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SECTION 46. FRAUD AGAINST THE GOVERNMENT, ET AL.; RENEGOTIATION ACT -
CIVIL SUITS, ET AL.; FALSE CLAIMS - CIVIL SUITS
46-1 FRAUD STATUTES :
Purpose - to protect the U.S.;Government from any attempt
to interfere with its lawful functions by deceit or dishonesty; not
only where a pecuniary loss may be involved, but whenever the
Government's functions are defeated by misrepresentations. The
following are only the most commonly used statutes in prosecuting
these crimes.- "
EFFECTIVE: 10/22/84 92
461.1 Conspiracy to Defraudi Title§l8§ usc, Section 286
Two or more persons, by agreement obtained, or aided in
obtaining, payment from the U.SL Government through the submission of
false claims. .
EFFECTIVE: 10/22/84
461.2 False, Fictitious, or Fraudulent Claims, Title 18, USC,
Section 287 -
The elements are ! to make or present a false claim
against the U.S. Government while ! knowing such claim to be false.
EFFECTIVE: 10/22/84
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46-1.3 "False Statements, Title 18, USC, Section 1001
To knowingly and willfully falsify a material fact; or
make a false, fictitious, or fraudulent statement; or make/use false
writing or documents in any matter within'the jurisdiction of the U.S.
Government. IA false complaint given to the FBI, or any other Federal
law enforcement agency, that initiates a criminal investigation
resulting in the expenditure of time and resources, is a matter within
the jurisdiction of the U.S. Government and a violation of this
statute. A false statement in an application for Federal employment
is also a violation of this statute. A false statement in an
application for civilian employment violates this statute if the
applicant knows or should reasonably foresee that the application will
be submitted to a Federal Government agency for a security check. A
false statement may be written or oral, sworn or unsworn. This
statute does not apply to false statements made under oath before
grand jury or in a judicial proceeding. False statements made in
interview initiated by a Federal law enforcement agency, or by an
employee in a noncriminal personnel matter may, in some instances,
constitute a violation of Section 1001. 'See 46-1.8% Policy, !, !
and !.the
an
EFFECTIVE: 10/22/84
46l.4 Conspiracy to Commit Offense or Defraud the United States,
f Title 18, USC, Section 371
If two or more.persons ! conspire either to commit any
offense against the United States, or to defraud the United States, or
any agency thereof in any manner or for any purpose, and ! one or
to effect the object of the more of such persons commit any act
conspiracy, each shall be fined not more than $10,000 or imprisoned
howemer, the offense, the not more than 5 years or both. If,
commission of which is the object of the ponspiracy, is a misdemeanor
only, the punishment for such conspiracy shall not exceed the maximum
punishment provided for such misdemeanor. For additional details see
Part I, 62-16 of this manual.! 1
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46*l.4.1 Mail Fraud, Title 18, USC, Section 1341
The U.S. Postal Service is specifically charged with the
duty of investigating use of the mails in furtherance of a scheme or
artifice to defraud. The above notwithstanding, this statute, which
carries penalties of a $1,000 fine and/or'5 years imprisonment, has
been effectively used by the FBI in pursuing Fraud Against the
Government FAG! investigations and should be thoroughly familiar to
Agents investigating such matters. The statute citation, key
elements, and Bureau policy can be found in Part I, Section 36 of this
manual captioned "Mail Fraud."
EFFECTIVE: 10/23/86
46-1.5 Other Fraud Statutes
It is noted that Congress, when approving legislation
establishing various federally funded programs, incorporated into that
legislation specific criminal statutes which are to be used in
prosecuting frauds against such programs or thefts of program funds.
when program fraud allegations are received, it will be necessary to
determine from the administering agency the identity of specific fraud
statutes, if any, which may have been created solely to aid in
prosecutions relative to the affected program.
EFFECTIVE: 10/23/86
46-1.5.1 Theft or Bribery Concerning Programs Receiving Federal
Funds, Title 18, USC, Section_666
I
When a state or local government or organization receives
$10,000 or more annually in Federal funds; it is unlawful ! for an
agent or employee to embezzle or misapply $5,000 or more for an
agent or employee to accept a bribe in a matter involving $5,000 or
more or ! for anyone to offer a bribe to an agent or employee.
EFFECTIVE: 10/23/86
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|461.5.2 National Organ Transplant Act NOTA!; Prohibition of Organ
Purchases Title 42, USC, Section 274e!
' ! Section 274e, Prohibition of organ purchases, reads
as follows: '
" a! Prohibition -
,"It shall be unlawful for any person to
knowingly acquire, receive, or otherwise transfer any human organ for
valuable consideration or use in human transplantation if the transfer
affects interstate commerce.
" b! Penalties _
"Any person who vidlates subsection a! of this
fined not more than $5O,QOO or imprisoned not more
or both. _section shall be
than five years,
" :9 Definitions
"For purposes of subsection a! of this
92 section: - |
i "! The term human organ means the human
1 kidney, liver, heart, lung, pancreas, bone marrow, cornea, eye, bone,
92 and skin, and any other human organ specified by the Secretary of
Health and Human Services by regulation.
"! The term valuable consideration does
not include the reasonable payments associated with the removal,
transportation, implantation, processing, preservation, quality
control, and storage of a human organ or the expenses of travel,
ihousing, and lost wages incurred by the donor'of a human organ in
J connection with the donation of the organ:
- "! The term interstate commerce has the
meaning prescribed for it by section 321 b! of title 21."
! Violations of the above law should be opened in
Bureau case classification 209 Fraud Against the Government FAG! -
Health and Human Services HHS!!, and captioned in communications as
"FAGHHS-NOTA," with the addition of Fraud by Wire, Mail Fraud, or
others, asiappropriate. S
E, ! Reporting requirements for FAG cases should be
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adhered to in conducting these investigations.
EFFECTIVE: 10/23/86 '
461.5.3 Major Fraud Against the United States Title 18, USC,'
Section 1031! See also PartI; Section|46-1.l3|of this
manual!
! Prohibits anyone from execution or attempted
execution of a scheme with intent: '
"! to defraud the United States; or
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"! obtain money or property from the United States
by means of false or fraudulent pretenses, representations, or 1
promises, in any procurement of property of.services as a prime
contractor with the United States or as a'subcontractor or supplier on
a contract in which there is a prime contract with the United States,
if the value of the contract, subcontract or any constituent part 1
thereof for such property or services is $1,000,000 or more,
shall...be fined not more than $1,000,000 or imprisoned not more than
ten years, or both."
! Subsection B provides for'a maximum fine of
$5,000,000 if the scheme involves a conscious or reckless risk of
personal injury. s "
! Subsection F provides a statute of limitations of
seven years. 1
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461.e Anti-Kickback Act of 1936, Title 41, usc, Sections 51-54
I v Prohibits any person, as defined in the statute, in all
Government contracts from ! providing or attempting or offering toprovide any kickback to employees of a prime contractor, or higher
tier subcontractor; or ! soliciting, accepting, or attempting to
accept any kickback for purposes of securing a Government contract or
including amount of kickback in contract price charged by a
subcontractor to a prime contractor or a higher tier subcontractor or
in contract price charged by a prime contractor to the U.S.
EFFECTIVE: O2/20/90
46-1.7 FAG-Federal Lending and Insurance Agencies FLIA! p
Congress has passed legislation establishing a number offederal lending and insurance agencies, some of which are independent
agencies, while others operate within the framework of the U.S.
Department of Agriculture USDA! and the Department of Housing and
Urban Development HUD!. These agencies engage in direct lending of
federal funds, and/or guarantee loans disbursed by private sector
banking/finance industry! sources. Certain agencies offer federal
lending insurance. The FBI's PRIMARY investigative jurisdiction
regarding violations involving FLIA is limited to the following
federal agencies: i
! Small Business Administration
! Deleted
! Federal Crop Insurance Corporation - a corporation
within USDA.
! Federal Emergency Management Agency - this
independent agency was chartered to enhance/coordinate emergency
preparedness and response resources of the federal, state and local
governments with respect to the full range,of emergencies - natural,
man-made and nuclear.
EFFECTIVE: 07/31/97
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46l.7.1 Fraud Statutes Pertaining to FLIA
I! Title 18, USC, Section 212. Prohibits
or gratuity to bank examiner.
! Title 18, USC, Section 213. Prohibits
loan or gratuity by bank examiner.offer of loan
acceptance of
! Title 18, USC, Section 215. Prohibits
commission or gifts or procuring loans. -receipt of
! Deleted -
! Title 18, USC, Section 217. Prohibits acceptance of
consideration for adjustment of farm indebtedness.
! Title 18, USC, Section 657. Prohibits embezzling,
abstracting, or misapplying funds, securities, etc., by officers,agents, employees, or receivers of lending, credit, and insurance
institutions;
! Title 18, USC, Section 658. Prohibits concealment,removal, disposal, or conversion to personal use of property mortgagedor pledged to farm credit agencies. -
8! Title 18, USC, Section 1006. Prohibits false entriesin Federal credit institution books, reports, and statements.
9! Title 18, USC,92Section 1011. Prohibits falsestatements and overvaluing of land in-Federal land bank mortgage
transactions. .
0! Title 18, USC, Section 1013. Prohibits making false
pretenses or representations in connection'with farm loan bonds and
credit bank debentures.
1! Title 18, USC, Section 1014. Prohibits falsificationof loan applications submitted to certain FLIA. Refer to statute.!
2! Title 18, USC, Section 1907. Prohibits disclosure of
information by farm credit examiner.
3! Title 18, USC, Section 1908. Prohibits disclosure of
information by national agricultural credit examiner.
4! Title 18, USC, Section 1900. Prohibits performance
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of services for compensation by examiners.
EFFECTIVE: 02/20/90 '
46-1.8 Policy
! Except to the extent that investigations involve
allegations of corruption on the part of U.S. Government employee s!,
which require a greater degree of administrative scrutiny and more
expeditious reporting, other policy and investigative guidelines
appearing in this "46"! section of the manual pertain to all FAG
violations. ' T
! FAG cases must be given prompt and continuous
attention. The level of manpower devoted to, and the priority placed
upon completion of these investigations should be governed by the
circumstances of each case in relation to,the entire case load. There
is a heightened necessity to promptly resolve those allegations
pending against Federal employees due to the fact that the affected
Federal agency may delay, or otherwise coordinate, administrative
action contemplated against-their subject! employees, with receipt of
the results of the completed criminal investigation.
! All FAG allegations which'serve as predication for
opening an investigation must be discussed with the U.S. Attorney
early in the investigation. Should the USA concur in the initiation
of an investigation, this PRELIMINARY PROSECUTIVE OPINION should cite
the applicable statute s! which applies to the alleged violation, AND
a commitment to pursue prosecution shou1d.the allegations be
substantiated through investigation. If the initial
complaint/allegation is not sufficiently specific to enable the Agent
to hold an informative discussion with the USA,conduct appropriate
investigation to "round out" the allegation such that an adequately
detailed discussion may be held. It should not be necessary for the
USA to request such investigation.! Regardless of whether the USA
expresses a willingness to prosecute, or declines prosecution out of
hand, the opinion and all AUSA opinions!'should be confirmed in
writing. The initial 30day LHM, or closing LHH in the event of a
prosecutive declination, is sufficient for this purpose. | See MIOG,
Part 1, 46-1.3, a 46-1.12!.!| " -
! with regard to referrals'wherein the victim
Government agency has conducted significant investigation in efforts
to determine whether or not a Federal violation has been committed,
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consideration should be given to having the agency investigator
present during the preliminary discussions of the case with the USA.
Much of the background can then be explained by the agency
investigator, thereby minimizing needless duplication of effort.|[ See !.!| _ '
! Pay close attention to SPECIFIC TITLES of Federal,
state and local agencies involved defrauded! in FAG cases, as
frequently there exist confusing similarities among such agency or
program titles. Failure to properly identify the agency involved may
lead to a misunderstanding of the facts. :In those instances where a
state or local agency which receives PARTIAL FEDERAL FUNDING has been
defrauded, a Federal violation MAY have occurred. The COMINGLING of
Federal and state or local! funds should not ordinarily in and of
itself be a bar to Federal prosecution. Consideration should be given
to advising FBIHQ of those instances wherein comingling of funds is
indicated as the reason behind a declination of prosecution. Under
appropriate circumstances, FBIHQ will discuss such decisions with the
Department of Justice. ' ~
! Complaints/allegations concerning FLIA and other FAG
violations a! which through legislation or through mutual agreement
are not within the FBIs primary investigative jurisdiction or b!
which cannot be afforded adequate investigative attention_due to
manpower constraints within division and/or the failure of the
allegation to "measure up" to prosecutive guidelines of the USA,
should be referred to the appropriate local or regional office of the
Inspector General for the affected Federal agency. Where no such
local or regional office exists, forward the matter to FBIHQ with a
request that the matter be referred to the national headquarters of
the appropriate agency. For example, violations relating to Farmers
Home Administration matters are investigated by the Office of
Inspector General, Department of Agriculture. The FBI does, however,
investigate violations which indicate criminal misconduct on the part
of usm employees.! | See moo, Part 1, 461.3.!|
SPECIAL NOTE: In all instances wherein investigative matters are
referred by a field division to another Federal agency BASED UPON
MANPOWER CONSTRAINTS, FBIHQ must be advised by LHM; the cover
communication should clearly state that pending investigative matters
being addressed by the field division are of greater significance than
the item of referral. A copy of each such referral should be routed
to a special field office file entitled "Fraud Against the Government
Matters-Referrals to other Agencies." Ensure proper indexing of such
referrals.
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! FBIHQ should-be promptly notified, by telephoneand/or teletype, of the initiation of MAJOR or OTHERWISE SIGNIFICANT
FAG cases which may prompt news media or other! inquiries to be Xdirected to FBIHQ. A - _
8! Promptly report significant investigative/prosecutive
developments to FBIHQ in a form suitable for dissemination to the
appropriate Government agency, as that agency may have deferred
administrative or civil action regarding.contracts, contract
negotiations, loan or loan guarantees, etc., pending the outcome of
the criminal investigation.
9! FAG investigations which fail to disclose evidence
that a Federal violation has_been committed may be "closed" without
consultation with the USA, provided all logical investigation has been
completed. Prosecutive declinations should include the underlyingreason for same e.g., "no Federal violation substantiated through
investigation," "lack of prosecutive merit due to exp1anation!,"etc.!. The PROSECUTIVE DECLINATION of the USA should be confirmed by-means of the closing LHM. J A
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EFFECTIVE: 09/16/94
46-1.9 Investigative Procedure
! Determine the identity of
agency program source of funds! which has
the complaint or allegation, ascertain the specific title and section
of Federal law which may have been violated. - The "United States
Government Manual" is an invaluable guide to understanding
departments, independent establishments and Government corporations of
the Executive Branch of the Federal Government, as well as the
departments and offices of the LegislativeIand Judicial Branches. All
field divisions are issued a copy of this yearly manual.!the governmental agency and
been defrauded. Based upon
! Identify those governmental officials having
administrative responsibility for the victim agency and/or program.
Ascertain which agency procedures have been misapplied or subverted in
furtherance of the alleged FAG violations. Take note of any agency
practices or procedures, formal or informal, which may adversely
affect the investigation and/or future prosecutive action. Be certainto bring such items to the attention of the prosecuting attorney.
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Determine in advance the substance of testimony which Government
officials,wil1 provide if called upon during trial. -
! Identify the subject s! and_verify the means by which
the subject s! is alleged to have defrauded the Government.
! Identify and obtain any false or fraudulent
documentary evidence which will prove the'existence of a violation.
! Gather evidence of willful intent on the part of the
subject s!. Be mindful to obtain/ascertain:
! Special Agents of the FBI are empowered to take
signed statements, under oath from witnesses and subjects in those
investigations where a Government employee is implicated in
criminal|misconduct or irregularity, and in those investigations of
fraud on, or attempts to defraud, the United States Government.|
Consideration should be given to obtaining such statements in those
instances where such a form of evidence will tend to strengthen.the
findings of an investigation. It is recognized that this is a
judgmental decision, requiring the thoughtful consideration of the
experienced investigator. Legal/Evidentiary ramifications of such
statements may warrant consultation with the division's principal
legal advisor or with the prosecuting attorney associated with the
investigation. Statutory authority for placing witnesses and
subjects under oath is contained in Title 5, USC, Section 303.!
! Complex FAG cases frequently demand that a close
working relationship be maintained with the USA's Office in order to
assure that the case "develops" at a pace that will facilitate the
prosecutor's comprehension of the complexities of the matter and
therefore lend to a timely prosecution of the vio1ation s!. Keep
alert to avoid unnecessary investigationJ iConsideration should be
given to the utilization of manpower from other Government agencies t
review audit/examine! their inrhouse records when such a review does
not threaten the integrity of the investigation.
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46-1.10 Venue _
! False claim or document r Judicial district where the
false document was submitted to or received by the Government.
! Oral false statement or the concealment of a material
fact s! - Judicial district where the false statement was uttered or
where the concealment occurred. 9
EFFECTIVE: 02/20/90
46l.1l Fraud Against the Government f Security Aspect
There are special provisions-in this manual, in»addition
to those contained within this section, with respect to FAG violations
which have a"security" aspect. These may be found in other FBI
investigations; e.g., Applicant investigations, Security of Government
Employee investigations, Domestic Security investigations concerning
individuals, and investigations of Atomic Energy Act violations.
Appropriate special considerations contained within this manual as
indicated below! should be reviewed prior to the initiation of certaininvestigations, as follows: ' ' '_
! Applicant and Employee Investigations Conducted for
Other Government Agencies - General Instructions: See Part II,
Section 17, of this manual; _
!
Part I, SectionAtomic Energy Act of 1954 - Criminal Violations: See
117, of this manual;
Security of Government Employees: See Part I,!
Section 140, of this manual.
EFFECTIVE: 02/20/90
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46-1.12 Reporting Requirements I See MIOG, Part I, 86-5, 206*4.!|
l! |De1eted| "
! Submit a letterhead memorandum
four copies! within 30 days of receipt of a FAG
The LHM should be suitable for dissemination to
Justice, b! the Office of Personnel Management LHM! original and
complaint/allegation.
a! the Department of
in those instanceswhere a federal employee is the SUBJECT of the investigation!, and c!
the federal agency s! affected by the allegation/investigation. The
initial LHH should, at a minimum, detail the predication for opening
the investigation, summarize the investigation conducted in order to
"round out" the allegation s! and reflect the preliminary prosecutive
opinion obtained see 46-1.8! abohe!. eBe CERTAIN to DATE thereceipt of the complaint and ALL other significant events.
! The LHM is the main vehicle utilized for conveying
notification of the initiation, status and disposition of FBI D
investigations to affected federal agencies, as well as the Department
of Justice. Inclusion of Rule 6 e! federal grand jury source!
material in an LHM will most often preclude dissemination of that
communication outside of the Department of Justice. Thus, Rule 6 e!
material should be excluded from LHMs, absent afederal court order
authorizing access to other interested parties/agencies. The LHM is
NOT to serve as a prosecutive or investigative report.
