Northeast Lawyer s Club

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1 rtheast Lawyer s Club Tax Fraud & Money Laundering Elliott Lieb, CFE Crescent Springs, KY (859) lieb@fuse.net 9/05/14

2 8/25/2014 rtheast Lawyers Club Criminal Tax Fraud s Evolution into Money Laundering Presented by: Elliott Lieb, CFE Lieb Consulting Crescent Springs, KY (859) lieb@fuse.net IRS - CI Jurisdiction IRS CI is the only agency with jurisdiction over Title 26 violations tax violations Title 31- Bank Secrecy Act Title 18 Money Laundering, Conspiracy, and Others Bankruptcy Fraud (if IRS is a creditor) Legal Source Tax Crimes Primary Focus Area legal industries and occupations legally earned income Fraud referrals - working closely with the IRS operating divisions to identify and refer fraud 1

3 8/25/2014 Illegal Source Financial Crimes Individuals who commit crimes for financial gain employ various illegal methods such as money laundering to disguise their illicit proceeds so they can benefit from their criminal activity Income derived from any source is taxable Money laundering crimes are directly related to and support tax administration Primary Tax Violations Enforced Statute Criminal Act 26 USC 7201 Tax Evasion 26 USC 7203 Failure to File 26 USC 7206(1) False Tax Return 26 USC 7206(2) Aiding in the Preparation of a False Return 18 USC 287 False Claims 18 USC 371 Conspiracy Cocaine The Movement of the Product 2

4 8/25/2014 Cocaine Movement of the Product Refiner/Manufacturer (Colombia) 300 Kilos Wholesaler (Miami via Bahamas) 300 Kilos Repackaged into 1 to 100 Kilo Lots Distributors (Major US Cities) Receives 300 Kilos steps to 42 ounces per kilo from 35 ounces (total of 12,600 ounces) Dealers/Consumers (Every City) Receives 12,600 ounces steps to 36 grams per ounce from 28 grams (total of 453,600 grams) Cocaine Revenue Refiner/Wholesaler(Kilos) Organization Revenue: $ 7,500, k, x $25,000 Costs: Refining $900,000 Pilot $900,000 Sales Commissions $600,000 $2,400,000 Gross Profit $5,100,000 3

5 8/25/2014 Distributors (Ounces) Revenue 12,600 oz. x $1,250 $15,750,000 Purchase Cost $ 7,500,000 Gross Profit $ 8,250,000 Dealers (Grams) Revenue 453,600 g x $100 $45,360,000 Purchase Cost $15,750,000 Gross Profit $29,610,000 Total Gross Profits 300 Kilo Shipment of Cocaine 12% 19% 69% Refiner Distributor Dealer Total Gross Profits = $42,960,000 4

6 8/25/ Cash for Drugs 6 Transportation of Cash 2 Transportation of Drugs 5 Cash Management Operating Expenses Conspicuous Consumption Conversions Investments Drugs for Cash 4 3 Drug Management Adulteration Conversion Distribution Bank Secrecy Act of 1970 Requirements CTR 31 USC USC 5324 (Structuring) CMIR 31 USC USC 5332 (Cash Smuggling) FBAR 31 USC 5314 MSB 31 USC 5330 SAR 31 CFR USC 5331 (also tax statutes) Bank Log 31 USC 5325 Financial Institutions 31 CFR Banks Securities Brokers Currency Exchanger Check Cashing Services Issuer of Money Orders Transmitter of Funds Telegraph Company Casinos U.S. Postal Service 5

7 8/25/2014 Drug Dealer Traditional Money Laundering Drug Dealer Loan statements, receipts, etc. Cayman Islands ABC Loan Co. Shell Corporation Caribbean Sea New Home Cayman Islands Bank Account Money Laundering Statutes Enforced Statute Criminal Act 18 USC 1956 a1 Domestic Money Laundering (Transaction) 18 USC 1956 a2 International Money Laundering (Transaction) 18 USC 1956 a3 Money Laundering Sting Operation 18 USC 1956 h Money Laundering Conspiracy 18 USC 1957 Money Laundering (Spending) 18 USC 1960 MSB Violations 18 USC 1956 Essentially, the Act made it a criminal violation to engage in financial transactions using the proceeds of a specified unlawful activity (SUA). 6

8 8/25/2014 Specified Unlawful Activity Federal Crimes State & Local Crimes Foreign Crimes SUA State Crimes Murder Kidnapping Gambling Arson Robbery Bribery Extortion Dealing in Obscene Matter Dealing in a Controlled Substance or Listed Chemical (as defined in 21 USC 802) SUA Foreign Crimes Drug Trafficking Bank Fraud Any Crime of Violence Bribery of a Public Official Misappropriation of Public Funds Smuggling Munitions or Technology Extraditable Treaty Offenses 7

9 8/25/ USC 1956 With intent to: promote activity Conceal (nature, source, location, ownership or control) avoid reporting requirements evade taxes Analysis of 1956 (a)(1) "Domestic Money Laundering Violation Money Proceeds of SUA? Known Proceeds of an Unlawful Activity? Conduct Financial Transaction Or Attempt to Conduct a Financial Transaction? Intending to Violate Any of Four Types of Prohibited Activity? Promote SUA? Conceal Nature, Source, Location, Ownership or Control of Proceeds of SUA Avoid Reporting Requirements Evade Taxes Would this be a money laundering violation under 1956 (a)(1)? An individual working for a utility company in Cincinnati steals construction materials on the job site then drives to Kentucky to sell those materials to another individual who pays him in cash. The cash is then used to purchase a new motorcycle which is titled and registered in his cousin s name. 8

