WHITE COLLAR CRIME


Corporate Fraud Initiative

  • Established 10/01 as part of the President's Corporate Fraud Task Force
  • Focuses and coordinates the FBI's limited WCC resources on combating the corporate fraud crime problem
  • Opened 465 corporate fraud investigations in which it is alleged that corporate officers intentionally "cooked the books" in order to artificially inflate the value of their corporation's stock and/or to justify paying themselves millions of dollars in bonuses to which they were not entitled.
  • Major investigations include: Enron, Worldcom, and Qwest Communications.
  • Over 45 separate investigations on backdating.
  • Obtained 2,962 indictments/informations, 2,569 convictions and restitution totaling over $14.9 billion related to Corporate and Securities Fraud.
  • As of 7/27/2006, 109 FBI agents are dedicated to Corporate Fraud investigations, with an additional 158 FBI agents working Securities Fraud investigations.

Health Care Fraud Initiative

  • Target the most egregious health care fraud offenders, both organizations and individuals, who are defrauding the public and private health care systems
  • Pharmaceutical Fraud Initiative focuses on investigations that involve drug diversion, off-label marketing and prescription fraud
  • Internet Pharmacy Initiative focuses on the identification of Internet Pharmacies involved in the illegal distribution of pharmaceuticals in the United States and internationally;
  • National Automobile Accident Insurance Fraud Initiative investigates members of staged accident rings formed specifically to defraud health care entities.
  • Outpatient Surgery Center Initiative addresses the nationwide schemes in which health care providers and facilities are billing private insurance plans for unnecessary outpatient surgeries arranged through a network of individuals that includes owners of medical clinics, physicians, marketers and recruiters.
  • 2,500+ new investigations; 3,100+ indictments/informations; 2,700+ convictions; $351 million in recoveries; $219 million in seizures/forfeitures; $4.1 billion in restitution; $1.1 billion in fines.

Financial Institution Fraud Initiative

  • Target the most egregious financial institution offenders, both insiders and outsiders
  • Working with approximately 200 contacts in law enforcement and industry at the national level, and task forces and contacts at the field office level, in order to address this over $1 billion crime problem
  • Case example: 12/05 Operation Quick Flip resulted in 156 indictments, 81 arrests and 89 convictions.
  • Accomplishments from October 2001 through the present include: 6,000+ arrests; 13,000+ indictments/informations; 12,000+ convictions; $131 million in recoveries; seizures or forfeitures of $159 million; restitution payments in the amount of $14 billion; fines totaling $632 million.

Money Laundering

  • 49% increase in the number of informations and indictments in money laundering cases since 2001. Across the FBI, since 2001 there have been 2,187 arrests and 4,763 informations and indictments
  • Stored Value Cards Initiative explores the impact of e-Currency on global money laundering
  • Suspicious Activity Report (SAR) Initiative identifies unregistered Money Service Businesses

Identity Theft Initiative

  • Laid the groundwork for a National Identity Theft Center