--- kind: "section" citation: "18 U.S.C. § 38" title: "18" title_heading: "Crimes and Criminal Procedure" number: "38" heading: "Fraud involving aircraft or space vehicle parts in interstate or foreign commerce" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/18/38" units: - "Part I — Crimes" - "Chapter 2 — Aircraft and Motor Vehicles" --- # §38. Fraud involving aircraft or space vehicle parts in interstate or foreign commerce - (a) **Offenses.—** [Whoever](/usc/18/921.md?p=a-1), in or affecting [interstate or foreign commerce](/usc/18/921.md?p=a-2), knowingly and with the intent to defraud— - (1) - (A) falsifies or conceals a material fact concerning any [aircraft](/usc/18/31.md?p=a-1) or [space vehicle](/usc/18/31.md?p=a-8) part; - (B) makes any materially fraudulent representation concerning any [aircraft](/usc/18/31.md?p=a-1) or [space vehicle](/usc/18/31.md?p=a-8) part; or - (C) makes or uses any materially false writing, entry, certification, document, record, data plate, label, or [electronic communication](/usc/18/2510.md?p=12) concerning any [aircraft](/usc/18/31.md?p=a-1) or [space vehicle](/usc/18/31.md?p=a-8) part; - (2) exports from or imports or introduces into the [United States](/usc/18/229F.md?p=9), sells, trades, installs on or in any [aircraft](/usc/18/31.md?p=a-1) or [space vehicle](/usc/18/31.md?p=a-8) any [aircraft](/usc/18/31.md?p=a-1) or [space vehicle](/usc/18/31.md?p=a-8) part using or by means of a fraudulent representation, document, record, certification, depiction, data plate, label, or [electronic communication](/usc/18/2510.md?p=12); or - (3) attempts or conspires to commit an offense described in paragraph [(1)](#a-1) or [(2)](#a-2), shall be punished as provided in [subsection (b)](#b). - (b) **Penalties.—** The punishment for an offense under [subsection (a)](#a) is as follows: - (1) **Aviation quality.—** If the offense relates to the [aviation quality](/usc/18/31.md?p=a-2) of a part and the part is installed in an [aircraft](/usc/18/31.md?p=a-1) or [space vehicle](/usc/18/31.md?p=a-8), a fine of not more than $500,000, imprisonment for not more than 15 years, or both. - (2) **Failure to operate as represented.—** If, by reason of the failure of the part to operate as represented, the part to which the offense is related is the proximate cause of a malfunction or failure that results in [serious bodily injury](/usc/18/2246.md?p=4) (as defined in [section 1365](/usc/18/1365.md)), a fine of not more than $1,000,000, imprisonment for not more than 20 years, or both. - (3) **Failure resulting in death.—** If, by reason of the failure of the part to operate as represented, the part to which the offense is related is the proximate cause of a malfunction or failure that results in the death of any [person](/usc/18/229F.md?p=5), a fine of not more than $1,000,000, imprisonment for any term of years or life, or both. - (4) **Other circumstances.—** In the case of an offense under [subsection (a)](#a) not described in paragraph (1), (2), or (3) of this subsection, a fine under this title, imprisonment for not more than 10 years, or both. - (5) **Organizations.—** If the offense is committed by an [organization](/usc/18/2256.md?p=4), a fine of not more than— - (A) $10,000,000 in the case of an offense described in paragraph [(1)](#b-1) or [(4)](#b-4); and - (B) $20,000,000 in the case of an offense described in paragraph [(2)](#b-2) or [(3)](#b-3). - (c) **Civil Remedies.—** - (1) **In general.