NCJ Number
64762
Journal
George Washington Law Review Volume: 47 Issue: 3 Dated: (MARCH 1979) Pages: 596-629
Date Published
1979
Length
33 pages
Annotation
THREE SECTIONS OF THE CRIMINAL CODE REFORM BILL OF 1978, S. 1437, WHICH FOCUS ON CONSUMER FRAUD ARE EXPLORED.
Abstract
SECTIONS 1734, 1738, AND 4102 OF S. 1437 WOULD SIMPLIFY CURRENT FEDERAL LAW BY COMBINING THREE SIMILAR CRIMINAL FRAUD STATUTES TO FORM 'A SINGLE ALL-ENCOMPASSING FRAUD STATUTE.' THE SECTIONS WOULD ENLARGE THE SCOPE OF CURRENT FEDERAL LAWS BY EXPLICITLY PROSCRIBING PYRAMID SALES SCHEMES AND MISREPRESENTATIONS ABOUT PROPERTY OFFERED OR ADVERTISED FOR SALE. STATE ATTEMPTS TO SUPPRESS CONSUMER FRAUD THROUGH THE ENFORCEMENT OF THEIR CRIMINAL LAWS HAVE BEEN LARGELY UNSUCCESSFUL, UNDERSCORING THE NEED FOR BROADER FEDERAL AUTHORITY SINCE A MAJOR IMPEDIMENT TO STATE EFFORTS HAS BEEN LIMITED JURISDICTION UNDER STATE LAW. SECTION 1734 OF THE PROPOSED BILL WOULD RECODIFY THE CURRENT MAIL FRAUD STATUTE, BROADENING THE FEDERAL JURISDICTION BEYOND THE MAIL FRAUD STATUTE BY SEPARATING THE JURISDICTIONAL ELEMENT OF THE CRIME FROM THE CONDUCT ELEMENT. PROPERTY WOULD INCLUDE ANYTHING OF VALUE, EVEN SUCH INTANGIBLES AS RIGHTS AND PRIVILEGES. SECTION 4102 WOULD ALLOW THE VICTIM OF A CONVICTED DEFENDANT TO BRING CIVIL SUIT FOR TREBLE DAMAGES IN FEDERAL COURT. SECTION 1738 WOULD MAKE CONSUMER FRAUD A FEDERAL CRIME. FOCUSING ON BAIT AND SWITCH SCHEMES, IT WOULD PROHIBIT OFFERING OR ADVERTISING PROPERTY FOR SALE WITH KNOWLEDGE THAT IT WILL NOT BE SOLD AS OFFERED OR ADVERTISED. IN ADDITION, EIGHT SPECIFIED ASPECTS OF THE PROPERTY OFFERED MUST BE TRUTHFULLY DESCRIBED. THE CONSUMER FRAUD PROVISIONS OF S. 1437 WOULD GREATLY ENHANCE THE INTEGRITY OF THE MARKETPLACE AND SHOULD BE ENACTED INTO LAW. FOOTNOTES ARE INCLUDED. (LWM)