10 8/25/2014 Analysis of 1956 (a)(1) "Domestic Money Laundering Violation Money Proceeds of SUA? Known Proceeds of an Unlawful Activity? Conduct Financial Transaction Or Attempt to Conduct a Financial Transaction? Intending to Violate Any of Four Types of Prohibited Activity? Promote SUA? X Conceal Nature, Source, Location, Ownership or Control of Proceeds of SUA Avoid Reporting Requirements Evade Taxes 1956 International Movement or Attempt? Violation Analysis of 1956 (a)(2) "International Money Laundering With Intent to Promote SUA? Monetary Instrument or Funds? Knowing the Monetary Instrument or Funds Were Proceeds of Unlawful Activity? Movement Designed to Conceal or Disguise the Characteristics of SUA? Movement Designed to Avoid a Reporting Requirement? Would this be an International Money Laundering violation under 1956 (a)(2): An individual embezzles from his employer by creating bogus vendors that result in those payments being mailed to a fictitious LLC. He then converts the proceeds to a cashier s check that he carries to El Paso, TX. He then walks across the Mexican border and deposits the cashier s check into a bank account of a shell corporation. 9

11 8/25/2014 International Movement or Attempt? Violation Analysis of 1956 (a)(2) "International Money Laundering X With Intent to Promote SUA? Monetary Instrument or Funds? Knowing the Monetary Instrument or Funds Were Proceeds of Unlawful Activity? Movement Designed to Conceal or Disguise the Characteristics of SUA? Movement Designed to Avoid a Reporting Requirement? Conducts or Attempts to Conduct a Financial Transaction? Property Represented by Law Enforcement to be Proceeds of SUA? Analysis of 1956(a)(3) Violation With Intent to Violate Any of 3 Types of Activities? "Sting Provision Promote SUA Conceal, Disguise Characteristics of Property Believed to be SUA Avoid Reporting Requirement Would this be a Money Laundering violation under 1956 (a)(3)? An undercover agent posing as a drug dealer attempts to purchase a sports car for $43,000. He tells the salesman that he does not want any forms filed with the government and offers him $2,000 to complete the transaction without filing an The salesman agrees. 10

12 8/25/2014 Conducts or Attempts to Conduct a Financial Transaction? Property Represented by Law Enforcement to be Proceeds of SUA? Analysis of 1956(a)(3) Violation With Intent to Violate Any of 3 Types of Activities? "Sting Provision Promote SUA X X Conceal, Disguise Characteristics of Property Believed to be SUA Avoid Reporting Requirement Elements of Conspiracy Conspiracy 2 or more people 1956 (h) 2 or more people Reach an Agreement Overt Act in Furtherance of conspiracy Penalty = to penalty of crime Reach an Agreement Penalties: 1956 = 20 years 1957 = 10 years 18 USC Elements Monetary Transaction Over $10,000 Knowledge of Criminally Derived Property Specified Unlawful Activity (SUA) 11

13 8/25/2014 Monetary Transaction The deposit, withdrawal, transfer, or exchange, in or affecting interstate or foreign commerce, of funds, or a monetary instrument by, through, or to a financial institution. Financial Institutions 31 USC 5312 Domestic Banks Foreign Banks (also 1956) Savings & Loans Credit Union Foreign Bank Branch Trust Company Thrift Institution Stock Broker Investment Banker Currency Exchange Transmitter of Funds Check Casher Credit Card Operator Insurance Company Pawnbroker Loan/Finance Co. Travel Agency Dealer in Precious Metals Telegraph Company Vehicle Sales Co. Real Estate Business U.S. Postal Service Casinos Statute Comparison Financial Transaction Offense Monetary Transaction Offense 20 year Felony 10 year Felony Knows felonious conduct Knows property criminally derived Proceeds of SUA Proceeds of SUA $ Threshold Greater than $10,000 Sting NO Sting Intent Defined Intent NOT Defined 12

14 8/25/2014 Would this be a section 1957 Money Laundering violation? Subject is a pharmacist who also supplies sudafed to an organization that manufactures and distributes methamphetamine. He writes a $50,000 check which is proceeds of his illegal activity, to his attorney for legal representation on an unrelated legal matter. Analysis of 1957(a) Violation Engages in or Attempts a Monetary Transaction? Is Criminally Derived Property? Value Greater than $10,000? And is Actually from SUA? 18 USC USC 1960 It is a crime to conduct, control, manage, supervise, direct or own all or a part of a business, knowing the business is an illegal money transmitting business. 13

15 8/25/2014 Illegal Money Transmitting Business Money Transmitting Business that affect interstate commerce in any manner and is knowingly operating in a state: without the appropriate money transmitting state license; or Licensed or unlicensed involving movement of funds with knowledge that funds were derived from criminal activity or were intended to be used to support or promote unlawful activity; Asset Forfeiture 14

