STRATEGIC GOAL TWO:
Organized Criminal Enterprises are structured to ensure that their leadership is far removed from the criminal activity, making it difficult to link overt crimes to the leaders of the organization. Moreover, even if key individuals are removed, the strength of these organizations often allows the enterprise to be sustained. This situation requires the FBI to develop strategies targeted primarily at dismantling the organization, as opposed to merely removing key individuals.
Performance Measure: Dismantled Asian Criminal Enterprises
(ACE)[FBI] (NOTE: Prior year actuals have been updated to reflect the most
current and accurate data available.)
In March 2002, FBI Agents and detectives from the New York Police Department arrested five subjects of a violent ACE in connection with their cross-country armed robbery crime spree. The arrest of these subjects interdicted a planned robbery in the Florida area, which was to occur in the following week. All of the subjects involved in this criminal enterprise originated from the Fujian Province, People’s Republic of China. In July 2002, FBI Agents made 30 arrests in eight states, culminating a 5-year investigation that began when owners of a massage parlor in Blount County, TN tried to bribe public officials, including a judge. The ensuing investigation revealed hundreds of Korean massage parlors in 14 cities throughout the United States engaged in money laundering, prostitution, alien smuggling, and associated criminal activities.
Performance Measure: Dismantled Eurasian Criminal Enterprises
The mission of the Eurasian Organized Crime Unit is to implement the FBI’s Organized Crime Program Plan to coordinate and support FBI field offices and local law enforcement agencies in their efforts to reduce the threat posed by Russian/Eastern European Criminal Enterprises. The fundamental goal of the unit is to assist the field in identifying, disrupting, and dismantling major Russian/Eastern European Criminal Enterprises.
The reallocation of field investigative resources following the events of September 11, 2001 had a significant impact on ECE program performance. Field offices with the largest Eurasian Organized Crime programs, such as New York, Newark, and Miami, were required to shift their focus to the investigative efforts following the terrorist attacks
The mission of the FBI’s Violent Crimes and Major Offenders Program is to reduce the incidence and impact of crimes of violence and of crimes against property that affect individuals, organizations, and communities. The Program’s mission involves the proactive identification, disruption, and dismantlement of criminal enterprises, as well as the swift, efficient, and measured response to serious violent criminal acts, which call upon core FBI jurisdiction, responsibilities, and competencies.
Research shows that victimization costs $105 billion annually in property and productivity losses and for medical expenses. This amounts to an annual “crime tax” of roughly $425 for each United States citizen. From the business owner who must pay “protection” money to neighborhood gangs; to families who live like hostages within their own homes, afraid to venture out; to the residents of Indian Country, the harmful impact of violent crime on victims and on society collectively is both psychologically and physically debilitating.
The FBI strives to reduce the level of violent crime by dismantling gangs identified as being the most dangerous. The FBI maintains a “Top 30” list of these gangs each year, selected based upon the extent to which each gang’s activity is multi-jurisdictional, violent, has a deleterious effect on the community, and is affiliated with a group identified in the FBI’s National Gang Strategy. The FBI’s objective is to dismantle 15 gangs that appear on this list over a 5-year period (an average of 3 per year).
Performance Measure: # Dismantled of the 30 Gangs Targeted
by the FBI as the Most Dangerous [FBI] (NOTE: Prior year actuals have been
updated to reflect the most current and accurate data available.)
Despite the general decline in violent criminal activity, gangs are still a threat to the nation. The gangs that are emerging are composed of older, more experienced, hardened criminals that engage in a myriad of violent activities as well as thefts of cargo, motor vehicles, and high tech goods. Examples from FY 2002:
On September 6, 2001, 29 subjects from the Santana Block Crips (SBC) gang were indicted on charges of drug trafficking, conspiracy, money laundering, and bank fraud. On September 7, 2001, 26 subjects were arrested on these federal charges in a coordinated sweep. Two subjects have passed away since their incarceration and three are being pursued as fugitives. On October 8, 2002, 12 defendants from the SBC pled guilty to charges of drug trafficking, conspiracy, money laundering, and bank fraud in the Central District of California, in Los Angeles, CA. This included a guilty plea of the main target, Frederick Staves. This represents the complete dismantling of the SBC and its existence as a criminal organization. Additionally, the Bridgeport Safe Streets Task Force (BSSTF) investigated the criminal organization headed by Frankie Estrada, aka "Terminator," which was linked to money laundering, weapon violations, armed robberies, and murders in connection with the operation and protection of a continuing criminal enterprise. Twenty‑six subjects were indicted and arrested on drug distribution charges. A superseding indictment in June 2001 added additional subjects, money laundering counts, and a forfeiture count seeking $10 million in proceeds from Estradas' heroin sales. The BSSTF seized $750,000 in real estate, cash, cars, and jewelry for forfeiture. Twenty-three subjects were convicted, two were acquitted and one subject is awaiting trial. On March 18, 2002, the New Haven Division, BSSTF, dismantled the organization.