0
Q! Federal agencies Offices'of Inspector General! havea statutory right to be informed of the-existence of investigations
affecting their agencies. Requests for withholding dissemination
indicated in ! above must be SUBSTANTIAL'and documented in the
"Administrative" section of the cover[communication.
! The decision regarding preparation of a "prosecutive
report" is left to the discretion of the SAC/Field Supervisor and
should be considered on a caseby-case basis. The complexity of the
investigation and needs of the prosecuting attorney may be determining
factors in this decision. USAs' requests for prosecutive reports
should be honored in all instances. Prosecutive reports are not
routinely disseminated outside of the Department of Justice.
! Preparation of interim, advisory LHMs MAY be
warranted in certain high profile investigations or in those
investigations which are being followed closely
federal agency. I
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! TITLECHANGES should be noted in the openingparagraph of LHMs, in order to assist recipients Offices of InspectorGeneral, etc.! in referencing prior LHMs or correspondence regarding
the investigative subject. Other identifiers, agency "titles" or file
numbers when known, should be included in LHMs to assist in
referencing other agency files. 1 ;
i 8! In those investigations where the USA declines
prosecution AND the subject is a federal employee, obtain a specificcomment from the USA as to the merits of administrative and/or civil
remedies against the federal employee who is the subject of the casein which prosecution is being declined. Ensure the specific commentsare confirmed in writing. The comment must be included in the closing
LHH. If the USA advises no merit exists,1so state. If the USAadvised merit does exist, a statement such as "the foregoing
declination is made due to the matter not meeting the standards
required for federal prosecution by the USA. It should not be _construed by your agency, or by other affected agencies, in such a wayas to preclude the initiation of such administrative and/or civil
remedies as may be appropriate" is suitable;
9! Deleted
0! A CLOSING LHM must be prepared for each investigationwhich has been concluded. This final LHM MUST restate the predicationfor opening the investigation, summarize investigative findings anddetail the disposition of the investigation. Prosecutive actionshould be DETAILED from indictment, information or complaint, throughplea acceptance, trial disposition and/or sentencing, as appropriate.
Ensure that 3 FULL DESCRIPTION of the subject s! is included in this
communication. Again, be certain to DATE all significant events. In209A matters involving health care providers, one copy of pertinentFD-3025 which do not contain grand jury information protected pursuant
to Rule 6 e! of the Federal Rules of Criminal Procedure or information
that would jeopardize an informant or confidential witness should be
sent to FBIHQ for dissemination to the Department of Health and Human
Services-Office of the Inspector General HHS*OIG!. The FD-302s
should be attached to one copy of the LHM and listed as enclosures for
dissemination to HHS-DIG. The FD-302s should be listed by date andname on the cover|communication.| This could assist the HHS-OIG to
recover funds pursuant to the Civil Monetary Penalties Law of 1981.This law can be found at Section 1128A of the Social Security Act or
at Title 42, USC, Section 1320-7a. It authorizes the HHS-OIG to
impose civil monetary penalties on health care providers who havedefrauded HHS. The HHS-OIG will report these recoveries to FBIHQ.
FBIHQ will thereafter notify the office of origin, or in accordance
Sensitive
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r*"Z:.
92-Mi.--'57 fL
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Sensitive
Manual of Investigative Operations and Guidelines
Part I . PAGE 46
with the Manual~of Administrative Operations and Procedures, Part II,
35.2.7, ! b!, "Joint Investigation Recoveries," a recovery may be
claimed by the appropriate field division.'| See MIOG, Part I, 209-2.!
1! SPECIAL NOTE: Every effort should be made to furnishthe victim federal agency with constructive criticism concerning
weaknesses within the agency's procedures or internal controls which
may predispose the agency to fraudulent practices or limit the
agency's ability to uncover fraudulent acts after the fact. Such
observations on the part of the investigating Special Agent are
valuable, and the inclusion of same within the closing LHH or a
separate LHM, if appropriate! is to be encouraged in all instances.
EFFECTIVE: 04/02/97
J .
46-1.13 Penalties Maximum! '
! Title 18, USC, Section 286 ~pp $10,000 and/or 10 years
! Title 18, USC, Section 287 - $10,000 and/or 5 years
! Title 18, USC, Section 371 $10,000 and/or 5 years
for felony; if misdemeanor, no more than penalty for misdemeanor
! Title 41, USC, Sections 5154 A fine in accordance
with Title 18, Section 3571 ET SEQ. a fine of not more than $250,000!
and/or 10 years.
-! Title 1s, usc, Sections 212 0 213 - $5,000 and/or 1
year and fined a further sum equal to money loaned or gratuity given
! Title 18, USC, Section 215 - $5,000
if amount involved does not exceed $100, then $1,000and/or 5 years,
and/or 1 year.
E ! Title 18, USC, Section 217 -$1,000
8! Title 18, USC, Sections 657 & 658 -
years, if amount involved does not exceed $100, then
yearand/or 1 year
$5,000 and/or 5
$1,000 and/or 1
9!
0!Title 18, USC, Section 666 $100,000 and/or 10 years
Title 18, USC, Section 1001 - $10,000 and/or 5 years
1-~ .
Sensitive:
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,~92-1L
IManual
Part I
1!
years
2!
3!
4!
years
' 5!
year
6!
|7!Title 18,
Title
Title 18
Title
Title 18,
Title Q2,
Title 18,
EFFECTIVE: 02/20/9018,
18,, USC,Sensitive
USC, Section
SectionUSC,
Section
USC, Section
USC,
USC,1006
1
1011
1013
1014of Investigative Operations and Guidelines
PAGE 46
$1,000,000]and/or|20|
$5,000 and/or 1 year
$5,000 and/or 1 year
]$1,000,000|and/or|20|
Sections 1907-1909 - $5,000 and/or 1
Section 274e - $50,000 and/or 5 years
USC, Section 1031 - $1,000,000 and/or ten
years $5,000,000 if conscious or reckless endangerment!|
46-1;14 Character See MAOP, Part 11,3-1.1 & 3-1.2; MIOG,
Introduction, 2-1.5.3; Part If 206-6 & 207-2.!
! With the exception of 200 cases, Fraud Against the
Government - followed by a! the name of the Federal department or
agency concerned and b! Identity of the program or activity where
fraud occurred!
! Unique classification numbers have been assigned to
FAG cases pertaining to certain major Government agencies.
Instructions for these classifications are the SAME as contained
within this section. The "46" classification will be used for all FAG
cases involving Government agencies not specifically identified below
NOTE: BE CERTAIN to include the appropriate ALPHA DESIGNATION within
therclassification "number." Refer to the substantive section of this
manual for the distinction between such alpha components of the
classification "number."!
92 17
46
86A&B FAG
A&B FAG
A&B FAGDepartment of Veterans Affairs VA!
Agency involved
Small Business Administration SBA!
Sensitive:
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[Qt.._..__...._.._...-..1._.-._.._...1..-...-I1...- .._._.._.-..;1...._.l.92..;..;.-...m.x:; .-;.;;.._'_.92o._:i._.;..1i..1'.. - .._;-__1.>-::~--~15;--.-=:-~_§;:;_;_ »~- __ *4 1 ___ _d_ : ___92
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Part I _. PAGE 46 -
147
Development HUD!
206A&B
A&B
Branch of Military
206
. 206
206
207
207
Administration NASA!
207
207
208
209
210
213C&D
E&F
I&J
A&B
C&D
E&F
G&H
A&B
A&B
A&B
A&B
EFFECTIVE: 12/23/93FAG
FAG
FAG
FAG
FAG
FAG
FAG
FAG
FAG
FAGDepartment of
Department of'
Department of
of! Department
Department 0F
Environmenta1_
National Aeron
Department of_
Department of
General Servic
Health Care FraudHousing and Urban
Defense DOD! Appropriate
Agriculture USDA!
Commerce DOC!
Interior DOI!
Protection Agency EPA!
autics and Space
Energy DOE!
Transportation DOT!
es Administration GSA!
FAG Department of Labor DOL!
FAG - Department of Education DOED!
46-Z RENEGOTIATION ACT - CIVIL SUITS
EFFECTIVE: 01/31/73
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Part I PAGE 46
462.l Background p
! The Bureau conducts investigation in Renegotiation
Act Civil! suits brought under the Renegotiation Act of 1951 - Title
50, USC, App., Section 1211 et seq. j
! The Renegotiation Act of 1951, in general, provides
that Renegotiation Board is to review thejtotal profit derived by a
contractor during a year from all of his renegotiable contracts and
subcontracts in order to determine whether or not this profit is
excessive. The Board is empowered to eliminate those profits, found
to be excessive in accordance with certain statutory factors. Thus,
renegotiation is determined with respect to all receipts or accruals
from renegotiable contracts and subcontracts of a contractor during a
year.
! The renegotiation pr0cess]al10ws an after-thefact
review of the profits on renegotiable contracts and subcontracts
relating to the national defense and space contracts and related
subcontracts. This is a renegotiation of a contractor's fiscal-year
aggregate profits on these contracts; thus} it is completely different
from price adjustments or redeterminations'with respect to individual
contracts.
! Petitions for redeterminations of excessive profits
determined by the Renegotiation Board are filed with the U. S. Court
of Claims. The Court of Claims has exclusive jurisdiction to
determine the amount of excessive profits received or accrued by a
contractor or subcontractor in these cases. The Court of Claims may
determine that the amount of excessive profits is less than, equal to,
or greater than the amount determined by the Board.
! The proceeding in the Court of Claims is not a
proceeding to review the determination of the Renegotiation Board, but
is a de novo proceeding. The decision of the Court of Claims is
subject to review only by the Supreme Court upon certiorari in the
manner provided in the United States Code for the review of other
cases in the Court of Claims.
EFFECTIVE: 01/31/78
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Manual of Investigative Operations and Guidelines
Part I . PAGE 46
46*2.2 Policy '
! Investigations are requested by Assistant Attorney
General in charge of the Civil Division. I
! These requests, which contain detailed instructions
as to what is desired, usually are accompanied by the renegotiation
file and certified copies of all pertinent tax returns and a
memorandum entitled, "General Instructions to the Auditor, which are
forwarded to assist the Agent in the_accounting investigation.
EFFECTIVE: 01/31/78
46*2.3 Investigative Procedure
! These investigations are of a civil nature resulting
from actions filed by contractors against the U. S. Government in the
Court of Claims. These suits pertain to instances where unilateral
determination has been made by Government as to the amount of
excessive profits realized by the contractor under renegotiation.
! In usual cases, all negotiations between plaintiff
and Renegotiation Board are based on unverified accounting submissions
supplied by plaintiff. It is imperative that a thorough audit be
made, and all accounting data be verified or reasons given as to why
it could not be verified. _
EFFECTIVE: O1/31/78
46*2.3.1 Renegotiable v. Nonrenegotiable Sales
! Government is primarily concerned with profits made
on plaintiff's renegotiable business. Unless total sales are broken
down between renegotiable and nonrenegotiable sales, no determination
can be made as to amount of excessive profits earned by plaintiff for
year under review. Experience has indicated it is often difficult to
classify some portion of plaintiff's sales; therefore, investigating
Agent must make some decision in this respect. Various methods of
arriving at this decision can be suggested and a few are set out
below.
a! What is opinion of company officials and
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Manual of Investigative Operations and Guidelines
Part I " PAGE 46
accountants, including outside auditors who may have prepared
plaintiff's renegotiation reports and forms?
b! Were companies to whom the sales were made
renegotiated and, if so, what percentage of renegotiable business was
arrived at in these cases? f
c! If it is necessary to obtain this information
from other sources, leads should be set forth for appropriate offices.
Do purchase orders or other records relating to purchase of materials
used in construction of items sold show this material was obtained for
defense or space contracts and related subcontracts?
! Examination should be made of cost records to
determine whether direct and indirect costs are properly attributed to
renegotiable and nonrenegotiable sales. Basis for plaintiff's
allocation of overhead and other indirecticosts should be commented
on. If any costs are improperly attributed, adjustments and reasons
therefore should be clearly indicated. There is no objection to
discussing the determination of these sales and related costs with
company officials. Should company's stand as to this determination
unreasonable, Agent should point out his neason for believing the
stand unreasonable but should not enter into any controversy with
officials or their counsel. Agent should, at all times, be in
position to support his contention when appropriate time arrives.be
EFFECTIVE: 01/31/78
462.3.2 Foreign Contracts -
The 1951 act provided Renegotiatibn Board may specifically
enumerate contracts to be exempted from renegotiation. Any sales so
exempted should be listed separately. I
EFFECTIVE: 01/31/78
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Part I ' . - PAGE 46
46*2.3.3 Profit and Loss Statements
! The profit and loss statement should be comparative
statement separated as to renegotiable and nonrenegotiable business,
setting forth in adjoining columns the accounting data obtained from
the plaintiff's submission, the defendant's audit and the differences.
A breakdown should be shown as to total business, renegotiable
business and nonrenegotiable business; for the plaintiff, the
defendant, and the differences. All differences from one column to
another should be explained. Where difference is appreciable, account
where difference occurs should be analyzed to explain this difference.
Comments should be made on accounting theories applied by plaintiff in
reallocation of items of income and expense. It is only necessary to
submit summary schedules. Auxiliary schedules will be contained in
Agent's work papers. The report should emphasize discussion of
discrepancies.
EFFECTIVE: 10/16/90
46-2.3.4 Prior Years I
The memorandum from the Civil Division will request
balance sheets and profit and loss statements for certain years prior
to the year for which the plaintiff was renegotiated. Usually it is
also requested that comparative statements'for this prior period be
prepared. The prior period serves as a guide in determining what
percentage of profit the.p1ainti£f should be allowed in the
renegotiable year under review. _
EFFECTIVE: 10/16/90
46~2.3.5 Accounting Working Papers I
Copies of all accounting working papers and schedules
prepared should be made and forwarded to FBIHQ as an enclosure to the
accounting report for transmittal to Civil Division. When a closing
report is received from Washington|Metropolitan|Field Office original
working papers should then be forwarded to FBIHQ by cover LHM for
transmittal to Civil Division for completion of their file.
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Part I ' PAGE 46
EFFECTIVE: 10/16/90
46-2.3.6 Office of Origin _
FBIHQ will designate office of origin. The office of
origin, upon completion of its investigation, is to submit a letter to
FBIHQ with a copy to the Washington|Metropolitan|Field Office
requesting that the Washington|Metropolitan|Fie1d Office be designated
office of origin and instructing the Washington|Metropolitan|Field
Office to follow the|Claims Courtldocket until a final decision has
been rendered. Included in the letter shonld be a brief background of
the case and the amount involved in the suit. It is not necessary to
furnish Washington|Metropolitan|Field|0ffice|copies of all reports
upon being designated origin inasmuch as these reports serve no useful
purpose. All cases are to be followed by Washington|Hetropo1itan|
Field Office until a decision is rendered by the court.
EFFECTIVE: 10/16/90 '
462.4 Privacy Act - Requirements
|!] When interviewing anyone in the above
classification, in order to solicit information about|himself/herself[
or|his/her|own activities, the interviewing Agent must follow the
procedures described in MIOG, Part I, l905, subparagraphs ! and
!.
_ [!| when interviewing an individual to solicit
information concerning someone other than the interviewee thereby
classifying that individual as a source of information! the
interviewing Agent must follow the procedure relating to promises of
confidentiality as described in HIOG, Part I, 190-7.
EFFECTIVE: 10/16/90
46-2.5 Character Renegotiation Act r Civil Suits
Sensitive
.-_'. J
4 _-E-..92__
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, Sensitive
Manual of Investigative Operations and Guidelines
Part I PAGE 46 -1 23
1
EFFECTIVE: 10/16/90
46-3 FALSE CLAIMS - CIVIL SUITS
EFFECTIVE: 01/31/73
46-3.1 Statutes
Title 31, USC, Section 231; Title 41, USC, Section 119;
Title 40, USC, Section 489
EFFECTIVE: 01/31/78
46-3x2 Section 231
EFFECTIVE: 01/31/76 , '
46-3.2.1 Elements -
! Person liable to suit must be civilian.
! Claim is present.
! Claim involved must be upon or against U. S.
Government or any department or officer thereof. In conspiracies to
defraud U. 5., there is no requirement that claim, payment, or
allowance of which conspiracy seeks to achieve, be upon or against
u.s.! '
! Claim must be false, fraudulent or fictitious. If
claim itself is not fraudulent, enumerated documents used to aid in
obtaining payment of claim against U. S. must contain fraudulent or
fictitious statement or entry.!
! Person liable to suit had knowledge of false,
fraudulent or fictitious character of claim or supporting documents.
Sensitive
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jg
¢"T"92
H-c.'§ J._ _.._.:.Maison-»._,.-.=._...;.i..-.=:.s;2.,.i..u.;.;92.;=.._.H' ..-':...__ ..,;._____- .=_. ;_._ l _. .. ...is_, i_>..-_.i:.921'...s_'~- -.._.__.' -~ '.;;:_._.-i-I- _....... ,4 .. _ _ ..___ __,_, _ __________
,_
1I
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Manual of Investigative Operations and Guidelines
Part I _ PAGE 46
EFFECTIVEi 01/31/78
46-3.2.2 Liability of Persons Making False Claims, Section 231,States That I
"Any person not in the military or naval forces of the
United States, or in the militia called into or actually employed in
the service of the United States, who shall make or cause to be made,
or present or cause to be presented, for payment or approval, to or by
any person or officer in the civil, military, or naval service of the
United States, any claim upon or against the Government of the United
States, or any department or officer thereof, knowing such claim to be
false, fictitious, or fraudulent, or who, for the purpose of obtaining
or aiding to obtain the payment or approval of such claim, makes,
uses, or causes to be made or used, any false bill, receipt, voucher,
roll, account, claim, certificate, affidavit, or deposition, knowing
the same to contain any fraudulent or fictitious statement or entry,
or who enters into any agreement, combination, or conspiracy to
defraud the Government of the United States, or any department or
officer thereof, by obtaining or aiding to'obtain the payment or
allowance of any false or fraudulent claim, or who, having charge,
possession, custody, or control of any money or other public property
used or to be used in the military or naval service, who, with intent
to defraud the United States or willfully to conceal such money or
other property, delivers or causes to be delivered, to any other
person having authority to receive the same, any amount of such money
or other property less than that for which;he received a certificate
or took a receipt, and every person authorized to make or deliver any
certificate, voucher, receipt, or other paper certifying the receipt
of arms, ammunition, provisions, clothing,:or other property so used
or to be used, who makes or delivers the same to any other person
without a full knowledge of the truth of the facts stated therein, and
with intent to defraud the United States and every person who
knowingly purchases or receives in pledge for any obligation or
indebtedness from any soldier, officer, sailor, or other person called
into or employed in the military or naval service any arms,
equipments, ammunition, clothes, military stores, or other public
property, such soldier, sailor, officer, or other person not having
the lawful right to pledge or sell the same, shall forfeit and pay to
the United States the sum of $2,000, and, in addition, double the
amount of damages which the United States may have sustained by reason
of the doing or committing such act, together with the costs of suit;
and such forfeiture and damages shall be sued for in the same suit."
