Crime Control Act of 1990
During the 1990s, Congress had a difficult problem to deal with. There was a sudden increase in juvenile violence, and policies of the time did not provide for action against certain financial offenders. The Crime Control Act attempted to limit the flow of guns on school campuses, prevent and control the use of anabolic steroids, and bolstered several efforts aimed at protecting children. The act also had consequences for banks, which provided some legal grounds for employee protections and discussed how the Fed would go about collecting loans owed to it.
Under the act, the federal government made it illegal for an individual or corporate entity to receive a government grant or a disaster loan if they owed money to the Fed. Those entities that attempted to skirt the law were found to be in non-compliance and fined. Some penalties even carried incarceration.
The act also allowed whistleblowers to come out and report fraudulent or illegal activity. It outlined 14 separate statutes that relate to financial fraud, effectively creating a list of “do not do’s” for investors and banks. Of course, someone had to report those wrong doings and the Fed had some regulatory power, but not enough to be clairvoyant. Therefore, the act was important for people demanding legal protection in exchange for information. Under the new act, a whistleblower can file a sealed complaint against an entity without exposing their identity. Whistleblowers can bring the documents directly to court, or mail them to an address provided by the Fed.