Financing extortionate extensions of credit
Official text prohibited actmental stateif conditionpenaltylegal term
Whoever advances money or property, whether as a gift, as a loan, as an investment, pursuant to a partnership or profit-sharing agreement, or otherwise, to any person, with reasonable grounds to believe that it is the intention of that person to use the money or property so advanced directly or indirectly for the purpose of making extortionate extensions of credit, shall be or an amount not exceeding twice the value of the money or property so advanced, whichever is greater, or shall be imprisoned not more than 20 years, or both.
History: (Added Pub. L. 90–321, title II, §202(a), May 29, 1968, 82 Stat. 161 (PDF, 3.9 MB); amended Pub. L. 103–322, title XXXIII, §330016(1)(L), Sept. 13, 1994, 108 Stat. 2147 (PDF, 52 MB).)
Simplified explanation
It is a federal crime to give money or property to someone, as a gift, loan, investment, or otherwise, when there is good reason to believe they will use it to make loan-shark loans (loans backed by threats of violence or other crimes).