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........-._..,. i _. .1 .......a.._.__~-...|..s.s-.1-|.,'.-.~=...~.,.._......._ L-__ - 1,. 1. ,_. ,, _ _________,_,___,_.__r,____,_ __,__,__-_-_;-. ,_, ., ._"=_._,_:'_____m _ Mm
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PAGE 46 - Z5
EFFECTIVE: O1/31/78
463.3 Section 119
EFFECTIVE: 01/31/78
Elements
!
!46-3.3.1
Any person is liable to suit.
Claim is present. ~
! Claim is presented, or caused to be presented, to any
officer agent or employee of any U.S. Government agency.
Claim is false, fraudulent or fictitfous; !
! Person or persons, for purpose of benefiting any
person in connection with contract procurement, performance,
negotiation, cancelation or termination have knowledge of false,
fraudulent or fictitious statements or entry; or endeavor to cover up
or conceal a material fact; or use or engage in any other fraudulent
trick, scheme, or device. I92
EFFECTIVE:O1/31/78
46-3.3.2 Liability of Persons Making False Claims Under Contract
Settlement Act. Section 119 States That
"Every person who makes or causes to be made, or presents
or causes to be presented to any officer, agent, or employee of any
Government agency any claim, bill, receipt, voucher, statement,
account, certificate, affidavit, or deposition, knowing the same to be
false, fraudulent, or fictitious or knowing the same to contain or to
be based on any false, fraudulent, or fictitious statement or entry,
or who shall cover up or conceal any material fact, or who shall use
or engage in any other fraudulent trick, scheme, or device, for the
purpose of securing or obtaining, or aiding to secure or obtain, for
any person any benefit, payment, compensation allowance, loan,
advance, or emolument from the United States or any Government agency
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CL
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'~lu_3f'- __ ... l. .-. 1 -..-92 ._ .1...:.Li.:....;...;.Z..}_1.J;-.14.- ._»;-,-;;.f_..;.»_..=.;.11_.. ._ _ _..., .7. l ,_ _ ,_, _ ,_
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Manual of Investigative Operations and Guidelines
Part I PAGE 46
in connection with the termination,_cancelation, settlement, payment,
negotiation, renegotiation, performance, procurement, or award of a
contract with the United States or with any other person and every
person who enters into an agreement, combination, or conspiracy so to
do, l! shall pay to the United States an amount equal to 25 per!
centum of any amount hereby sought to be wrongfully secured or
obtained but not actually received, and ! shall forfeit and refund
any such benefit, payment, compensation, allowance, loan, advance, and
emoulent received as a result thereof and ! shall in addition pay to
the United States the sum of $2,000 for each such act, and double the
amount of any damage which the United States may have "sustained by
reason thereof, together with the costs of suit."
EFFECTIVE: 01/31/78
46-3.4 Section 489
EFFECTIVE: 01/31/78
46-3.4.1 Elements
! Any person is liable to suit.
! Person has participated in fraudulent trick, scheme,
or device. . '
/ ! The fraudulent trick, scheme, or device is for
purpose of obtaining some payment, property or other benefit from U.S.
Government or any U. S. Government agency in connection with
procurement, transfer or disposition of U. S, Government property.
EFFECTIVE: 01/31/73
I
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92 PRINTED: 02/18/93
..... .. _-:4:.:4:;¢..r.2.:..'...;..._..."...;-;s..;.e;;s..l.t.m:.;;;_..rs..:;:.;;:_;;=L;.:.:.:.i:.-.:;.2::.;4:..::.;;:-»¢--" I... ....s_,, , _',. .i,-.-_...-_...._. __,_.i-;.;,:..-_.. _;.;,-,_,,; __ ,_ _ _ _______
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Part I . PAGE 46
46-3.4.2 Liability under Federal Property and Administrative
Services Act of 1949. Section 489 States That,
"...Every person who shall use or engage in, or cause to
be used or engaged in, or enter into an agreement, combination, or
conspiracy to use or engage in or to cause to be used or engaged in,
any fraudulent trick, scheme, or device, for the purpose of securing
or obtaining, or aiding to secure or obtain, for any person any
payment, property, or other benefits from the United States or any
Federal agency in connection with the procurement, transfer, or
disposition of property under this chapter, chapter 11B of Title 5,
chapter 4 of Title 41, and chapter 11 of Title 44--
" a! shall pay to the United States the sum of
$2,000 for each such act, and double the amount of any damage which
the United States may have sustained by reason thereof, together with
the cost of suit; or
' " b! shall, if the United States shall so elect, pay
to the United States, as'1iquidated damages, a sum equal to twice the
consideration agreed to be given by the United States or any Federal
agency to such person or by such person to the United States or any
Federal agency, as the case may be; or
" c! shall, if the United States shall so elect,
restore to the United States the money or property thus secured and
obtained and the United States shall retain as liquidated damages any
property, money or other consideration given to the United States or
any Federal agency for such money or property, as the case may be..."
EFFECTIVE: 01/31/78
46-3.5 Suits by Individuals .
! Statutory provisions Title 31, USC, Section 232!
a! Suits may be brought and carried on by any
person at his own expense in name of U. S. but cannot be withdrawn or
discontinued without written consent of judge and USA.
b! Copy of complaint must be served upon USA for
district in which suit is brought and c0py_0f complaint with written
disclosure of evidence and information material to prosecution of suit
must be sent to Attorney General, Washington, D. C., via registered
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mail. , '
c! U. S. has 60 days after service within which to
enter appearance in suit. Person filing suit may carry it on if U. S.
fails to enter suit during that period. If U. S. enters case within
the 60-day period, suit will be carried on solely by U. S.
d! In carrying on suit, U. S. is not bound by
action taken by person bringing suit except that, in event U. S. does
not carry on suit with due diligency within six months from date of
its appearance or within time allowed by court, person bringing suit
may carry it on.
e! Court shall have no jurisdiction to proceed with
suit by person if suit was based upon information or evidence in
possession of agency, officer, or employee of U. S. at time suit was
brought. - . _
f! Court may award person bringing suit, if suit is
carried on"by U. 5., fair and reasonable compensation not to exceed
10% of proceeds of suit or settlement.
g! Court may award person bringing suit and
prosecuting it to final judgement or settlement a fair and reasonable
amount not in excess of one fourth of proceeds of suit or settlement
in addition to reasonable expenses incurred and court costs.
EFFECTIVE: 01/31/78
463.6 Handling of Complaints
! From sources other than FBI to effect that private
individual has filed a civil suit
- ! Check field office records to determine whether
there is or has been criminal investigation.
_ b! Furnish FBIHQ with pertinent facts in court
action and results of search of indices.
c! If no prior investigation has been undertaken,
contact individual filing suit and obtain all evidence in his
possession regarding alleged fraud. Forward information to FBIHQ and
take no further action unless specifically authorized by FBIHQ.
I
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. ! Departmental letter transmitted to field office by
FBIHQ. Obtain facts with regard_to c1aimand nature of fraud
immediately since Department has limited time in which to consider
whether U. S. Government will become party to the suit.
92
92
EFFECTIVE: 01/31/78
92
463.7 Policy
1
_Case in which criminal investigation has been undertaken
or completed. No action should be taken regarding civil phases of
case unless one of two following actions pccurs:
! Receipt of FBIHQ authority based upon written letter
from Civil Division of Department usuallyicontaining outline of
alleged false claim, statute under which proceeding, facts available,
and specific information desired. ll .
! Receipt of request for investigation from USA based
upon instructions from Civil Division.- In this instance FBIHQ should
be immediately notified upon receipt of request and communication
should state that investigation will proceed UACB.
! Receipt of request for investigation from USA without
instructions from Civil Division. USA has authority on|his/her|own
initiative to handle civil fraud aspect of following: A
. 4
a! Claims arising under Dependents Assistance Act
of 1950 p _
>
' b! Claims against veterans arising out of
educational provisions of Servicemen's Readjustment Act but excluding
educational institutions IT
1 .
C! Claims against applicants for|Department of
Veterans Affairs|hospitalization, dental care, medical care, and
domiciliary care n 4
d! Claims against applicants for unemployment and
selfem loyment benefits under Servicemen's Readjustment Act P }
' 1
e! Claims against applicants for|Department of
Veterans Affairs|pension and disability compensation -
J ,
i
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! In these instances FBIHQ should be immediately
notified upon receipt of request and communication should state-that
investigation will proceed UACB. i
! Case in which investigation is requested by Civil
Division and it is found that no previous complaint of a criminal
nature has been received relating to activity to be investigated in
civil action. Investigation should havejas purpose the development of
both civil and criminal phases. FBIHQ will transmit copies of reports
to both Criminal Division and Civil Division of Department.
92I
EFFECTIVE: 10/16/90
4
92
463.8 Investigative Procedure
! Essential data to be obtained
92
a! Proof of fraud involved
5
b! Aggregate amount of fraud which can be included
in civil suit I
1 /
c! Proof of damages, if any, suffered by U. S.
Y
d! Itemization of individual claims involvedGovernment
e! Pertinent details regarding contracts and
contract specifications including tYP6 of contract involved
! Handling of original statement, exhibits, and
evidence. Do not destroy any original investigationiof sabotage and
fraud against the Government cases, evenjthough statute of limitations
has appeared to run under false claims statute, without presenting
such matters to FBIHQ for referral to the Civil Division.
92 .
! Maintain case in pending status to report results of
civil suit even though all requested investigation has been conducted.
EFFECTIVE: 10/16/90
i
92
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46-3.9 Statute of Limitations '
! False Claims statute Title 31, USC, Section 235!
suit must be commenced within six years after commission of the act.
1
92
! Contract Settlement Act Title 41, USC, Section 119!
- no limitation
92
! Federal Property and Administrative Services Act of
1949 Title 40, USC, Section 489! - U. S.lCourt of Appeals, Sixth
Circuit, held 322-54, in U. S. v. Witherspoon 11 F. Znd! 858! that
suit must be commenced within five years from date when claim first
accrued, pursuant to Title 28, USC, Section 2462. Court ruled that
exception exists in regard to any suit pertaining to offenses
involving fraud or attempted fraud against U.S. during war, in which
case statute of limitations is suspended until three years after
termination of hostilities as proclaimed by President or Congress
Title 18, USC, Section 3287!.
! U. S. Court of Appeals, fifth Circuit§ had previously
held in U. S. v. Weaver 07 F. nd! 796! that there was no
applicable statute of limitations under section 26 b! of the Surplus
Property Act Title 50, USC, Section 1635y b! which was repealed and
reenacted as section 209 b! of the Federal Property and
Administrative Services Act of 1949 Title 40, USC, Section 489!.
1
! The Civil Division has advised Bureau that policy of
the Department will be to press the issue as to applicability of
five-year statute before other circuit courts and to urge soundness of
decision in U. S. v. Weaver.
L
! Common law action - no lmitation on action by U. S.
for actual damages arising out of fraud against it.
EFFECTIVE: 10/16/90
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1 I
46-3.10 Privacy Act - Requirements l
< '
|!| When interviewing anyone in the above
classification, in order to solicit infornation about|himself/herself]
0r|his/her|own activities, the interviewing Agent must follow the
procedures described in MIOG, Part I, 19045; subparagraphs ! and
!.
| |!| When interviewing an individual to solicit
information concerning someone other thanithe interviewee thereby
classifying that individual as a source of information! the '
interviewing Agent must follow the procedbre relating to promises of
confidentiality as described in MIOG, Part I, 190-7.
EFFECTIVE: 10/16/90
46-3.11 Character False Claims " Suits
'.i 92J. ll
EFFECTIVE: 10/16/90
1
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1 SECTION 47. IMPERSONATION AND RELATED STATUTES
47-1 STATUTES
915, and 916. Title 18, USC, Sections 912
EFFECTIVE:y05/O8/80
471.1 Section 912. Officer or Emphbyee of the United States
l"Whoever falsely assumes or pketends to be an officer or
employee acting under the authority of te United States or any
department, agency or officer thereof, and acts as such, or in such
pretended character demands or obtains-any money, paper, document, or
thing of value, shall be fined not more than~$1,DOU or imprisoned~not
more than three years, or both."
EFFECTIVE: 05/08/80
47-1.1.1 Elements _
! Pretends to be officer or employee of U.S. Government
! Acts as such, or 1
! Demands or obtains a thing of value
I 1
Either ! or ! coupled with ! satisfies the statute.1
1
EFFECTIVE: 05/08/80 *
4
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47-1.1.2 Policy l
! So called "no violation? cases where element !, the
false impersonation, is present and the other elements are absent,
there is no violation of this Statute. In such cases in which the
false impersonation is that of an FBI Agent or a Department of Justice
employee the FBI policy is that the impensonator should be
appropriately admonished and cautioned td desist if he/she can be
located with reasonable effort. |In the absence of aggravated
circumstances, no more than the basic inquiries to locate the
subject should be pursued. If successfutly located, a statement that
the subject has been so admonished should be set forth in the
investigative case file.| This should also be done in actual
violations in which prosecution is declined. If the falseimpersonation is that of another Government agency, no effort is made
to admonish the impersonator unless he/she is immediately available.
l
! U.S. Government employee violators - Where theimpersonator is already an employee of the U.S. Government and the
violation is consummated bylhis/herImisrepresenting|his/herlposition;FBIHQ has no objection to the institution of an investigation without
specific authority from FBIHQ unless the§employee is highly placed.
In any event, however, FBIHQ should be immediately advised by letter,airtel, or teletype, as the exigencies of the case may dictate, of the
institution of such investigation and the identity of the employee
involved. %
! One file with one offici of origin only on eachimpersonator - Due»to the fact that impersonators are often repeat .
offenders, the FBI policy is to consolidate physically all files at
FBIHQ dealing with one impersonator and designate one office as the
office of origin having supervisory duties over all his/her currentactivities. Frequently, when an active impersonator starts across thecountry using various aliases, a number of offices, having noknowledge of his/her previous activities, open new case files carrying
themselves as office of origin. When a field office establishes this
impersonator to be identical with the subject of other cases with
other offices of origin, FBIHQ should belaffirmatively requested to
designate the one office of origin and~order the necessary file
consolidations. It is observed this policy is an exception to the
general rule concerning opening files iniother violations.
! The Department follows these cases and accordingly a
copy of the indictment returned or information filed is to be included
as enclosure to report. .
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- ! These cases should be presented to the USA at an
early date to avoid unnecessary investigation.
EFFECTIVE: 05/08/80 [
47l.1.3 Investigative Procedure i
! Interviews with complaidants or victims: Establishedbasic investigative techniques should bejused in the interviewing of
witnesses and the collection of evidences However, when an» impersonation complaint is received, thelfirst step should be to
obtain immediately from the complainant or the person who actuallyheard the statements of impersonation a detailed and accurate accountof what actually happened. It is well in most cases to obtain a briefsigned statement from the victim. In addition, it should be ,immediately established as to whether orinot the victim relied solelyupon the representations of the impersonator in parting with something H I of value. I
i#~: ! Verification of non*Federal employment: It should beimmediately verified that the alleged impersonator is not employed in
l the capacity|he/shelhas alleged. If it should be determined theimpersonator was recently employed by the Federal Government, it
should be ascertained exactly whenlhis/her[compensation ceased, as ithas been held that even though a Federaliemployee resigns and ceases
active duty,[he/shelis considered a Federal employee
until|his/herlcompénsation actually ceases.
EFFECTIVE: O5/O8/80 _
471.2 Section 913.- Impersonator Making Arrest or Search
"Whoever falsely represents himself to be an officer,agent, or employee of the United Statesl and in such assumed character
arrests or detains any person or in anyjmanner searches the person,buildings, or other property of any person, shall be fined not morethan $1,000 or imprisoned not more thanlthree years, or both. 92
EFFECTIVE: 05/08/80
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Part I
471.2.l ElementsSensiti
Manual of Investigative Operations and GuidelinesPAGE 47 '
! Falsely represent oneself to be an employee of the
U.S. Government
! Do one of 5 things:
a!
b!
c!
a!
e!
EFFECTIVE: 10/16/90
47-1.2.2 PolicyArrest
Detain
Search
Search
Searcha person 1
a person y
a person
a person's éroperty
~ Aa person s {uildings
These cases should be presented to the U. S. Attorney at
an early date to avoid unnecessary investigation.
EFFECTIVE: 10/16/90
47-1.2.3 Investigative Procedure
A detailed and accurate account of what actually happenedshould be obtained immediately from thecomplainant so that a verbatim
statement can be executed setting forthythe exact words of the
. 1impersonator
EFFECTIVE: 10/16/90
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9247l.3 Section 915. Foreign Diplomas, Consuls, or Officers
"Whoever, with intent to defraud within the United States,falsely assumes or pretends to be a diplomatic, consular or otherofficial of a foreign government duly accredited as such to the UnitedStates and acts as such, or in such pretended character, demands orobtains or attempts to obtain any money, paper, document, or otherthing of value, shall be fined not more than $5,000 or imprisoned not
more than ten years, or both."
I
EFFECTIVE: 10/16/90
47l.3.l Elements
! Intent to defraud or deceive
,.! The impersonation of a diplomatic or consular or gig other official of'a foreign government duly"accredited as such to theTil U. S. Government. ' Y. ._ _ '1! Taking upon oneself to act in the role of theimpersonator, demanding a thing of valuei or obtaining a thing of
value.
EFFECTIVE: 10/16/90
47-1.3.2 Policy
The false personation of an foreign official notified to
the State Department will fulfill the requirements necessary toestablish a violation of this section. lThe Department has advisedthat the Department of State does not_cdnsider delegates to the UnitedNations as being "duly accredited...to dhe Government of the UnitedStates," as officials of a foreign government and consequently themere impersonation of a delegate of a foreign government to the UnitedNations would not be a violation of this section. Beyond theforegoing, each case should be presented to the USA for an opinion-asto whether the official named is capable of being impersonated.
r-92,,,_
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EFFECTIVE: 10/16/90
F
- 47-1.3.3 Investigative Procedure
1As additional investigative procedure to those previouslymentioned under Title 18, USC, Section 912, it is pointed out that todetermine the nonforeign employment of an impersonator under this
section it is necessary in every instance to request the| Washington|Metropolitan|Field Office to obtain the desired evidencefrom the State Department and the representatives of the foreign
t ' 1 a.governmen invo ve _
EFFECTIVE: 10/16/90
47-1.4 Section 916. 4-H Club-Members or Agents
gr 3 "Whoever, falsely and with intent to defraud, holds4~: himself out as or represents or pretends_himself to be a member of,associated with, or an agent or representative for the 4-H clubs, anorganization established by the Extension Service of the United StatesDepartment of Agriculture and the land grant colleges, shall be finednot more than $300 or imprisoned not more than six months, or both."
