The Internal Effects of the Federal Bureau of Investigation's Reprioritization

Audit Report 04-39
September 2004
Office of the Inspector General


Redacted and Unclassified
Appendix IX

White-Collar Crime Matters


As noted in Chapter 4, of the 30 FBI investigative classifications that experienced the greatest field agent resource utilization reductions from FYs 2000 through 2003, 8 pertained to white collar crime matters and are listed in the following exhibit. Included in these eight classifications are those related to health care fraud, telemarketing fraud, and insurance fraud; all of which are crime areas that an FBI official thought would see a growth in the near term.

WHITE-COLLAR CRIME CLASSIFICATIONS EXPERIENCING
THE GREATEST REDUCTIONS IN AGENT RESOURCE UTILIZATION
FISCAL YEARS 2000 THROUGH 2003
Classification Number Classification Name AOB Change
FYs 2000 - 2003
Financial Institution Fraud:
029C FIF - $25K - $99,999 Fed-Insured Bank -50
Health Care Fraud:
029A Health Care Fraud - Government Sponsored Program -89
209B Health Care Fraud - Private Insurance Program -32
Other Fraud Investigative Areas:
196A Telemarketing Fraud -37
196D Other Wire & Mail Fraud Schemes -35
196B Insurance Fraud -28
049A Bankruptcy Fraud $50K+ /or Court Officer -26
Environmental Crimes:
249A Environmental Crimes -25
Total -322
Source: OIG analysis of FBI TURK data

We conducted additional analyses of each of these classifications and identified any trends in the FBI field offices most affected by field agent resource utilization reductions in these investigative areas. In addition, we performed analyses of case openings at the field office level for each classification. Our analyses are presented in the following sections.

Financial Institution Fraud

We identified one investigative area related to financial institution fraud (FIF) that experienced a significant reduction in field agent resource utilization: Classification 029C (FIF - $25K - $99,999 Fed-Insured Bank). As shown in the following graph, the overall number of on board agents involved in these investigations declined in each year from FY 2000 through FY 2003.

TOTAL FBI FIELD AGENT RESOURCE UTILIZATION
FISCAL YEARS 2000 THROUGH 2003

In FY 2000, there were 75 agents. In FY 2001, there were 64 agents. In FY 2002, there were 44 agents. In FY 2003, there were 25 agents.
Source: OIG analysis of FBI TURK data

Field Offices - The following exhibit shows field agent utilization changes among all FBI field offices. As shown, every office, except for one, experienced on board agent reductions in 029C matters from FYs 2000 through 2003.70 Although an FBI official speculated that changes in this area would have a greater impact on smaller field offices, we found that the most significant declines primarily occurred in the FBI's larger field offices.

CHANGES IN ON BOARD AGENTS IN FBI FIELD OFFICES
029C (FIF - $25K - $99,999 FED-INSURED BANK)
FISCAL YEARS 2000 THROUGH 2003

[Image Not Available Electronically]
Source: OIG analysis of FBI TURK data

We found that overall the FBI opened only 230 new 029C cases in FY 2003 compared to the 1,456 it opened in FY 2000, reflecting a reduction of 1,226 case openings. Among individual field offices, we identified several that reduced their openings of 029C investigations by at least 22 cases.

029C (FIF - $25K - $99,999 FED-INSURED BANK)

