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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2680 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2680
To establish sentencing enhancements for offenses relating to bank,
mortgage, credit, and tax fraud committed by elected public officials,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 2, 2025
Mr. Cornyn (for himself, Mrs. Fischer, Mr. Wicker, Mr. Budd, Mr.
Kennedy, Mr. Ricketts, and Mr. Daines) introduced the following bill;
which was read twice and referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To establish sentencing enhancements for offenses relating to bank,
mortgage, credit, and tax fraud committed by elected public officials,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Law Enforcement Tools to Interdict
Troubling Investments in Abodes Act'' or the ``LETITIA Act''.
SEC. 2. FINDINGS.
It is the sense of Congress that:
(1) In the United States, citizens elect civic and
political leaders to represent their interests and act on their
behalf.
(2) In return for being given this sacred trust, public
officials are expected to fully adhere to the highest ethical
and moral standards, and must discharge their duties
faithfully, honestly, and impartially, free from any personal
considerations or gain.
(3) Public service is a public trust, and the Government
only functions when there is trust between the electorate and
public officials.
(4) When public officials abuse the faith that citizens
place in them by committing crimes of dishonesty or moral
turpitude, they betray both their office and the public, and
deserve heightened punishment.
(5) Fraud is, at its core, a crime of dishonesty.
(6) Mortgage, bank, credit, and tax frauds require
deception and lies, and harm the victim financial institutions,
investors, and the broader public.
(7) Therefore, public officials who commit these crimes
deserve punishments above and beyond what a normal citizen
should receive.
(8) Such punishment must include mandatory minimum
sentences of imprisonment for any public official to ensure
that they cannot abuse their positions of influence to cut
sweetheart or backroom deals that the average citizen would be
unable to make.
(9) If a public official commits multiple frauds,
demonstrating a pattern and practice of dishonest, unethical,
and illegal behavior, justice demands that the public official
should face even harsher mandatory penalties.
(10) No person is above the law, and public officials who
commit fraud must be held to account. Integrity matters.
SEC. 3. ENHANCED PENALTIES FOR PUBLIC OFFICIALS WHO COMMIT BANK FRAUD.
Section 1344 of title 18, United States Code, is amended--
(1) in the matter preceding paragraph (1), by striking
``Whoever knowingly executes, or attempts to execute,'' and
inserting the following:
``(a) Offense.--It shall be unlawful to knowingly execute, or
attempt to execute,'';
(2) in subsection (a)(2), as so designated by paragraph
(1), by striking the semicolon at the end and inserting a
period;
(3) by striking ``shall be fined not more than $1,000,000
or imprisoned not more than 30 years, or both.''; and
(4) by adding at the end the following:
``(b) Penalty.--
``(1) In general.--Except as provided in paragraph (2), a
person convicted of a violation of subsection (a) shall be
fined not more than $1,000,000, imprisoned not more than 30
years, or both.
``(2) Public official.--
``(A) Definition.--In this paragraph, the term
`public official' means 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 any official function, under
or by the authority of any such department, agency, or
branch of government.
``(B) Enhanced penalties.--In the case of an
individual who is a public official at the time of an
offense described in subsection (a)--
``(i) if the offense is the first or second
such offense, the individual shall be fined not
more than $1,500,000 and imprisoned not less
than 1 year and not more than 35 years; and
``(ii) if the offense is the third or
subsequent such offense, the individual shall
be fined not more than $2,000,000 and
imprisoned not less than 5 years and not more
than 40 years.''.
SEC. 4. ENHANCED PENALTIES FOR PUBLIC OFFICIALS WHO FALSIFY LOAN AND
CREDIT APPLICATIONS.
Section 1014 of title 18, United States Code, is amended--
(1) by striking ``Whoever knowingly'' and inserting:
``(a) Offense.--Whoever knowingly'';
(2) by striking ``shall'' and all that follows, and
inserting ``shall be punished as provided in subsection (b).'';
and
(3) by adding at the end the following:
``(b) Penalty.--
``(1) In general.--Except as provided in paragraph (2), a
person convicted of a violation of subsection (a) shall be
fined not more than $1,000,000, imprisoned not more than 30
years, or both.
