $150,000, whichever is less. (c) An officer or employee of the United States, a State, or a local government who provides information described in subsection (a) in the performance of official duties is not eligible for a reward under this section." * * * * * * Food and Drug Administration (FDA) The Generic Drug Enforcement Act of 1991 should put some teeth into the FDA's control over false advertising and swindling by generic drug makers. A recent news article mentioned that many makers of generic drugs (mainly medical suppliers) are touted as good as or better than name brands and advertised and marketed as such when they're not. People who buy them (mostly seniors) are not only short-changed but their health, pain, and suffering may be adversely affected too. The new bill, if it becomes law (and it probably will) will pay rewards up to $250,000. Companies convicted of falsification of reports, lying, or bribery of FDA officials to get their products approved could be fined up to $250,000 each. Workers at such chemical companies and independent chemists should be on the alert. If you know of any false claims or skullduggery by Generic drug manufacturers, or false and misleading advertising claims, blow the whistle on the perps. You don't have to wait until this bill becomes law. RICO laws and Qui Tam also apply. Always negotiate for 50% of the huge fines and forfeitures. Rewards that say "up to" should be interpreted as "maybe." When a reward law says 50 percent, it means 50 percent. Look for and use those laws that state a specific amount -- when you have a choice. * * * * * * U.S. Securities & Exchange Commission "Section 21A(e) of the Securities Exchange Act of 1934 ("Exchange Act") Title 15 USCS 78u-1(e) authorizes the Securities and Exchange Commission ("Commission") to award a bounty to a person who provides information leading to the recovery of a civil penalty from an insider trader, from a person who "tipped" information to an insider trader, or from a person who directly or indirectly controlled an insider trader." Comment: "Insider trading" generally refers to buying and selling a security (stocks and bonds of corporations) in breach of a fiduciary duty or other relationship of trust and confidence while in possession of any material or nonpublic information about the security. Insider tipping violations may also include "tipping" such information, securities trading by the person "tipped" (the recipient of nonpublic, insider information) and securities trading by those who misappropriate (steal) the information. Generally, people who violate this law are corporate officers and directors who are privileged to know in advance certain corporate plans before they are publicly announced. But "insiders" could include employees of the firm who might be privy to the confidential information, lawyers, accountants, engineers, business consultants who are part of the decision making group, or outsiders who may accidentally, or through illegal means, obtain such insider information. Anyone having this insider knowledge could purchase or sell large numbers of shares in the company in anticipation of their increase or decrease in value after public disclosure of the confidential information. To allow that would encourage manipulation of the stock market where a few people could take unfair advantage of the public who bought and sold shares on the open market without the same privileged information. In the vernacular of politicians, that's not playing on a level playing field. If inside trading were allowed it would undermine the confidence in the stock market, which is essential to business and world commerce. Accordingly, insider trading is illegal and punishable by very large fines -- often in the millions of dollars. The Commission is permitted to make bounty awards from the civil penalties that are actually recovered from violators. Except for employees of the Commission or Justice Department, any person who provides information leading to the imposition of a civil penalty may be paid a bounty. However, the total amount of bounties that may be paid from a civil penalty may not exceed 10% of that penalty. Insider trading on publicly traded stocks and bonds ar usually in the megabuck range. Fines and forfeitures are scaled in direct proportion. Ten percent of a $5 million fine is still a very nice $500,000! For more information on this law, and how and where to submit the information and application for the reward, write to the Office of the Secretary, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549 (Use Qui Tam law and this law, or Qui Tam and RICO laws and prosecute the case yourself to protect your interests from a D.A.'s plea bargaining.) * * * * * * 22: USCS 401 Illegal exportation of war material (a) Seizure and forfeiture of materials and carriers. Whenever an attempt is made to export or ship from or take out of the United States any arms or munitions of war or other articles in violation of law, or whenever it is known or there shall be probable cause to believe that any arms or munitions of war or other articles are intended to be or are being or have been exported or removed from the United States in violation of law, the Secretary of the Treasury, or any person duly author- ized for the purpose by the President, may seize and detain such arms or munitions of war or other articles and may seize and detain any vessel, vehicle, or aircraft containing the same or which have been or is being used in exporting or attempting to export such arms or munitions of war or other articles. All arms or munitions of war and other articles, vessels, vehicles, and aircraft seized pursuant to this sub section shall be forfeited. (b) Applicability of laws relating to seizure, forfeiture, and condemnation, All provisions of law relating to seizure, summary and judicial forfeiture and condemnation for violation of the customs laws, the disposition of the property forfeited or condemned or the proceeds from the sale thereof; the remission or mitigation of such forfeitures; and the compromise of claims and the award of compensation to informers in respect of such forfeitures shall apply to seizures and forfeitures incurred, or alleged to have incurred, under the provisions of this section, insofar as applicable and not inconsistent with the provisions hereof. Awards of compensation to informers under this section may be paid only out of funds specifically appropriated therefore. (c) Disposition of forfeited materials. Arms