—** The district courts of the [United States](/usc/18/229F.md?p=9) shall have jurisdiction to prevent and restrain violations of this section by issuing appropriate orders, including— - (A) ordering a [person](/usc/18/229F.md?p=5) (convicted of an offense under this section) to divest any interest, direct or indirect, in any [enterprise](/usc/18/1961.md?p=4) used to commit or facilitate the commission of the offense, or to destroy, or to mutilate and sell as scrap, [aircraft](/usc/18/31.md?p=a-1) material or part inventories or stocks; - (B) imposing reasonable restrictions on the future activities or investments of any such [person](/usc/18/229F.md?p=5), including prohibiting engagement in the same type of endeavor as used to commit the offense; and - (C) ordering the dissolution or reorganization of any [enterprise](/usc/18/1961.md?p=4) knowingly used to commit or facilitate the commission of an offense under this section making due provisions for the rights and interests of innocent [persons](/usc/18/229F.md?p=5). - (2) **Restraining orders and prohibition.—** Pending final determination of a proceeding brought under this section, the court may enter such restraining orders or prohibitions, or take such other actions (including the acceptance of satisfactory performance bonds) as the court deems proper. - (3) **Estoppel.—** A final judgment rendered in favor of the [United States](/usc/18/229F.md?p=9) in any criminal proceeding brought under this section shall stop the defendant from denying the essential allegations of the criminal offense in any subsequent civil proceeding brought by the [United States](/usc/18/229F.md?p=9). - (d) **Criminal Forfeiture.—** - (1) **In general.—** The court, in imposing sentence on any [person](/usc/18/229F.md?p=5) convicted of an offense under this section, shall order, in addition to any other sentence and irrespective of any provision of [State](/usc/18/31.md?p=a-9) law, that the [person](/usc/18/229F.md?p=5) forfeit to the [United States](/usc/18/229F.md?p=9)— - (A) any property constituting, or derived from, any proceeds that the [person](/usc/18/229F.md?p=5) obtained, directly or indirectly, as a result of the offense; and - (B) any property used, or intended to be used in any manner, to commit or facilitate the commission of the offense, if the court in its discretion so determines, taking into consideration the nature, scope, and proportionality of the use of the property on the offense. - (2) **Application of other law.—** The forfeiture of property under this section, including any seizure and disposition of the property, and any proceedings relating to the property, shall be governed by section 413 of the Comprehensive Drug Abuse and Prevention Act of 1970 ([21 U.S.C. 853](/usc/21/853.md)) (not including [subsection (d)](/usc/21/853.md?p=d) of that section). - (e) **Construction With Other Law.—** This section does not preempt or displace any other remedy, civil or criminal, provided by Federal or [State](/usc/18/31.md?p=a-9) law for the fraudulent importation, sale, trade, installation, or introduction into [commerce](/usc/18/232.md?p=2) of an [aircraft](/usc/18/31.md?p=a-1) or [space vehicle](/usc/18/31.md?p=a-8) part. - (f) **Territorial Scope.—** This section also applies to conduct occurring outside the [United States](/usc/18/229F.md?p=9) if— - (1) the offender is a natural [person](/usc/18/229F.md?p=5) who is a citizen or permanent resident [alien](/usc/18/841.md?p=r) of the [United States](/usc/18/229F.md?p=9), or an [organization](/usc/18/2256.md?p=4) organized under the laws of the [United States](/usc/18/229F.md?p=9) or political subdivision thereof; - (2) the [aircraft](/usc/18/31.md?p=a-1) or spacecraft part as to which the violation relates was installed in an [aircraft](/usc/18/31.md?p=a-1) or [space vehicle](/usc/18/31.md?p=a-8) owned or operated at the time of the offense by a citizen or permanent resident [alien](/usc/18/841.md?p=r) of the [United States](/usc/18/229F.md?p=9), or by an [organization](/usc/18/2256.md?p=4) thereof; or - (3) an act in furtherance of the offense was committed in the [United States](/usc/18/229F.md?p=9). ## Source credit (Added Pub. L. 106–181, title V, § 506(c)(1), Apr. 5, 2000, 114 Stat. 137.) ## Notes ### Statutory Notes and Related Subsidiaries ### Effective Date Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of Title 49, Transportation.