The Department of Justice implements gun violence reduction strategies through its Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a comprehensive national strategy that creates multi-agency partnerships to effectively enforce existing gun laws and reduce the incidence of gun violence across the country. The strategy provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crimes face tough sentences. It is also designed to deter gun crime by publicizing these enforcement efforts in the community. Project Safe Neighborhoods gives each federal district the flexibility it needs to focus on individual challenges that its community faces. Currently each district is in the process of gathering and utilizing relevant crime data to develop a strategic plan to target the illegal use, possession, and trafficking of firearms. Each district is tasked with developing meaningful measurements of the impact of its strategy and will report on both the plan and its impact every 6 months.
In addition to the Project Safe Neighborhoods initiative, the Department is tasked with implementing certain provisions of the Brady Handgun Violence Protection Act. This act requires Federal Firearm Licensees (FFL) to request background checks on individuals attempting to purchase a firearm, and required the establishment of a National Instant Criminal Background Check System (NICS) that any FFL may contact by telephone, or other electronic means, for information to be supplied immediately on whether the receipt of a firearm by a prospective transferee would violate federal or state law. Although NICS provides a definitive response (i.e., “proceed” or “deny”) to 85 percent of inquiries by FFLs within 4 minutes, the Act allows NICS 3 business days to make its determination. If NICS does not contact the FFL before the expiration of the third business day with a definitive response to proceed or deny, the FFL may transfer the firearm without waiting for a response from NICS. If NICS receives information after the 3 day period has expired that would indicate a prohibited person has acquired a firearm from an FFL, NICS immediately refers this information to the Bureau of Alcohol, Tobacco, and Firearms (ATF) for investigation and possible retrieval of the firearm. All NICS denials (i.e., NICS determinations that receipt of a firearm by the potential transferee would violate state or federal law) are referred to ATF for investigation and, where appropriate, are referred to the United States Attorney’s Office (USAO) for prosecution.
Performance Measure: DISCONTINUED MEASURE: Persons with
Criminal Records Prevented From Purchasing Firearms [FBI] (NOTE: This measure
has been discontinued because the total number of persons denied by NICS per
year is a factor of the total number of NICS checks performed per year. Accordingly,
the measure does not adequately represent the Department’s performance. Also,
the prior year performance plan incorrectly reflected a target for FY 2002.
This measure is not targeted and the figure previously reported was merely
an estimate based on historical data.)
International law enforcement cooperation is critical to addressing the dramatic growth in the scope of transnational crime such as terrorism, narcotics trafficking, money laundering, fraud, and cybercrime and the immediate threat it poses to the U.S. and the global community. The Department is increasing its emphasis on cooperation with foreign law enforcement and criminal justice officials to make it easier to obtain and provide information and evidence needed to pursue cases against transnational criminals. Working jointly with foreign counterparts is a realistic way to achieve the goals of dismantling international criminal organizations, locating fugitives, and establishing mutually recognized processes for ensuring criminals are brought to justice primarily through the extradition process coordinated and supervised by Criminal Division’s Office of International Affairs (OIA).
OIA is the Central Authority for the United States under 40 Mutual Legal Assistance Treaties (MLATs) in force and a number of multilateral conventions. As such, OIA makes and receives all MLAT requests and is responsible for the drafting by federal, state, or local prosecutors of requests for bank records or other evidence abroad. OIA insures that the requests are presented to the proper foreign Central Authority, and presses for the execution of the request in a timely manner. OIA also coordinates the execution in the U.S. of requests from foreign countries under the MLATs.