92
EFFECTIVE: 01/31/73
47l.4.l Elements
! Intent to defraud or dpceive
! Impersonate or represeht oneself to be a member of,
associated with, or agent or representative for the 4-H Club
EFFECTIVE: O1/31/73
<:i*92
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Part I 1PAGE 47
47-1.4.2 Policy
1 These cases should be presented to the U. S. Attorney at
an early date to avoid unnecessary investigation.
EFFECTIVE: O1/31/78
92
47-1.4.3 Investigative Procedure ;
The procedures set out for Title 18, USC, Section 912, are
applicable to this section.
92
EFFECTIVE: 01/31/73
47-2 VENUEImpersonation violations are Lrosecutable only in the
Federal judicial district where the offense occurred. Where theimpersonation is by telephone the venue is in the district of the
hearer.
EFFECTIVE: O1/31/73
/
47-3 CHARACTER - IMPERSONATION
EFFECTIVE: O1/31/78
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E
SECTION 48. POSTAL vigm.-;i..-.--=._ _¢. .1 hi. -n.a.A-'_|.»---t- A. I92 -T ._n.. -.-»
delines
PAGE 43 -
OLATIONS EXCEPT MAIL FRAUD!
43-1 POSTAL VIOLATIONS EXCEPT MAIL FRAUD!
1Inquiries concerning the postal service and complaints
pertaining to the theft of mail or postal
to the Postmaster General, Washington, D.
to field offices should be transmitted tq
charge whose address can be obtained from
EFFECTIVE: O1/31/78
92
92
1
1matters are forwarded by FBIHQ
C. Similar information reported
inthe nearest postal inspector
any postmaster.
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SECTION Q9. BANKRUPICY FRAUD1
.
49-1 STATUTES CRIMINAL!
11:19 18, usc, Sections 151-1s5
EFFECTIVE: 03/23/as
49-1.1 Section 151. Definitions Y
"Term debtor means|an individual, partnership,corporation,1or municipality concerning which a1bankruptcy1petitionhas been filed under Title 1l,1of the USC1 commonly referred to as the
Bankruptcy Code!.| Term bankruptcy Irelates to|any proceeding,arrangement, or plan pursuant to Title lltlincluding Chapter 7 liquidation!, Chapter 11 reorganization!, Chapter 12 familyfarmers!, and Chapter 13 wage earners!. 1Refer to Title 11, USC,
Section 101 for additional definitions."1
1EFFECTIVE: 08/23/88 1
49-1.2 Section 152. Concealment of1Assets, False Oaths and
Claims; Bribery 1
1
"Whoever knowingly and frauddlently conceals from a
custodian, trustee, marshal, or other officer of the court chargedwith the control or custody of property,1or from creditors in any_bankruptcy proceeding, any property belonging to the estate of a
debtor; or 1 1 ; -
1
"Whoever knowingly and fraudulently makes a false oath or
account in or in relation to any bankruptcy proceeding; or
"Whoever knowingly and fraudL1ently makes a false,declaration, certificate, verification, or statement under penalty ofperjury as permitted under Section 176,1Title 28, or in relation to
any case under Title ll; or _
" "Whoever knowingly and fraudplently presents any false
" 1
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8 1claim for proof against the estate or a debtor, or uses any such claim
in any bankruptcy proceeding, personally,92or by agent, proxy or
attorney, or as agent, proxy, or attorney; or
"Whoever knowingly and fraudulently receives any material
amount of property from a debtor after the filing of a bankruptcy
proceeding, with intent to defeat the bankruptcy law; or
i
"Whoever knowingly and fraudulently gives, offers,
receives or attempts to obtain any money Pr property, remuneration,compensation, reward, advantage, or promise thereof, for acting, or
forbearing to act in any bankruptcy procefding; or
L
l "Whoever, either individually or as an agent or officer ofany person or corporation, in contemplatfon of a bankruptcy proceedingby or against him her or any other person or corporation, or with
intent to defeat the bankruptcy law, knodingly and fraudulentlytransfers or conceals any of his/her property or the property of such
other person or corporation; or i
"Whoever, after the filing of-a bankruptcy proceeding or
in contemplation thereof, knowingly and fraudulently conceals, _destroys, mutilates, falsifies, or makesia false entry in any recordedinformation, including books, documents,,records, and papers relating
to the property or financial affairs of a debtor; or
"Whoever, after the filing oi a bankruptcy proceeding,knowingly and fraudulently withholds from a custodian, trustee,marshal,-or other officer of the court entitled to its possession, any
recorded information including books, documents, records, and papers
relating to the property or financial affairs of a debtor,
1
"Shall be fined not more than $5,000 or imprisoned not
more than five years, or both."
EFFECTIVE: 08/23/88
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49-1.2.1 Elements
! Concealment of assets tion 152!
l
a! Estate in bankruptcy existed.
92
b! Duly qualified officer of court, charged with
control or custody or property of such estate, appointed. Incomposition cases, concealment may be from creditors if no officer ofcourt appointed.! i '
c! Property of such estate knowingly andfraudulently concealed from officer. Proof of first two elements
contained in official records of clerk oflcourt, U.S. Trustee, and/or
Interim Trustee. Third element may be susceptible to direct proof ofphysical concealment of property, in which event the evidencenecessary is that which will establish the property is that ofbankrupt estate, that it was not delivered to the officer from whom
the concealment is charged, and that it was concealed by individualcharged. In other instances, concealmentmay be established.bycircumstantial evidence consisting primarily of testimony of qualified
accountant, which is designed to show from records that bankrupt
should have had, at bankruptcy, certain amount of merchandise or otherproperty, that he/she delivered to officibls of the bankruptcy court alesser~amount, and that shortage not satisfactorily explained.!
92 .! Concealment or transfer of assets in contemplation of
bankruptcy Section 152!
a! Accused is an individual or an officer or agent
of person or corporation.
b! Accused contemplatéd bankruptcy proceedings
would be instituted as to himself/herself or such person or
corporation or intended to defeat the operation of the act.
c! Accused knowingly and fraudulently concealed or
transferred any property of debtor. l p '
! Destruction of records Section 152! "
a! Petition filed or iccused contemplated
bankruptcy proceeding would be institutedu
b! Accused knowingly ind fraudulently concealed,destroyed, mutilated, falsified, or madela false entry in any recorded
9292 92
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information including books, documents, records, and papers relatingto the property or financial affairs of aTdebtor.
EFFECTIVE: 08/23/88
49-1.3 Section 153. Embezzlement byia Trustee or Officer
"Whoever knowingly and fraudulently appropriates to
his/her own use, embezzles, spends, or transfers any property or
secretes or destroys any document belongihg to the estate of a debtor
which came into his/her charge as trusteet custodian, marshal, or
other officer of the court, shall be fined not more than $5,000 or
imprisoned not more than five years, or bbth.
EFFECTIVE: 08/23/88
Q9-1.4 Section 154. Adverse Interest and Conduct of Officers
"Whoever, being a custodian, trustee, marshal, or other
officer of the court, knowingly purchases, directly or indirectly, anyproperty of the estate of which he/she is such officer in a bankruptcy
proceeding; or
"Whoever, being such officer, knowingly refuses to permit
a reasonable opportunity for the inspection of the documents and
accounts relating to the affairs of estates in his/her charge by
parties in interest when directed_by thelcourt to do so -
i
"Shall be fined not more than $500, and shall forfeit.
his/her office, which shall thereupon become vacant."
l.
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49-1.5 Section 155. Fee Agreements in Cases under Title ll and
Receiverships
"Whoever, being a party in interest, whether as a debtor,creditor,lreceiver,Itrustee, or representative of any of them, or
attorney for any such party in interest, in any receivershipor|bankruptcy proceedinglin any United States court or under its
supervision, knowingly and fraudulently enters into any agreement,express or implied, with another such party in intereitfor attoneyfor another such party in interest, for the purpose o ixing t efees|or any|compensation to be paid to any party in interest or to anyattorney for any party in interest for services rendered in connection
therewith, from the assets of the estate,
"Shall be fined not more than$5,000 or imprisoned not
more than one year, or both.
EFFECTIVE: O3/23/33
49-2 BANKRUPTCY PROCEDURES
! Constitutional provisions Aiticle 1, Section 8, ofConstitution gave Congress the exclusive power to establish uniformbankruptcy laws. |The National BankruptcylAct was passed in 1898 and
amended in 1933. The Bankruptcy Reform Apt of 1978 superseded priorbankruptcy laws and enacted Title 11, USC, as the bankruptcy code.The Bankruptcy Judges, United States Truétees, and Family FarmerBankruptcy Act of 1986 revised Title 11, USC, Section 101, andexpanded the United States Trustees Progam USTP!. The Act a!establishes 52 additional bankruptcy judgeships throughout the United
States; b! expands on a nationwide basis, the USTP, which wasestablished as a pilot project in 1978 td test a new method ofbankruptcy administration in 18 Federal judicial districts; c!provides for funding of the operations of the USTP through fees paidby users of the bankruptcy system; d! establishes Chapter 12 of theBankruptcy Code to provide bankruptcy relief for "family farmers"; and e! authorizes, on a two-year pilot basid, the establishment of anElectronic Case HanTgement Demonstrationlfroject in three Federal
judicial districts.
! |Purpose of Title 11, usc -
92
Chapter 1 general provisions, including definitions and
basic concepts.
so T 0
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PAGE 49Part I
Chapter 3
administration.' I
Chapter 5 - general provisions regarding creditors, the
debtor, and the estate.prescribes the prgcedure for bankruptcy case
Chapter 7 - procedures for liduidations and distribution
of property.
Chapter 11 - procedures for reorganization, whereby the
debtor restructures debt without being forced to liquidate the estate
and may continue operation of his/her business as a
"debtor-in-possession."
Chapter 12 - procedures for bankruptcy relief for "family
farmers."
Chapter 13 - procedures for bankruptcy relief for "wageearners, which emphasize prob1ems'peculiar to consumer credit for
individuals.|
|!| Civil provisions of thehbankruptcy 1aws|-L .
a! |United States Bankruptcy Courts are|adjuncts of
U.S. District Courts. |The principal officers are the "United StatesBankruptcy Judges," appointed for 14 year? by the President to _
adjudicate matters in his/her bankruptcy district; and "United States
Trustees," appointed by the Attorney Genekal to handle day-to-day
administration of bankruptcy cases within his/her region. The United
States Trustees also have the responsibiity for appointing "case
trustees" to be selected from panels ofiqualified and approved -individuals! to assist the United StateslTrustees in the performance
of their responsibilities. The Executive Office for United States
Trustees, Department of Justice, Washington, D.C., oversees the
administration of the United States Trusdee Program.l
b! Attorneys, accountints, appraisers, auctioneers,
or other professional persons may be appointed on|alshowing ofnecessity to represent or assist the United States Trustee or|case
trustee.| p
_ c! Proceedings are begun by filing of a petition
either by the debtor voluntary!, or by creditors involuntary!.After filing of|a| voluntary'petition,]the|court automatically issuesan order for relief. This meanslthe debtorlis under|the|jurisdiction
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Manual of Investigative Operations and GuidelinesPart I . PAGE 49
of|the|court for|purposes|of|adjudication|of his/her estate. Ininvoluntary cases,|a|petition must be filed by three creditors with
claims aggregating $5,000, except that onetcreditor claiming $5,000 issufficient where|the|tota1 number of creditors is less than 12. If
the petition is timely controverted, the cburt, after trial, shallorder relief against the debtor in an invoduntary case if:
1. The debtor is geberally not paying his/her
debts when due, orl
92
' 2. Within 120 dayslbefore the date of the
filing of the petition, a custodian othed than a trustee, receiver,or agent appointed by the court to collect for a lien against thedebtor's property! was appointed and tooklpossession of less than all
of the debtor's property. If the petition is not timely controverted,the court shall order relief against the debtor.
d! The commencement ofla bankruptcy case creates an
estate and that estate|which[isicomprisedlof all the debtorsproperty, including all legal and equitable interest in property.
e! Until an order for relief in a bankruptcy case,
and except to_the extent that the court orders otherwise, any businessof the debtor may continue to operate, and the debtor may continue to
use, acquire, or dispose of property as if an involuntary case
concerning the debtor had not been commenped.
f! An involuntary caseimay onlyIbe|£iled underChapter 7 liquidation! or Chapter 11 reorganization! of[Title-1l|andonly by a person except a farmer!, a notrfor-profit corporation, or acommercial corporation that may be a debtbr under the chapter underwhich such case is commenced. Involuntary cases are not permitted for
municipalities.l
g! The court may, at ahy time after the filing ofan involuntary case under Chapter 7, but before an order for relief isissued, appoint an interim trustee to tak@_possession of the debtor'sproperty, if deemed necessary, to preventyloss to the estate or topreserve the property of the estate. The court may make such an orderonly upon the request of a party in intenest after notice to thedebtor and a proper hearing. The debtor]may regain possession of suchproperty, before an order for relief by posting a sufficient bond as
required by the court. l
h! |Involuntary caseslmay not be filed|againstforeign banks that are not engaged in business in the United States
i , ,_ ,' _ " ' '__ "L."._'..-_'i';¢-.;_--'-. .1:.'....F~..:. ----- ...'..'._.-A-/2.-4:-: _v"'.-._"... _ | 1, _ _ __..__._.. » ¥ .._ t. _ .. _ __ _ _,__,,
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' 92
but that have assets located here, unlessla foreign proceeding againstthe bank is pending under foreign law. .
i!, The court may awardicosts, reasohable attorneys
fees, or damages if an involuntary bankruptcy petition is dismissed
other than by consent of all creditors and the debtor. In addition,if a petitioning creditor filed the petition in bad faith, the court
may award the debtor any damages proximately caused by the filing of
the petition. . l
j! Compositions, extensions, reorganization, andadjustment plans - Sections of the Act provide that private persons,farmers, rai1roads,lor|any corporation, ptovided for in Chapter 11 ofthe Act, municipalities, or other political subdivisions of a state
may file a petition or answer at any timelduring a voluntary orinvoluntary case saying they desire to effect a composition, an
extension of time in which to pay obligations, a plan ofreorganization, or a plan of readjustmentlof their liabilities.Purpose of extension provisions is to permit debtors, in|the|absence
of fraud, to readjust their financial-structures, pay off theirobligations and eliminate their debts. With some variations, the
various sections relating to the above classes of debtors provide
jurisdiction and powers of court. The-title, powers, and duties of
officers are same as if a voluntary petiion had been filed and order
for relief entered on day when the debton s petition or answer had
been filed. The various sections relating to the above debtors
provide that United States Bankruptcy Codrts exercise original
jurisdiction in proceedings for relief of debtors.l R! The appointment ofia trustee is mandatory for apublic company, which is defined as a company that has $5 million in
liabilities, excluding tax and trade obligations, and 1,000 security
holders. The appointment of a trustee is discretionary in nonpubliccompany cases, considering the interests92of the estate and itssecurity holders. i t
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Manual of Investigative Operations and GuidelinesPart I PAGE 49
493 DEPARTMENTAL INSTRUCTIONS AND OPINIONS
! Search Warrants - Searchlwarrant to search for
concealed property in a bankruptcy case may be issued under Title 28,USC, Section 1651, after appointment and dualification of trustee andproperty seized under such warrant may beiintroduced in evidence in a
criminal proceeding. ¬
! Accounting evidence Acdounting testimony only
showing a merchandise shortage on basis of the debtor's books andI records|is|sufficient to make a prima facie case under either of the
following circumstances: 1
- J a! If books indicate quantities of goods purchased
and sold, thereby allowing determination of quantities of goods that
should be on hand at time of bankruptcy.
b! If books indicate cbst of merchandise purchasedand sold, thereby making it possible to make a deduction as to howmuch merchandise, measured in cost, should have been on hand at the
time of the bankruptcy. If the books disclose only the amountreceived from sales, evidence would not be sufficient, on the theory
that it is impossible to determine how much merchandise was actually
sold; however, if testimony of accountantlis properly supportedreflecting sales were made on an average bf a certain percentage above
cost, such evidence would be sufficient because it indicatesmerchandise not sold below cost and, therefore, there must be a
shortage. If accountant testified to merchandise shortage computedafter deducting the markup on sales admitded to by debtor or testifiedto by an employee, such evidence would support a prima facie case of
concealment of assets.!
! Theft of property of a dankrupt estate Whereproperty belonging to estate of debtor id stolen from custody of anofficer of court, charged with the control or custody of property, and
retained by the thief, thief may be prosecuted for concealment, ifshown accused had some knowledge of the dankruptcy.
92
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92
49-4 IMMUNITY OF DEBTOR'S Tssrlnoni
-I|Prior to 1978,|the debtor was immune from prosecutionconcerning the subject of his/her testimony at the first meeting of
creditors and at one subsequent specifiedlhearing. This immunity
extended to any evidence derived from his/her testimony and could notbe used for lead purposes. |Current 1aw,|ihowever, prescribes that a
debtor|is|allowed to invoke his/her FifthlAmendment right concerningselfrincrimination at hearings without resulting in a denial of a
discharge. If the debtor, however, waivei invocation oflthis right,]he/The is not immune from prosecution concerping|the|tTstimonyand the testimony may also be used for lead purposes. UnitedStates|Trustees, who preside over all hearings, are not authorized to
grant immunity, and any request for immunity must be initiated by theAttorney General or by the appropriate|United States Attorney|through
the appropriate U.S. District Court. 1
EFFECTIVE: as/23/as i
49"5 POLICY
! When instituting investigations of violations by
officers of the Bankruptcy Court,[the Ecohomic Crimes Unit ECU!,White-Collar Crimes Section, FBIHQ,|shou1d be promptly notified byairtel or more expeditious means if circumstances dictate. The LHM
should set forth allegations and fact that USA has been notified where matter was not referred by USA's Qffice! and that he/she is
aware of need to notify presiding Federab Judge that an investigation
of a court official is in progress
! Circulations to creditons_or customers - No circular
letters to be mailed to debtors customers_or creditors withoutlprior
submission to the ECU for authorization.|
! Investigations relating to solicitation of proxies,
etc., during a railroad reorganization or receivership:
a! Interstate Commerce Commission may investigate
to determine whether any person has violated or is about to violate
provisions of this subsection and may aid in its enforcement.
b! Promptly refer tolthe ECU|complaints relating to
alleged violations of this provision.
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Q! Accounting investigationsir Responsibility of SAC toassign to accounting phases of bankruptcycases those Agents who are .qualified to handle such assignments. a
! Investigations at request of USA pertaining tohis/her opposing debtor's discharge: i
a! Statute provides USA, when requested by court,
shall examine into debtor's conduct and if he/she finds probable causeto do so, oppose discharge if public interest warrants it.
b! Upon request of USA, Bureau will conductinvestigations of this type; however, immediately notify|the ECU92ofany such request giving pertinent circumstances of case.