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17 Alternative Phases of Criminal Tax Fraud Prosecutions Informants Inside IRS Other Special Agent Special Agent Report Criminal Tax Counsel (CID) Grand Jury Investigation Authorized by Assistant Attorney General Dept of Justice - Criminal Tax Management Approval Criminal Tax Division US Dept. of Justioce US Dept of Justice Criminal Tax United States Attorney United States Attorney Judicial Proceedings

18 CRIMINAL TAX PROVISIONS STATUTE OF LIMITATIONS 6 YEARS SECTION DESCRIPTION MAXIMUM PENALTY ELEMENTS Attempts in any manner to Evade or Defeat Tax Felony 5 years/$250,000 ($500,000 Corp) A. Additional Tax B. Attempt to Evade or Defeat the Tax C. Willfulness (1) Wilful making and subscribing to a return or document containing a declaration made under penalties of perjury, which subscriber knows to be false as to material matters (2) Aiding or assisting in the preparation or presentation of a false document. Felony 3 years/$250,000 ($500,000 Corp) Felony 3 years/$250,000 ($500,000 Corp) A. Document under Penalty of Perjury B. Making and subscribing C. Knowledge that document was false to a material matter (tax deficiency NOT required) D. Willfulness A. Aiding and/or assisting in the preparation of document regarding matter under Internal Revenue Laws B. Document false as to material matter (Tax deficiency and signature not necessary) Willful failure to file, return, provide information, etc. Misdemeanor 1 year/$100,000 ($200,000 Corp.) C. Willfulness A. Obligation to file return or supply information or keep records. B. Failure to meet obligation. C. Willfulness

19 SECTION DESCRIPTION MAXIMUM PENALTY ELEMENTS Willful delivery or disclosure to I.R.S. of document known to be fraudulent. Misdemeanor 1 year/$100,000 ($200,000 Corp.) A. Submission of documents. B. Falsity of documents. Rarely used statute Willful failure to collect, account for, and pay over tax Felony 5 years/$250,000 ($500,000 Corp) C. Willfulness A. Either a duty to collect any tax and/or a duty to account for and pay over any tax B. Either a failure to collect any tax and/or a failure to truthfully account for and pay over any tax C. Willfulness (a) Corrupt or forcible interference in preventing an IRS agent to perform official duties Felony 3 years/$250,000 ($500,000 Corp) A. Corruptly endeavors to intimidate or impede B. Any (US) officer or employee C. In any way corruptly or by force or threats of force obstructs, impedes, or endeavors to obstruct or impede the due administration of law False, fictitious, or fraudulent claims for refund Felony 5 years/$10,000 A. Making or presenting a claim upon or against the United States 5 Year SOL B. Knowledge that the claim is false, fictitious or fraudulent C. Intent

20 SECTION DESCRIPTION MAXIMUM PENALTY ELEMENTS Conspiracy to defeat the tax Felony 5 years/$250,000 ($500,000 A. Combination of two or more law Corp) persons 5 Year SOL B. Agreement to accomplish the purpose of the conspiracy C. Overt act to effect the objective of the agreement Year SOL False statements or documents to the government Felony 5years/$250,000 ($500,000 Corp) A. A matter within the jurisdiction of a department or agency of the United States B. One or more of the following: (a) falsification or concealment by trick, scheme or device of a material fact (b) making of false, fictitious or fraudulent statements or representations (c) making or using of any false writing or document C. Knowledge of the falsity D. Willfulness Year SOL Principals- when a conspiracy charge is not clearly appropriate against an accomplice Felony same as under statute violated by principal A. Substantive offense committed B. Aiding and abetting in commission of offense

21 MONEY LAUNDERING STATUTES Under 18 USC SECTION DESCRIPTION MAXIMUM PENALTY ELEMENTS (a)(1) Domestic Money Laundering Felony 20 years/$500,000 or twice the value of the property involved in the transaction. A. Money proceeds of SUA B. Known proceeds of an unlawful activity C. Conduct financial transaction or attempt to conduct a financial transaction D. Intending to violate any of four types of prohibited activity (a)(2) International Money Laundering Felony 20 years/$500,000 or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer. A. With the intent to promote the carrying on of specified unlawful activity B. Knowing that the monetary instrument or funds involved in the transportation, transmission, or transfer represent the proceeds of some form of unlawful activity and knowing that such transportation, transmission, or transfer is designed in whole or in part (i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity; or (ii) to avoid a transaction reporting requirement under State or Federal law

22 SECTION DESCRIPTION MAXIMUM PENALTY ELEMENTS (a)(3) Sting Provision Felony 20 years A. Conducts or attempts to conduct a financial transaction B. Property represented by law enforcement to be proceeds of SUA C. With intent to violate any of 3 types of activities: (a) Promote SUA (b) Conceal, disguise characteristics of property believed to be SUA (c) Avoid reporting requirement (a) Engaging in monetary transactions in property derived from specified unlawful activity 10 years/$ fine under Title 18 A. Engages in or attempts a monetary transaction B. Criminally derived property C. Value greater than $10,000 D. Actually from SUA (h) Conspiracy to violate 18USC1956 or 18USC1957 Same as Object Statute A. 2 or more persons agree to commit violation of 1956 or 1957.

