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Criminal Resource Manual

2086. Loansharking

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 891-896.

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]