! When initial complaint mlde by officer of court and
USA declines prosecution, case may be closed. Communicationindicating declination should contain statement that USA wasspecifically informed that complaint was made by officer of court.
EFFECTIVE: 11/20/90
§9*6 INVESTIGATIVE PROCEDURE
! Complaints
a! Investigations based on information receivedfrom USA, United States Trustees, Bankruptcy Judge, creditors, andattorneys for trustees, and interested parties. Refer to MIOG, PartI, Section 58, for policy regarding allegations of bribery and/orconflict of interest involving court orders.
I b! Maintain contact with all persons in position to
have information as to violations., I
c! Responsibility for instituting investigations
rests with SAC. I
g _ d! USA must be consulted at beginning ofinvestigation for opinion as to whether facts complained of, if true,
constitute prosecutable violation s!. i
F 92
! Initial steps -
92
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a! Obtain from complainant all information relative
to alleged violation. ' % _
b! Specific facts indicating exact nature ofviolation should be sought as it is not desirable to engage in generalinvestigation in nature of a "fishing expsdition" on generalallegations of fraud. A 92
l . c! Bankruptcy records should be examined andnecessary preliminary facts obtained to establish jurisdiction.92 4
_ d! Preliminary survey thould not interfere withprompt investigation of leads requiring immediate attention, such asdirect information as to the location of concealed assets.
92! Planning the investigatipn "
' a! From preliminary idformation obtained, it ispossible to plan subsequent course of acsion to be followed. L i b! Determine as soon ss possible in concealment~¥5 case whether facts indicate simple physisal concealment by debtor ofidentified articles or a scheme formulated in anticipation ofbankruptcy with or without connivance oftothers.
c! Any association of92debtor with individuals knownto have been connected with other bankruptcies should be givenattention. l . '
d! Determine whether it will be possible toestablish violation by direct evidence or whether expert testimony ofaccountants will be necessary and whether it appears likely evidencecan be developed as to other alleged violations; i.e., destruction ofrecords, false claims, mail fraud, fraud by wire, etc.
K e! Where indications§of more than one violationpresent, it is desirable that the investigation be directed towardestablishment of those most susceptibleito proof. _
V! Types of evidence and tource of leads - t
a! Official bankruptty records are sources ofnecessary and useful information; should be examined at beginning of
investigation; will be found with the Bankrupt
i :i@;_ Trustee case trustee, or attorne r La/L75
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Manual of Investigative Operations and GudelinesPart 1 1 PAGE 49
to be reviewed.on behalf of corporate bankrup
Transcripts of other witnesses to be revi
led by trustee for a summary
alleged to be in his/herto account; Evidence in
should be examined. Should a" b! A petition may be f
order directing debtor to turn over asse
possession or for which he/she has failed
support of such petition is valuable and pcompliance with turnover order be noted, it would indicate concealmentof assets and in such instances a comprehensive investigation shouldbe conducted, particularly to determine source of funds used incomplying with turnover order. One of bases for an objection todischarge which may be filed by creditorslis that bankrupt hasviolated one of criminal provisions of the Act. Issue thus raised isone with which Bureau's investigation is boncerned and evidencepresented athearing upon the specificatibn may be admissible in a
criminal prosecution.
c! In some instances it is possible to proveexistence of unaccounted-for assets by téstimony of an accountant who
has made examination of bankrupt's booksjand records. Suchh d' b t ma .unaccounted-for assets are ordinarily figured in merc an ise, u y
' ' *- ---L --...'.-.¢ u-92i- ein-r-n|1f|l'.¢{ OI notes receivable,r _
oan .-,-, -_ --.L _books are not complete, it may be necessary, in order to determinebeginning inventory, to resort to financial statements issued by
debtor. In addition, data regarding beginning inventory may beobtained by interviewing debtor and his/her employees and examinationof work papers of debtor's accountant. To determine purchases ofdebtor in instances in which records of the debtor not complete, it
ircularize creditors upon obtaining FBIHQmay be necessary to cinancial records deemedauthority. Copies of pertinent invoicesland fpertinent may be requested in circular lftter. .
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92 -7Part4
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._L
__-is E! Facts in every bankruptcy 1VeSL1g3L10u aicnecessarily unique, and it must lie in discretion of Agent conducting ' h'ch canth 'nvesti ation counselled by SAC, to determine evidence w ie 1 g ,and should be developed, and to shape course of inquiry along logical C'1, lines.
#5; 92 g! [Deleted]
! Recovery of concealed assets -
92 . . a! Recovery of concealed assets in possession of
debtor or associates is of great value in establishing violation.92
92 b! When concealed assets are discovered, follow
procedures pertaining to searches and seizures.
c! Persons taking inventor of recovered , Ymerchandise should properly indicate, onleach article if necessary,' ' " f sistance intheir identifying mark, or take appropriate notes or as
their possible testimony.
! Scam bankruptcy or "Bustout"
a! "Bustout" is the slang term used to describe ah lo ed in establishing or acquiring a business, buying largesc eme emp yquantities of merchandise on credit andithereafter disposing of the
merchandise without paying the creditors.. 1 ,
b! Most of these operations are reported byt d industry sources before d voluntary or involuntary Z/TT; informan s an _ P" * bankruptcy petition is filed. Investigations are to be instituted
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promptly and discreetly to develop evidence before the operator has
terminated his/her scheme and destroyed any records evidence which may
exist. Other violations which may be present in a "bustout" includefraud by wire Title 18, USC, Section 1343!, mail fraud Title 18,
USC, Section 1341!, and interstate transportation of stolen property
Title 18, USC, Section 2314!. i
_ l c! The National Association of Credit Management
NACH! is an organization of over 45,000 representatives of
manufacturers, distributors, service companies, and financialinstitutions which extend credit to the nation's businesses. NACM is
committed to prevention and detection of Susiness credit fraudsassisting law enforcement agencies in obtaining successfulprosecutions of individuals involved in these frauds. The NACH Loss
Prevention Department maintains a computerized data base, withinformation dating to 1963, relating to actual and suspected business
credit frauds, including names, aliases, background information,addresses, prior businesses, and modus operandi of individualsinvolved. This information is available to law enforcement agenciesupon request. NACH members additionally alert the Loss PreventionDepartment as suspicious credit matters come to the members
attention, such as unsolicited or unusualimerchandise orders,fraudulent credit references, nonpayment of credit invoices, etc. The
NACM Loss Prevention Department is located at 401 Wythe Street, Suite
2A, Alexandria, Virginia 22314, telephone 03! 6843436.
! Use of charts or graphs in court "
4 ,
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49-7 REPORTING RULES
! Bankruptcy cases must be presented to the USA and
cannot be closed administratively.
! Upon initiating a bankruptcy investigation exceptinvestigations initi;g3d083!receipt of a eitizen'T complaint alleginga loss of less than , , submit an artel to the Economic CrimesUnit ECU!, White-Collar Crimes Section,lBIHQ, with an accompanyingLHM setting forth a summary of allegations and, if known, name andph sical description of any subject s! developed. I
! Two copies of prosecutive report, when required, areto be submitted to|ECU,lone of which is disseminatedlby the ECU|to theCriminal Division, Department of Justice. A copy of the report should
be furnished to the USA.
! The ECU|must be advised of the final disposition ofeach case. At the conclusion of the casei an LHH should be submitted
containingthe ultimate prosecutive disposition.
! Where no prosecutive reports are necessary, such as
in an-immediate declination or when USA declines prior to requiredsubmissionoE a prosecutive report, an LHM containing a synopsis ofthe case, identity of the subject s!, andiprosecutive disposition maybe submitted in lieu of a report. 1
EFFECTIVE: 11/20/90
49-3 STATUTE OF LIMITATIONS
! Five years from date ofloffense except in concealment
of assets. I1
! Concealment cases - is dontinuing offense -
Limitation begins to run on date discharge granted or denied debtor.
Title 18, USC, Section S284! L
EFFECTIVE: 11/20/90
92l
1
i
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PRINTED: 02/18/98
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Manual of Investigative Operations and GuidelinesPart I PAGE 49 - 17
49+9 VENUE
! Lies in district in whic offense committed
! In concealment cases - in district in which petition
filed or in district in which ancillary proceeding instituted if
assets concealed from such ancillary trustee
EFFECTIVE: 11/20/90
92
4910 PENALTY - MAXIMUM!
! Section 152 - $5,000 or 5 years, or both
! Section 153 $5,000 or 5 years, or both
! Section 154 - $500 and forfeiture of office
= -,._ I{Q H; ! Section 155 - $5,000 or1 year, or both
EFFECTIVE: 11/20/90
49-11 CHARACTER BANKRUPTCY Fniunf
92
"92
92
EFFECTIVE: 11/20/90
Sensitive
PRINTED: 02/18/98
1
--._-92'.
.3,
Ch,E appropriate legislation.
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Sensitiv
Manual of Investigative Operations and Guidelines' PAGE 50
Part I
SECTION 50. INVOLUNTARY SERVITFDE AND SLAVERY
I S 92
-i
50-1 STATUTES
nt; Title 18, USC, SectionsU.S. Constitution, 13th amendm
1581-1588, 241 and 242.
EFFECTIVE: 02/16/s9
50*1.1 Constitution of the United States, 13th Amendment92 .
4Neither slavery nor involuntary servitude, except as a' whereof the party shal have been duly convicted,punishment for crimeshall exist within the United States, or any place subject to their. p. bjurisdiction. Congress shall have power to enforce this article y
EFFECTIVE: 02/16/39
50-1.2 Section 1581. Peonage; Obstructing Enforcement
! Whoever holds or returns any person to a condition ofeonage or arrests any person with the intent of placing him/her in.'P 1 _or returning him/her to a condition of pepnage, or
J .! Whoever obstructs, or atlempts to obstruct, or in anyevents the enfoncement of this section, shallway interferes with or pr ned not more than five years,
92
92be fined not more than $5,000 or impriso
or both.
EFFECTIVE: 02/16/89 1
I
Sensitiye
PRINTED: 02/18/98
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.
-292
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Hanual of Investigative Operations and GuidelinesPart I ' } _ PAGE 50' 92
50-1.3 p Section 1583. Enticement IntolSlavery
! Whoever kidnaps or carrie% away any other person,with the intent that such other person be sold into involuntaryservitude; or held as a slave; or | _
92
! Whoever entices, persuades or induces any othererson to go on board any vessel or to anyyother place with the intentP
that he/she may be made or held as a slavet or sent out of the country' ' i th n $5,000 orto be so made or held, shall be fined not Fore aimprisoned not more than five years, or both.92
EFFECTIVE: 02/16/89
50-1.4 Section 1584. Sale Into Involuntary Servitude
Whoever knowingly and willfully holds to involuntaryservitude or sells into any condition of involuntary servitude, anyf r an term or brings within the United States anyother person o y ,person so held, shall be fined not more than $5,000 or imprisoned not
more than five years, or both. -
EFFECTIVE: 02/16/89
I
501.5 Section 241. Conspiracy Agaihst Rights
5 " ! If two or more persons donspire to injure, oppress, threaten or intimidate any|inhabitant o any State, Territory orI' ' t|' the free exercise or enjoyment of any right or privilegeDistric in secured to him/her by the Constitution or laws of the United States,
or because of his/her having so exercised the same; or
! If two or more persons go in disguise on the highwayor on the premises of another, with intent to prevent or hinder. .1his/her free exercise or enjoyment of any right or privi ege sosecured; »
I ! They shall be fined notmore than|$l0,000|orimprisoned not more than ten years, or both, and if death results,Ethey shall be subject to imprisonment for any term of years or or
life. 51
1
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- i PRINTED: oi/is/9s9
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Manual of Investigative Operations and Guidelines1 PAGE 50 -
Part I A1->~..-..-.- .4-':l.l~...». ii _ _ .. ..-.-92.- _; _ _
I
.L! Inpthe event a victim is not a U.S. citizen, then apossible violation of Title 18, USC, Section 371, Conspiracy, is to beconsidered. Policy and procedure relatingito this statute is I. - . 162*l6.8 of this manua .contained in Part I, Section 62-16 through
EFFECTIVE: 02/16/39
501.6 Section 242. Deprivation of Rights Under Color of Law
92 .Whoever, under color of any lay, statute, ordinancere ulation or custom, willfully subjects any inhabitant of any State,S lTerritory, or District to the deprivationlof any rights, privileges or1 I u E t himmunities secured or protected by the Constitution or laws 0 eU 't d States or to different punishments, pains, or penalties, onni e ,account of such inhabitant being an alieni or by reason of his/herolor or race than are prescribed for the punishment of citizens,C s 1shall be fined not more than $1,000 or imprisoned not more than oneI I Q I I Iyear, or both; and|if bodily IHJUIY resunot more than 10 years. Ifldeath resultimprisonment for any term of years or £0
EFFECTIVE: 02/16/89
50-1.7 Other Applicable Statutes "
! Title 18, USC, Section
18, USC, Section
of slaves! Title
transportation or sale
! Title 18, USC, Section
slave trade
! Title 18, USC, Section
aboard vessel
! Title 18, USC, Section
slaves from United States
Sensitlts, fined and/or impriso
5; shall be subject to
r]1ife.
92
Slave Trade
1
lb82. Vessels for slave trade
£585. Seizure, detention,1
I
1586. Service on vessels in
§
1587. Possession of slaves
1588. Transportation of
ive
PRINTED: 02/18/98
1-
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92
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Manual of Investigative Operations and Guidelines
Part IPAGE 50
t92
92
EFFECTIVE: O2/16/89 _
1
1
EFFECTIVE: 02/19/as
150-Z ELEMENTS
50-2.1 Section 1581
! A person must hold or reurn any other erson; or P
! A person must arrest anyiother person with intent to
placelhim/herlin or return|him/herl }1
1 provided by law! To compulsory service no?
!Because of a debt, eithep-real or pretended
92
! Against the victim's will
EFFECTIVE: O2/19/85
Section 1583
l»! A person must kidnap orlcarry away any other person5O*2.2
1! With intent that the otder person will be sold into
compulsory service, or held as a slave; or
A ! A person must induce an}'other person to board a
vessel or to go to any place L92
that the other person will be made or1 ! With intent 92of the country to be so made or heldheld as a slave, or sent out
victim's wiil ! Against the
EFFECTIVE: 02/19/85
1 1
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92
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Manual of Investigative Operations and GuidelinesPart I l PAGE 50
50-2.3 Section 1584
! A person must knowingly and willfully hold in
com ulsor service or sell into compulsorylservice any other personP Yagainst that person's will; or
! A person must knowingly atd willfully bring into theUnited States any other person held in compulsory service.
EFFECTIVE: 02/16/89 l
502.4 Section 241
92
! Two or more persons mustlconspire
92
92! To deprive anylinhabitant of any State, Territory or
District|of rights secured to citizen by the Constitution specifically in this violation - the"rignt to be free from slavery
and involuntary servitude!
EFFECTIVE: 02/16/B9
50-2.5 Section 242
! A person must act under color of law92
{! To deprive any inhabitant of rights secured toinhabitant by the Constitution specifically in this violation P theright to be free from slavery and involuntary servitude!
1 .
EFFECTIVE: 02/16/89 '
i
V
Sensitive
PRINTED: 02/18/98._;.¢._. .1... QIA -t _ . _. i_.l.-'.._.... -4._..,.l.92_.....~...;_-i_.-._.......l__..._._ _
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Manual of Investigative Operations and GuidelinesI PAGE 50 6
Part I
50-3 POLICY I
In De artmental Circular #3591J'dated 12/12/41, addressedPto all USAs, the Department noted that in numerous alleged peonageE th violations, prosecution had been declined by the USAs because o e
1 t E debt The Department pointed out that,absence of the e emen o . ewhile case law under Title 18, USC, Section 444 now Title 18, USC,' 1581! holds that debt is the "basal element of peonage,"Section ,Sections 443, 51, and 52 now Sections 158?, 241, and 242' . Th USAs wererespectively! disregard entirely the element of debt eadvised of the Department's desire to emphasize and depend upon theissue of involuntary servitude and slavery92in lieu of peonage debt
plus involuntary service!. , .
92This Department circular alsoiadvised as follows:
"In the matter of control by dne over the person ofd t beanother, the circumstances under which each person is place mus' ' the subservience of thelwill of one to the other.determined, i.e., 92Open force, threats or intimidation need not be used to cause a person>to go involuntarily from one place to another to work and to remain asuch work; nor does evidence of kind treatment show an absence of
involuntary servitude." .
EFFECTIVE: OZ/16/39
9250-4 INVESTIGATIVE PROCEDURE See;MIOG, Part I, 50 4.2 !.!
92For purpose of this classifieation, a complaint is anyallegation made or information received from any source not known tobe unreliable, which includes legitimateapublic press or otherlegitimate news media, indicating a posseble violation exists.
/ ! Upon receipt of a complaint, a request for' sti ation by the USA or a request for investigation_by the U.S.inve g 92Department of Justice, the field division must promptly submit Formcomplaint!. All itemsFD-610 within five ! workdays of receipt ofon the form are to be completed on the initial submission or later bysupplemental submission. This action i§_to be taken prior to thef ch case in all Civil Rights Hatters. Along these lines,close 0 ea 92the field division should make an efforq to provide the maximum amountof information on the initial submissiom. Do not delay submission of-610 'f all data is not immediately available. Submit aFD 1supplemental form when additional information necessary to complete
!
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1 .
...=._.,....-.....i-...s-.r_;.i.v.-.-.41........;.a.....a.1¢_¢:.--...-...r.z.;.._.i-..-;.-s;..».;......-.=-.-._-._-A.-. .. ,. 92
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Manual of Investigative Operations and Guidelines PAGE 50 - 7
Part I q
th form is secured. In those instances wgere FBIHQ is advised byetelephone or teletype of a new case, the FQ-610 should be submitted at .the earliest possible moment. Specific instructions regarding thecompletion of the FD-610 are set forth in fart I, 282-8.1 of thismanual. If death has occurred, advise FBIHQ immediately and conductno investigation. If preliminary investigation conducted, closingreport must be submitted to FBIHQ with a cppy to the USA within 21workdays of receipt of complaint. See MAQP, Part II, 25.2.4.!
! Investigations under thesb statutes are to be givenimmediate, preferred, and continuous attention in order that they maybe promptly and meticulously completed in an impartial manner. Thesecases are to be handled by experienced Agehts. Controversy, ecriticism, or unusual publicity arising in connection with these cases
is to be immediately reported to FBIHQ. l92
92! Department has authorized USA to request up to and yincluding preliminary investigations of routine violations of thesestatutes. Advise FBIHQ by wire of any such requests and conductinvestigation desired. If request is illpgical or unwarranted orother circumstances exist indicating investigation is not desirable,furnish details of request to FBIHQ by wife and conduct noinvestigation UACB. Full investigation should not be conducted unlessapproved by FBIHQ. 92If a field office strongly disagrees with therequirements of the DOJ investigative reqhest s! and taskings, thefield office should contact the D01 attorhey generating the' vesti ative request and attempt to resohve any issues. If the field
in goffice cannot resolve the matter with D0, contact the CRU.|
! No complaints are to beifiled and no arrests are to
be made in cases of this type without FBIHQ authority.l
5 The services of local law enforcement officers must !not be used without FBIHQ authority. i
! The Agents should be alert to the possibility thatthe victim and other witnesses might suffer abuse or mistreatment as alt of their furnishing information. iAny such situation should beresu
immediately brought to the attention of FBIHQ and the USA.
er! When exhibits are obtaihed, sufficient copies are tobe made so that two may be furnished toFBIHQ, one to the USA, and one
kept in the field office file. }
8! Contact the USA for USA's views as to the merits and
as to whether further investigation appears desirable.
