THE INVESTIGATIONS DIVISION

The Investigations Division investigates allegations of bribery, fraud, abuse, civil rights violations, and violations of other laws and procedures that govern Department of Justice employees, contractors, and grantees.

The Investigations Division (Investigations) investigates allegations of bribery, fraud, abuse, civil rights violations, and violations of other laws and procedures that govern Department employees, contractors, and grantees. Investigations develops cases for criminal prosecution and civil and administrative action. In many instances, the OIG refers less serious allegations to components within the Department for appropriate action and, in the more important cases that are referred, reviews their findings and disciplinary action taken.

Investigations carries out its mission through the work of its special agents who are assigned to OIG offices across the country. Currently, Investigations has field offices in Chicago, El Paso, Los Angeles, McAllen, Miami, New York, San Diego, San Francisco, Tucson, and Washington, DC (the Washington Field Office and Fraud Detection Office), and smaller, area offices in Atlanta, Boston, Colorado Springs, Dallas, El Centro, Houston, and Seattle. Investigations Headquarters, in Washington, DC, consists of the immediate office of the Assistant Inspector General (AIG) and three branches: Operations, Investigative Support, and Policy and Administration.

Geographic areas covered by the field offices are indicated on the map below. In addition, the San Francisco office covers Alaska; the San Diego office covers Hawaii, Guam, the Northern Mariana Islands, and American Samoa; and the Miami office covers Puerto Rico and the U.S. Virgin Islands.

During this reporting period, Investigations received 3,245 complaints. It opened 328 investigations and closed 283. Its agents made 70 arrests involving 32 Department employees, 35 civilians, and 3 Department contract personnel. Convictions resulted in 58 individuals receiving sentences – one for nine years’ incarceration – and $178,045 in fines, recoveries, and orders of restitution. As a result of OIG investigations, 29 employees and 9 contract employees received disciplinary action, including 15 who were terminated. In addition, 30 employees and 6 contract employees resigned either during or at the conclusion of these investigations.

Significant Investigations

Following are some of the cases investigated during this reporting period, grouped by offense category.

Fraud

• A clerk assigned to the USAO for the Central District of California was arrested and pled guilty to charges of mail fraud. An investigation by the Los Angeles Field Office developed evidence that the clerk embezzled approximately $900,000 over a 3-year period using government credit cards issued to herself and two former co-workers. The clerk made hundreds of personal purchases, including clothing, equipment, and services. In addition, she used the office’s Federal Express account to mail the fraudulent purchases to persons to whom she sold some merchandise. As part of her plea agreement, the clerk admitted to stealing $350,000 to $500,000. She has been on administrative leave without pay since March 2000. Sentencing is pending.

• A former acting chief of the Navajo Department of Law Enforcement was convicted at trial in the District of New Mexico on charges of wire fraud and attempted wire fraud and sentenced to 30 months’ incarceration and ordered to pay $102,877 in restitution. A joint investigation by the OIG Fraud Detection Office and the FBI determined that the acting chief fraudulently applied for and received a COPS training grant, then diverted more than $100,000 in grant funds to personal use by making illegal sub-awards to members of his immediate family. The acting chief used the diverted funds for personal expenditures, such as automobiles and other items.

• In the Eastern District of Texas, an administrative assistant assigned to the USAO was arrested and pled guilty to charges of making false statements. The Houston Area Office initiated an investigation after receiving a complaint that the administrative assistant had filed false documents to qualify for employment under the Student Temporary Employment Program. The false documents purported to show that the administrative assistant was a registered student when she was, in fact, not enrolled or attending school. The investigation confirmed the original allegation and further established that the administrative assistant used her USAO computer to falsify automobile insurance documents and download pornographic material from the Internet. Sentencing is pending.

• In the Northern District of Illinois, a civilian was arrested on charges of impersonating a federal officer. An investigation by the Chicago Field Office, assisted by the INS and local police, led to a complaint alleging that the civilian, a convicted felon, posed as an INS investigator to extort money from his victims by promising to assist them in obtaining legal residency in the United States. The civilian extorted $5,700 from two victims and attempted to extort an additional $4,000. Trial is pending.

Bribery

• An INS immigration inspector assigned to the San Ysidro POE and three Mexican nationals were arrested on charges of bribery, conspiracy to bring in illegal aliens for financial gain, and conspiracy to import marijuana. The investigation, initiated by theýSan Diego Field Office and conducted jointly with the San Diego Border Corruption Task Force, disclosed that, between October 1997 and November 1999, the immigration inspector received approximately $90,000 in bribe monies from four Mexican nationals to allow drugs and illegal immigrants to enter the country through his assigned lane at the U.S.-Mexico border without inspection. One defendant remains at large. Judicial proceedings continue.

