Justice Manual § 9-61.510

Since 18 U.S.C. § 513 considerably expands Federal criminal jurisdiction over non-Federal securities that are counterfeited and forged, its constitutional basis may be challenged. Accordingly, for constitutional and policy reasons, several factors should be present before Federal jurisdiction is exercised under this provision.

First, the extent of the criminal activity should be sizeable and involve significant past or future interstate activity. Second, in regard to the counterfeiting of State securities, there should clearly be an interstate aspect. Third, common sense must be used, not only to sustain the constitutionality of this important provision, but also to control the number of cases filed in Federal courts. The general prosecution policies set forth in JM 9-61.210 relating to cases under the National Stolen Property Act should be applied to 18 U.S.C. § 513 offenses. Finally, as to the "implement" provision in subsection 513(b), such implements should bear some connection to State or corporate securities.

In short, the major responsibility for dealing with counterfeit and forged State and corporate securities should lie with State and local governments. In utilizing 18 U.S.C. § 513, the Federal government will be in the best position to defend against constitutional challenges if the statute is applied only to fact patterns clearly showing large-scale organized interstate criminal activity. In addition, each United States Attorney should develop prosecutive understandings concerning the counterfeiting and forgery of State and corporate securities with State and local authorities through the district's Law Enforcement Coordinating Committee.