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:.i___' |~ -_ . __.-~...- __ V,....._,.~.._.=.; 1. ._._.__.. ..:._..._.-l.....s..i-.... -,l_.|,.;.;- ......... .:.....-.....__...-.h...r.:_i~._.;..
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Manual of Investigative Operations and Guidelinest I i PAGE 50
I. 9! All investigative activity is to be completed andreported within 21 work days of receipt oflthe complaint. Any delaysin meetin this reporting requirement should be reported to FBIHQ,sCivil Rights Unit, by FD-205.Par
0! Signed statements should be obtained from theoriginal complainant and other persons whoifurnish pertinentinformation, as well as from the victim s!92and subject s! whenever
possible.
ll! Interview victims and witnesses out of the presence
of and without knowledge of the subject, if possible.
2! In all interviews, efforts should be made to developinformation showing the nature of the alleged compulsory service and
l twhether the victim is held against victim;s_will. All facts re a iveto alleged physical mistreatment of the victim should also be
obtained. 1. ~
c . 3! Efforts should be made to corroborate the victim'sstatements through interviews with otherslwho may have been in a. . . . ,'t' to observe the relationship between the victim and victim sposi ion 92employer. Among those who should be considered for interview areother employees of the subject, neighborsiand their employees,tradesmen, and others who may have had ocfasion to contact the
subject. 92
4! If the allegations involve the arrest of the victimfor the purpose of returning victim to vctim's employer, the exactnature of the charges and the full details of all local action should
be ascertained. {
5! Detailed information asito how the victim s! andwitnesses, as well as the subject s! can be located at a future date,
if required, should be obtained
EFFECTIVE: 08/10/94
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. > i..._.. .- -_.-..-.. ...:...,...._._~ ;,I-.n-.-=.r.= .... -._ __;-_ _-.-..'....;...;-c.-..|_f...2;...:........-..:..'._ Jl-Lin-LGIQ'-i-E--927iv,-J--11!-92!m-H->1'-nA-- .._..._._ _.i
.._..F'I 'i I
1
92
92
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Part I9250*.l Investigations Involving Higranf Labor Camps
The Civil Rights Division CRD!tby memorandum on 2/4/80,nded by CRD memorandum on 11/2/81, requdsted the following3.1116procedures for conducting ISS investigatioTs involving migrant labor
camps 92"This memorandum sets forth thd_procedures that should be' fE ll d in instituting and conducting preliminary investigations oo owecomplaints of involuntary servitude or peonage which involve thei d not beo eration of migrant labor camps. These procedures neePfollowed in situations not involving migrant labor camps.
"The preliminary investigation92set out in this memorandum
should be conducted! y
"! When the Federal Bureau pf Investigation receives
direct complaints, or otherwise receives ipformation regarding anh' h indicates a possible violation of Title 18, Unitedincident w ic 92States Code, Sections 1581 a! or 1584, involving migrant laborers.
I 92"! When the Civil Rights Division, or a United StatesAttorney requests a preliminary investigation of a possible violation
of these statutes involving migrant laborers.
"Upon receipt of such complaint or request, please conductthe following preliminary investigation: Y ,
92"l. Interview the-complainant and all other non-worker
witnesses identified by the complainant.
"2. Interview all alleged victims who have left the laborcamp. Interview of these victims shouldldetermine the method ofrecruitment, the method of payment, whether the worker is indebted tothe crewleader, how such indebtedness was incurred, force used orthreatened to be used against laborers, and the identities anddescriptions of all foremen, cooks, bookkeepers, and truckdrivers. Inaddition, determine the name.or descriptions of other workers who maywish to leave the camp. Determine how the alleged victims made theirway from the camp. Photograph any visible injuries to the allegedvictims. Photographs should be tahen, even if no injuries are claimedto assist in locating victims in the future. Obtain from the allegedvictims any physical evidence, such as pay receipts, pay envelopes,etc., which relate to their employment. l _92 .
"3. The labor camp should be promptly visited to conduct
1 .
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.34
. _,
' /Q I._._.i.... .-_._=._._..i..-;."....,::.....L.;;';;;i._;.-;......-;j.....;:.;-..':;;'.;=-L,a:i.;;L;;;;.:. ._ .. .....-a-..... .._.- ._ .92 .
1
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i .
Manual of Investigative Operations and Guidelinesl PAGE 50 '
Part I l92 92appropriate investigation regarding any other alleged victims. Thiswill include identifying any persons who want to leave the camp.Possible victims should be advised that U.$. laws provide no personshould be forced to work against his will even if he owes money tosomeone at the camp. Necessary arrangements should be made with localauthorities and social agencies for transportation and otherassistance needed by those persons desirous of leaving the camp.t should insure that any workers are permitted to leave and that
Agen sreasonable assistance is rendered to them En this regard.
"h. If any workers identified as possible victims do notindicate a desire to leave on their own on to be transported from thecamp, they should be privately interviewed to determine if they fear
reprisal from anyone for leaving. I92
92"5. T ke all persons desiring to leave the camp to anaappropriate place for interview and condugt full interviews as in #2
above. 92
"6. In view of the difficulty in securing Grand Juryattendance of migrant workers after interyiew, the alleged victims andwitnesses should be told that it is important for them to provide someaddress through which they can be contacted. In effort to keep trackof alleged victims, they should be encounaged to contact state orlocal employment services and migrant assistance programs so that theycan be reemployed. Each potential witness should be advised of theimportance of informing the FBI frequently of his or her location.Photographs should be taken to assist inilocating victims and
witnesses in the.future.92"7 Determine whether any cbmplaints have been made to
D'visionlocal police or sheriff's offices or local Wage and Hour irepresentatives of the U.S Department ofiLabor concerning the subjector workers under the subject's control If so, obtain copies of all
relevant documents.
"8. Interview the crewleader and the foremen, cooks,bookkeepers, and truckdrivers working fdr him. These interviewsshould be conducted after interviews specified in #5 above.! Theseindividuals should specifically be questioned concerning specificincidents mentioned by the alleged victims. In addition, they shouldbe questioned concerning methods of recruitment, methods ofbookkeeping, methods of payment, methods of charging the workers forroom, board, work materials e.g., gloves, alcohol, tobacco and thelike!, and the indebtedness of each particular worker to thecrewleader. Determine whether the crewleader and each regular
92
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Manual of Investigative Operations and Guidelines .PAGE 50
Part I 11
employee thereof has the registration certificate required to be kepti S.C. Sectionby the Farm Labor Contractor's Registration Act. U.2045! c 1
1
U S"9. Copy of your reports shoubd be sent to the . .Attorney as well as the CRD. In matters which may have prosecutivet the appropriate U S. Attorney shouldpbe orally apprised of themeri .facts developed, and a detailed teletype summary should be sent to!FBIHQ for relay to the CRD, prior to preparing the written report,since prompt resort to grand jury processes may be necessary to secure
attendance of witnesses." l
EFFECTIVE: 02/19/85
92504.2 INVESTIGATIONS INVOLVING wnlrs SLAVE TRAFFIC ACT WSTA!,SEXUAL EXPLOITATION OF CHILDREN AND INTERSTATEIN AID OF RACKETEERING ITAR!-PROSTITUTION
% .
FBI lic and procedure involving WSTA, Sexual! po y Exploitation of Children and ITAR-Prostitdtion are set forth in Part
I, Sections 31, 145, and 166 of this manuTl,TRANSPORTATION
! Agents should be alert when conducting Sections 31,. . . . . ma1&5, and 166 investigations to facts which indicate that victims yhave been held or sold into conditions oflinvoluntary servitude orslavery by subjects through use of force,92threat of force, orcoercion. If such information is develoed, a separate investigationis to be conducted pursuant to 50-4! through 5!. If circumstancesexist which would dictate that a separate 50 case not be opened,advise FBIHQ so that the matter can be discussed with the CRD, DOJ.
! In addition to these investigative steps, Agents areto photograph any visible injuries to the alleged adult victim s!,I minor children should not be photographed as such action couldcause additional trauma if they have been the victims of sexual
abuse where photographs were taken!,
Q! Obtain any medical records pertinent to victims s'!
al personnel;injuries and interview appropriate medic
! If possible, secure frdm the alleged victim s! anyphysical evidence such as pay records, photographs, etc., which mayA relate to conditions of their being held and forced to perform work
i, or services against their will. 92
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Manual of Investigative Operations and Guidelines PAGE 50 - 12
Part I p
!
EFFECTIVE: 02/19/as I
i
50-5 venue 1 _
The venue of Involuntary Servitude and Slavery cases.is inthe judicial district where the offense occurred. In Conspiracy' ' ' d'cia1 district in which the parties conspiredcases, it is in any JU ior where an overt act in furtherance of the conspiracy was committed.
EFFECTIVE: 02/19/85
5O*6 MEMORANDUM OF UNDERSTANDING
92"MEMORANDUM OF UNDERSTANDING BETWEEN FEDERAL BUREAU
OF INVESTIGATION AND THEiDEPARTMENT OF_LABOR'OYMENT STANDARDS ADMINISTRATION WAGE AND HOUREMPL
DIVISION REGARDING VIOLATIONS OF FEDERAL STATUTESllRELATING TO INVOLUNTARY SERVITUDE AND SLAVERY!
92" f this memorandum is to develop a close workingThe purpose o _relationship between the Federal Bureau of Investigation FBI! and thed d Administration, Wage U.S. Department of Labor, Employment Stan ar s' ' ' WHD! with respect to the enforcement of Federal
and Hour Divisionlaws which involve Involuntary Servitude and Slavery ISS!.
92
"POLICY 92
"It shall be the policy of both the FBI and the WHD to exchangeinformation relative to violations disclosed or alleged during the' ' ' ' ' ' Th Federal statutescourse of their investigative activity. 92 eprimarily involved in this agreement areilnvoluntary Servitude andSlavery FBI!, the Farm Labor Contractor;Registration Act WHD!, and
the Fair Labor Standards Act NHD!.
"PROCEDURE
7"FBIWhen the FBI receives information during the course of investigativeactivity indicating a possible violation of the Farm Labor Contractor
92
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1 I
':-
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-;_'.. -
__.-.-,.;.._-:;';.=*L*_-,.._......;. .... ._.. .._..:;1¢e;ll1-'.-L.-1<._:;5:..;i.-' .i.....;:t..£;-.e~.;.:;;z;L:;.;*j;i:;a....;;_l_-..., ...._ ...i. .l
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Manual of Investigative Operations and GuidelinesPart I PAGE 50
Registration Act or the Fair Labor Standards Act, the WHD Officecovering the area in which the alleged violation occurred will be
notified in a timely fashion. This initial contact will be followed
with a written summary of the allegati0n s! set forth in an FBI _
letterhead memorandum. This memorandum will be furnished to the WHD
Office which was provided the initial information by the FBI. A copy
of the memorandum will be forwarded to FBI headquarters fortransmittal to the WHD National Office, ATTENTION: Office of the
Administrator. 1
IIWHD l l
When the HHD receives information, during the course of investigativeactivity, indicating a possible violation of the Involuntary Servitudeand Slavery Statutes, the FBI Office covering the area in which thealleged violation occurred will be notified in a timely fashion. This
initial contact will be followed with a written summary of theallegation s! set forth in a HHD memorandum.- This memorandum will befurnished to the Special Agent in Charge of the FBI Field Office whichrovided the initial information by the WHD. A copy of thewas p.memorandum will be forwarded to the Regional NHD Office and thereafter
to the WHD National Office for transmittallto FBI Headquarters,ATTENTION: Civil Rights Unit, Criminal Investigative Division.
92 .
The Civil Rights Unit, FBI Headquarters, and the Office of theAdministrator, WHD National Office will maintain liaison concerningmatters of mutual interest relating to policy matters as set forth in
this memorandum. A portion of this liaison will involve thedissemination of information concerning the final action s! taken in
each case developed and investigated underlthe terms of this
memorandum. INTER*AGENCY FEEDBACK
92
/s/ William H. Webster
WILLIAM H. wtssrsa
Direct@rFederal Bureau92of investigation
i
9212-832
DATE
/s/ Robert B.Collyer
ROBERT B.92COLLYER
Deputy Under Secretary for
Employment Standards12-27-82
DATE
I U.S. Department of Labor"1. ¢ __ _r .__ H-
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Part IPAGE 50 * 14
! "MEMORANDUM or UNDERSTANDING BETWEEN FEDERAL BUREAUTIGATION AND IMMIGRATION AND NATURALIZATIONOF INvEs 1sERvIcE REGARDING VIOLATIONS OF FEDERAL STATUTES
RELATING TO INVOLUNTARY SERVITUDE'
l"The urpose of this memorandum is to develop a closeAND SLAVERY
r working
Pt the Federal Bureau ofllnvestigation FBI! and therelationship be weenImmigration and Naturalization Service INS! with respect to the. . . 1 tenforcement of Federal laws which relate primarily
Servitude and Slavery ISS!.
"POLICY qto Invo un ary
"It hall be the policy of both the FBI and the INS to exchangesinformation relative to violations of Federal law disclosed or alleged' ' t'v't . The Federalduring the course of their investigative ap i i ystatutes primarily involved in this agreement are Involuntary! d Alien Smuggling INS!. Servitude and Slavery FBI , an
"PROCEDURE
"FBI . ,1
' 1When the FBI receives information during the coursactivity indicating a possible violation of Alien' ' ' which thelallegede of investigative
Smuggling laws, the
violation occurredINS Office covering the area inwill be notified in a timely fashion. This initial contact will be'th itten summary of the allegation s! set forth in anfollowed wi a wrFBI letterhead memorandum. This memorandum will be furnished to the' ' " ' " ' th FBI. AINS office which was provided the 1n1t131L1fOfm3t1O by ecopy of the memorandum will be forwardedlto FBI Headquarters for' ' ENTION: Anti-Smuggling.transmittal to the INS Headquarters, ATT
"INS
When the INS receives information, during the course of investigativeactivity, indicating a possible violation of the ISS statutes, the FBIOffice covering the area in which the alleged violation occurred willbe notified in a timely fashion. This initial contact will be' ' 1 t' n s! set forth in anfollowed with a written summary of the al ega ioINS memorandum. This memorandum will beyfurnisheAgent in Charge of the FBI Field Office which wasinformation by the INS. A copy of the memorandumth Re ional INs Office and thereafter th the INSE 8Headquarters for transmittal to FBI Headquarters;
92
I
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provided the initial
will be forwarded to
National
ATTENTION: Civil
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Manual of Investigative Operations and GuidelinesPart I . I PAGE 50
I
Rights Unit, Criminal Investigative Division.92
"INTERAGENCY FEEDBACK
Th C'v'l Ri hts Unit FBI Headquarters, add the Anti-Smuggling Unit,e 1 1 g ,INS National Headquarters will maintain liaison concerning matters ofmutual interest relating to policy mattersjas set forth in thismemorandum. A portion of this liaison will involve the dissemination' ' ' 1' d andof the final prosecutive action taken in each case deve ope
investigated under the terms of this memorandum.
9212'8-82 /s/ William H. WebsterDATE WILLIAM H. WEBSTER
Director
Federal Bureau of Investigation
92
/s/ Alan C. Nelson
ALAN C. NELSON
CommissionerImmigration and Naturalization Service"1215-82
DATE
EFFECTIVE: O2/19/85 92
50*? CHARACTER - INVOLUNTARY SERVIFUDE AND SLAVERY
EFFECTIVE: 02/19/85
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Manual of Investigative Operations and Guidelines1 Part I PAGE 51 -
SECTION 51. JUR PANEL INVESTIGATIONS
51-1 POLICY .Jury panel investigations are qonducted by a field office only
92after FBIHQ authorization. ~ I
! FBIHQ will authorize investigation only upon receivingspecific written request from appropriate assistant Attorney General.92
! USAs are required to submit their requests for jury panelinvestigations directly to the appropriateiAssistant Attorney General' t regardless of time element involved! and to make any followup reques s
or inquiries by the same procedure. K
! In preparing the report,ithe names of the prospective'jurors should be listed in alphabetical order and the information as toeach such person set forth on a separate pfge or pages.
EFFECTIVE: U1/31/78
51-2 INVESTIGATIVE PROCEDURES
92When a jury panel investigation is authorized, specifict' s to the nature of the investigation are forwarded to theinstruc ions a qfield office by FBIHQ. Ordinarily, theselinvestigations are restricted tocertaining arrest records of the individuals and checking their namesas
through the field office indices. Creditichecks are not to be made due to
t' b the Fairrestrictions placed on dissemination of credit informa ion yC d't Re orting Act. No inquiries should be made concerning a person'sre i preligious or political beliefs, or his membership in, or affiliation with,' ' ' ' ' ' h uld belabor unions or other organizations. No neighborhood inquiries s o
surveillances of any type should be conducted.made and noI I
1
EFFECTIVE: 01/31/78
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513 CHARACTER - JURY PANEL 1NvEsTIcATi0N
EFFECTIVE: 01/31/78 1
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92SECTION 52. GOVERNMENT PROPERTY - THEFTL ROBBERY, EHBEZZLEMENT, ILLEGALPOSSESSION, ET AL.; GOVERNMENT PROPERTY - DESTRUCTION OF, ET AL.;
_INTERFERENCE WITH GOVERNMENT COMMUNICATIONSlSYSTEM
1
52-1 STATUTES
Title 18, USC, Sections 641, 1660, 2112, and 2114.
EFFECTIVE: 08/23/91
521.l Section 641. Public Money, Property or Records
EFFECTIVE: O3/28/91
521.2 Elements
!' Theft
1 a! That the property belonged to the U. S. or any
department or agency thereof
b! That it was taken and carried away by the
subject 92
c! That the subject took and carried away theproperty with the intention of converting92it to his/her own use or the
use of another I
I ! Embezzlement
a! That the property was U. S. Government property
. b! The official statuszof the subject
c! That the property came into subject's possessionlawfully, together with the manner in whikh he/she received it,including information as to whether it was received by virtue of
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H d! That such property was fraudulently converted or
appropriated to the use of the subject
EFFECTIVE: 08/28/91
52~l.3 Policy Section 6Q1!
