Corporate Fraud Accountability Act of 2002
Latest action. Read twice and referred to the Committee on the Judiciary.
Corporate Fraud Accountability Act of 2002 - Amends Federal criminal law to: (1) increase the maximum penalties for mail fraud and for wire fraud; and (2) establish criminal penalties for knowing perpetration of securities fraud and for tampering with a record or otherwise impeding an official proceeding. (Sec. 4) Requests the United States Sentencing Commission to: (1) promptly review sentencing guidelines applicable to securities and accounting fraud; and (2) expeditiously consider promulgation of new sentencing guidelines to provide an enhancement for officers of directors of publicly traded corporations who commit fraud and related offenses. Prescribes guidelines for Commission consideration, including a request that it ensure that the sentencing guidelines and policy statements reflect the serious nature of securities, pension, and accounting fraud and the need for aggressive and appropriate law enforcement action to prevent such offenses. Sets a deadline for promulgation of such guidelines. (Sec. 5) Amends Federal bankruptcy law to declare nondischargeable in bankruptcy debts that have been incurred in violation of Federal or State laws governing securities fraud, deceit, or manipulation. (Sec. 6) Amends Federal criminal law to mandate that senior corporate officers certify in writing that financial statements fairly and accurately represent in all material aspects the operations and financial condition of the issuer. Subjects senior corporate officers to criminal liability for violations of this requirement, including: (1) maximum imprisonment of ten years for knowingly violating financial report requirements; and (2) maximum imprisonment of 20 years for willfully violating such requirements. (Sec. 7) Subjects any attempt or conspiracy to commit any offense against the United States to the same penalties as those prescribed for the offense. (Sec. 8) Amends the Securities Exchange Act of 1934 to: (1) increase criminal penalties for violations; and (2) authorize the Securities and Exchange Commission (SEC) to seek a temporary injunction to freeze extraordinary payments earmarked for designated persons or corporate staff under investigation for possible violations of Federal securities laws. (Sec. 10) Amends the Securities Exchange Act of 1934 and the Securities Act of 1933 to authorize the SEC to prohibit violators of certain provisions from serving as officers or directors of a publicly traded corporation. (Sec. 11) Amends Federal criminal law to establish criminal penalties for intentional retaliation against any person who has provided information to a law enforcement officer regarding the commission of a Federal offense.
Written by analysts at the Congressional Research Service and published on Congress.gov, not by Civibrief. Summarized at the "Passed House amended" stage on July 16, 2002. It describes the bill, it is not the legal text.
Where is it in the process, and what happens next?
4 steps remain before this bill could become law.
The record's latest action, on July 19, 2002: Read twice and referred to the Committee on the Judiciary.
- Clearing the committees it was referred to, and being scheduled for a floor vote
- Passage by the House
- Passage by the Senate
- The President's signature. If the President vetoes it, two-thirds of both chambers must vote to override.
How likely is it to become law?
Civibrief does not forecast outcomes and this page has no opinion about this one. What the record supports is a base rate, which is a fact about the whole pile, not a prediction about this measure.
In the 107th Congress (2001-02), 377 of the 9,126 bills and joint resolutions introduced became law, about 4.1 percent. That count covers every measure at every stage, including the many that never left committee.
This one is not there yet: 4 steps are still outstanding, listed above.
Has anyone actually voted on it?
No. No roll call in this Congress cites this measure. That is the ordinary outcome: most measures never reach a recorded floor vote, and a committee ends most of them simply by not acting.
A vote is not the only thing that happens to a measure. Hearings, markups, and referrals are all recorded actions, and none of them is a vote of the full chamber.
Who is behind it?
F. SENSENBRENNER (R-WI) introduced it on July 15, 2002, and 13 members have since signed on as cosponsors.
They are 13 Republicans.
Cosponsoring is a formal signature on the text. It is not a commitment to vote for the measure, it does not bind anyone's party, and a long list of cosponsors is a measure of attention rather than of prospects.
How long has it been in play?
It was introduced on July 15, 2002, 8871 days ago. The most recent recorded action was 8867 days ago, on July 19, 2002.
Measures do not carry over. Anything the 107th Congress has not finished by January 3, 2003 dies when the term ends, and has to be introduced again from the start in the next Congress.
Every answer above is assembled from this measure's own record on Congress.gov and from published counts of what Congress has passed before. Civibrief does not predict outcomes and takes no position on any measure.
Vote history
- HouseIn committee, no floor vote yet
- SenateAwaits House passage
- PresidentAwaits both chambers