Performance Measure: DISCONTINUED MEASURE: Number of
New Treaties with Other Countries Entering Into Force [CRM] (NOTE: This measure
is being discontinued as it not outcome oriented.)
Performance Measure: NEW MEASURE: Number of Fugitives Surrendered
To and From the U.S. during the FY [CRM]
The Department of Justice focuses its drug law enforcement efforts to reduce the availability of drugs by targeting the largest drug supply and money laundering networks for dismantlement of their entire infrastructure, from international supply and national transportation cells, to regional and local distribution organizations. The OCDETF program has been designated by the Attorney General as the centerpiece of his drug strategy. The program coordinates multi-agency and multi-region investigations, targeting the most serious drug trafficking threats. The OCDETF program functions through the efforts of the U.S. Attorneys; elements of the Department’s Criminal Division; the investigative, intelligence, and support staffs of DEA, FBI, INS, and USMS; the investigative support of the Bureau of Alcohol, Tobacco and Firearms, the Internal Revenue Service; the U.S. Customs Service; the U.S. Coast Guard; as well as state and local law enforcement agencies. The goal of each OCDETF investigation is to determine connections to related investigations nationwide in order to identify and dismantle the entire structure of the drug trafficking organization. A major emphasis of OCDETF investigations is to disrupt financial dealings and dismantle the financial infrastructure of drug trafficking organizations (DTOs). As the Attorney General noted during a national conference in December 2001, “Sophisticated drug trafficking organizations mirror the Fortune 500. They have similar business structures, distribution systems, and profitability - laundering an estimated $300 - $500 billion a year. Just as the Department seeks to dismantle terrorist operations by cutting off their access to money, so too must we combat the sophisticated financial infrastructure of drug trafficking operations.”
Performance Measure: DOJ’s Reduction in the Supply
of Drugs Available for Consumption Within the U.S. [DEA]
While drug seizure data is readily available, it does not capture the total impact of disrupted or dismantled DTOs. In an effort to evaluate the Department’s impact on the availability of drugs entering the U.S. during FY 2003, DEA is developing a methodology to determine the immediate and long term impact on drug trafficking and the drug supply as a result of successfully disrupting and/or dismantling of drug trafficking criminal enterprises. The development of this methodology will be complex due to the data limitations and numerous variables similar to those encountered in the development of the national drug supply estimates. Upon development of these estimates, the methodology will be expanded to determine the impact on drug supply as a result of the law enforcement efforts of the Departments of Transportation and Treasury.
The Attorney General directed the Department to develop a single national list of major drug trafficking and money laundering organizations. In response, DEA, the FBI, and the U.S. Customs Service, with input from the intelligence community and other OCDETF member agencies, identified 53 international command and control organizations representing the most significant international drug organizations threatening the U.S. These targets, titled the Consolidated Priority Organization Target (CPOT) list, represent the first time federal agencies have worked together to develop a single target list. This list reflects the most significant international narcotic supply and related money laundering organizations, poly‑drug traffickers, clandestine drug manufacturers and producers, and major drug transporters supplying the U.S. The list, as well as linked organizations, will be updated periodically to remain current.
The efforts to disrupt and dismantle the CPOT organizations will be primarily accomplished via multi-agency and multi-regional investigations directed by DEA and the FBI. These investigations focus on the development of intelligence-driven multi-region investigations to identify and target national, international, and regional drug trafficking organizations that play significant roles in the production, transportation, distribution, or financial or other support of large scale drug trafficking. DEA and the FBI’s ultimate objective is to dismantle these organizations so that reestablishment of the same criminal organization is impossible.
DEA, through the utilization of its Priority Drug Targeting Organization (PDTO) Program, identifies and targets the most significant drug trafficking organizations operating at the International, National/Regional and Local levels. This is keeping with DEA’s mission to combat drug trafficking at all levels. DEA’s PDTO program is more expansive than CPOT, since it also includes local and regional drug organizations significantly impacting the drug supply in its 21 nationwide field divisions. PDTO investigations utilize intelligence derived from on-going PDTO and related investigations to identify major drug trafficking organizations to include the organization’s distribution network, structure and members in order to target the highest level of the organization. The objective of each PDTO investigation is to disrupt/dismantel the identified organization, arrest the organization’s leaders, distributors, importers, and facilitators, and seize and forfeit all assets associated with the organization. DEA management has directed that all PDTO investigations be coordinated with appropriate DEA Field Divisions to include the Special Operations Division (SOD).
