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