! In handling complaints involving minor thefts oft 0 1nt ro erty where there are no known aggravating or unusuaGovernme p pcircumstances, immediately present facts to'USA for a prosecutiveopinion. If USA will not consider Federalprosecution, conduct noinvestigation, advise complainant, and confirm conversations to USAand complainant in writing. Hhere appropriate, refer matter to lawenforcement agency having jurisdiction ovef violation and also furnish
this information to USA and complainant.92
! For administrative reporting requirements androcedures governing the loss and/or~theft%of Government property from-
PFBI space, refer to MADP, Part II, Sectioni6-7.5.
l ! Investigations Regarding Criminal Allegations
Against Public Officials
a! It is recognized that during the course of aninvestigation within this classification information is sometimesdeveloped alleging that a Federal, state or local official is inviolation of Federal law. If the focus of_the investigation continuest b this substantive classification andor Federal crimes committedo e 92by a person who merely happens to be a Federal, state or local" d d t the official, "Corruption-Related Matter, should be ad e 0character of the case, and it will continue to be managed under theViolent Crimes and Major Offenders Program. If, however, the focus ofthe investigation shifts to the abuse of his/her position of trust bythe Federal, state or local official in_vioiation of Federal criminalnew "Corruption of Federal Public Officials" 8! orlaw, a "Corruption of State and Local Public Officials" 94! matter should
be opened within the White Collar Crimes Program.
I b! |Deleted|
I c! |Deletedl
_ | d! |Deletedl
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EFFECTIVE: 09/16/94 }
52-1.4 Section 1024. -Purchase or Receipt of Military, Naval, or
Veteran's Facilities Property ~
EFFECTIVE: 08/28/91
52-1.5 Elements _
! That the property was furnished by the U. S. to any
person enumerated in this section.soldier or other
! d such property That*the subject purchased or receive
in pledge
That the subject had knonledge or reason to believe!
that:
Ca! The property had been furnished by the U. S.under a clothing allowance to a soldier or other person enumerated in
this section, or
b! That the property had been taken from thepossession of the U.S. ]Pursuant to Tit1e92l8, USC, Section 21, theelement of guilty knowledge may also be established by proof that thedefendant believed that the property had been taken from thepossession of the U.S., after or as»a result of an official' MIOG Part II, representation as to the nature of the property see ,
1 1.12!.} pi .
EFFECTIVE: 10/23/95
Sensitive
I PRINTED: 02/18/93
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52-1.6 Section 1660 Receipt of Pirate Property
"Whoever without lawful authority, receives or takes into9custody any vessel, goods or other property feloniously taken by anyrobber or pirate against the laws of the United States, knowing thesame to have been feloniously taken, shall be imprisoned not more than
ten years."
EFFECTIVE: 08/28/91
112 Robbery Personal Property of United52-1.7 Section 2
States!
EFFECTIVE: 08/28/91
52-1.8 Elements
! Personal property of Government
! In the lawful custody of some person
! Taken by the 5Ub]BCt from the person or prese
such person
EFFECTIVE: O8/28/91
1 M e or Other Property of521.9 ' Section 2114 Robbery Mai on y
United States!
EFFECTIVE: 11/20/90
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52-1.10 Elements
! That property of t
custody of some personL
he U. S.lwas lawfully in the
! That the subject either:
a! Robbed such person ofithis property, or
b! Assaulted such person with intent to
rob92him/her|of this property
EFFECTIVE: 11/Z0/90
52-1.11 Penalties
! Section 641. Propertyover $100 in value, maximum of
$10,000 or ten years, or both
Property $100 or less in value;
year, or both.maximum of $1,000 or one
500 r im risoned not more! Section 1024. Maximum of$ 0 p
than two years,
! Section 1660. Maximum of not more
! Section 2112. Maximum of notor both.
than ten years.
more than 15 years.
S Mail! first offense, maximum ' Section 2114 u . 1
f rsecond
of ten y! . .ears. If wounds, or puts life inljeopardy, or 0
offense, maximum of 25 years.
EFFECTIVE: 11/20/90
52-1.12 Venue
all theft or robbery of Government property casesVenue inare ordinarily in the district where the crime was perpetrated.
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I 92
EFFECTIVE: ll/20/90
52-1.13 _Investigative Procedure 92
e To show that the property in question is that of th
United
and/or
entered into NCIC. The quantity and value of the property should be
learned. ./BI
EFFECTIVE: 11/20/90
l
52-1.14 Miscellaneous 92 .
e considered under the Theft
rstate Transportation of
manual.For food stamp thefts that ar
of-Government Property violation, see Inte
| Stolen Property, Section 87-4.7.1, of this
4
EFFECTIVE: 09/13/93 4<
52-1.15 Theft of Government Property Qutside the United States
Th FBI exercises primary investigative jurisdiction overeall violations of Section 641 occurring outside the United States.Violations participated in by American nationals who are outside ofthe jurisdiction of military authorities nust either be disposed of bylocal authorities in the country in which the offense occurred or bythe FBI. Since the foreign power may have little or no interest in" thefts of U.S. property, the majority of these violations would beThefts b$3 handled by the FBI and prosecuted in U.S.<District Court. y92- ';.='.:-
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Manual of Investigative Operations and Guidelines-s PAGE 52 -
Part I
military personnel abroad is usually prosecuted by militaryauthorities unless the military offender isfreturned to thejurisdiction of the U.S. District Court andiinvestigation can
economically be handled by the FBI.
EFFECTIVE: 11/20/90
H52-1.16 Tracing of Firearms Stamped U.S. Property"
FBI Agents are frequently furnished information concerningprivate individuals who are alleged to have in their possessionfirearms stamped "U.S. Property." No active investigation orcircularization of military establishmentsiis warranted in theseinstances in the absence of additional facts. In such cases, adescription of the weapon should be searched through NCIC, and if noff' ofI record is located a letter should be prepared for the local o icesthe Air Force, Army, and Navy intel1igence_setting out the information
which has been=obtained,
EFFECTIVE: 11/20/90
52-1.17 Character 1
The character of such cases depends on the exact naturegofthe offense; that is, whether it related to a theft, embezzlement,robbery, illegal possession, or destruction of Government property.For example, in a theft case the character could be Theft ofGovernment Property and in a robbery, Robbery of Government Property,
etc.
EFFECTIVE: 11/20/90
52-2 STATUTES
Title 18, USC, Sections 1361, 1855, 1856, 2071.
EFFECTIVE: 01/31/78
1
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lines Manual of Investigative Operations and Guide _PAGE 52 '
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522.l Section 1361. Government Property 0
EFFECTIVE: O1/31/73
522.2 Elementsr Contracts
8 ! That the property was U. S. property
r dama ed! That the subject without lawful right injured 0 g
such property
! That such injury or depredation was willfully co
EFFECTIVE: 01/31/78mmitted
< ; 522.3 Section 1855. Timber Set Afire
--_'.
EFFECTIVE: 01/31/78
522.4 Elements
! That timber, underbrush, grass, or other inflammable
b1' domain was set on firematerial upon the pu ic
horit set th! That the subject willfully and without aut y
fire
EFFECTIVE: 01/31/78
52-2.5 Section 1856.
EFFECTIVE: O1/31/78Fires Left Unattended and Unextinguished
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Manual of Investigative Operations and Guidelines PAGE 52 9
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52-2.6 Elements
! Set a fire upon the public d
and leave without extinguishing itmaterialomain near any inflammable
! Permits it to spread beyond his control
! Allows i
EFFECTIVE: 01/31/78
52-2.7 Section 2071.
Generally
EFFECTIVE: 01/31/78
52-2.8 Elementst to burn unattended
Concealment, Removal,or Mutilation
! That the record, book, paper or document was on file or
deposit with
a! Any court of the U. S., or
b!
c! With any judicial or public officer
! That it was concealed, remove ,
destroyed by the subjectIn any public office, or
of the U. S.
d mutilated, obliterated or
l t was willfully done ! That such concealment, remova , e c.,
without lawful right
EFFECTIVE: 01/31/78
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Part I
52*2.9 Penalties
! Section 1361. Damage to property over $100 in value,
maximum of $10,000 or ten years, or both.
Property $100 or less in value, maximum of $1,000 or one
year, or both.
! Section 1855. Maximum of $5,000 or imprisoned not more
than five years, or both
! Section 1856. Maximum of $500 or imprisoned not more than
six months, or both.
2 000 'm risoned not more Q! Section 2071. Maximum of S , or 1 pthan three years, or both; and shall forfeit his office and be' ' ' St t disqualified from holding office under the United a es.
EFFECTIVE:-01/31/78"
52*2.10 Policy -
In general, the FBI will investigate forest fires in the more. . . . . . haggravated cases or those cases which are incendiary in origin, or w erenumerous fires have occurred that are malicious in nature, upon thecondition that the complaint is immediately reported to the FBI. It isnot desired that investigation be conducted'in cases inconsequential in' ' ' ' ' ' more aggravatedscope but that activities be confined to the larger,
types.
EFFECTIVE: 01[31/78
52-2.11 Character - Destruction of Government Property
EFFECTIVE: 01/31/78
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52-3 STATUTE
Title 18, USC, Section 1362
EFFECTIVE: 01/31/78
52-3.1 Section 1362. Interference With Government Communications
"Hh v r willfully or maliciously injures or destroys any of theoe eworks, property, or material of any radio, telegraph, telephone or cable,line, station, or system, or other means of communication, operated orcontrolled by the United States, or used or intended to be used formilitary or civil defense functions of the United States, whetherconstructed or in process of construction, or willfully or maliciouslyinterferes in any ' ' f such line or system, way with the working or use o any ,or willfully or maliciously obstructs, hinders, or delays the transmissionof any communications over any such line, or system, shall be fined notmore than $10,000 or imprisoned not'more than ten years, or both."
EFFECTIVE: 01/31/78
52-3.2 Miscellaneous
"In the case of any works, property, or material, not operatedt 1 to anyor controlled by the United States, this section shall no app ylawful strike activity, or other lawful concerted activities for thepurposes of collective bargaining or other mutual aid and protection which' ' destroy any line or system used or intended to be used' Hdo not injure orfor the military or civil defense functions of the United States.
EFFECTIVE: 01/31/78
523.3 Character - Interference With Government Communications
System
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EFFECTIVE: 01/31/78
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92 .' 1';» .iManual of Investigative Operations and Guidelines PAGE 55 - 1
Part I
SECTION 5h. CUSTOMS LAWS AND SMUGGLING
54-1 CUSTOMS LAWS AND SMUGGLING
I The U. S. Customs Service administers the powers and dutiesvested in the Secretary of the Treasury pertaining to the importation andentry of merchandise into and the exportation of merchandise from the U.5., and the regulation of certain marine activities. The principalfunction of the U. S. Customs Service is the assessment and collection ofimport duties and, incident to this, the prevention of smuggling.Complaints received on such matters by field offices should be referred tothe nearest district office of the U. S. Customs Service. Those receivedat FBIHQ are referred to the Commissioner of Customs, Washington, D. C.
EFFECTIVE: O1/31/78
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SECTION 55. COUNTERFEITING
55-1 COUNTERFEITING
The U. S. Secret Service, which is part of the TreasuryDepartment, is empowered to suppress the counterfeiting of U. S. coins,notes, and other obligations and securities of the Government. Violations' ' orted to FBIHQ are referred to the Director,of this nature which are rep ' Washington D C. .U. S. Secret Service, Department of the Treasury, , .t' n of a similar nature received by field offices should beInforma ioreported to the nearest office of the U. S. Secret Service.
0 .
EFFECTIVE: 01/31/78
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SECTION 56. ELECTION LAWS
56"1 BACKGROUND
Primary responsibility for conducting elections in generalrests with the states. Federal laws selectively seek to protect' ' ' f thesignificant Federal interests and ensure that the dictates 0Constitution are not willfully abridged.r Investigative jurisdictionconcerning Federal election law violations is shared between the FBIEl t'on Commission FEC! The 1971 Federal Electionand Federal ec i .Campaign Act FECA! with subsequent amendments of 1974, 1976, andI th1979, has transferred to the FEC numerous matters that were eprimary investigative responsibility of theIFBI. These includestatutes dealing with reporting and campaign finance violationsincluding contributions to, and expenditures of, Federal politicalcandidates. The FEC has the power to initiate civil injunctiveproceedings against violators of statutes for which it has primaryinvestigative jurisdiction. Should the FEC determine there is -probable cause to believe that a knowing and willful violation of theFECA has been committed, it may refer the matter to the Department ofJustice DOJ! for criminal prosecution. Only in the circumstances ofaggravating factors, or in the presence of knowing and willfult t forth below, does the DOJ address possible criminalmisconduc as se Iprosecution administrative enforcement remedies of the FEC.
EFFECTIVE: 01/18/91
56-2 DEFINITIONS
The following general definitions are applicable to ' ' 1 ' risdictionF deral election laws to initially determine if crimina ]Uemay exist. More specific or qualifying definitions within a given
statute may override these definitions. -
EFFECTIVE: 01/15/91
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0 t'ons and Guidelines Manual of Investigative pera iPart I _ PAGE 56
56-2.1 Election
Any ballot procedure in which candidates for electiveoffice are voted upon which includes a general, special, primary orrun off contest. I
EFFECTIVE: 01/18/91
56*2.2
Supportive
taking the
nomination
about this
EFFECTIVE:
562.3Candidate
An individual who seeks nomination or election to office.actions by individuals to meet this definition includeaction necessary under the law of-a state to qualify for
for election and/or the receipt or expenditure to bring
desired result.
01/18/91
Contribution or Expenditure
The receipt or disbursement of anything of value for the
purpose of influencing an election.
EFFECTIVE:01/18/91
56-3.-......s1 _ ._.. ...,--..a»_,;H¢. .._.¢.-..92.H.»....-_.-.-.»...- ...,.-._._._...__. _ _
SUMMARY OF CRIMINAL STATUTES FOR WHICH THE FBI HAS PRIMARY
INVESTIGATIVE JURISDICTION j
EFFECTIVE: 01/18/91
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56'3.l Title 18, USC, Section 241 Conspiracy Against Rights of
Citizens ,
! Makes it unlawful for two or more persons to conspireto injure, oppress, threaten or intimidate any|inhabitant of anyState, Territory or District|in the exercise'of a right or privileged to him/her by the Constitution or laws of the United States.secureElection law violations under the statute are felonies punishable by' ' E n fines up to $10,000 and/or imprisonment up to ten years, or or a yE l'fe if death results. This statute must affectterm of years or or 1 , _a Federal election in some manner; however, if racial discrimination
exists, refer to civil rights.
! Possible violations cover conspiracies by electionofficials to stuff ballot boxes, conspiracies to prevent the official. . . . . . 1 11count of ballots in primary elections, conspiracies to il ega yregister voters and/or cast absentee ballots in their names, and' ' ' ' t' 'date a voter in theconspiracies to IHJUIE, oppress, threaten or in imi
exercise of his or her right to vote. _
EFFECTIVE: 01/18/91
I56-3.2 Title l8, USC, Section 242 r Deprivation of Rights Under
Color of Law
Makes it unlawful for anyoneqacting under color of law,statute, ordinance, regulation or custom to willfully deprive a personof any rights, privileges or immunities secured or protected by theConstitution or laws of the United States. .Prosecutions under Section242 need not demonstrate the existence of a conspiracy; however, thedefendants must have acted illegally under color of law. Election lawviolations under the statute are misdemeanors punishable by fines upt $1,000 and/or imprisonment up to one year, or for any term of yearsOor for life, if death results. This is the substantive statute of
92 Title 18, usc, Section 241.]
EFFECTIVE: 01/as/32
.
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l56*3.3 Title 18, USC, Section 245 Federally Protected
Activities
p Prohibits interference by violence or threat of violence
with exercising the right to vote or run for office or otherwise in
any election, Federal, state or local. If racially motivated, handle
as civil rights matter under the 44 c1assification.|
EFFECTIVE: 01/08/82
56-3.4 Title 18, USC, Section 592 Troops at PollsI l
Makes it unlawful to place troops or armed men at the
polls in a general or special election except when necessary "to repelarmed enemies of the United States." This statute is not applicableto primaries. It has been interpreted by the Department to prohibitAgents of the FBI from conducting investigations inside the polls on_ election day. It is_a felony statute and violations are punishable byIf a fine up to $5,000 and/or up to five years 1H pr1son.|
Q-c -.5-
EFFECTIVE: 01/08/82
||563.5 _Title 18, USC, Section 593 - Interference by Armed Forces
"Makes it unlawful for members of the armed forces to
interfere with election processes. The statute is a felony statute
and violations are punishable by a fine of up to'$5,000 and/or up to
five years in prison.|
EFFECTIVE: O1/D3/32
|l56-3;6 Title 18, USC, Section 594 Intimidation of Voters
Prohibits the intimidatiob or coercion of voters for the
purpose of interfering with the right to vote for a candidate for
Federal office. The statute is not applicable to primaries. It is a
misdemeanor statute and violations are punishable by a fine of up to
$1,000 and/or up to one year in prison.|
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EFFECTIVE: 01/08/82
Title 18, USC, Section 595 Interference byAdministrative Employees of Federal, State, or Territorial
Government56-3.? A
Prohibits any public officer or employee within theFederal, state, or local Government in connection with an activityfinanced wholly or partially by the United States from using his orher official authority to interfere with or affect the nomination orelection of a candidate for Federal office. This statute is aimed atthe misuse of official authority and does not prohibit normal campaign' b F deral state or local employees that are consistentactivities y e , _with the_Hatch Act restrictions on political activities. The statuteressl exempts employees of any educational institution or agency.exp yIt is a misdemeanor statute, and violations are punishable by fines ofup to $1,000 and/or up to one year in prison.l
EFFECTIVE: 01/08/82
[56-3.8 Title 18, USC, Section 596 - Polling Armed Forces
Prohibits any person from polling any member of the armedforces with reference to his or her choice of, or vote for, politicalcandidates. "Polling" is defined to include questioning»which impliesthat an answer is compulsory. It is a misdemeanor statute andviolations are punishable by fines of up to $1,000 and/or up to one
year in prison.|
EFFECTIVE: 01/08/32
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56-3.9 Title 13, USC, Section 597 Expenditures to Influence
Voting _
Prohibits making or offering to make an expenditure to anyperson to vote or withhold his or her vote, or to vote for or againstany candidate for Federal office, and soliciting, accepting orreceiving any such payment. It applies to vote buys directed at allstages of the nomination and election process. The vehicle used tobuy the vote may be anything of value. Violations are misdemeanorspunishable by fines of up to $1,000 and/or imprisonment up to oneyear, except as to willful violations which are felonies punishable by' ' d th'sfines up to $10,000 and imprisonment up to two years. Un er 1t tute it must be shown that the Federal election was impacted. Sees a ,Title 42, USC, Section 1973 i c! below concerning vote buying for
state or-local candidates.
