2012 -- S 2650

=======

LC00200

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO CRIMINAL OFFENSES

     

     

     Introduced By: Senators Pichardo, Jabour, Lanzi, Lombardo, and Tassoni

     Date Introduced: March 01, 2012

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

1-1

     SECTION 1.  Chapter 11-18 of the General Laws entitled “Fraud and False Dealing” is

1-2

hereby amended by adding thereto the following section:

1-3

     11-18-34.  Residential Mortgage Fraud. - (a) A person commits residential mortgage

1-4

fraud when, with the intent to defraud, such person:

1-5

     (1) Knowingly makes any material written misstatement, misrepresentation or omission

1-6

during the mortgage lending process with the intention that a mortgage lender, a borrower, or any

1-7

other person that is involved in the mortgage lending process will rely on such written

1-8

misstatement, misrepresentation or omission;

1-9

     (2) Knowingly uses or facilitates the use or attempts to use or facilitate the use of any

1-10

written misstatement, misrepresentation or omission during the mortgage lending process with the

1-11

intention that a mortgage lender, a borrower or any other person that is involved in the mortgage

1-12

lending process relies on it;

1-13

     (3) Receives or attempts to receive proceeds or any other funds in connection with a

1-14

residential mortgage lending transaction that the person knew or should have known resulted

1-15

from an act or acts constituting residential mortgage fraud;

1-16

     (4) Conspires with or solicits another to engage in an act or acts constituting residential

1-17

mortgage fraud; or

1-18

     (5) Files or causes to be filed with a city or town clerk any document involved in the

1-19

mortgage lending process that the person knows to contain a deliberate misstatement,

1-20

misrepresentation or omission.

2-1

     (b) Any person who violates subsection (a) shall be subject to the following penalties:

2-2

     (1) Any person who commits an offense under subsection (a) shall be guilty of a felony

2-3

subject to imprisonment for not more than five (5) years, a fine of five thousand dollars ($5,000),

2-4

or both.

2-5

     (2) Any person who engages or participates in a pattern of residential mortgage fraud or a

2-6

conspiracy or endeavor to engage or participate in a pattern of residential mortgage fraud shall be

2-7

guilty of a felony subject to imprisonment for not more than twenty (20) years, a fine of one

2-8

hundred thousand dollars ($100,000), or both. 

2-9

     (3) Any person who commits an offense and knew or had reason to know that the victim

2-10

was vulnerable due to age, disability, infirmity, reduced physical or mental capacity, national

2-11

origin or ancestry shall be guilty of a felony subject to imprisonment for not more than fifteen

2-12

(15) years, a fine of fifteen thousand dollars ($15,000), or both. 

2-13

     (4) The court shall order restitution to any victim.

2-14

     (5) In addition to any criminal penalties above, any person found in violation of this

2-15

section shall forfeit anything of value received by him or her in the course of such violation. 

2-16

Action for recovery of these amounts shall be brought in the superior court of any county in

2-17

which any element of the crime occurred.  The actions shall be brought in the name of the state by

2-18

the attorney general for the benefit and use of the state.

2-19

     (c) For purposes of this section, the following definitions shall apply:

2-20

     (1) “Mortgage lending process” means the process through which a person seeks or

2-21

obtains a residential mortgage loan including, but not limited to, solicitation, application, or

2-22

origination, negotiation of terms, real estate appraisals, third-party provider services,

2-23

underwriting, signing and closing, and funding of the loan. Documents involved in the mortgage

2-24

lending process include, but are not limited to, uniform residential loan applications or other loan

2-25

applications; appraisal reports: HUD-1 settlement statements; verifications or certifications

2-26

regarding occupancy intentions; supporting personal documentation for loan applications such as

2-27

W-2 forms, verifications of income and employment, bank statements, tax returns, and payroll

2-28

stubs; and any required disclosures. 

2-29

     (2) “Pattern of residential mortgage fraud” means one or more misstatements,

2-30

misrepresentations, or omissions made during the mortgage lending process that involve two or

2-31

more residential properties, which have the same or similar intents, results, accomplices, victims,

2-32

or methods of commission or otherwise are interrelated by distinguishing characteristics.

2-33

     (3) “Person” means a individual, corporation, company, limited liability company,

2-34

partnership, trustee, association, or any other entity.

