Major Fraud Act of 1988
Arthur Holst Ph.D.
SPONSORED BY U.S. Representative William Hughes from New Jersey, the Major Fraud Act (Public Law 100–700) was signed into law by President Ronald Reagan on November 11, 1988. The Major Fraud Act significantly increased the maximum penalties which could be assessed for certain major frauds committed against the United States government. Title XVIII of the U.S. Code, primarily known as the Federal Criminal Code, was amended considerably to allow for increased penalties against anyone who knowingly and willingly commits or attempts to commit a plan to fraudulently receive property or services from the U.S. government valued at $1 million or more. The act increases the maximum penalty for a single count to $1 million and for multiple counts to $10 million. Criteria for the specified amounts of fines are set forth by the act, and fraud violators may also face prison terms of up to 10 years. The act authorizes ...