PRIA, Government Policy, Made Personal

Summary

Makes it a crime to lie about, fake, hide, or use false papers, labels, or electronic records for aircraft or spacecraft parts, or to import, sell, trade, or install such parts using those lies. Trying or planning to do any of these things is also a crime. The lie or fake must be important to the part and must be done on purpose to cheat. Penalties depend on how bad the result is. If the fake affects the part’s aviation quality and it is installed, a person can be fined up to $500,000, jailed up to 15 years, or both. If the bad part causes a malfunction that leads to serious bodily injury, the fine can be up to $1,000,000 and jail up to 20 years. If the malfunction causes death, the fine can be up to $1,000,000 and jail for any number of years or life. Other cases can bring fines and up to 10 years in prison. Companies face higher fines: up to $10,000,000 for some offenses and up to $20,000,000 for the most serious ones. Courts can also order people to give up or destroy parts and inventories, stop certain business activities, reorganize or close businesses, and issue temporary orders while cases are decided. Convicted people must forfeit money made from the crime and may lose property used to commit it, with forfeiture handled under 21 U.S.C. 853. The law can apply to acts outside the United States if the person or company is American, the part was on an American-owned or -operated craft, or some act in furtherance happened in the United States.

Title 18, §38

Crimes and Criminal Procedure, Source: USLM XML via OLRC

(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.

Statutory Notes and Related Subsidiaries

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.

§38 Fraud Involving Aircraft or Space Vehicle Parts in Interstate or Foreign Commerce

Summary

Title 18, §38

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Amendments

Citations & Metadata