• In the Southern District of Texas, a USMS contract administrative employee and her husband, a special agent for the U.S. Customs Service (Customs Service), were arrested and pled guilty to charges of bribery. This McAllen Field Office investigation was initiated when a confidential informant claimed that two federal employees solicited a bribe in return for sensitive USMS information concerning the sentencing of a convicted narcotics felon. During the investigation, the Customs Service agent accepted partial payment of $3,500 from the confidential informant for information provided by the USMS employee. Each was sentenced to three years’ probation. (This case is the subject of the tribute on the inside front cover of this Report.)

• In the Eastern District of Texas, a former BOP correctional officer previously assigned to the Beaumont Correctional Complex (BCC) was arrested and pled guilty to charges of possession with intent to distribute 500 grams of cocaine. The Houston Area Office initiated an investigation following allegations that the correctional officer had facilitated the entry of drugs into the BCC for distribution to inmates. An OIG agent, posing as a drug supplier for a cooperating inmate, met with the correctional officer in a hotel parking lot and provided him with 500 grams of powdered cocaine and $1,500. Following this transaction, OIG agents and Jefferson County, Texas, Task Force officers arrested the correctional officer and recovered the cocaine and $1,500. Sentencing is pending.

• An INS immigration examiner assigned to the INS Chicago District Office was arrested on charges of bribery. A Chicago Field Office investigation led to a grand jury indictment in the Northern District of Illinois alleging that the immigration examiner ac—epted sexual favors from two aliens in exchange for approving permanent residency applications. The immigration examiner is currently awaiting trial.

• A former information officer previously assigned to the INS New York District Office was arrested and pled guilty to charges of accepting compensation in matters affecting the government. This New York Field Office investigation determined that the former information officer accepted between $9,000 and $10,000 in cash from a civilian (who was previously arrested, convicted, and sentenced) in exchange for expediting INS applications. The former information officer was sentenced to two years’ probation and fined $1,000.

• In our September 1999 Semiannual Report to Congress, we reported on a case in which an INS supervisory asylum officer was arrested on charges of bribery and obstruction of justice. A 2-year joint investigation by the OIG New York Field Office and the FBI led to an indictment alleging that the supervisory asylum officer altered hundreds of decisions in the INS’s computer system changing the original assessments written by asylum officers from disapproval to approval. Since we first reported this investigation, the supervisory asylum officer was convicted at trial in the Eastern District of New York on 21 counts of bribery and obstruction of justice and was sentenced to 21 months’ incarceration and 3 years’ supervised release. In addition, three document vendors and three aliens implicated in this scheme were arrested and pled guilty; five were sentenced. Their sentences ranged from six months’ incarceration to one year’s probation.

• Our September 2000 Semiannual Report to Congress described a case in which an INS special agent assigned to the INS Los Angeles District Office Anti-Smuggling Unit released previously smuggled illegal aliens from the custody of the INS to his co-conspirators, who then held them for ransom paid by the illegal aliens’ relatives. During this reporting period, the INS special agent was sentenced to 18 months’ incarceration and 3 years’ supervised release and ordered to serve 800 hours of community service. One co-conspirator was sentenced to 4 months’ incarceration and 3 years’ supervised release. A second, in prison on other charges, was sentenced to serve an additional 34 months’ incarceration and 3 years’ supervised released. The convicted INS special agent identified an additional civilian who was involved in the alien smuggling scheme. A search of the civilian’s residence uncovered a machine gun and two semi-automatic weapons. The civilian was arrested and pled guilty to charges of being a felon in possession of a firearm and possession of a machine gun. He was sentenced to 37 months’ incarceration and 3 years’ supervised release.

Attempts to Corrupt Department Employees

• Two Polish nationals were arrested pursuant to a criminal complaint filed in the Northern District of Illinois on charges of alien smuggling and bribery of a public official. The Chicago Field Office, responding to a report that two aliens had attempted to bribe INS immigration inspectors at O’Hare International Airport, recorded a conversation in which one of the subjects offered the inspectors a $3,000 bribe. One of the aliens subsequently admitted that he was paid $500 to smuggle the second alien into the United States using fraudulent documents. The second alien admitted to offering a $3,000 bribe to two immigration inspectors in exchange for entry into the United States. Judicial proceedings continue.

• A Mexican national was sentenced in the Western District of Texas to concurrent terms of five years’ incarceration and three years’ supervised release on charges of illegal reentry and bribery of a public official. Prior to the Mexican national’s arrest by the OIG, the INS arrested him on charges of attempting to reenter the United States after deportation and importation of a controlled substance. Following his arrest by the INS, the Mexican national offered an INS officer $2,000 to allow him to escape. The INS officer reported the bribe attempt to the El Paso Field Office, which conducted an investigation that resulted in the alien’s indictment, arrest, and guilty plea.