FIELD OFFICE CASE OPENINGS
FISCAL YEARS 2000 THROUGH 2003

FIELD OFFICE FY 2000
Cases Opened
FY 2003
Cases Opened
Number
Change
Percentage
Change
DETROIT 97 14 -83 -85.57%
CHICAGO 67 1 -66 -98.51%
CLEVELAND 65 5 -60 -92.31%
PHILADELPHIA 61 7 -54 -88.52%
OKLAHOMA CITY 56 7 -49 -87.50%
DALLAS 58 10 -48 -82.76%
SEATTLE 46 4 -42 -91.30%
PHOENIX 40 1 -39 -97.50%
CINCINNATI 43 6 -37 -86.05%
NEW ORLEANS 45 9 -36 -80.00%
MINNEAPOLIS 39 4 -35 -89.74%
MILWAUKEE 34 0 -34 -100.00%
WASHINGTON 37 4 -33 -89.19%
KANSAS CITY 32 2 -30 -93.75%
LOUISVILLE 34 5 -29 -85.29%
PITTSBURGH 30 1 -29 -96.67%
ATLANTA 39 11 -28 -71.79%
DENVER 29 1 -28 -96.55%
SAN ANTONIO 33 5 -28 -84.85%
BOSTON 33 7 -26 -78.79%
CHARLOTTE 27 1 -26 -96.30%
HOUSTON 28 3 -25 -89.29%
SALT LAKE CITY 27 4 -23 -85.19%
INDIANAPOLIS 26 4 -22 -84.62%
Source: OIG analysis of FBI ACS data

Health Care Fraud

Although the FBI expects the incidence of health care fraud to dramatically increase over the next decade as the general population ages and health care spending increases, two of the eight white-collar crime classifications experiencing significant field agent resource utilization reductions involve health care fraud matters: Classifications 209A (Health Care Fraud - Government Sponsored Program) and 209B (Health Care Fraud - Private Insurance Program). The following exhibit presents the on-board agent data utilized in each of these classifications from FYs 2000 through 2003.

TOTAL FBI FIELD AGENT RESOURCE UTILIZATION
FISCAL YEARS 2000 THROUGH 2003

In FY 2000, there were 250 agents for classification 209A and 95 agents for classification 209B. In FY 2001, there were 230 agents for classification 209A and 83 agents for classification 209B. In FY 2002, there were 150 agents for classification 209A and 61 agents for classification 209B. In FY 2003, there were 161 agents for classification 209A and 63 agents for classification 209B.
Source: OIG analysis of FBI TURK data

Field Offices - The following two exhibits identify field agent utilization changes among FBI field offices for 209A and 209B matters. As illustrated, the majority of the offices experienced a decrease in onboard agents in each of these health care fraud areas. Although the most significant agent utilization reductions were not concentrated in a specific geographic area, they generally occurred within the FBI's larger field offices. We did, however, note that the Tampa and Washington field offices had considerable on board agent declines in both 209A and 209B investigative matters.

CHANGES IN ON BOARD AGENTS IN FBI FIELD OFFICES
209A (HEALTH CARE FRAUD - GOVERNMENT SPONSORED PROGRAM)
FISCAL YEARS 2000 THROUGH 2003

[Image Not Available Electronically]
Source: OIG analysis of FBI TURK data


CHANGES IN ON BOARD AGENTS IN FBI FIELD OFFICES
209B (HEALTH CARE FRAUD - PRIVATE INSURANCE PROGRAM)
FISCAL YEARS 2000 THROUGH 2003

[Image Not Available Electronically]
Source: OIG analysis of FBI TURK data

Besides the on board agent reductions, we identified the changes in case openings at the field office level for both health care fraud areas. As shown in the following two exhibits, 209A matters, overall, experienced greater decreases in case openings within field offices than did 209B matters.

209A (HEALTH CARE FRAUD - GOVERNMENT SPONSORED PROGRAM)

FIELD OFFICE CASE OPENINGS
FISCAL YEARS 2000 THROUGH 2003

FIELD OFFICE FY 2000
Cases Opened
FY 2003
Cases Opened
Number
Change
Percentage
Change
SACRAMENTO 132 23 -109 -82.58%
DETROIT 49 16 -33 -67.35%
CHICAGO 31 10 -21 -67.74%
BALTIMORE 24 4 -20 -83.33%
TAMPA 22 4 -18 -81.82%
DENVER 21 5 -16 -76.19%
WASHINGTON 20 4 -16 -80.00%
MIAMI 35 20 -15 -42.86%
BOSTON 20 6 -14 -70.00%
SAN FRANCISCO 18 4 -14 -77.78%
PITTSBURGH 22 9 -13 -59.09%
NEW YORK 27 15 -12 -44.44%
RICHMOND 22 11 -11 -50.00%
BIRMINGHAM 14 4 -10 -71.43%
COLUMBIA 11 1 -10 -90.91%
PHILADELPHIA 13 3 -10 -76.92%
PORTLAND 11 2 -9 -81.82%
Source: OIG analysis of FBI ACS data


