Section 1 Short title
This Act may be cited as the “Fraud Accountability and Recovery Act”.
Fraud Accountability and Recovery Act
A BILL
To amend the Foreign Assistance Act of 1961 to prohibit the President from providing assistance to the government of any country that has failed to extradite an individual that has been convicted of committing fraud against the United States or that has failed to take all appropriate measures with respect to assisting the recoupment of those funds.
Sec. 2 Prohibition on assistance
Section 620 of the Foreign Assistance Act of 1961 (22 U.S.C. 2370) is amended by adding at the end the following new subsection:
“(z) No assistance shall be furnished under this Act to the government of any country the President determines—
“(1) has failed to extradite an individual convicted of committing fraud against the United States or benefitting from the proceeds of defrauding the United States; or
“(2) has failed to take all appropriate legal, administrative, or enforcement measures to assist in the recoupment of Federal funds fraudulently stolen from the United States by identifying, freezing, seizing, and repatriating the funds so fraudulently obtained.”
Sec. 3 Findings
Congress finds the following:
According to the Government Accountability Office, the Federal Government lost between $233,000,000,000 and $521,000,000,000 annually to fraud from fiscal years 2018 through 2022.
The range reflects the varying risk environments for fraud—ninety percent of the estimated fraud losses fell in this range.
In Minnesota, the nonprofit organization Feeding Our Future and associated individuals carried out the largest COVID–19 pandemic fraud scheme in the United States, stealing over $250,000,000 intended to feed hungry children.
The Department of Justice has charged 75 defendants in the fraud scheme, and Federal prosecutors have secured multiple convictions against participants in this scheme, which involved the submission of false reimbursement claims, the creation of fictitious meal sites, and the laundering of Federal funds through shell entities and fraudulent invoices.
Charges and convictions in the Feeding Our Future scheme include—
wire fraud;
conspiracy to commit wire fraud;
theft of government funds;
conspiracy to defraud the United States;
Federal program bribery;
money laundering; and
engaging in monetary transactions with criminally derived property.
Some of the proceeds of this fraud were used to purchase luxury real estate and vehicles, and at least one defendant transferred funds and property abroad, including to Kenya, beyond the reach of United States authorities.
Sec. 4 Sense of Congress
It is the sense of Congress as follows:
The United States lacks adequate tools to ensure the recovery of stolen taxpayer funds and property transferred overseas, leaving American taxpayers without recourse when foreign jurisdictions fail to cooperate.
Strengthening program integrity, recouping stolen funds, and preventing individuals convicted of defrauding Federal programs from seeking international harbor are essential to safeguarding taxpayer dollars and ensuring programs assist those that Congress intended.
Providing additional deterrence by ensuring potential fraudsters lack a safe harbor abroad is critical to preventing future fraud schemes.
Sec. 5 Waiver
In general— The President may waive the limitation under section 620(z) of the Foreign Assistance Act of 1961, as added by section 2, if the President certifies to Congress that prohibiting such assistance is contrary to the national security of the United States.
Prior notification— Not later than 15 days before the entry into effect of a waiver under subsection (a), the President shall submit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a notification of intent to issue such a waiver, along with a justification.
Sec. 6 Report on noncompliant countries
Not later than 180 days after the date of enactment of this Act, and annually thereafter, the Secretary of State shall submit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a report that—
lists each country the President determines has failed to take all appropriate legal, administrative, or enforcement measures as described in section 620(z)(2) of the Foreign Assistance Act of 1961 (as added by section 2); and
describes the total amount of fraudulently obtained funds and court-ordered remedies, such as recoveries, restitution, or fines, along with seizures and forfeitures from the United States attributable to the failure to take all such measures by each such country.