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Medical  Whistleblower  Canary  Notes  Newsletter 19  White  Collar  Crime &  Criminal  Intelligence  July 2007  Vol 2  Issue 7
Medical  Whistleblower  Canary  Notes  Newsletter 19  White  Collar  Crime &  Criminal  Intelligence  July 2007  Vol 2  Issue 7
Medical  Whistleblower  Canary  Notes  Newsletter 19  White  Collar  Crime &  Criminal  Intelligence  July 2007  Vol 2  Issue 7
Medical  Whistleblower  Canary  Notes  Newsletter 19  White  Collar  Crime &  Criminal  Intelligence  July 2007  Vol 2  Issue 7
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Medical Whistleblower Canary Notes Newsletter 19 White Collar Crime & Criminal Intelligence July 2007 Vol 2 Issue 7

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While the true extent and cost of white-collar crime is unknown, it is estimated by the FBI to cost the United States more than $300 billion annually and accounts for approximately 3.8 percent of …

While the true extent and cost of white-collar crime is unknown, it is estimated by the FBI to cost the United States more than $300 billion annually and accounts for approximately 3.8 percent of incidents reported. Most white-collar offenders are distinguished by lives of privilege. It is estimated that a great deal of white collar crime is undetected or, if detected, it is not reported, because white-collar crimes are committed by those with opportunities that do not require violence. By virtue of their relative affluence, those accused as white-collar offenders are able to afford the fees of the best lawyers, and may have friends among senior ranks of the political elite, the judiciary and the law enforcement agencies. These connections often not only ensure favorable treatment on an individual basis, but also affect legislation and the allocation of resources and thus ensure that such crimes are not defined or enforced too strictly. Many of these crimes are only possible because of the identity of the offender. For example transnational money laundering requires the participation of senior banking officials. Organizational or corporate crime occurs when corporate executives commit criminal acts to benefit their company by the manipulation of accountancy or inventory records, overcharging, price fixing, or false advertising, etc. Because the crime is technical in nature, the identification of a victim is less obvious. The issue of reporting is complicated by a culture of commercial confidentiality to protect shareholder value. Because the negotiation of agreements between a state and a corporation will be at a relatively senior level on both sides, this is almost exclusively a white-collar "situation" which offers the opportunity for crime.  
There are three different levels of a white collar crime investigation. The first is the checking of leads after receipt of initial information that a follow up regarding possible criminal activity is warranted. This is followed by preliminary inquiries and then if necessary full investigations. General crimes investigations may be opened where facts or circumstances reasonably indicate that a federal crime has been, is being, or will be committed. Under the General Crimes Guidelines, the FBI can use any lawful techniques in a preliminary inquiry, even if “intrusive,” where “the intrusiveness is warranted in light of the seriousness of the possible crime or the strength of the information indicating its existence or future commission.”  
The second type of full investigation defined by the General Crimes Guidelines is a criminal intelligence investigation. The focus of criminal intelligence investigations is on a group or enterprise. The focus of these criminal intelligence investigations is to obtain information about the nature and structure of an enterprise – including its membership, finances, geographical dimensions, past and future activities, and goals. The purpose of collecting this information is to detect and prevent the enterprise’s ongoing criminal activities and prosecuting those responsible for them. There are two types of criminal intelligence investigations: racketeering enterprise investigations (REIs) and terrorism enterprise investigations (TEIs).
 

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  • 1. Medical Whistleblower July 2007 Volume 2 Issue 7 Medical Whistleblower’s Canary Notes Inside this issue: White Collar Crime Investigations Consensual Monitoring 2 While the true extent and cost of white-collar The U.S. Attorney 2 Makes the Decision crime is unknown, it is estimated by the FBI to cost the United States more than $300 billion an- Sensitive Circumstances 3 nually and accounts for approximately 3.8 percent of incidents reported. Most white-collar offenders are distinguished by lives of privilege. It is esti- Informants are 4 mated that a great deal of white collar crime is un- Important detected or, if detected, it is not reported, because white-collar crimes are committed by those with opportunities that do not require violence. By virtue of their relative affluence, those accused as white-collar offenders are able to afford the fees of the best lawyers, and may have friends among senior ranks of the political elite, the judiciary and the law enforcement agencies. These connections often not only ensure favorable treatment on an individual basis, but also affect legislation and the allocation of resources and thus ensure that such crimes are not defined or enforced too strictly. Many of these crimes are only possible because of the identity of the offender. For example trans- FBI national money laundering requires the participation of senior banking officials. Or- ganizational or corporate crime occurs when corporate executives commit criminal White Collar Crime Forecast acts to benefit their company by the manipulation of accountancy or inventory re- cords, overcharging, price fixing, or false advertising, etc. Because the crime is tech- “ Health care fraud is nical in nature, the identification of a victim is less obvious. The issue of reporting is expected to increase complicated by a culture of commercial confidentiality to protect shareholder value. dramatically over the Because the negotiation of agreements between a state and a corporation will be at next decade as the a relatively senior level on both sides, this is almost exclusively a white-collar aging of the U.S. "situation" which offers the opportunity for crime. population drives There are three different levels of a white collar crime investigation. The first is the increases in private checking of leads after receipt of initial information that a follow up regarding possible health care and criminal activity is warranted. This is followed by preliminary inquiries and then if Medicare spending.” necessary full investigations. General crimes investigations may be opened where facts or circumstances reasonably indicate that a federal crime has been, is being, or will be committed. Under the General Crimes Guidelines, the FBI can use any lawful techniques in a preliminary inquiry, even if “intrusive,” where “the intrusiveness is warranted in light of the seriousness of the possible crime or the strength of the infor- mation indicating its existence or future commission.” The second type of full investigation defined by the General Crimes Guidelines is a criminal intelligence investigation. The focus of criminal intelligence investigations is on a group or enterprise. The focus of these criminal intelligence investigations is to obtain information about the nature and structure of an enterprise – including its membership, finances, geographical dimensions, past and future activities, and goals. The purpose of collecting this information is to detect and prevent the enter- prise’s ongoing criminal activities and prosecuting those responsible for them. There are two types of criminal intelligence investigations: racketeering enterprise investi- gations (REIs) and terrorism enterprise investigations (TEIs).
