Final answer:
The Commerce Clause allows federal courts to prosecute crimes that impact interstate commerce, even when the criminal and victim live in the same state. The Identity Theft and Assumption Deterrence Act applies to all cases of identity theft, not just those involving financial loss.
Step-by-step explanation:
1. The federal law that allows federal courts to prosecute even when the criminal and victim live in the same state is the Commerce Clause of the U.S. Constitution. The Commerce Clause grants Congress the power to regulate interstate commerce, and this includes the ability to prosecute crimes that have an impact on interstate commerce, such as internet-based crimes.
2. The Identity Theft and Assumption Deterrence Act is a federal law that was enacted in 1998 to combat identity theft. One statement that is NOT true regarding this act is that it only applies to cases where the victim suffers financial loss. In reality, the act applies to any case of identity theft, regardless of whether there is financial loss involved.