The FBI also focuses on the domestic cells of international drug trafficking criminal enterprises that have the most adverse impact on U.S. national interests. These criminal enterprises have previously been included on the FBI’s National Priority Target List (NPTL), which the FBI will discontinue when it begins to track its targets through the CPOT list. The FBI’s contribution to the CPOT will be based upon crime surveys and threat assessments conducted by its field offices. Field offices will be required to expand the scope of their drug investigations and attempt to link them to the national and international criminal enterprises on the CPOT list.
Performance Measure: Disrupted/ Dismantled Priority Drug Trafficking Organizations (PDTOs) Operating Within the U.S. [DEA] Note: Prior Year actual data has been revised. This data was originally drawn from a new system still in the process of being validated. A thorough review revealed that there had been some inadvertent duplication that has now been eliminated.
FY 2002 Target:
DEA’s accomplishments in the latter half of FY 2001 and FY2002 reflect a new program that initially included many PDTOs near completion for dismantlement. In the future, PDTO disruptions and dismantlements will level off.
Performance Measure: Dismantled Drug Trafficking Organizations
Foreign intelligence operations directed against the United States reflect the complexity and fluidity of the new world order. While the national goals of traditional rivals have changed, their capabilities and willingness to target traditional objectives, such as national defense information, plans and personnel, have not. At the same time, many of these rivals have increased their activities in other sectors affecting our national interests, such as in economic competitiveness. They join a formidable array of other foreign powers jockeying for economic or political preeminence, the success of whom is dependent upon effective intelligence operations directed against the United States.
Foreign intelligence threats can never be eliminated given that their origin and impetus lie primarily with sovereign states. They are planned, authorized, and financed by government entities beyond our boundaries and beyond the reach of our laws. Measures of success in these areas will gauge the FBI’s capacity to detect potential hostile activities by foreign powers against the United States. In addition, the FBI will analyze its record at preventing and defeating these hostile activities in comparison to the best available estimates of the magnitude of foreign intelligence operations.
Performance Measure: Defeat Intelligence Operations – Foreign
Counterintelligence Convictions [FBI]
According to the Centers for Medicare and Medicaid Services (CMS), spending for health care totaled nearly $1.3 trillion in 2000, and accounted for 13.2 % of the nation’s gross domestic product (GDP). Public spending for health care services through the Medicare, Medicaid, and all other government funded health care programs accounted for 45 % of total health care spending in 2000. Medicare spending grew 5.6 % in 2000, following a brief period of slower growth in 1999 (1.5 %) and 1998 (1.0 %). CMS has attributed most of the increased spending to changes in provider payments, particularly those enacted in the Balanced-Budget Refinement Act of 1999 and the Benefit Improvement Protection Act of 2000. Due largely to demographic trends, CMS projects that national health expenditures will more than double to $2.8 trillion by 2011, growing at a mean annual rate of 7.3 % during the forecast period 2001 to 2011. Due to this expected growth in health care spending, CMS further projects that national health expenditures will constitute approximately 17.0 % of GDP by 2011, a substantial increase from 13.2 % in 2000.
The General Accounting Office (GAO) estimated that as much as 10 % of annual health care costs may be attributable to fraud. The Department of Health and Human Services (HHS), Office of Inspector General’s most recent audit of improper payments in the Medicare fee-for-service program shows that the claims payment error rate was 6.3 % ($12.1 billion) in 2001, which is down from 14% ($23.2 billion) when the first audit was conducted in 1996. Fraudulent claims submitted to health care insurers and medically unnecessary services performed simply to generate billings are prevalent in every geographical area in the country. Pending cases demonstrate that fraud exists on a national scale, through either corporate schemes to defraud or systemic abuse by certain provider types. Home health care agencies, medical transport companies, suppliers of durable medical equipment, and clinical laboratories are particularly susceptible to fraud. Enhanced use of technology to analyze health care billing data will allow law enforcement and health care program agencies to become more proactive in detecting fraud and abuse, identifying systemic weaknesses and closing loopholes in the system before criminals take further advantage of them.