  • 2. Page 2 Medical Whistleblower’s Canary Notes Volume 2 Issue 7 White Collar Crime Offenses   Consensual Monitoring   Academic crime Fraud   Consensual monitoring is the interception by an electronic device of any wire, Adulterated food, drugs, or cosmet‐ oral, or electronic communication where one of the parties to the communica- ics   Anti‐trust violations   tion has given prior consent to the monitoring or recording. A warrant is not ATM fraud   required to conduct consensual monitoring, and the party providing consent Bribery   may be a government agent. See 18 U.S.C. § 2511, (2) (c) – (e) (2002). Check kiting Fraud,     Electronic surveillance can include the use of body recorders and transmitting Counterfeiting/Forgery   Combinations in restraint in trade   devices. Other techniques include dialed number recorders, “trap and trace” Computer crime   devices, and wiretaps. Dialed number recorders, sometimes called “pen reg- Confidence game Fraud   isters,” are used to capture electronic impulses generated by a telephone Contract Fraud,  Kickback Bribery   line. The data includes call information such as the telephone numbers di- Corrupt conduct by juror Bribery   Counterfeiting/Forgery   aled, date and time of the activity, and often also possibly caller-ID, call for- Defense contract fraud   warding, conference calls, and call waiting. A “trap and trace” device records Ecology law violations   the originating phone numbers of all incoming calls on a particular phone line. Election law violations   A wiretap can be obtained consensually or through a warrant or court order. Embezzlement   Employment agency,  A wiretap is the interception of oral, wire, and electronic communications. Education scams   When obtained by a warrant or court order a wire tap is commonly referred to Environmental law violations   as a “Title III” (Title III of the Omnibus Crime Control and Safe Streets Act, 18 False advertising  USC §§ 2510-2522). Product misrepresentation   US Attorney Makes the Decision to Investigate False & fraudulent actions on loans  False pretenses Fraud  False report/statement Fraud   Forgery Counterfeiting   Fraudulent checks   Health and safety laws   Health care providers fraud    The U.S. Attorney reviews any proposal for Home improvement frauds   undercover investigation into white collar Impersonation Fraud   Influence peddling Bribery   crime and makes the decision that the pro- Insider trading Fraud   posed investigation is legal and the use of Insufficient funds Insurance    investigation techniques will have potential Investment scams    Jury tampering Bribery    benefits in detecting, preventing, or prose- Land sale frauds   cuting criminal activity that outweighs any Mail fraud  Managerial fraud   direct costs or risks of other harm. The U.S. Misappropriation Embezzlement   Attorney will: Monopoly in restraint in trade   Ponzi schemes Fraud   Procurement fraud   Racketeering Influenced & Corrupt  1. Review the proposed operation, including any sensitive circumstances rea- Organizations (RICO)   sonably expected to occur; Religious fraud   Sports bribery Sports Tampering   2. Agrees with the proposal and its legality; Strategic bankruptcy Fraud   Swindle Fraud   Subornation of perjury  3. Finds that the proposed investigation would be an appropriate use Tax law violations    of the undercover technique; Travel scams Fraud   Telemarketing Fraud   Telephone fraud  4. Believes that the potential benefits in detecting, preventing, or Welfare fraud  prosecuting criminal activity outweigh any direct costs or risks of Wire fraud   other harm; 5. Will prosecute any meritorious case that is developed.
