18 U.S.C. § 1033 — Crimes by or affecting persons engaged in

Page 326 TITLE 18—CRIMES AND CRIMINAL PROCEDURE § 1032 § 1032. Concealment of assets from conservator, receiver, or liquidating agent Whoever— (1) knowingly conceals or endeavors to con- ceal an asset or property from the Federal De- posit Insurance Corporation, acting as conser- vator or receiver or in the Corporation’s cor- porate capacity with respect to any asset ac- quired or liability assumed by the Corporation under section 11, 12, or 13 of the Federal De- posit Insurance Act, any conservator ap- pointed by the Comptroller of the Currency, the Federal Deposit Insurance Corporation acting as receiver for a covered financial com- pany, in accordance with title II of the Dodd- Frank Wall Street Reform and Consumer Pro- tection Act, or the National Credit Union Ad- ministration Board, acting as conservator or liquidating agent; (2) corruptly impedes or endeavors to impede the functions of such Corporation, Board, or conservator; or (3) corruptly places or endeavors to place an asset or property beyond the reach of such Corporation, Board, or conservator, shall be fined under this title or imprisoned not more than 5 years, or both. (Added Pub. L. 101–647, title XXV, § 2501(a), Nov. 29, 1990, 104 Stat. 4859; amended Pub. L. 107–273, div. B, title IV, § 4002(b)(13), Nov. 2, 2002, 116 Stat. 1808; Pub. L. 111–203, title II, § 211(a), (b), title III, § 377(7), July 21, 2010, 124 Stat. 1514, 1569.) Editorial Notes REFERENCES IN TEXT Sections 11, 12, and 13 of the Federal Deposit Insur- ance Act, referred to in par. (1), are classified to sec- tions 1821, 1822, and 1823, respectively, of Title 12, Banks and Banking. The Dodd-Frank Wall Street Reform and Consumer Protection Act, referred to in par. (1), is Pub. L. 111–203, July 21, 2010, 124 Stat. 1376. Title II of the Act is classi- fied principally to subchapter II (§ 5381 et seq.) of chap- ter 53 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of Title 12 and Tables. AMENDMENTS 2010—Pub. L. 111–203, § 211(b), struck out ‘‘of financial institution’’ after ‘‘agent’’ in section catchline. Par. (1). Pub. L. 111–203, § 377(7), struck out ‘‘the Reso- lution Trust Corporation,’’ after ‘‘Federal Deposit In- surance Act,’’ and ‘‘or the Director of the Office of Thrift Supervision’’ after ‘‘Comptroller of the Cur- rency’’. Pub. L. 111–203, § 211(a), inserted ‘‘the Federal Deposit Insurance Corporation acting as receiver for a covered financial company, in accordance with title II of the Dodd-Frank Wall Street Reform and Consumer Protec- tion Act,’’ before ‘‘or the National Credit’’. 2002—Par. (1). Pub. L. 107–273 substituted ‘‘13’’ for ‘‘13,’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by section 211(a), (b) of Pub. L. 111–203 ef- fective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking. Amendment by section 377(7) of Pub. L. 111–203 effec- tive on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. § 1033. Crimes by or affecting persons engaged in the business of insurance whose activities af- fect interstate commerce (a)(1) Whoever is engaged in the business of in- surance whose activities affect interstate com- merce and knowingly, with the intent to de- ceive, makes any false material statement or re- port or willfully and materially overvalues any land, property or security— (A) in connection with any financial reports or documents presented to any insurance regu- latory official or agency or an agent or exam- iner appointed by such official or agency to examine the affairs of such person, and (B) for the purpose of influencing the actions of such official or agency or such an appointed agent or examiner, shall be punished as provided in paragraph (2). (2) The punishment for an offense under para- graph (1) is a fine as established under this title or imprisonment for not more than 10 years, or both, except that the term of imprisonment shall be not more than 15 years if the statement or report or overvaluing of land, property, or se- curity jeopardized the safety and soundness of an insurer and was a significant cause of such insurer being placed in conservation, rehabilita- tion, or liquidation by an appropriate court. (b)(1) Whoever— (A) acting as, or being an officer, director, agent, or employee of, any person engaged in the business of insurance whose activities af- fect interstate commerce, or (B) is engaged in the business of insurance whose activities affect interstate commerce or is involved (other than as an insured or bene- ficiary under a policy of insurance) in a trans- action relating to the conduct of affairs of such a business, willfully embezzles, abstracts, purloins, or mis- appropriates any of the moneys, funds, pre- miums, credits, or other property of such person so engaged shall be punished as provided in paragraph (2). (2) The punishment for an offense under para- graph (1) is a fine as provided under this title or imprisonment for not more than 10 years, or both, except that if such embezzlement, abstrac- tion, purloining, or misappropriation described in paragraph (1) jeopardized the safety and soundness of an insurer and was a significant cause of such insurer being placed in conserva- tion, rehabilitation, or liquidation by an appro- priate court, such imprisonment shall be not more than 15 years. If the amount or value so embezzled, abstracted, purloined, or misappro- priated does not exceed $5,000, whoever violates paragraph (1) shall be fined as provided in this title or imprisoned not more than one year, or both. (c)(1) Whoever is engaged in the business of in- surance and whose activities affect interstate commerce or is involved (other than as an in- sured or beneficiary under a policy of insurance) in a transaction relating to the conduct of