209B (HEALTH CARE FRAUD - PRIVATE INSURANCE PROGRAM)

FIELD OFFICE CASE OPENINGS
FISCAL YEARS 2000 THROUGH 2003

FIELD OFFICE FY 2000
Cases Opened
FY 2003
Cases Opened
Number
Change
Percentage
Change
WASHINGTON 19 3 -16 -84.21%
CLEVELAND 15 6 -9 -60.00%
PHILADELPHIA 19 10 -9 -47.37%
MINNEAPOLIS 10 2 -8 -80.00%
NEW ORLEANS 11 3 -8 -72.73%
PITTSBURGH 9 1 -8 -88.89%
BOSTON 8 3 -5 -62.50%
NORFOLK 5 0 -5 -100.00%
SAN DIEGO 7 2 -5 -71.43%
NEW YORK 17 13 -4 -23.53%
PHOENIX 4 0 -4 -100.00%
CHARLOTTE 4 1 -3 -75.00%
DENVER 4 1 -3 -75.00%
SAN FRANCISCO 3 0 -3 -100.00%
TAMPA 5 2 -3 -60.00%
Source: OIG analysis of FBI ACS data

Other Fraud Investigative Areas

We identified four other fraudulent classifications in which the FBI's agent utilization significantly decreased. Specifically, these were: Classifications 196A (Telemarketing Fraud), 196B (Insurance Fraud), 196D (Other Wire & Mail Fraud Schemes), and 049A (Bankruptcy Fraud $50K+ /or Court Officer). The following exhibit provides an overview of the field agent resource utilization within each of these four classifications from FYs 2000 through 2003.

TOTAL FBI FIELD AGENT RESOURCE UTILIZATION
FISCAL YEARS 2000 THROUGH 2003

In FY 2000, there were 44 agents for Bankruptcy Fraud (049A), 55 agents for Insurance Fraud (196B), 60 agents for Telemarketing Fraud (196A), and 244 agents for Other Wire and Mail Fraud Schemes (196D). In FY 2001, there were 31 agents for Bankruptcy Fraud (049A), 43 agents for Insurance Fraud (196B), 52 agents for Telemarketing Fraud (196A), and 246 agents for Other Wire and Mail Fraud Schemes (196D). In FY 2002, there were 21 agents for Bankruptcy Fraud (049A), 31 agents for Insurance Fraud (196B), 33 agents for Telemarketing Fraud (196A), and 209 agents for Other Wire and Mail Fraud Schemes (196D). In FY 2003, there were 18 agents for Bankruptcy Fraud (049A), 27 agents for Insurance Fraud (196B), 22 agents for Telemarketing Fraud (196A), and 209 agents for Other Wire and Mail Fraud Schemes (196D).
Source: OIG analysis of FBI TURK data

Field Offices - As depicted in the following four exhibits, the majority of the field offices experienced field agent utilization reductions of some kind in each of these other fraud-related areas. We further noted that the most significant on board agent declines primarily occurred in the FBI's larger offices and were located in offices dispersed throughout the United States.

CHANGES IN ON BOARD AGENTS IN FBI FIELD OFFICES
196D (OTHER WIRE & MAIL FRAUD SCHEMES)
FISCAL YEARS 2000 THROUGH 2003

[Image Not Available Electronically]
Source: OIG analysis of FBI TURK data


CHANGES IN ON BOARD AGENTS IN FBI FIELD OFFICES
196A (TELEMARKETING FRAUD)
FISCAL YEARS 2000 THROUGH 2003

[Image Not Available Electronically]
Source: OIG analysis of FBI TURK data


CHANGES IN ON BOARD AGENTS IN FBI FIELD OFFICES
196B (INSURANCE FRAUD)
FISCAL YEARS 2000 THROUGH 2003

[Image Not Available Electronically]
Source: OIG analysis of FBI TURK data


CHANGES IN ON BOARD AGENTS IN FBI FIELD OFFICES
049A (BANKRUPTCY FRAUD $50K+ /OR COURT OFFICER)
FISCAL YEARS 2000 THROUGH 2003

[Image Not Available Electronically]
Source: OIG analysis of FBI TURK data

The following four tables list the greatest reductions in case openings among field offices for the other fraud related investigative matters.

