article: SECTION 1. CRIMINAL AND CIVIL FORFEITURE FOR MAIL AND WIRE FRAUD. (a) In General.--Chapter 63 of title 18, United States Code, is amended by adding at the end the following new sections: ``Sec. 1347. Criminal forfeiture for violation of section 1341 or 1343 ``(a) In General.--A person convicted of a violation of sections 1341 or 1343 of this title shall, notwithstanding any provision of State law, forfeit to the United States any property constituting or derived from any proceeds which the person obtained directly or indirectly from a scheme in violation of either section. ``(b) Procedures of Controlled Substances Act Applicable.--With respect to a forfeiture under this section for a violation of this chapter, the provisions of subsections (b), (c), (e), (f), (g), (i), (k), (l), (m), (n), and (o) of section 413 of the Controlled Substances Act apply as they would to a forfeiture under that section for a violation of the Controlled Substances Act. ``(c) Disposition of Property.--After a seizure of property ordered forfeited under this section, the Attorney General shall dispose of the property under section 1349 of this title. The Postal Service shall turn any such seized property over to the Attorney General for disposal under such section. ``(d) Substitute Assets.--If any of the property subject to forfeiture under this section, as a result of conduct of the defendant-- ``(1) cannot be located upon the exercise of due diligence; ``(2) has been transferred or sold to, or deposited with, a third party; ``(3) has been placed beyond the jurisdiction of the court; ``(4) has been substantially diminished in value; or ``(5) has been commingled with other property which cannot be divided without difficulty; the court shall order the forfeiture of any other property of the defendant up to the value of any property described in paragraphs (1) through (5) of this subsection. ``Sec. 1348. Civil forfeiture for violation of section 1341 or 1343 ``(a) Property Subject to Civil Forfeiture.--Any property, as defined by subsection (b) of section 413 of the Controlled Substances Act, constituting or derived from any proceeds of a scheme in violation of sections 1341 or 1343 of this title shall be subject to forfeiture to the United States. ``(b) Seizure.--(1) Except as provided in paragraph (4), any property subject to forfeiture to the United States under this section may be seized by the Attorney General or the Postal Service upon process issued pursuant to the Supplemental Rules for Certain Admiralty and Maritime Claims by a district court of the United States having jurisdiction over the property. ``(2) The Attorney General or the Postal Service may seize such property without such process when-- ``(A) the seizure is incident to a lawful arrest or search; or ``(B) such property has been the subject of a prior judgment in favor of the United States in a criminal injunction or forfeiture proceeding under section 1347 of this title. ``(3) The Government may seek the issuance of a warrant authorizing the seizure of property subject to forfeiture under this section in the same manner as provided for a search warrant under the Federal Rules of Criminal Procedure. ``(4) No property shall be forfeited under this section to the extent of the interest of an owner or lienholder by reason of any act or omission established by that owner or lienholder to have been committed without the knowledge of that owner or lienholder. ``(c) Procedural Matters.--(1) With respect to a forfeiture of property under this section, the provisions of subsections (c), (d), (h), and (j) of section 511 of the Controlled Substances Act apply as they would to a forfeiture of property under that section, and the Postal Service may also perform any of the functions the Attorney General may perform under such subsections. ``(2) The filing of an indictment or information alleging a violation of section 1341 or 1343 of this title which is also related to a civil forfeiture proceeding under either section shall, upon motion of the United States and for good cause shown, stay the civil forfeiture proceeding. ``(d) Disposition of Property.--After a seizure of property ordered forfeited under this section, the Attorney General or the Postal Service shall dispose of the property under section 1349 of this title. ``Sec. 1349. Disposition of forfeited property ``(a) In General.--After making due provision for the rights of any innocent persons, the Attorney General, after deducting the costs incurred by the United States in conducting the seizure, forfeiture, and identification of victims, shall deposit the property forfeited or the proceeds from the sale of property forfeited under sections 1347 or 1348 of this title in the Department of Justice Assets Forfeiture Fund established by section 524(c) of title 28. The Postal Service may exercise the authority of the Attorney General in conducting administrative forfeitures and shall deposit the property forfeited or the proceeds of the property forfeited in the Postal Service Fund under section 2003(b)(7) of title 39. Any property right or interest not exercisable by, or transferable for value to, the United States shall expire and shall not revert to the defendant. Neither the defendant nor any person acting in concert with the defendant or on the defendant's behalf is eligible to purchase forfeited property sold by the United States. ``(b) Restraint Pending Appeal.