Senator calls for quick action on anti-fraud bill

Measure would fund hundreds of new agents and prosecutors at Justice Department.

Senate Judiciary Chairman Patrick Leahy, D-Vt., urged colleagues on Wednesday to vote swiftly on legislation he has co-sponsored with Senate Finance ranking member Charles Grassley, R-Iowa, authorizing $165 million in fiscal 2010 and fiscal 2011 to bolster efforts by the Justice Department and FBI to fight mortgage and financial fraud.

The measure would fund hundreds of new agents and prosecutors as well as expand the definition of "financial institution" in federal fraud statutes to include mortgage-lending businesses that are not directly regulated or insured by the government.

Leahy said penalties should include jail time, arguing that fines alone are considered "part of the cost of doing business." "This bill is money well spent. You break the law; you suffer the consequences," said Sen. Ted Kaufman, D-Del.

However, Sen. Tom Coburn, R-Okla., and other Republicans are expected to criticize the cost of the additional anti-fraud measures during debate on the bill, which resumed on Wednesday.