  • 3. Medical Whistleblower’s Canary Notes Volume 2 Issue 7 Page 3 What are sensitive circumstances? Caution in the investigation is absolutely necessary because if the upper management of the governmental agency, Hospital or University involved becomes aware of the investigation, the result may be a leak to the friends and colleagues of the corrupt official. This will result in an opportu- nity for the white collar criminals to use covert coercion to threaten wit- nesses, destroy evidence and cover their tracts. Whenever a Medical Whistleblower raises concerns about the ethical conduct of a Hospital Board of Directors, a State Medical Board, or any governmental official, the investigating FBI agent is required to bring this “sensitive criminal mat- ter” to the attention of the Special Agent in Charge (SAC) and the U.S. At- torney. These are the “special circumstances” given consideration by the FBI and the U.S. Attorney’s Office: 1) Investigations of possible criminal conduct by any elected or appointed official, or political candidate for a judicial, legislative, manage- ment, or executive-level position of trust in a federal, state, or local governmental entity or political subdivision thereof. A Racketeering 2) Investigations of any public official at the federal, state, or local Enterprise level in any matter involving systemic corruption of any governmental Investigation - function. 3) Investigations of possible criminal conduct by any foreign official or government, religious organization, political organization, or the Initiated when facts news media. or circumstances reasonably indicate 4) Engaging in activity having a significant effect on or constituting a that two or more significant intrusion into the legitimate operation of a federal, state, persons are en- or local governmental entity. gaged in a pattern of racketeering ac- 5) Establishing, acquiring, or operating a proprietary business. tivity as defined in the Racketeer Influ- 6) Providing goods or services that are essential to the commission of enced and Corrupt a crime and that are reasonably unavailable to a subject of the Organizations investigation except from the government. (RICO) statute, 18 U.S.C. § 1961(5). 7) Activity by an undercover employee that is proscribed by federal, state, or local law as a felony or that is otherwise a serious crime. Id. § III.A.2.a. 9) Activities involving a request to an attorney, physician, member of the clergy, or other persons for information that would ordinarily be privileged, or to a member of the news media concerning an individual with whom the news media is known to have a professional or confidential relationship.
  • 4. Medical Whistleblower The information contained through the Medical Whistle- blower Canary Notes Newsletter is provided for general information only. The information provided by the Medial Dr. Janet Parker Whistleblower Canary Notes does not constitute legal or P.O. Box C professional advice nor is it conveyed or intended to be con- Lawrence, KS 66044 veyed in the course of any adviser-client discourse, but is intended to be general information with respect to common Phone: 360-809-3058 issues. It is not offered as and does not constitute legal or Fax: None medical advice or opinion. It should not serve as a substitute E-mail: MedicalWhislteblower@gmail.com for advice from an attorney, qualified medical professional, social worker, therapist or counselor familiar with the facts Supporting the Emotional Health of All Whistleblowers and their Friends, Supporters and Families. of your specific situation. We encourage you in due diligence to seek additional information and resources before making any decision. We make no warranty, express or implied, concerning the accuracy or reliability of the content of this newsletter due to the constantly changing nature of the legal and medical aspects of these issues . Informants are Important The informant is the most effective tool in law enforcement today – state, local, or federal. Informants can be responsible citizens who report sus- pected criminal activities without any hope of return. In the middle of the spectrum of informants are those who live in the midst of the criminal un- Brown v. Nationsbank  derworld and inform largely for cash. Still other informants are persons Corp., 188 F.3d 579   who are charged with serious crimes and cooperate with law enforcement (5th Cir. 1999)   officials in return for the hope or promise of leniency.   An  FBI undercover  FBI Director Mueller stated: operation can adversely  affect third parties and thus  “Human sources are vitally important to our success against terrorists and criminals. They often give us critical intelligence and information we could create  a claim under Bivens,  not obtain in other ways, opening a window into our adversaries’ plans and alleging violation of the  capabilities. Human sources can mean the difference between the FBI Federal Tort Claims Act and  preventing an act of terrorism or crime, or reacting to an incident after the malicious prosecution, as  fact.” well as Bivens claims against  the FBI agents for due  Assets - persons who as sources assist the FBI in international terrorism, process and Fifth  foreign intelligence, or foreign counterintelligence investigations. Amendment violations.  In  this case the Court  Sources of Information –persons who provide information to a law en- expressed its disapproval for  forcement agency only as a result of legitimate routine access to informa- what it perceived as the  tion or records. A source does not collect information by means of crimi- FBI’s insensitivity to the  nal association with the subjects of an investigation. Sources of Informa- interests of innocent  tion only collect information in a manner consistent with applicable law. bystanders to the  undercover operation.   Confidential informants - are often uniquely situated to assist in sensitive   investigations. CI’s may be recruited by the Federal Agent because of their access and status. It is possible that they may be involved in criminal activities or enterprises themselves (although not always). Since they will not testify in court, they usually can preserve their anonymity.

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