196D (OTHER WIRE & MAIL FRAUD SCHEMES)

FIELD OFFICE CASE OPENINGS
FISCAL YEARS 2000 THROUGH 2003

FIELD OFFICE FY 2000
Cases Opened
FY 2003
Cases Opened
Number
Change
Percentage
Change
SALT LAKE CITY 76 24 -52 -68.42%
NEW YORK 68 34 -34 -50.00%
KNOXVILLE 33 2 -31 -93.94%
LOS ANGELES 75 44 -31 -41.33%
BOSTON 70 40 -30 -42.86%
CLEVELAND 46 18 -28 -60.87%
SEATTLE 41 17 -24 -58.54%
CHICAGO 65 44 -21 -32.31%
RICHMOND 33 13 -20 -60.61%
DENVER 27 9 -18 -66.67%
OKLAHOMA CITY 41 23 -18 -43.90%
JACKSON 21 4 -17 -80.95%
ATLANTA 58 42 -16 -27.59%
CHARLOTTE 33 17 -16 -48.48%
DALLAS 61 45 -16 -26.23%
HOUSTON 28 13 -15 -53.57%
INDIANAPOLIS 34 19 -15 -44.12%
NEWARK 36 21 -15 -41.67%
NEW ORLEANS 46 31 -15 -32.61%
PORTLAND 26 11 -15 -57.69%
BIRMINGHAM 19 8 -11 -57.89%
OMAHA 20 9 -11 -55.00%
SAN ANTONIO 27 17 -10 -37.04%
Source: OIG analysis of FBI ACS data


196A (TELEMARKETING FRAUD)

FIELD OFFICE CASE OPENINGS
FISCAL YEARS 2000 THROUGH 2003

FIELD OFFICE FY 2000
Cases Opened
FY 2003
Cases Opened
Number
Change
Percentage
Change
LOS ANGELES 31 11 -20 -64.52%
SAN DIEGO 12 1 -11 -91.67%
MIAMI 10 0 -10 -100.00%
LAS VEGAS 7 0 -7 -100.00%
TAMPA 7 1 -6 -85.71%
DENVER 5 0 -5 -100.00%
SEATTLE 6 1 -5 -83.33%
BUFFALO 7 3 -4 -57.14%
BIRMINGHAM 4 0 -4 -100.00%
HOUSTON 4 0 -4 -100.00%
KNOXVILLE 4 0 -4 -100.00%
PHILADELPHIA 6 2 -4 -66.67%
PHOENIX 9 5 -4 -44.44%
SACRAMENTO 4 0 -4 -100.00%
SALT LAKE CITY 6 2 -4 -66.67%
Source: OIG analysis of FBI ACS data


196B (INSURANCE FRAUD)

FIELD OFFICE CASE OPENINGS
FISCAL YEARS 2000 THROUGH 2003

FIELD OFFICE FY 2000
Cases Opened
FY 2003
Cases Opened
Number
Change
Percentage
Change
BOSTON 16 4 -12 -75.00%
OKLAHOMA CITY 13 2 -11 -84.62%
DETROIT 13 4 -9 -69.23%
LOUISVILLE 8 0 -8 -100.00%
CLEVELAND 8 1 -7 -87.50%
NEW YORK 8 1 -7 -87.50%
PHOENIX 7 0 -7 -100.00%
ATLANTA 8 2 -6 -75.00%
BIRMINGHAM 7 1 -6 -85.71%
CHARLOTTE 7 1 -6 -85.71%
SAN ANTONIO 7 1 -6 -85.71%
CHICAGO 7 2 -5 -71.43%
LOS ANGELES 5 0 -5 -100.00%
Source: OIG analysis of FBI ACS data