23 SECTION DESCRIPTION MAXIMUM PENALTY ELEMENTS Prohibition of unlicensed money transmitting businesses 5 years/$ fine under Title A. Without the state license 18 B. Without federal registration C. Licensed or unlicensed involving movement of funds from criminal activity or intended to be used to support or promote unlawful activity D. Knowledge

24 L Specified Unlawful Activity Table Specified Unlawful Activity1 18 U.S.C and 1957 Money Laundering Control Act of 1986 as amended The following table lists all of those violations of federal and state or foreign law identified as "specified unlawful activity" under 18 U.S.c. 1956(c)(7): Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Food Stamp Program 1956(c)(7)(D) 10/28/94 (felony violations involving a quantity of coupons having a value of not less than $5,000) Immigration And Nationality 1961(1)(F) 4/24/96 (bringing in and harboring certain aliens, if the act indictable was committed for the purpose of financial gain) Immigration And Nationality 1961(1)(F) 4/24/96 (aiding or assisting certain aliens to enter, if the act indictable was committed for the purpose of financial gain) Immigration And Nationality 1961(l)(F) 4/24/96 (importation of alien for immoral purpose, if the act indictable was committed for the purpose of financial gain) Bankruptcy 1961(1)(D) 10/27/86 et seq. (any offense involving fraud connected with a case under Title 11except a case under 11 U.S.C. 157) 15 78m Foreign Corrupt Practices Act 1956(c)(7)(D) 10/28/92 78dd-l (felony violations of the Foreign 78dd-2 Corrupt Practices Act) 78ff Aircraft And Motor Vehicles 1956(c)(7)(D) 4/24/96 (destruction of aircraft or aircraft 1961(1)(G) 10/26/01 facilities) Aircraft And Motor Vehicles 1956(c)(7)(D) 4/24/96 (violence at international airports) 1961(l)(G) 10/26/01 I Also included, but not listed in the chart above, are any offenses involving fraud in the sale of securities. 'I II 1'1 'I' i,l 'I i;, ii' II l I' I: I i!r II' Ii :Ii Ii Ii! Selected Federal Asset Forfeiture Statutes. 147

25 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Arson 1961(1)(G) 10/26/01 (arson within special maritimeand territorial jurisdiction) Assault 1956(c)(7)(D) 4/24/96 (influencing, impeding,or retaliating against a Federal official by threatening or injuring a family member) Bankruptcy 1956(c)(7)(D) 10/27/86 (concealment of assets; false oaths and claims; bribery) Biological Weapons 1961(1)(G) 10/26/01 175b (prohibitions with respect to biological weapons) Bribery, Graft And Conflicts Of 1961(1)(B) 10/27/86 Interest (bribery of public officials and witnesses) Bribery, Graft And ConflictsOf 1956(c)(7)(D) 10/27/86 Interest (receipt of commissionsor gifts for procuring loans) Bribery, Graft And Conflicts Of 1961(1)(B) 10/27/86 Interest (bribery in sporting contests) Chemical Weapons 1961(1)(G) 10/26/01 (prohibitions with respect to chemical weapons) False claims involvinghealth Care 1956(c)(7)(F) 8/21/96 programs (a), Congressional, Cabinet, And 1956(c)(7)(D) 4/24/96 (b), (c), or Supreme Court Assassination, 1961(1)(G) 10/26/01 (d) Kidnaping, And Assault (Congressional, Cabinet, and Supreme Court assassination, kidnaping, and assault; penalties) Conspiracy involving Health Care 1956(c)(7)(F) 8/21/96 programs Counterfeiting And Forgery 1961(1)(B) 10/27/86 (obligations or securities of United States) Counterfeiting And Forgery 1961(1)(B) 10/27/86 (uttering counterfeit obligations or securities) 148. Selected Federal Asset Forfeiture Statutes

26 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Counterfeiting And Forgery 1961(1)(B) 10/27/86 (dealing in counterfeit obligations or securities) Counterfeiting And Forgery 1956(c)(7)(0) 10/27/86 (money orders) Counterfeiting And Forgery 1956(c)(7)(0) 10/27/86 (postage stamps, postage meter stamps, and postal cards) Counterfeiting And Forgery 1956(c)(7)(0) 10/27/86 (postage and revenue stamps of foreign governments) Counterfeiting And Forgery 1956(c)(7)(0) 10/27/86 (postmarking stamps) Counterfeiting And Forgery 1956(c)(7)(D) 10/27/86 (securities of the States and private entities) Customs 1956(c)(7)(D) 10/26/01 (goods falsely classified) Customs 1956(c)(7)(D) 11/18/88 (entry of goods by means of false statements) Customs 1956(c)(7)(D) 10/27/86 (smuggling goods into the United States) Customs 1956(c)(7)(D) 11/18/88 (removing goods from Customs custody, breaking seals) Embezzlement And Theft 1956(c)(7)(D) 10/27/86 (public money, property or records) Embezzlement And Theft 1956(c)(7)(D) 10/27/86 (theft, embezzlement,or misapplication by bank officer or employee) Embezzlement And Theft 1956(c)(7)(D) 11/18/88 (lending, credit, and insurance institutions) Embezzlement And Theft 1956(c)(7)(D) 11/18/88 (property mortgagedor pledged to farm credit agencies) Embezzlement And Theft 1961(1)(B) 10/27/86 (felonious theft from interstate shipment) Selected Federal Asset Forfeiture Statutes' 149