Performance Measure: Medicare Billings for Durable Medical
Equipment (DME) Targeted for Fraud through FBI Investigations (in millions)
[FBI] (NOTE: Prior year actuals have been updated to display the most
accurate and current data available.)
Private industry in the U.S. controls trillions of dollars in assets, an inviting target for criminal schemes ranging from technological attacks on a corporation's intellectual property to more traditional attempts to defraud. The primary challenge facing the FBI in this area is to create and maintain a strong deterrent capability that will prevent criminal organizations from defrauding, and thereby weakening, U.S. industries. To prevent significant levels of fraud, the FBI must be able to identify emerging trends and industry vulnerabilities and enlist the cooperation of the private sector.
The overwhelming number of frauds committed each year far exceeds the FBI's capacity to investigate and prosecute each individually. Accordingly, the FBI will concentrate on the most significant crime problems, leverage limited resources through cooperative efforts with affected industries and other law enforcement agencies, and implement a preventive strategy that will rely heavily on improved intelligence.
Performance Measure: Convictions/Pre-Trial Diversions in White
Collar Crime [FBI] (NOTE: Prior year data has been updated to reflect the most
current and accurate data available. Public Corruption program data are not
included. See 2.4C)
Performance Measure: Recoveries/Restitutions; Fines in billions
[FBI] (NOTE: Prior year data have been updated to reflect the most current and
accurate data available. Public Corruption program data are not included. See
Public corruption is a serious crime against both the individual and society as a whole. All public corruption offenses, regardless of the type, share a common objective: to pervert our representative system of government and replace it with a government of special interests. Furthermore, the higher the office or level of government tainted by the corruption, the broader the negative effects. The Department, therefore, places a high priority on attacking public corruption by senior government officials. The Public Corruption Unit of the FBI believes a significant amount of corruption is untouched. The FBI addresses this problem, both domestically and internationally, by determining likely points of corruption, and then cultivating an intelligence base within government and/or the business entity and monitoring activity.
Over the past 5 years, there have been more than 600 subjects in law enforcement corruption cases. There is a growing trend of law enforcement corruption cases involving law enforcement officers actively participating in criminal acts, rather than merely protecting such actions. The single greatest obstacle to a law enforcement corruption investigation is the fact that police departments throughout the country regard their own corruption issues as their own "dirty laundry" not to be taken outside the agency.
Performance Measure: Convictions/Pre-trial Diversions [FBI]
(NOTE: Prior year actuals have been updated to provide the most recent and
accurate data available.)
Performance Measure: Recoveries/Restitutions and Fines in million
[FBI] (NOTE: Prior year actuals have been updated to provide the most recent
and accurate data available.)
With the continuing expansion of the Internet as a global medium for electronic commerce and communications, the type of cybercrime most likely to cause significant harm to consumers and businesses here and abroad, and to undermine consumer confidence, is Internet fraud. There are substantial increases in various fraud schemes involving the Internet, such as online auction fraud, stock manipulation schemes, credit card fraud, false business or investment opportunities, ponzi/pyramid, identity theft, and perjury. One estimate is that online payment-card fraud will increase from $1.6 billion in 2000 to $15.5 billion by 2005.
Performance Measure: High Technology Crime (Fraud) Criminal Case
Success Rate [CRM]
The Antitrust Division (ATR) decreases and deters anticompetitive behavior affecting U.S. businesses and consumers by investigating and prosecuting violations of our Nation’s antitrust laws. While DOJ remains vigilant in the face of all criminal antitrust activity, DOJ has placed a priority on the successful prosecution of international price fixing cartels. These cartels pose a number of challenges in that they are highly sophisticated; significant for the large volumes of commerce involved; and extremely broad in terms of the number of businesses and consumers affected. ATR is committed to meeting these challenges in order to ensure the arrest of unlawful conduct, wherever it occurs, that causes injury in the United States. Successful enforcement of these laws decreases and deters anticompetitive behavior which saves U.S. consumers millions of dollars, allows them to receive goods and services of the highest quality at the lowest price, and enables U.S. businesses to compete on a level playing field nationally and internationally.