049A (BANKRUPTCY FRAUD $50K+ /OR COURT OFFICER)

FIELD OFFICE CASE OPENINGS
FISCAL YEARS 2000 THROUGH 2003

FIELD OFFICE FY 2000
Cases Opened
FY 2003
Cases Opened
Number
Change
Percentage
Change
LOS ANGELES 135 13 -122 -90.37%
CHICAGO 20 1 -19 -95.00%
BOSTON 20 2 -18 -90.00%
BUFFALO 13 1 -12 -92.31%
DALLAS 13 1 -12 -92.31%
SALT LAKE CITY 12 1 -11 -91.67%
NEW YORK 9 0 -9 -100.00%
ATLANTA 8 0 -8 -100.00%
MINNEAPOLIS 8 0 -8 -100.00%
OMAHA 8 0 -8 -100.00%
PHILADELPHIA 9 1 -8 -88.89%
DENVER 7 0 -7 -100.00%
SEATTLE 11 4 -7 -63.64%
Source: OIG analysis of FBI ACS data

Environmental Crimes

Classification 249A (Environmental Crimes) was another investigative area among the eight white-collar crime classifications experiencing significant field agent utilization reductions. The following exhibit identifies the number of on-board agents involved in this investigative area from FYs 2000 through 2003 and shows that the utilization of field agents handling such matters decreased in each fiscal year.

TOTAL FBI FIELD AGENT RESOURCE UTILIZATION
FISCAL YEARS 2000 THROUGH 2003

In FY 2000, there were 33 agents. In FY 2001, there were 29 agents. In FY 2002, there were 13 agents. In FY 2003, there were 8 agents.
Source: OIG analysis of FBI TURK data

Field Offices - As illustrated in the following exhibit, virtually every field office experienced reductions in the utilization of field agents on 249A matters. However, only three offices (Dallas, Houston, and New Orleans) had an on board agent decrease that was greater than one.

CHANGES IN ON BOARD AGENTS IN FBI FIELD OFFICES
249A (ENVIRONMENTAL CRIMES)
FISCAL YEARS 2000 THROUGH 2003

[Image Not Available Electronically]
Source: OIG analysis of FBI TURK data

The following table shows reductions in the number of environmental crime investigations opened in field offices from FY 2000 through FY 2003. Although we observed no common factors between field offices experiencing the greatest reductions, we did note that most of them revealed in our analysis experienced reductions of 100 percent.

249A (ENVIRONMENTAL CRIMES)

FIELD OFFICE CASE OPENINGS
FISCAL YEARS 2000 THROUGH 2003

FIELD OFFICE FY 2000
Cases Opened
FY 2003
Cases Opened
Number
Change
Percentage
Change
HOUSTON 14 0 -14 -100.00%
KNOXVILLE 13 1 -12 -92.31%
DETROIT 9 0 -9 -100.00%
TAMPA 9 0 -9 -100.00%
LOUISVILLE 8 0 -8 -100.00%
BALTIMORE 7 0 -7 -100.00%
ANCHORAGE 6 0 -6 -100.00%
MOBILE 7 1 -6 -85.71%
WASHINGTON 7 1 -6 -85.71%
CINCINNATI 5 0 -5 -100.00%
CLEVELAND 6 1 -5 -83.33%
NEWARK 5 0 -5 -100.00%
PHILADELPHIA 5 0 -5 -100.00%
SAN DIEGO 5 0 -5 -100.00%
SAN FRANCISCO 5 0 -5 -100.00%
Source: OIG analysis of FBI ACS data


Footnotes

  1. The San Juan Field Office was the only office that had an increase in the number of on board agents handling Classification 029C matters from FY 2000 to 2003; however, this increase only amounted to 0.01 on board agents.

Redacted and Unclassified