27 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Embezzlement And Theft 1961(1)(B) 10/27/86 (theft or embezzlementfrom employee benefit plan) Involving a Health Care Offense 1956(c)(7)(F) 8/21/ Embezzlement And Theft 1956(c)(7)(D) 10/27/86 (theft or bribery concerning programs receiving Federal funds) Involving a Health Care Offense 1956(c)(7)(F) 8/21/ Theft and embezzlement involving 1956(c)(7)(F) 8/21/96 Health Care Offenses Espionage And Censorship 1956(c)(7)(D) 10/27/86 (gathering, transmitting, or losing defense information) Espionage And Censorship 1956(c)(7)(D) 10/27/86 (gathering or delivering defense information to aid foreign government) Espionage And Censorship 1956(c)(7)(D) 10/27/86 (disclosure of classified information) Explosives And Other Dangerous 1956(c)(7)(D) 4/24/96 Articles 1961(1)(0) 10/26/01 (prohibited transactions involving nuclear materials) (m) or (n) Explosive Materials 1961(1)(0) 10/26/01 (plastic explosives) (f) Importation, Manufacture, 1956(c)(7)(D) 4/24/96 844(i) Distribution And Storage Of 1961(1)(0) 10/26/01 Explosive Materials (damage or destruction by means of fire or explosives of Oovernment property or property affecting interstate or foreign commerce) Extortion And Threats 1956(c)(7)(D) 10/27/86 (interstate communications) Extortionate Credit Transactions 1961(1)(B) 10/27/86 (making extortionate extensions of credit) Extortionate Credit Transactions 1961(1)(B) 10/27/86 (financing extortionate extensions of credit) 150. Selected Federal Asset Forfeiture Statutes

28 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Extortionate Credit Transactions 1961(1)(B) 10/27/86 (collection of extensionsof credit by extortionate means) (1) Firearms 1956(c)(7)(D) 10/26/01 (unlawful importationof firearms) (n) Firearms 1956(c)(7)(D) 10/26/01 (firearms trafficking) (c) Firearms 1961(1)(G) 10/26/01 (killing or attempted killing during attack on Federal facility with a dangerous weapon) Foreign Relations 1956(c)(7)(D) 4/24/96 (conspiracy to injure property of a foreign government) (a)(l) Foreign Relations 1961(1)(G) 10/26/01 (conspiracy to murder, kidnap, or maim persons abroad) Fraud and False Statements 1956(c)(7)(F) 8/21/96 involving a Health Care Offense Fraud And False Statements 1956(c)(7)(D) 11129/90 (fraudulent bank entries, reports and transactions) Fraud And False Statements 1956(c)(7)(D) 11/29/90 (fraudulent Federal credit institution entries, reports and transactions) Fraud And False Statements 1956(c)(7)(D) 11129/90 (fraudulent Federal Deposit Insurance Corporation transactions) Fraud And False Statements 1956(c)(7)(D) 11129/90 (fraudulent loan and credit applications) False statement/erisainvolving 1956(c)(7)(F) 8/21/96 Health Care Offenses Fraud And False Statements 1961(l)(B) 4/24/96 (fraud and related activity in connection with identification documents) Fraud And False Statements 1961(1)(B) 11118/88 (fraud and related activity in connection with access devices) Fraud And False Statements 1956(c)(7)(D) 10/26/01 (computer fraud and abuse) 1961(1)(G) Selected Federal Asset Forfeiture Statutes. 151

29 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Fraud And False Statements 1956(c)(7)(D) 11/29/90 (concealment of assets from conservator, receiver, or liquidating agent of financial institution) False statementsregarding Health 1956(c)(7)(F) 8/21/96 Care Offenses Gambling 1961(1)(B) 10/27/86 (transmissionof wagering information) Homicide 1956(c)(7)(D) 4/24/96 (murder) Homicide 1956(c)(7)(D) 4/24/96 (protection of officers and 1961(1)(G) 10/26/01 employees of the United States) Homicide 1956(c)(7)(D) 4/24/96 (murder or manslaughterof 1961(1)(G) 10/26/01 foreign officials, official guests, or internationallyprotected persons) Kidnaping 1956(c)(7)(D) 10/27/ Kidnaping 1956(c)(7)(D) 10/27/86 (hostage taking) 1961(1)(G) 10/26/ Mail Fraud 1961(1)(B) 10/27/86 (frauds and swindles) Involving a Health Care Offense 1956(c)(7)(F) 8/21/ Wire Fraud 1961(1)(B) 10/27/86 (fraud by wire, radio, or television) Involving a Health Care Offense 1956(c)(7)(F) 8/21/ Bank Fraud 1961(1)(B) 8/9/89 (defrauding a federally chartered or insured financial institution) Health Care Fraud 1956(c)(7)(F) 8/21/ Malicious Mischief 1956(c)(7)(D) 4/24/96 (willful injury of Government prooerty) 152. Selected Federal Asset Forfeiture Statutes

