Sections 891 to 896 of Title 18, United States Code, are designed
principally to bring the resources of Federal law enforcement to bear on the
loansharking activity of criminal organizations. Prior authorization by the
Criminal Division is not required for prosecutions pursuant to Sections
Section 891 is the definitional section. Section 892 proscribes
making or conspiring to make any extortionate extension of credit. Section
893 prohibits the willful advancement of money or property to any person
"with reasonable grounds to believe that it is the intention of that person
to use the money or property so advanced directly or indirectly for the
purpose of making extortionate extensions of credit." Section 894 prohibits
"use of an extortionate means . . . to collect or attempt to collect any
extension of credit, or to punish any person for the nonrepayment thereof."
Section 896 makes it clear that state prosecutions for extortionate credit
transactions are not preempted by the Federal statute.
An explanation of this Act and related statutes applicable to
loansharking is available from the Organized Crime and Racketeering Section
in the Criminal Division.
[cited in USAM 9-110.700]