``(2) Public officials.--In the case of an individual who
is a public official at the time of an offense described in
subsection (a)--
``(A) if the offense is the first or second such
offense, the individual shall be fined not more than
$1,500,000 and imprisoned not less than 1 year and not
more than 35 years; and
``(B) if the offense is the third or subsequent
such offense, the individual shall be fined not more
than $2,000,000 and imprisoned not less than 5 years
and not more than 40 years.
``(c) Definitions.--In this section:
``(1) Public official.--The term `public official' means 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 any official function, under or by
the authority of any such department, agency, or branch of
government.
``(2) State-chartered credit union.--The term `State-
chartered credit union' includes a credit union chartered under
the laws of a State of the United States, the District of
Columbia, or any commonwealth, territory, or possession of the
United States.''.
SEC. 5. ENHANCED PENALTIES FOR PUBLIC OFFICIALS WHO FALSIFY TAX
FILINGS.
Section 7206 of the Internal Revenue Code of 1986 is amended--
(1) by striking ``Any person'' and inserting the following:
``(a) In General.--Any person'', and
(2) by adding at the end the following new subsection:
``(b) Enhanced Penalty for Public Officials.--
``(1) In general.--In the case of an individual who is a
public official at the time of an offense described in
subsection (a)--
``(A) if the offense is the first or second such
offense, subsection (a) shall be applied--
``(i) by substituting `$150,000' for
`$100,000', and
``(ii) by substituting `not less than 6
months and not more than 5 years' for `not more
than 3 years', and
``(B) if the offense is the third or subsequent
such offence, subsection (a) shall be applied--
``(i) by substituting `$200,000' for
`$100,000', and
``(ii) by substituting `not less than 2
years and not more than 10 years' for `not more
than 3 years'.
``(2) Public official.--For purposes of this subsection,
the term `public official' means 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
any official function, under or by the authority of any such
department, agency, or branch of government.''.
SEC. 6. PUBLIC INTEGRITY ENFORCEMENT GUIDANCE FOR THE DEPARTMENT OF
JUSTICE AND THE DEPARTMENT OF THE TREASURY.
(a) Directive to Department of Justice Law Enforcement Officials
and Task Forces.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Attorney General shall issue a
directive to--
(A) all Federal law enforcement officers and
relevant personnel employed by the Department of
Justice who may be involved in the investigation of
bank fraud and falsification of loan and credit
applications; and
(B) members of all task forces led by the
Department of Justice or a component thereof that
participate in the investigation of bank fraud and
falsification of loan and credit applications.
(2) Required instructions.--The directive required to be
issued under paragraph (1) shall include instructions on--
(A) the updates made by this Act to sections 1014
and 1344 of title 18, United States Code; and
(B) the investigation of public officials who
commit bank fraud and falsification of loan and credit
applications and how such individuals should be
investigated for such acts.
(b) Directive to Department of Treasury Officials.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary of the Treasury, in
consultation with the Attorney General, shall issue a directive
to--
(A) all Federal law enforcement officers and
relevant personnel employed by the Department of the
Treasury who may be involved in the investigation of
falsified tax filings; and
(B) members of all task forces led by the
Department of the Treasury or a component thereof that
participate in the investigation of falsified tax
filings.
(2) Required instructions.--The directive required to be
issued under paragraph (1) shall include instructions on--
(A) the updates made by this Act to section 7206 of
the Internal Revenue Code of 1986;
(B) the investigation of public officials who
falsify tax filings and how such individuals should be
investigated for such acts; and
(C) best practices for collaborating with the
Department of Justice and components thereof in the
investigation and prosecution of public officials who
falsify tax filings.
SEC. 7. EFFECTIVE DATE.
The amendments made by this Act shall apply to convictions after
the date of enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on the Judiciary.
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