3-1

     (4) “Residential mortgage loan” means a loan or agreement to extend credit made to a

3-2

person, which loan is secured by a deed to secure debt, security deed, mortgage, security interest,

3-3

deed of trust, or other document representing a security interest or lien upon any interest in a one

3-4

to four (4) family residential property including the renewal or refinancing of any such loan.

3-5

     (5) “Victim” means a person who has experienced personal loss, including, but not

3-6

limited to monetary loss, due to a violation subsection (a).

3-7

     (d) It shall be sufficient in any prosecution for residential mortgage fraud to show that the

3-8

party accused did the act with the intent to defraud.  It shall be unnecessary to show that any

3-9

particular person was harmed financially in the transaction or that the person to whom the

3-10

deliberate misstatement, misrepresentation or omission was made relied upon the misstatement,

3-11

misrepresentation or omission.

3-12

     SECTION 2.  Section 12-12-17 of the General Laws in Chapter 12-12 entitled

3-13

"Indictments, Informations and Complaints" is hereby amended to read as follows:

3-14

     12-12-17. Statute of limitations. – (a) There shall be no statute of limitations for the

3-15

following offenses: treason against the state, any homicide, arson, first degree arson, second

3-16

degree arson, third degree arson, burglary, counterfeiting, forgery, robbery, rape, first degree

3-17

sexual assault, first degree child molestation sexual assault, second degree child molestation

3-18

sexual assault, bigamy, manufacturing, selling, distribution or possession with intent to

3-19

manufacture, sell or distribute a controlled substance under the Uniform Controlled Substance

3-20

Act, chapter 28 of title 21, or any other offense for which the maximum penalty provided is life

3-21

imprisonment.

3-22

     (b) The statute of limitations for the following offenses shall be ten (10) years: larceny

3-23

under section 11-41-2 (receiving stolen goods), section 11-41-3 (embezzlement and fraudulent

3-24

conversion), section 11-41-4 (obtaining property by false pretenses or personation), section 11-

3-25

41-11 (embezzlement by bank officer or employee), section 11-41-12 (fraudulent conversion by

3-26

agent or factor), and section 11-41-13 (obtaining signature by false pretenses), or any larceny

3-27

which is punishable as a felony; any violation of chapter 7 of title 11 (bribery); any violation of

3-28

section 11-18-1 (giving false document to agent, employee, or public official); perjury; any

3-29

violation of chapter 42 of title 11 (threats and extortion); any violation of chapter 15 of title 7

3-30

(racketeer influenced and corrupt organizations); any violation of chapter 57 of title 11 (racketeer

3-31

violence); or any violation of chapter 36 of title 6 (antitrust law).; any violation of section 11-41-

3-32

11.1 (unlawful appropriation); any violation of section 11-41-27 (wrongful conversion by officer

3-33

or state or municipal employee); any violation of section 11-18-6 (false financial statement to

3-34

obtain loan or credit); any violation of section 19-9-28 (false statement to obtain a loan); any

4-1

violation of section 19-9-29 (bank fraud); or any violation of section 11-18-34 (residential

4-2

mortgage fraud).

4-3

     (c) The statute of limitations for any other criminal offense shall be three (3) years unless

4-4

a longer statute of limitations is otherwise provided for in the general laws.

4-5

     (d) Any person who participates in any offense, either as a principal accessory, or

4-6

conspirator shall be subject to the same statute of limitations as if the person had committed the

4-7

substantive offense.

4-8

     (e) The statute of limitations for any violation of chapter 18.9 of title 23 (refuse disposal),

4-9

chapter 19 of title 23 (solid waste management corporation), chapter 19.1 of title 23 (hazardous

4-10

waste management), chapter 12 of title 46 (water pollution), and chapter 13 of title 46 (public

4-11

drinking water supply) shall be seven (7) years from the time that the facts constituting the

4-12

offense or violation shall have become known to law enforcement authorities, unless a longer

4-13

statute of limitations is otherwise provided for in the general laws.

4-14

     SECTION 3. This act shall take effect upon passage.

     

=======

LC00200

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO CRIMINAL OFFENSES

***

5-1

     This act would criminalize residential mortgage fraud and would also extend the statute

5-2

of limitations to ten (10) years for offenses such as unlawful appropriation, wrongful conversion

5-3

by an officer or state or municipal employee, filing of false statements (financial or otherwise) to

5-4

obtain credit or loan or residential mortgage fraud.

5-5

     This act would take effect upon passage.

     

=======

LC00200

=======

S2650