30 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Malicious Mischief 1961(1)(0) 10/26/01 (destruction of communication lines, stations, or systems) Malicious Mischief 1956(c)(7)(D) 4/24/96 (damage or destruction of 1961(1)(0) 10/26/01 buildings or property within special maritime and territorial iurisdiction) (a) Malicious Mischief 1961(1)(0) 10/26/01 (destruction of an energy facility) Nationality and Citizenship 1961(1)(B) 9/30/96 (procurement of citizenship or naturalization unlawfully) Nationality and Citizenship 1961(1)(B) 9/30/96 (reproduction of naturalization or citizenship papers) Nationality and Citizenship 1961(1)(B) 9/30/96 (sale of mlturalizationor citizenship papers) Obscenity 1961(1)(B) 10/27/86 (mailing obscene or crime-inciting matter) Obscenity 1961(1)(B) 10/27/86 (importation or transportation of obscene matters) Obscenity 1961(1)(B) 10/27/86 (mailing indecent matter on wrappers or envelopes) Obscenity 1961(1)(B) 10/27/86 (broadcasting obscene language), Obscenity 1961(1)(B) 10/27/86 (transportation of obscene matters for sale or distribution) Obstruction Of Justice 1961(1)(B) 10/27/86 (influencing or injuring officer or iuror generally) Obstruction Of Justice 1961(1)(B) 10/27/86 (obstruction of criminal investigations) Obstruction Of Justice 1961(1)(B) 10/27/86 (obstruction of State or local law enforcement) Ii II!i Ii Ii II I, Selected Federal Asset Forfeiture Statutes. 153 I

31 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Obstruction Of Justice 1961(1)(B) 11/10/86 (tampering with a witness, victim, or an informant) Obstruction Of Justice 1961(l)(B) 11/10/86 (retaliating against a witness, victim, or an informant) Obstruction of health care criminal 1956(c)(7)(F) 8/21/96 investigation regarding Health Care Offenses Passports And Visas 1961 (1)(B) 4/24/96 (false statement in application and use of passport) Passports And Visas 1961(l)(B) 4/24/96 (forgery or false use of passport) Passports And Visas 1961(1)(B) 4/24/96 (misuse of passport) Passports And Visas 1961(l)(B) 4/24/96 (fraud and misuse of visas, permits, and other documents) Peonage And Slavery 1961(l)(B) 4/24/96 (peonage; obstructing enforcement) Peonage And Slavery 1961(1)(B) 4/24/96 (vessels for slave trade) Peonage And Slavery 1961(l)(B) 4/24/96 (enticement into slavery) Peonage And Slavery 1961(l)(B) 4/24/96 (sale into involuntary servitude) Peonage And Slavery 1961(1)(B) 4/24/96 (seizure, detention, transportation or sale of slaves) Peonage And Slavery 1961 (1)(B) 4/24/96 (service on vessels in slave trade) Peonage And Slavery 1961(1)(B) 4/24/96 (possession of slaves aboard vessel) Peonage And Slavery 1961(1)(B) 4/24/96 (transportation of slaves from United States) Theft from the Mail 1956(c)(7)(D) 10/28/ Selected Federal Asset Forfeiture Statutes

32 1\ Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Presidential And Presidential Staff 1956(c)(7)(D) 4/24/96 Assassination, Kidnaping, And 1961(1)(G) 10/26/01 Assault Racketeering 1961(1)(B) 10/27/86 (interference with commerce by threats or violence) Racketeering 1961(1)(B) 10/27/86 (interstate and foreign travel or transportation in aid of racketeering enterprises) Racketeering 1961(1)(B) 10/27/86 (interstate transportation of wagering paraphernalia) Racketeering 1961(1)(B) 10/27/86 (offer, acceptance, or solicitation to influenceoperations of employee benefit plan) Involving a Health Care Offense 1956(c)(7)(F) 8/21/ Racketeering 1961(1)(B) 10/27/86 (prohibition of illegal gambling businesses) Racketeering 1961(1)(B) 10/27/86 (laundering of monetary instruments) Racketeering 1961(1)(B) 10/27/86 (engaging in monetary transactions in property derived from specified unlawful activity) Rcketeering 1961(1)(B) 11/18/88 (use of interstate commerce facilities in the commissionof murder-for-hire) Railroads 1961(1)(G) 10/26/01. (wrecking trains) Railroads 1961(1)(G) 10/26/01 (terrorist attacks and other acts of violence against mass transportation systems) Robbery And Burglary 1956(c)(7)(D) 10/27/86 (bank robbery and incidental crimes) Selected Federal Asset Forfeiture Statutes. 155.J

33 .'''1' Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Robbery And Burglary 1956(c)(7)(D) 10/27/86 (mail, money, or other property of United States) Sabotage 1961(1)(G) 10/26/01 (destruction of national defense materials, premises, or utilities) Sexual Exploitation And Other 1961(1)(B) 11/18/88 Abuse Of Children (sexual exploitation of children) : A Sexual Exploitation And Other Abuse Of Children 1961(1)(B) 11/18/88 (selling or buying of children) Sexual Exploitation And Other Abuse Of Children 1961(1)(B) 11/18/88 (certain activities relating to material involving the sexual exploitation of minors) Sexual Exploitation And Other Abuse Of Children 1961(1)(B) 9/13/96 (production of sexually explicit depictions of a minor for importation into the United States) Shipping 1956(c)(7)(D) 4/24/96 (violence against maritime 1961(1)(G) 10/26/01 navigation) Shipping 1956(c)(7)(D) 4/24/96 (violence against maritimefixed 1961(1)(G) 10/26/01 platforms) Stolen Property 1961(1)(B) 10/27/86 (interstate transportation of stolen motor vehicles) Stolen Property (sale or receipt of stolen motor 1961P)(B) 10/27/86 vehicles) Stolen Property 1961(1)(B) 10/27/86 (interstate transportation of stolen property) Stolen Property 1961(1)(B) 10/27/86 (sale, receipt, or possession of stolen property moved interstate) 156. Selected Federal Asset Forfeiture Statutes