and munitions of war forfeited under subsection (b) of this section shall be delivered to the Secretary of Defense for such use or disposition as he may deem in the public interest, or in the event that the Secretary of Defense refuses to accept such arms and munitions of war, they shall be sold or otherwise disposed of as prescribed under existing laws in the case of forfeitures for violation of the customs laws. (Last amendment Aug. 13, 1953) * * * * * * Comment: The awards to informers mentioned above, are 25%, and authorized by Title 19, Section 1619. If the contraband items are on a ship or aircraft and outward bound, Customs agents may be the ones to notify. Check with the FBI first via a partial confidential disclosure to see if they're interested. If not, contact Customs agents and after negotiating for a reward, give them the full (original) disclosure. * * * * * * Government & Military There are a few minor reward laws that are offered by the Military forces for recovery of stolen material and equipment. Most of them are piddly amounts (by RICO standards) and not worth listing in detail this book. Remember, there are more generous Federal rewards relating to the same criminal activity. Title 18: 3059 can pay as much or more than the Armed Forces offer. And, a criminal prosecution with a civil suit will probably obtain more financial rewards/awards than the Military would pay. Atomic Weapons 50 USCS Section 47a Reward for information concerning specified violations of nuclear material or atomic weapons. "Any person who furnishes original information to the United States- (a) leading to the finding or other acquisition by the United States of special nuclear material or an atomic weapon which has been introduced into the United States or manufactured or acquired therein contrary to the laws of the United States, or (b) with respect to the introduction or attempted introduction into the United States or the manufacture or acquisition or attempted manufacture or acquisition of, or a conspiracy to introduce into the United States or to manufacture or acquire, special nuclear material or an atomic weapon contrary to the laws of the United States, or (c) with respect to the export or attempted export, or a conspiracy to export, special nuclear material or an atomic weapon from the United States contrary to the laws of the United States, shall be rewarded by the payment of an amount not to exceed $50,000." Oil and Gas Leases 30 USCS Section 1723 Reward for information leading to recovery of oil and gas revenues due under oil and gas lease on federal lands. "Where amounts representing royalty or other payments owed to the United States with respect to any oil and gas lease on Federal lands or the Outer Continental Shelf are recovered pursuant to any action taken by the Secre- tary under this Act as a result of information provided to the Secretary by any person, the Secretary is authorized to pay to such person an amount equal to not more than 10% of such recovered amounts. The preceding sentence shall not apply to information provided by an officer or employee of the United States, an officer or employee of a State or Indian tribe acting pursuant to a cooperative agreement or delegation under this Act, or any person acting pursuant to a contract authorized by this Act." Indian Related Laws "18 USCS 3113 Reward for information concerning Liquor violations in Indian Country. If any superintendent of Indian Affairs, or commanding officer of a military post, or special agent of the Office of Indian Affairs for the suppression of liquor traffic among Indians and in the Indian country and any authorized deputies under his supervision has probable cause to believe that any person is about to introduce or has introduced any spirituous liquor, beer, wine or other intoxicating liquors named in sections 1154 and 1156 of this title into the Indian country in violation of law, he may cause the places, conveyances, and packages of such person to be searched. If any such intoxicating liquor is found therein, the same, together with such conveyances and packages of such person, shall be seized and delivered to the proper officer, and shall be proceeded against by libel in the proper court, and forfeited, one-half to the informer and one-half to the use of the United States. If such person be a trader, his license shall be revoked and his bond put in suit. Any person in the service of the United States authorized by this section to make searches and seizures, or any Indian may take and destroy any ardent spirits or wine found in the Indian country, except such as are kept or used for scientific, sacramental, medicinal, or mechanical purposes or such as may be introduced therein by the Department of the Army. In all cases arising under this section and sections 1154 and 1156 of this title, Indians shall be competent witnesses." * * * * * * Privately Funded Rewards from Businesses Convenience stores such as 7-11, and ARCO am-pm stores have a sticker on their stores' windows and doors offering rewards up to $25,000 for information leading to the conviction of robbers. Banks and financial institutions also pay rewards for information on robbers and pay up to $25,000. Security Guard firms, such as Pinkertons, Burns, Wells Fargo, and similar companies who transport cash and securities in armored trucks, also offer large rewards for recovery and/or convictions. Insurance companies, especially those who sell policies on personal possessions (jewelry, furs, stamp collections, etc.), and life insurance, are interested in recovering the property or proving fraudulent intent on insurance claims. Most large insurance firms have full-time investigators. They are also known to pay rewards up to 50% of the insurance claim. Keep that in mind if you know of any fraud that uses insurance as a means to collect money. Arson is the main insurance fraud, auto "theft" is another high volume insurance fraud. If you want leads, contact the insurance company's fraud investigators, and be a free-lance insurance fraud investigator. (A license may be required if you solicit private investigator business from the public.) You may be able to collect from the insurance company if you provide them with the information first. But reserve the (Qui Tam) right to be the prosecutor under RICO civil and criminal suits, or get a written guarantee that you will receive similar benefits from RICO laws if they want their lawyers to do the legal work. F9 for next Chapter