Crimes that involve the violation of insurance laws under 18 U.S. Code 1033 are primarily prosecuted by the U.S. Department of Justice (DOJ), headed by the Attorney General.
The Role of the Attorney General and the Department of Justice
The Attorney General serves as the chief law enforcement officer of the United States and leads the Department of Justice, which is responsible for enforcing federal laws nationwide. When individuals or entities engage in conduct constituting offenses outlined in Section 1033, which pertains to prohibited acts by certain persons in the insurance business, the DOJ is the federal entity that initiates legal proceedings.
The enforcement actions taken by the Attorney General and the DOJ can encompass both criminal prosecutions and civil actions:
- Criminal Prosecutions: The DOJ, primarily through U.S. Attorneys' Offices located in federal judicial districts across the country, investigates and prosecutes individuals and organizations for criminal violations of 18 U.S. Code 1033. These prosecutions are aimed at punishing offenders and deterring future criminal acts, and can result in significant penalties, including imprisonment, criminal fines, and asset forfeiture.
- Civil Enforcement Actions: In addition to criminal proceedings, the Attorney General possesses the authority to pursue civil actions against those who engage in conduct that constitutes an offense under Section 1033. As outlined in 18 U.S. Code 1034, the Attorney General may bring a civil action in the appropriate United States district court. Upon proof of such conduct by a preponderance of the evidence, the person involved can be subjected to civil penalties. This civil enforcement mechanism offers an additional tool for the government to address violations and deter future misconduct, even without a criminal conviction.
Distinguishing Criminal and Civil Enforcement
It's important to understand the different types of legal actions that can be taken for violations of 18 U.S. Code 1033:
| Aspect | Criminal Action | Civil Action (per 18 U.S.C. 1034) |
|---|---|---|
| Primary Authority | U.S. Department of Justice (DOJ) / U.S. Attorneys | Attorney General |
| Legal Standard of Proof | Beyond a reasonable doubt | Preponderance of the evidence |
| Purpose | Punish offenders for criminal acts, deter future crimes | Impose civil penalties, obtain injunctions, deter misconduct |
| Potential Outcomes | Imprisonment, criminal fines, probation, asset forfeiture | Civil penalties, court orders (injunctions) |
| Governing Statute | 18 U.S. Code 1033 (defines offenses) | 18 U.S. Code 1034 (civil penalties for 1033 violations) |
Common Prohibited Conduct under 18 U.S. Code 1033
Section 1033 addresses various offenses designed to protect the integrity of the insurance industry and prevent financial crimes. Examples of prohibited conduct include:
- Prohibited Persons: Engaging in the insurance business in violation of a felony conviction for dishonesty or breach of trust, or an offense under this section, without the written consent of an insurance regulatory official.
- Embezzlement: Willfully embezzling or misappropriating money, funds, premiums, or credits from an insurance company.
- False Statements: Willfully overvaluing any land, property, or security in connection with any financial statement presented to an insurance regulatory official or for the purpose of influencing official action.
- Obstruction of Justice: Any officer, director, agent, or employee of an insurance company whose activities affect interstate commerce from corruptly influencing, obstructing, or impeding the administration of the law during any proceeding related to the insurance business.
These violations, whether pursued through criminal prosecution or civil enforcement actions, are within the purview of the U.S. Department of Justice, led by the Attorney General.
