Major Fraud Against the United States
The Major Fraud Act of 1988 (Pub.L. No. 100-700, § 2, 102 Stat.
4631) created a new offense, 18 U.S.C. § 1031:|
- Whoever knowingly executes, or attempts to execute, any
scheme or artifice with the intent --
- to defraud the United States; or
- to obtain money or property by means of false or fraudulent pretenses,
representations, or promises, in any procurement of property or services as
prime contractor with the United States or as a subcontractor or supplier on
contract in which there is a prime contract with the United States, if the
of the contract, subcontract, or any constituent part thereof, for such
or services is $1,000,000 or more . . . .
The statute has been upheld against vagueness attacks. United States v.
Nadi, 996 F.2d 548 (2d Cir. 1993), cert. denied, 114 S.
(1993); United States v. Frequency Electronics, 862 F. Supp. 834
1994). For more on the Act, see S. MacKay, The Major Fraud Act After
Years: an Update, 64 Federal Contracts Report 1 (Sept. 25, 1995, Bureau
National Affairs). The Criminal Division's Fraud Section Federal
Fraud Unit also has prepared a monograph on the Act, as well as a sample
The Act also establishes a "bounty-hunter" provision under 18
U.S.C.§ 1031(g), which allows payments from the Department of Justice
persons who furnish information under the Act; however, to date, no fund has
authorized and no payments awarded.
[cited in USAM 9-42.001]