34 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Stolen Property 1961(l)(B) 7/2/96 (trafficking in counterfeit labels for phonorecords, copies of computer programs or computer program documentation or packaging, and copies of motion pictures or other audio visual works, and trafficking in counterfeit computer program documentation or Dackaging) Stolen Property 1956(c)(7)(D) 11/18/88 (criminal infringementof a 1961(1)(B) 7/2/96 copyright) A Stolen Property 1961(l)(B) 7/2/96 (unauthorized fixation of and trafficking in sound recordings and music videos of live musical Derformances) Stolen Property 1956(c)(7)(D) 9/13/94 (trafficking in counterfeit goods or 1961(l)(B) 7/2/96 services) Stolen Property 1961(1)(B) 10/27/86 (trafficking in certain motor vehicles or motor vehicle Parts) Terrorism 1956(c)(7)(D) 4/24/96 (terrorist acts abroad against U.S. 1961(1)(G) 10/26/01 Nationals) a Terrorism 1956(c)(7)(D) 4/24/96 (use of weapons of mass 1961(1)(G) 10/26/01 destruction) b Terrorism 1956(c)(7)(D) 4/24/96 (international terrorist acts 1961(l)(G) 10/26/01 transcending national boundaries) f Terrorism 1956(c)(7)(D) 6/25/02 (bombing of public places and 1961(l)(G) facilities) Terrorism 1961(l)(G) 10/26/01 (harboring terrorists) A Terrorism 1956(c)(7)(D) 4/24/ B (providing material support to 1961(1)(G) 10/26/01 terrorists or terrorist organizations) C Terrorism 1956(c)(7)(D) 6/25/02 (financing:of terrorism) 196Hl )(Q) Selected Federal Asset Forfeiture Statutes' 157

35 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: A Torture 1961(1)(G) 10/26/01 (torture) Trafficking In Contraband 1961(1)(B) 10/27/86 Cigarettes (unlawful acts) Trafficking In Contraband 1961(1)(B) 10/27/86 Cigarettes (recordkeeping and inspection) Trafficking In Contraband 1961(1)(B) 10/27/86 Cigarettes (penalties) Trafficking In Contraband 1961(1)(B) 10/27/86 Cigarettes (effect on State law) Trafficking In Contraband 1961(1)(B) 10/27/86 Cigarettes (enforcement and regulations) Transportation For Illegal Sexual 1961 (1)(B) 10/27/86 Activity (transportation of an individual interstate to engage in criminal sexual activity) Transportation For Illegal Sexual 1961(1)(B) 10/27/86 Activity (coercion and enticementto travel interstate to engage in criminal sexual activity) Transportation For Illegal Sexual 1961(1)(B) 10/27/86 Activity (transportation of minors interstate to engage in criminal sexual activity) Transportation For Illegal Sexual 1961(1)(B) 10/27/86 Activity (filing factual statement about alien individuals) Tariff Act of (c)(7)(D) 11/18/88 (aviation smuggling) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control 1956(c)(7)(D) 11129/90 (felony violations of certain Drohibitedacts) 158. Selected Federal Asset Forfeiture Statutes

36 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control 1956(c)(7)(D) 11/29/90 (subsequent violations of subparagraph (A) after one or more prior convictions of a drug-related offense) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control 1956(c)(7)(D) 11/29/90 (felony violations of certain other prohibited acts) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (penalties for simple possession after one or more prior convictions for any drug or narcotic offense) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (attempt and conspiracy to commit any felonious offense defined in Subchapter I) Drug Abuse Prevention And 1956(c)(7)(C) 10/27/86 Control 1961(1)(D) 10/27/86 (continuing criminal enterprise) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (investmentof illicit drug profits obtained from a felonious violation of either Subchapter I or SubchaPter II) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (establishment of manufacturing operations) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (endangeringhuman life while illegally manufacturing a controlled substance) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (felonious distribution to persons under a!!etwentv-one) Selected Federal Asset Forfeiture Statutes :i

37 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title IS, Date: Section: Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (felonious distribution or manufacturing in or near schools and colleges) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (felonious employmentof persons under 18 years of age) Drug Abuse Prevention And 1961 (1)(D) 10/27/86 Control 1956(c)(7)(D) 11/18/88 (transportation of drug paraphernalia) (f) Drug Abuse Prevention And 1956(c)(7)(D) 11/18/88 Control (precursor and essential chemicals) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (felonious importation of controlled substances) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (felonious exportation of controlled substances) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (felonious possession on board vessels, etc., arriving in or departing from the United States) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (felonious offenses by persons required to register) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (felonious possession, manufacture, or distribution for purpose of unlawfulimportation) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control 1956(c)(7)(D) 11/29/90 (certain unlawful acts and penalties defined) 160. Selected Federal Asset Forfeiture Statutes

