The LETITIA Act increases criminal penalties for people who are public officials when they commit certain bank, mortgage, credit, and tax frauds. The bill changes three federal statutes and adds rules for law enforcement guidance.
18 U.S.C. 1344 (bank fraud): The bill adds a penalty subsection. For a public official who commits bank fraud, a first or second offense carries a fine up to $1,500,000 and prison of not less than 1 year and not more than 35 years. A third or later offense carries a fine up to $2,000,000 and prison of not less than 5 years and not more than 40 years. Non-public-official penalties remain (fine up to $1,000,000 and prison up to 30 years).
18 U.S.C. 1014 (falsifying loan and credit applications): The bill adds an enhanced penalty subsection for public officials. For a public official, a first or second offense carries a fine up to $1,500,000 and prison of not less than 1 year and not more than 35 years. A third or later offense carries a fine up to $2,000,000 and prison of not less than 5 years and not more than 40 years. General penalties for others remain.
Internal Revenue Code section 7206 (falsifying tax filings): The bill adds an enhanced penalty subsection for public officials. For a public official, a first or second offense substitutes a maximum fine of $150,000 and a prison term of not less than 6 months and not more than 5 years. A third or later offense substitutes a maximum fine of $200,000 and a prison term of not less than 2 years and not more than 10 years. (The existing subsection shows a $100,000 maximum fine and prison up to 3 years for general cases.)
The bill defines "public official" in each relevant section as an officer, employee, elected or appointed representative of, or an individual acting for or on behalf of, the United States, a State, or a subdivision of a State, or any department, agency, or branch of government, in an official function. The bill also directs the Attorney General and the Secretary of the Treasury to issue guidance to relevant law enforcement personnel and task forces within 90 days about the updated statutes and investigation practices. The amendments apply to convictions after the date of enactment.
No publicly available information.
The bill's findings state that elected and appointed public officials hold a public trust and should meet high ethical standards. It says public officials who commit fraud betray that trust, harm financial institutions and the public, and therefore deserve heightened punishments, including mandatory minimum prison terms. The bill requires updated enforcement guidance to help investigate such officials.
No publicly available information.