For Immediate Release

IRS Can Help Crack Down on Sex Traffickers, Maloney Says

Washington, D.C. – Congresswoman Carolyn B. Maloney (D-Manhattan, Queens) today introduced legislation (click here to read a copy of the bill) that would use the tax code to put sex traffickers in prison.

“This bill would be a powerful tool in the fight to end sex trafficking,” Maloney said. “Human trafficking is 21st-Century slavery. With this innovative approach, we can put traffickers in prison while protecting the victims of the sex trade industry. The FBI used the tax code to put Al Capone behind bars – we should use it to put sex traffickers in prison, too.”

Maloney’s legislation would:

· Authorize $4 million to establish an office within the IRS to prosecute sex traffickers for violations of tax laws. The new IRS office would coordinate closely with existing sex trafficking task forces in the Department of Justice.

· Impose increased penalties - including fines of up to $50,000 and jail sentences of up to 10 years - for traffickers who fail to file tax returns, supply tax information, or pay taxes.

· Establish a new felony offense for an “aggravated failure to file” in cases where income or payments are derived from criminal activities.

· Designates the victims of criminal sex traffickers as whistleblowers and allows them collect up to 15 percent of the fines levied against their abusers.

Congresswoman Maloney has worked to combat sex trafficking internationally, nationally, and in her New York City district for the past seven years. Maloney urged state and federal prosecutors to investigate Queens-based Big Apple Oriental Tours and other sex tour operators for criminal violations. She is a strong supporter of federal legislation to strengthen the ability of the government to prosecute sex tour operators.

A landmark law to make the United States a leader in combating the worldwide affliction of sex trafficking was enacted in 2006. That law incorporates key provisions of the “End Demand for Sex Trafficking Act” championed by Maloney and Congresswoman Deborah Pryce (R-OH).