38 Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (second or subsequent offenses, penalties defined) Drug Abuse Prevention And 1961(1)(D) 10/27/86 Control (attempt and conspiracy to commit any felonious offense defined in Subchapter II) Foreign Agents Registration Act 1956(c)(7)(D) 10/26/01 et seq. of 1938 (felony violations of FARA of 1938) (c) Arms Export Control 1956(c)(7)(D) 10/27/86 (criminal violationsof Arms Export Control Act of 1979) Labor-ManagementRelations 1961(1)(C) 10/27/86 (restrictionson financial transactions) (c) Reporting And Disclosure 1961(1)(C) 10/27/86 (fiduciary responsibilityof officers of labor organizations embezzlement of assets) Federal Water Pollution 1956(c)(7)(E) 11/29/90 et seq. Control Act (felony violations concerning the discharge of pollutants into the Nation's waters) Ocean Dumping Act 1956(c)(7)(E) 11/29/90 et seq. (felony violations concerningthe dumping of materials into ocean waters) Act to Prevent Pollution 1956(c)(7)(E) 11/29/90 et seq. From Ships (felony violations concerning the discharge of pollutants from ships) s(a) Housing Act of (c)(7)(D) 12/27/00 (equity skimming) Atomic Energy Act of (1)(G) 10/26/01 (Sec. 236) (sabotage of nuclear facilities or fuel) f Safe Drinking Water Act 1956( c)(7)(e) 11/29/90 et seq. (felony violations concerning the safetv of nublic water svstems) Selected Federal Asset Forfeiture Statutes' 161

39 .~ Specified Unlawful Activity Table Title: Section: Violations of Federal Law Appearing in Effective Relating to: Title 18, Date: Section: Resources Conservation And 1956(c)(7)(E) 11/29/90 et seq. Recovery Act (felony violations concerning resource conservation and recovery) Special Aircraft JurisdictionOf 1956(c)(7)(D) 4/24/96 The United States 1961(1)(G) 10/26/01 (aircraft piracy) Special AircraftJurisdiction Of 1961(1)(G) 10/26/01 (2nd The United States sentence) (assault on a flight crew with a dangerous weapon) (b)(3) Special AircraftJurisdiction Of 1961(1)(G) 10/26/01 or (c) The United States (explosive or incendiarydevices, or endangermentof human life by means of weapons, on aircraft) Special AircraftJurisdiction Of 1961(1)(G) 10/ The United States (application of certain criminal laws to acts on aircraft-if homicide or attempted homicide involved) (b) Safety 1961(1)(G) 10/26/01 (destruction of interstate gas or hazardous liquidpipeline facility) Emergency Economic Powers 1956(c)(7)(D) 10/27/86 (willful violations of the International Emergency Economic Powers Act) 50 App. Trading With Enemy Act 1956(c)(7)(D) 10/27/86 16 (offenses and punishment) 50 App. Export Regulation 1956(c)(7)(D) 10/27/ (knowinglyviolating the provisions of the Export AdministrationAct of 1979) 162. Selected Federal Asset Foifeiture Statutes

40 Specified Unlawful Activity Table Any Act Or Threat Appearing in Effective (chargeable under State Law and punishable by 18 U.S.C., Section: Date: imprisonment for more than one vear) Involvin!!: Murder 1961(1)(A) 10/27/86 Kidnaping 1961(l)(A) 10/27/86 Gambling 1961(l)(A) 10/27/86 Arson 1961(1)(A) 10/27/86 Robbery 1961(1)(A) 10/27/86 Bribery 1961(1)(A) 10/27/86 Extortion 1961(l)(A) 10/27/86 Dealing In Obscene Matter 1961(l)(A) 10/27/86 Dealing,in a Controlled Substance or Listed 1961(1)(A) 10/27/86 Chemical (as defined in 21 U.S.C. 802), An Offense Against A Foreign Nation (with Appearing in Effective respect to a financial transaction occurring in 18 V.S.C., Section: Date: whole or in part in the United States) Involving: The Manufacture, Importation, Sale, 1956( c)(7)(b )(i) 10/27/86 or Distribution of a Controlled Substance Murder 1956(c)(7)(B)(ii) 4/24/96 Kidnaping 1956(c)(7)(B)(ii) 10/28/92 Robbery 1956(c)(7)(B)(ii) 10/28/92 Extortion 1956(c)(7)(B)(ii) 10/28/92 Destruction of Property by Means of 1956(c)(7)(B)(ii) 4/24/96 Explosive or Fire or a Crime of Violence Fraud, or Any Scheme or Attempt to Defraud, By or 1956(c)(7)(B)(iii) 10/28/92 Against a Foreign Bank (as defined in 12 U.S.C. 3101(7)) Bribery of a Public Official, or the Misappropriation, 1956(c)(7)(B)(iv) 10/26/01 Theft, or Embezzlement of Public Funds by or for the Benefit of a Public Official Smuggling or Export Control Violations (involving 1956(c)(7)(B)(v) 10/26/01 an item controlled on the U.S. Munitions List, Section 38 of the Arms Export Control Act (22 U.S.C. 2778) or an item controlled under the Export Administration Act of 1977 (15 C.F.R. Parts )) U.S. Obligation by a Multilateral Treaty to Extradite 1956(c)(7)(B)(vi) 10/26/01 or Prosecute the Offender (if offender located within territory of U.S.) Selected Federal Asset Forfeiture Statutes. 163 ~ u. S. G. P. O /93507