--Upon application of a person other than the defendant or a person acting in concert with the defendant or on the defendant's behalf, the court may restrain or stay the sale or disposition of the property pending the conclusion of any appeal in the case giving rise to the forfeiture, if the applicant demonstrates that proceeding with the sale or disposition will result in irreparable harm to the applicant. ``(c) Rules for Disposition.--The Attorney General and the Postal Service shall make rules providing for the disposition of such property and proceeds. The rules shall provide that the Attorney General or the Postal Service may-- ``(1) retain the property for official use; ``(2) transfer the property to Federal, State, or local law enforcement agencies so as to reflect generally the contribution of such agencies to the seizure or forfeiture of such property; ``(3) sell any forfeited property which is not required to be destroyed by law and which is not harmful to the public; ``(4) require that the General Services Administration take custody of the property and dispose of it in accordance with law; ``(5) restore forfeited property to victims of an offense described in subsection (a); ``(6) destroy the property if it is harmful to the public or the expense of sale would exceed the amount realized from the sale; or ``(7) dispose of such funds or property as otherwise provided by law.''. (b) Clerical Amendment.--The table of sections for chapter 63 of title 18, United States Code, is amended by adding at the end the following new items: ``1347. Criminal forfeiture for violation of section 1341 or 1343. ``1348. Civil forfeiture for violation of section 1341 or 1343. ``1349. Disposition of forfeited property.''. SEC. 2. POSTAL SERVICE FUND AMENDMENT. Section 2003(b)(7) of title 39, United States Code, is amended to read as follows: ``(7) amounts (including proceeds from the sale of forfeited items) from any forfeiture conducted by the Postal Service and from any forfeiture resulting from an investigation conducted by the Postal Service, except that nothing in this paragraph shall preclude the Postal Service from sharing such amounts with any Federal or State agency whose efforts in investigating or litigating the forfeiture contributed to the receipt of such funds.''.
summary: Amends the Federal criminal code to provide for criminal and civil forfeiture for mail and wire fraud. Makes specified procedures relating to forfeitures under the Controlled Substances Act applicable to forfeitures under this Act. Requires the court to order the forfeiture of any other property of the defendant up to the value of the property subject to forfeiture under this Act if, as a result of conduct of the defendant, the forfeited property cannot be located upon the exercise of due diligence or has been transferred or sold to, or deposited with, a third party, placed beyond the court's jurisdiction, substantially diminished in value, or commingled with other property which cannot be divided without difficulty. Directs that any such forfeited property be seized by the Attorney General or U.S. Postal Service upon process issued pursuant to the Supplemental Rules for Certain Admiralty and Maritime Claims by a U.S. district court having jurisdiction over the property, with exceptions for innocent owners or lienholders. Authorizes the Attorney General or Postal Service to seize such property without such process under specified circumstances. Directs the: (1) Attorney General, after providing for the rights of any innocent persons and deducting costs incurred by the United States in conducting the seizure, forfeiture, and identification of victims, to deposit the property forfeited or the proceeds from its sale in the Department of Justice Assets Forfeiture Fund; and (2) the Postal Service to deposit property forfeited or the proceeds into the Postal Service Fund. Sets forth provisions regarding: (1) restraint or staying of the sale or disposition of property pending appeal; and (2) rules for the disposition of such property and proceeds. Requires the deposit into the Postal Service Fund of amounts from any forfeiture conducted by the Postal Service and from any forfeiture resulting from an investigation conducted by the Postal Service. Allows the Postal Service to share such amounts with any Federal or State agency whose efforts in investigating or litigating the forfeiture contributed to the receipt of such funds.