af- Page 327 TITLE 18—CRIMES AND CRIMINAL PROCEDURE § 1034 fairs of such a business, knowingly makes any false entry of material fact in any book, report, or statement of such person engaged in the busi- ness of insurance with intent to deceive any per- son, including any officer, employee, or agent of such person engaged in the business of insur- ance, any insurance regulatory official or agen- cy, or any agent or examiner appointed by such official or agency to examine the affairs of such person, about the financial condition or sol- vency of such business shall be punished as pro- vided in paragraph (2). (2) The punishment for an offense under para- graph (1) is a fine as provided under this title or imprisonment for not more than 10 years, or both, except that if the false entry in any book, report, or statement of such person jeopardized the safety and soundness of an insurer and was a significant cause of such insurer being placed in conservation, rehabilitation, or liquidation by an appropriate court, such imprisonment shall be not more than 15 years. (d) Whoever, by threats or force or by any threatening letter or communication, corruptly influences, obstructs, or impedes or endeavors corruptly to influence, obstruct, or impede the due and proper administration of the law under which any proceeding involving the business of insurance whose activities affect interstate commerce is pending before any insurance regu- latory official or agency or any agent or exam- iner appointed by such official or agency to ex- amine the affairs of a person engaged in the business of insurance whose activities affect interstate commerce, shall be fined as provided in this title or imprisoned not more than 10 years, or both. (e)(1)(A) Any individual who has been con- victed of any criminal felony involving dishon- esty or a breach of trust, or who has been con- victed of an offense under this section, and who willfully engages in the business of insurance whose activities affect interstate commerce or participates in such business, shall be fined as provided in this title or imprisoned not more than 5 years, or both. (B) Any individual who is engaged in the busi- ness of insurance whose activities affect inter- state commerce and who willfully permits the participation described in subparagraph (A) shall be fined as provided in this title or impris- oned not more than 5 years, or both. (2) A person described in paragraph (1)(A) may engage in the business of insurance or partici- pate in such business if such person has the written consent of any insurance regulatory of- ficial authorized to regulate the insurer, which consent specifically refers to this subsection. (f) As used in this section— (1) the term ‘‘business of insurance’’ means— (A) the writing of insurance, or (B) the reinsuring of risks, by an insurer, including all acts necessary or incidental to such writing or reinsuring and the activities of persons who act as, or are, of- ficers, directors, agents, or employees of insur- ers or who are other persons authorized to act on behalf of such persons; (2) the term ‘‘insurer’’ means any entity the business activity of which is the writing of in- surance or the reinsuring of risks, and in- cludes any person who acts as, or is, an officer, director, agent, or employee of that business; (3) the term ‘‘interstate commerce’’ means— (A) commerce within the District of Co- lumbia, or any territory or possession of the United States; (B) all commerce between any point in the State, territory, possession, or the District of Columbia and any point outside thereof; (C) all commerce between points within the same State through any place outside such State; or (D) all other commerce over which the United States has jurisdiction; and (4) the term ‘‘State’’ includes any State, the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands. (Added Pub. L. 103–322, title XXXII, § 320603(a), Sept. 13, 1994, 108 Stat. 2115.) Executive Documents TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. § 1034. Civil penalties and injunctions for viola- tions of section 1033 (a) The Attorney General may bring a civil ac- tion in the appropriate United States district court against any person who engages in con- duct constituting an offense under section 1033 and, upon proof of such conduct by a preponder- ance of the evidence, such person shall be sub- ject to a civil penalty of not more than $50,000 for each violation or the amount of compensa- tion which the person received or offered for the prohibited conduct, whichever amount is great- er. If the offense has contributed to the decision of a court of appropriate jurisdiction to issue an order directing the conservation, rehabilitation, or liquidation of an insurer, such penalty shall be remitted to the appropriate regulatory offi- cial for the benefit of the policyholders, claim- ants, and creditors of such insurer. The imposi- tion of a civil penalty under this subsection does not preclude any other criminal or civil statu- tory, common law, or administrative remedy, which is available by law to the United States or any other person. (b) If the Attorney General has reason to be- lieve that a person is engaged in conduct consti- tuting an offense under section 1033, the Attor- ney General may petition an appropriate United States district court for an order prohibiting that person from engaging in such conduct. The court may issue an order prohibiting that person from engaging in such conduct if the court finds that the conduct constitutes such an offense. The filing of a petition under this section does not preclude any other remedy which is avail- able by law to the United States or any other person. (Added Pub. L. 103–322, title XXXII, § 320603(a), Sept. 13, 1994, 108 Stat. 2118.)