September 06, 2016 1 min read

CFA Opposes H.R. 5063, The "Stop Settlement Slush Funds Act of 2016"

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CFA is urging members of Congress to oppose H.R. 5063,  a bill which would prohibit settlement agreements where the United States is a party from including certain payment terms to non-federal actors, also known as third-party payments. Settlement terms that result from a federal enforcement action can sometimes include payments to third parties to advance programs that assist with recovery, benefits, and relief for communities harmed by lawbreakers, to the extent such payments further the objectives of the enforcement action. H.R. 5063 will handcuff federal enforcement officials’ ability to negotiate appropriate relief for harm caused to the public by parties that are the subject of the federal prosecution by cutting off any kind of payment to third parties, other than individualized restitution and other direct forms of payment for “actual harm.” This legislation is not only irresponsible, its consideration by the House exhibits woefully misplaced priorities.

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