Judiciary Committee Announces Plan to Fight Fraud and Protect Taxpayers

WASHINGTON (DC) – Today, House Judiciary Committee Chairman John Conyers, Jr.(D-Mich.) announced that the Committee will consider a variety of initiatives to increase vigilance and accountability of taxpayer dollars by preventing and combating fraud, including misuse of taxpayer funds that have been, or will be, expended as part of the government’s economic recovery activities since the Fall of 2008.   Hearings are expected to occur during the week of March 30, 2009.

Initiatives under consideration by the Committee as part of this review are expected to include:

• Ensuring effective investigation and prosecution, including effective and severe penalties, for fraud committed in the expenditure of economic stimulus funding
• Allowing the government to recover federal funds from subcontractors who defraud government contractors
• Updating the federal fraud and corruption statutes to bring them in line with modern technology and financial practices
• Examining the work of federal mortgage fraud task forces and supporting federal, state, and local white collar crime initiatives 
• Closing the "Enron loophole" that prevents prosecutions of fraudulent unregulated off-exchange commodities transactions
• Prohibiting war profiteering and certain fraud schemes involving defense contracts
• Reviewing fraud or misuse of government funds provided to the financial services industry
• Authorizing appropriations for additional Department of Justice personnel to investigate fraud and prosecute public corruption offenses
• Protecting Americans from the growing and evolving crime of identity theft and consumer fraud
• Investigating the mortgage loan defaults and foreclosures involving material misrepresentation, false pretenses, or actual fraud by borrowers, lenders,and other entities
• Establishing oversight procedures to ensure transparency and accountability in the use of taxpayer dollars to fund government programs—including programs that have been found to be ineffective; counter-productive; or unable to pass financial audits

"The recent financial crisis has underscored the need to intensify our efforts to fight fraud and protect taxpayers," said Conyers.  "I am committed to providing the law enforcement community every tool and resource they need to investigate and prosecute financial predators."

"As we work to find bipartisan solutions to the economic crisis, Congress must help restore faith in our financial system by addressing fraud and abuse," said Lamar Smith (R-Tex.), Judiciary Committee Ranking Republican. "The American people must be reassured that our financial system is sound and their money is safe.  This hearing will help us determine what tools law enforcement officials need to prevent fraud and ensure a secure financial market for investment."

Judiciary Crime Subcommittee Chairman Bobby Scott (D-Va.) added, "It is my view that to fully protect law-abiding taxpayers from criminal conduct, it is essential that appropriate resources be dedicated to meet the challenges of investigating and prosecuting fraud, whether it is mortgage fraud, financial fraud, identity theft or contracting fraud."