§ 38. — Fraud involving aircraft or space vehicle parts in interstate or foreign commerce.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 18USC38]
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
PART I--CRIMES
CHAPTER 2--AIRCRAFT AND MOTOR VEHICLES
Sec. 38. Fraud involving aircraft or space vehicle parts in
interstate or foreign commerce
(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.
(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.
Section Referred to in Other Sections
This section is referred to in section 2516 of this title.
