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CITE

    18 USC Sec. 38                                              01/05/2009

EXPCITE

    TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
    PART I - CRIMES
    CHAPTER 2 - AIRCRAFT AND MOTOR VEHICLES

HEAD

    Sec. 38. Fraud involving aircraft or space vehicle parts in
      interstate or foreign commerce

STATUTE

      (a) Offenses. - Whoever, in or affecting interstate or foreign
    commerce, knowingly and with the intent to defraud -
        (1)(A) falsifies or conceals a material fact concerning any
      aircraft or space vehicle part;
        (B) makes any materially fraudulent representation concerning
      any aircraft or space vehicle part; or
        (C) makes or uses any materially false writing, entry,
      certification, document, record, data plate, label, or electronic
      communication concerning any aircraft or space vehicle part;
        (2) exports from or imports or introduces into the United
      States, sells, trades, installs on or in any aircraft or space
      vehicle any aircraft or space vehicle part using or by means of a
      fraudulent representation, document, record, certification,
      depiction, data plate, label, or electronic communication; or
        (3) attempts or conspires to commit an offense described in
      paragraph (1) or (2),
    shall be punished as provided in subsection (b).
      (b) Penalties. - The punishment for an offense under subsection
    (a) is as follows:
        (1) Aviation quality. - If the offense relates to the aviation
      quality of a part and the part is installed in an aircraft or
      space vehicle, 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 (as defined in
      section 1365), 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, 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) 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, a fine of not more than -
          (A) $10,000,000 in the case of an offense described in
        paragraph (1) or (4); and
          (B) $20,000,000 in the case of an offense described in
        paragraph (2) or (3).
      (c) Civil Remedies. -
        (1) In general. - The district courts of the United States
      shall have jurisdiction to prevent and restrain violations of
      this section by issuing appropriate orders, including -
          (A) ordering a person (convicted of an offense under this
        section) to divest any interest, direct or indirect, in any
        enterprise used to commit or facilitate the commission of the
        offense, or to destroy, or to mutilate and sell as scrap,
        aircraft material or part inventories or stocks;
          (B) imposing reasonable restrictions on the future activities
        or investments of any such person, 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 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.
        (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 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.
      (d) Criminal Forfeiture. -
        (1) In general. - The court, in imposing sentence on any person
      convicted of an offense under this section, shall order, in
      addition to any other sentence and irrespective of any provision
      of State law, that the person forfeit to the United States -
          (A) any property constituting, or derived from, any proceeds
        that the person 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) (not including subsection
      (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 law for the fraudulent importation, sale, trade,
    installation, or introduction into commerce of an aircraft or space
    vehicle part.
      (f) Territorial Scope. - This section also applies to conduct
    occurring outside the United States if -
        (1) the offender is a natural person who is a citizen or
      permanent resident alien of the United States, or an organization
      organized under the laws of the United States or political
      subdivision thereof;
        (2) the aircraft or spacecraft part as to which the violation
      relates was installed in an aircraft or space vehicle owned or
      operated at the time of the offense by a citizen or permanent
      resident alien of the United States, or by an organization
      thereof; or
        (3) an act in furtherance of the offense was committed in the
      United States.

SOURCE

    (Added Pub. L. 106-181, title V, Sec. 506(c)(1), Apr. 5, 2000, 114
    Stat. 137.)

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.