EFFECTIVE: 01/O8/82
|56-3.10 Title 18, USC, Section 598 - Coercion by Means of Relief
Appropriations -
Prohibits the use of funds appropriated by Congress forrelief or public-work projects to interfere'with, restrain or coerceany person in the exercise of his or her right to vote at anyelection. Violations are misdemeanors punishable by fines up to$1,000 and/or imprisonment for up to one year.| l
EFFECTIVE: 01/08/82 i
l56*3.11 Title 18, USC, Section 599 * Promise of Appointment by
Candidate -
I frohibits a candidate for Federal office from promisingappointments to any public or private position or employment in returnfor support of his or her candidacy. It is'a misdemeanor statute, andviolations are punishable by fines of up to $1,000 and/or imprisonmentfor up to one year except that willful violations are felonies* punishable by fines of up to $10,000 and imprisonment for up to twoyears. This statute has potential utility in situations where one92 . ff .candidate attempts to secure the withdrawal of an opponent by 0 ering
him or her a private job.|
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EFFECTIVE: 01/08/82
! Section 600 applies
considerations into the award of any
It applies to federally funded jobs,
Federal jobs. It reaches situations
out to induce
where Federal
political fidelity.
degree of political loyalty is a e
performance.
EFFECTIVE: 01/08/82PAGE 56
56-3.12 Title 18, USC, Section 600 - Promise of Employment or
Other Benefit for Political Activity
! Section 600 makes it unlawful for anyone to promise
em lo ent or benefit derived from an Act of Congress as3Y P Ym Nconsideration, favor, or reward for past or future political activity,. . . _ t .or for support or opposition to any candidate or any par y in any1 t' Violations are misdemeanors punishable by fines up toe ec ion.$10,000 and[or imprisonment up to one year. See also Title 18, USC,
Section 599 and Title 18, USC, Section 595;!
to the interjection of political
Federal.benefit or employment.
grants'or benefits as well as to
where Federal benefits are held
future political activity, as well as those instances
benefits are used as patronage rewards for past
! This statute has been interpreted by the DOJ to notd th inter'ection of political considerations in the hiring ofinclu e e 3 _ 1high level Government personnel who perform "policy" making functions' ' ' " ' t tedfor elected public officials. This statutelhas also been in erpreby the Department to not intend to criminalize the interJection ofpolitical considerations in the termination of public employees whoperform "policy making" for elected officials with respect to which a
' ' ' n cessary aspect of competent
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56-3.13 Title 13, USC, Section 601 - Deprivation of Employment or
Other Benefit for Political Contribution "
! Section 601 makes it unlawful for any personknowingly to cause or attempt to cause any other person to make acontribution on behalf of any candidate or political party byd ' 'n or threatening to deprive employment or benefits madeeprivi gpossible by an Act of Congress. The statute applies to candidates andlitical arties at the Federal state or local level, and the termP° P »"contribution" includes anything of value, including services. It is' ta misdemeanor statute and violations are punishable by fines up 0
$10,000 and/or imprisonment up to one year. '
! Like Section 600, Section 601 reaches all employmentand benefits_that are funded by the Congress. The statute is not. . 1restricted to Federal ]Ob5, although threats to terminate Federaemployment are specifically covered in such situations. Section 601offenses are lesser included crimes within Title 18, USC, Section 606,where the threatened employee is a Federal civil servant.
EFFECTIVE: 01/08/82
[56-3.14 Title 13, usc, Section 602 Solicitation of Political
Contributions .
This statute prohibits Senators, Representatives,-candidates for Congress, officers and employees-of the United States,' ' id 'vedand persons receiving compensation for services from money erifrom the U.S. Treasury, from knowingly soliciting any contribution' The statute appliesfrom any other such officer, employee or person.t 'b t'ons made for the purpose of influencing Federal electionsto con ri u ionly Violations are felonies punishable by fines up to $5,000 and/or
k b im risonment for up to three years. The Department has ta en a
Y Pconsistent and public position that this statute does not reach
l However voluntary political interaction between Federal emp oyees. ,'t d each any situation where factors are present in a politicali oes rtransaction which indicate that the contribution being solicited was. . . 1less than voluntary, and that the solicited employee was conscious yp placed in a position where he or she felt obliged to give.|
EFFECTIVE: 01/08/82
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56~3.15 Title 18, USC, Section 603 - Making Political
Contributions
This statute prohibits any Federal officer or employee, orperson receiving compensation for services from money derived from the
ofU.S. Treasury from making a contribution for the purpose' E1 ncin a Federal election to any other such officer, employee, orin ue gperson, or to any Senator or Representative in the Congress, if the' ' ' ' ' ' ' " l r em loying person receiving the contribution is his or her emp oyer 0 p' " Th statute covers contributions for Federal electionsauthority. eonly and treats contributions to authorized committees as tantamountto contributions to the individual who authorized the committee. Itis a felony statute and violations are punishable by fines up to$5,000 and/or imprisonment up to three years.[
EFFECTIVE: 01/08/82
[56-3:16 Title 18, USG, Section 604 - Solicitation From Persons on
Relief -
i Prohibits any person from soliciting or receivingcontributions for any political purpose from any person known to be' ' ' th b nefits entitled to or receiving compensation, employment or 0 er emade possible by Act of Congress appropriating funds for reliefurposes It is a misdemeanor statute and violations are punishableP - _by fines of up to $1,000 and or up to one year's imprisonment.l
EFFECTIVE: 01/08/82
[56-3.17 Title 18, USC, Section 605 - Disclosure of Names of
_ Persons On Relief
Prohibits the furnishing, disclosure, or receipt for any' na er ofolitical purpose, to a candidate, committee, or campaign ma g ,P .' t f rsons receiving compensation, employment or benefitsany lis o pemade possible by Act of Congress appropriating funds for reliefpurposes. It is a misdemeanor statute 3Hd,l5 punishable by fines upto $1,000 and/or imprisonment up to one year.
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EFFECTIVE: 01/08/82
56*3.l8 Title 18, USC, Section 606 - Intimidation to Secure
Political ContributionsY1
Makes it unlawful for a Senator, Representative, Federal
kI officer or employee to discharge, promote, or reduce the ran orcompensation of any other Federal officer or employee for making or' ' 't' 1 ur ose. It is ay failing to make any contribution for any poli ica p pf I statute and violations are punishable by fines up to $5,000e onyand/or imprisonment for up to three years. The Department has taken' ' ' ' d t a 1 to the position that this statute, like Section 601, oes no pp ythe termination of policy making political appointees.l
EFFECTIVE: 01/08/82
i792|5e3.19 Title 18, usc, Section 601 - Place of Solicitation92
S ction 607 makes it unlawful for anyone to solicit orereceive a political contribution in any room or building where Federal. . . . t 1lo ees are engaged in the conduct of official duties. I a soemp y _ pforbids political solicitations on Federal military reservations. Its' ' fE' ace frompurpose is to protect the integrity of Federal o ice sp politicalization, and to protect the Federal work force from being" subjected to political demands while they are on duty. Unlike Section' rial.602, the employment status of the solicitor,is immate
EFFECTIVE: 01/08/82
I56-3.20 Title 42, USC, Section 1973 1 8! False Information in
I Registering or Voting
I This statute makes it unlawful in an election in which a
Federal candidate is on the ballot:
! to knowingly and willfully give false information asto name, address, or period of residence to a voter registrar for then _ purpose of establishing one's eligibility to vote,
~,92..,
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or illegally vote; or
! to pay, offer to pay, or accept payment for
registering to vote or voting.
ble by a fine up to $10,000 and/or
It is sufficient under this statute
the ballot at the time the illegal
It is not necessary to show that the
is the case with Title 18, USC,Violations are felonies punisha
imprisonment up to five years.
that a Federal candidate was on
conduct in question took place.
Federal contest was impacted as
Sections 241, 242, and 597.1
EFFECTIVE: 01/08/82
[56r3.21 Title 42, USC, Section 1973 i e! - Voting More than Once
This statute makes it unlawful to vote more than once int' with any general, special, or primary election in which aconnec ion ,Federal candidate is on the ballot. Violations are felonies' ' t 'f'vepunishable by fines up to $10,000 and/or imprisonment up o 1years. It is not necessary to prove under Section 1973 i e! that themultiple vote in question be proven to have'actual1y affected a
Federal contest.l .
EFFECTIVE: 01/08/82
[56-3.22 Title 1a, usc, Section 1341 - Mail Fraud
Through the Mail Fraud Statute, Federal jurisdiction maybe obtained over any activity which improperly corrupts the electoralrocess, as long as the mails can be shown to have been used tois most frequently the case in matters Pfurther this objective. Thisinvolving misuse or tampering with absentee ballots since the castingof absentee ballots normally involves the transmission of materialsthrough the mails. It is not necessary that Federal candidates havebeen on the ballot during the election-at issue in order for Federaljurisdictioh to be obtained through this theory. Federal jurisdictionf th U.S. mails. Violations of the Mail Fraudrests on the use 0 eStatute are felonies punishable by fines up to $1,000 and imprisonment
I for up to five years.|
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EFFECTIVE: 01/08/82
[56-4
1 FBI
The
1 1974, 1976, and
jurisdiction in
92 determines iVIOLATIONS WHICH ARE PRIHARILY INVESTIGATED BY THE FEDERALELECTION COMMISSION BUT WHICH MAY BE INVESTIGATED BY THE
UPON REQUEST OF THE DOJ j _
Federal Election Campaign Act FECA! and Amendments of
1979, to a large measure superseded FBI investigativefavor of the noncriminal remedies of the FEC. The
FECA contains financing and reporting statutes for Federal candidates' ' ' ' 1' th t criminal and political committees. It is Department po icy at' n of these matters will only be entertained when violationsprosecu ioare committed with aggravated intent and which involve substantial' ' ' ' 'th the FEC andamounts of money. The Department maintains liaison wif FBI should investigate see 56711 of this manua1!.|
' EFFECTIVE: 01/08/82 A
1|56-4.1 Campaign Financing Statutes
EFFECTIVE: 01/08/82
and Expenditures
1 ! This
contribution limits.
:
a!
b!
p or
I c! $5,000 to any
Section 44la a! !!.
1 ! Contributions from
committees" i.e., those registeredreceived contributions from over 50
five candidates! may not exceed:" ' 't t' s on Contributions .|s6-4.1.1 Title 2,-usc, Section 4413 Liqi 3 10D
statute contains two separate sets ofContributions from individuals may not exceed:
$1,000 to a candidate per election,
$20,000 to a national party committee per year,
other political committee per year
"multicandidate political
six months with FEC that have
personsand that support at least
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Manual of Investigative Operations and GuidelinesPart I ' PAGE 56 " 13
a! $5,000 to a candidate per election,
b! $15,000 to a national party committee per year,
or
c! $5,000 to any other political committee per year
Section 4la a! !!.
I dd't'on individuals are also subject to an over-all annualnaii,aggregate contribution limitation of $25,000 Section 44la a! !!.
! The above contribution limits do not apply to the
transfer of funds between national, state, and local party committees. . . . . 11' t 'also do not apply to transfers between affiliated politica The imi s _ _committees i.e., those operated by the same person, corporation or' 1 tributionunion!; however, all affiliated committees share a sing e conlimit with respect to contributions they make to candidates and othercommittees Section h41a a! !!. A separate provision permits theR blican and the Democratic Senatorial Campaign Committee, as well
epuas the national party committees, to contribute up to a combinedd ' the ear inmaximum of $17,500 to any candidate for the Senate uring ywhich he or she is standing for election Section 44la h!!.
Q! Section Q41a b! imposes limits on expenditures bypresidential candidates who have elected to receive Federal funds fortheir primary or general election campaigns. Under Section 441a d!,-the national party committees are permitted to spend certain amountston behalf of the general election campaigns of candidates affiliatedwith their parties who are running for the office of President, or for
Congress. -
! Violations of the statute must have been committed in a "knowing and willful" manner in order to be.criminally prosecutableunder Title 2, USC, Section 437g d!. Accordingly, most of the casest d under this statute involve grossly excessive transactionsprosecu ethat are effected either surreptitiously e.g., through cash or' t' such as aconduits! or in the furtherance of some felonious ob3ec ive
bribe.l
EFFECTIVE: 01/08/32
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..._ T:Manual of Investigative Operations and GuidelinesPAGE 56
Part I
connection with any election
contribution or expenditure
Finally, Section éhlb makes
bank, corporation, or labor
contribution or expenditure
Section 441b does not apply
activity of corporate or uni
from personal sources.
! The core of
Political Action Committees
and provi e u
separate accounts.
! In view of
Section 437g d!!. the FBI's
type of matter is generally
or union funds are taken di
! Although S
i expenditures by national ba
apply to funds expended in
3.-
IF92 propositions.Sensitive
56-.1.2 Title 2, USC, Section 44lb - Contributions or Expenditures
by National Banks, Corporations,'or Labor Organizations
! This statute prohibits a national bank or federally
chartered corporation from making a contribution or expenditure in
to Federal, state or local office. It
also prohibits any corporation or any labor organization from making a
' ' ' ' ' ' F d l lection.in connection with any e era e
it unlawful for any officer of a national
organization to_consent to a prohibited
and for any candidate, political
committee, or other person knowingly to accept such a contribution.. . . 1to or restrict the personal politica
on officers that is financed exclusively
this complex statute is its ban on the
use of corporate treasury funds and monies required as a condition for. . . Hmembership in labor organizations to engage in "active electioneering
' f h f nds to in Federal campaigns. It does not apply to the use o suc ufinance communications on any subject between labor unions and their
membership or between corporations anit apply to nonpartisan expenditures or to costs of publishingd their stockholders. Nor does
' 'n le itimate corporate or unionownedstatements of editorial opinion 1 gnewspapers. This statute does not forbid corporations or unions fromusing their treasury money to establish and operate affiliated' ' ' ' 't' of the PACs!, provided the activi ies
PACs are confined to soliciting voluntary political donations from
b s and their respective families, corporate stockholders or union mem er'd d f rther that the funds thus raised were maintained in
the fact that criminal violations of the
" 'llf 1" intent Title 2, usc,FECA must have been committed with wi uinvolvement in the investigation of this
confined to instances where the corporate
rectly out of the corporate or union
l treasury and laundered on their way to politicians.
ection 44lb reaches contributions and
nks to local election contests, it does not
connection with referenda or ballot
Sensitive
PRINTED: 02/18/98
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Manual of Investigative Operations and GuidelinesPart I PAGE 56
EFFECTIVE: 01/O8/82
Title 2, USC, Section 441c - Contribution by Government[56-4.1.3
Contractors
! This statute prohibits any person who has or is
negotiating for a contract to furnish material, equipment or supplies
to the U.S. Government, from making, or promising to make a political
contribution. This statute has been construed by the Department of
Justice and by the FEC to reach only donations that are made orpromised for the purpose of influencing the nomination or election ofcandidates for Federal office. The statute applies to all types of
businesses: sole proprietorships, partnerships, as well ascorporations. It reaches gifts that are made from the "business" or
"partnership" assets of such firms. However, with respect tounincorporated businesses, the FEC has ruled that this statute doesl not prohibit donations that are made from the personal assets of the
firm's constituent owners. Officers and stockholders of incorporated
Government contractors are not covered by Section 44lc since the' ' ' ' ' h te entit andGovernment contract in such instances 15 with t e corpora y
1 not its constituent officers.
! Section 441c applies only to business entities that
have or are negotiating for a contractual relationship with an agency
of the United States. Thus, the statute does not reach those who have
contracts with non-Federal agencies to perform work under a Federalprogram or grant. Nor does this statute reach businessmen andT professionals who provide services to third party beneficiaries underFederal programs that necessitate the signing of agreements with the
Federal Government such as physicians performing services for patients
under the medicare program.
! The same exemptions that apply to Section 441b alson apply to Section 441c. Thus, Government contractors may make certain types of nonpartisan expenditures, may establish and administer PACs,
and may communicate with their stockholders concerning political
subjects.
! As with Section 441b, the role of the JusticeDepartment in enforcing this statute is confined to instances of
"willful" avoidance of the statutory dictates. See Title 2, USC,
Section 437g d!. Other less aggravated violations are handled
,;administratively by the FEC.
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PRINTED: 02/18/98
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EFFECTIVE: 01/O8/82
156-4.1.4 Title 2, USC, Section b41d " Publication and Distribution
of Statements and Solicitations F
i l! Section éld requires that ahy political
communication which is made in writing or through a broadcasting
station which
a! expressly advocates the election or defeat of a
clearly identified candidate or '
- b! solicits contributions, state who paid for and
authorized the communication.
In addition, if the communication is not authorized by any candidate,the communication must specifically state that it is not so
authorized;
! Note that this section does not prohibit all
anon ous campaign materials buy only anonymous literature orYmadvertisements which solicit contributions or expressly advocate a
candidate's election or defeat. This statute is applicable only to
Federal elections.|
EFFECTIVE: 01/08/32
Title 2, USC, Section 44le - Contributions by Foreign
Nationals156-a.1.5
This statute prohibits any foreign national from makingdirectly or through any other person, any contribution in connectionwith any Federal, state, or local e1eption.p It also prohibits anyperson from knowingly soliciting or accepting such a contribution.. . . 1 .th.nThe term "foreign national" is defined as a foreign principa wi i
th meanin of the Foreign Agents Registration Act Title 22, USC,B sSection 611!, or an individual who is not a citizen of the United92 States and who is not lawfully admitted for permanent residence.
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PRINTED: 02/18/98
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EFFECTIVE: 01/08/82
56'4.l.6 Title 2, USC, Section 441E - Contributions in the Name of
Another Prohibited P
! This statute makes it unlawful for any person to make
a contribution in the name of another person, or for any person
knowingly to permit his/her name to be used to make such a
contribution. This statute also prohibits any person from knowinglyaccepting a contribution made by one person in the name of another
person.
! Violations of Section 44lf can arise from a defendant
giving.funds to a middleman for the purpose of having the middlemancomplete the contribution to a Federal candidate. Violations may also
occur where the defendant reimburses someone;who has already given to
a candidate, thus converting the original-donor's contribution to
his/her own. Under such circumstances, the motive is usuallypreservation of anonymity since the donation will be reported publicly
as having been made by the middleman rather than by the true source.
The use of middlemen is also frequently a means by which a single
donor may give more than the contribution limits in Title 2, USC,
Section 441a allow.
! Violations of Section 44lf sometimes take the form of
a "slush fund" generated through fictitious bonuses to corporate or-union executives to enable them to make contributions to politicians
which their corporate or union employers would be prohibited from
making by Title 2, USC, Section 44lb.
! Although the donor and the middleman are equally
liable under Section 441E, the customary approach to this type of case
is to use the conduits as witnesses to convict the person who suppliedthe funds. This approach recognizes the principal purpose of the FECA
as a law designed to assure public disclosure of large campaigndonations, and to prevent certain types of donations which Congresshas deemed potentially damaging to the public good. It also is inkeeping with the fact that most Section 4415 violations are merely
means to other illegal ends.|
EFFECTIVE: 01/08/82
Sensitive
PRINTED: 02/18/98
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