Performance Measure: Success Rate Antitrust Criminal Cases [ATR]
FY 2002 Target: 90%
Performance Measure: Savings to U.S. Consumers (as a result of
the Antitrust Division’s Criminal enforcement efforts) [ATR]
Vigorous prosecution remains the cornerstone of the Department’s integrated approach to ensuring broad-based environmental compliance. It is the goal of investigators and prosecutors to discover and prosecute criminals before they have done substantial damage to the environment (including protected species), seriously affected public health, or inflicted economic damage on consumers or law-abiding competitors. The Department’s environmental protection efforts depend on a strong and credible criminal program to prosecute and deter future wrongdoing. Highly publicized prosecutions and tougher sentencing for environmental criminals are spurring improvements in industry practice and greater environmental compliance. Working together with federal, state, and local law enforcers, DOJ is meeting the challenges of increased referrals and more complex criminal cases through training of agents, officers, and prosecutors; outreach programs; and domestic and international cooperation.
Performance Measure: Percent of Criminal Environmental and Wildlife
Cases Successfully Litigated [ENRD]
Performance Measure: $ Awarded in Criminal Environmental
and Wildlife Cases [ENRD] (ENRD data only)
years on probation for conspiring to falsify reformulated gas testing results in order to meet EPA standards. In addition, a shipping company and its owner pled guilty to the crime of distributing caviar from protected species. The two defendants were fined a total of over $111,000 and ordered to pay total restitution of $48,000 split between the Fish & Wildlife Foundation and the Fish & Wildlife Service.
The Tax Division’s (TAX) criminal enforcement objective is to deter taxpayers from illegal conduct that drains the Treasury through the consistent and uniform enforcement of the criminal tax laws. TAX accomplishes this goal through the nationwide review of requests to prosecute criminal tax violations and, upon specific request, through litigation assistance in the investigation and prosecution of criminal tax cases. In addition, TAX provides assistance in treaty negotiations and foreign evidence gathering in criminal tax matters.
TAX reviews cases to ensure that these prosecutions meet national federal criminal tax enforcement standards. The matters reviewed cover the full range of criminal charges found in the IRS code as well as associated offenses found in Titles 18, 21, and 31 of the United States Code. The case review process is essential to Tax Division’s supervisory oversight of criminal tax matters as it enables TAX to provide critical guidance to the Executive Office for United States Attorneys (EOUSA) on complex federal substantive and procedural tax issues, difficult requirements encountered in indirect methods of proof, and unique evidentiary and sentencing problems found in criminal tax cases. As a result, the national average of convictions in indicted criminal tax trials continues to be very high and thereby advances one of the TAX goals of establishing overall general deterrence through carefully selected prosecutions.
Each year TAX also successfully handles a substantial number of criminal tax investigations and prosecutions. These are primarily undertaken at the request of various EOUSAs who either lack resources or do not have the expertise specific to the case. Cases having significant regional or national scope are undertaken as part of TAX’s priority initiatives. The nature of cases range from illegal tax protest to complex white collar fraud cases involving illegal international business transactions, complex tax issues, and foreign evidence gathering problems. TAX also focuses on the prosecution of legal source income cases, defined as those cases where the source of the proposed criminal tax charges is income that is legally produced as distinguished from income earned as a result of illegal conduct. As the vast majority of the taxpaying public earns its income from legal sources, legal source income prosecutions have a significant deterrent effect.
The FBI’s Crimes Against Children (CAC) program in coordination with the Criminal Division’s Child Exploitation and Obscenity Section work to reduce the vulnerability of children to acts of sexual exploitation and abuse; develop a nationwide capacity to provide a rapid, effective investigative response to reported crimes involving the victimization of children; and strengthen the capabilities of state and local law enforcement investigators through training programs and investigative assistance.
CAC impacts not only the victims, but also their families, communities and law enforcement. Although the impact cannot be quantified, crimes against children clearly raise safety concerns for our citizens within their communities. Subjects who prey on children typically are not first time offenders, but rather are serial offenders who may have traveled interstate during the commission of multiple offenses targeting children. Most importantly, a rapid, effective response to CAC incidents could literally mean life or death for a victim.
Performance Measure: Number of Missing Children Located
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