• In the District of Delaware, a civilian and an Indian national were arrested and pled guilty to charges of conspiracy to bribe a public official. An investigation by the New York Field Office developed evidence that the Indian national paid a cooperating INS immigration inspector $1,000 in exchange for being introduced to a second INS employee who could arrange for the manufacture and sale of employment authorization documents. The civilian and the Indian national offered this second INS agent, who was working in an undercover capacity, $5,500 in exchange for fraudulent employment authorization documents. Sentencing is pending for both defendants. The Indian national has been ordered to be deported upon completion of his sentence.

Sexual Abuse

• An INS Border Patrol agent assigned to the Nogales Border Patrol Station was arrested on Arizona state charges of kidnapping, sexual assault, and sexual abuse. An investigation conducted by the OIG Tucson Field Office and the Nogales Police Department led to a criminal complaint alleging that the Border Patrol agent sexually abused three female aliens he was transporting for processing following their apprehension for illegally being in the United States. After processing the aliens and transporting them to the Nogales POE, where they were to be returned to Mexico, the Border Patrol agent took one of the women to a remote location where he sexually assaulted her before allowing her to return to Mexico. Judicial proceedings continue.

• Two former BOP correctional officers were arrested on charges of engaging in a sexual act with a ward. An investigation by the San Diego Field Office developed evidence that the correctional officers, while assigned to the Metropolitan Correction Center in San Diego, had engaged in a sexual act with a female inmate under their supervision. Both correctional officers pled guilty and resigned as a result of this investigation. Sentencing is pending.

• A Border Patrol agent assigned to the Douglas Border Patrol Station was arrested on Arizona state charges of kidnapping and sexual abuse. The OIG Tucson Field Office, along with the Cochise County Sheriff’s Department, initiated an investigation after the Border Patrol reported that an El Salvadoran female complained of having been sexually abused by a Border Patrol agent. The investigation developed information that the Border Patrol agent allegedly apprehended the El Salvadoran female while she was riding in a vehicle with other illegal aliens, then drove her to an isolated area and sexually assaulted her. Trial is pending.

Misconduct

• An OIG investigation revealed that an assistant U.S. attorney (AUSA) had been detained by a local police department after being observed in the company of a known prostitute. During an interview with the OIG, the AUSA admitted to soliciting a prostitute on two occasions. Subsequently, he voluntarily entered into a Pretrial Diversion Program with the local prosecutor’s office, with the agreement that, upon successfully completing the program, no solicitation charges would be filed against him. The AUSA received a 14-day suspension.

• An AUSA resigned his position after being confronted with allegations that he had submitted fraudulent travel vouchers for payment. An OIG investigation developed evidence that the AUSA received $2,868 in expenses to which he was not entitled by regularly inflating the mileage he claimed and regularly submitting fraudulent claims for parking expenses when he had not paid for parking. The AUSA repaid the USAO in full. The Public Integrity Section of the Criminal Division declined the case for prosecution but forwarded the OIG’s investigative report to the DOJ OPR to determine whether, consistent with Department policy, the AUSA’s conduct should be referred to the State Bar Association.

• The OIG investigated an allegation that an AUSA failed to surrender several weapons, seized during state criminal proceedings, that he obtained while serving as a state prosecutor. The investigation did not conclude that the AUSA obtained these weapons illegally but questioned his failure to return the weapons after resigning his position to become an AUSA.

• An investigation conducted by the OIG resulted in the termination of an INS assistant district director for examinations. The investigation disclosed that the assistant district director had an ongoing personal relationship with an alien whose immigration status was pending before the INS. In addition, he was aware that the alien was engaged in a potential marriage fraud, and he was residing with the alien and the alien’s brother, who was an illegal alien.

Theft

• In the Central District of California, an INS contract employee was arrested and found guilty on California state charges of grand theft. An investigation by the Los Angeles Police Department and OIG Los Angeles Field Office developed evidence that the contract employee, who worked for a contractor in charge of filing and processing records at the INS Service Processing Center in Laguna Niguel, California, solicited $7,000 from an alien who had a petition pending with the processing center. In exchange for these funds, the contract employee promised the alien that his petition would be favorably adjudicated. The contract employee was terminated from her position, sentenced to three years’ supervised release, and ordered to pay $3,600 in restitution.

• An administrative employee for the USAO in Portland, Oregon, pled guilty to charges of theft of government funds. An investigation conducted by the Seattle Area Office disclosed that the employee authorized the issuance of third-party draft checks from the Department to herself, her government travel charge card account, and other businesses for her personal use. She created fictitious obligation accounts, used existing obligation accounts, and forged signatures in order to obtain the money. The investigation revealed that she converted more than $39,000 in government money for her personal use. As part of a plea agreement, she agreed to make restitution and resigned her position with the USAO. Sentencing is pending.

• A former Department contract employee was arrested and pled guilty to charges of theft of government funds. An investigation by the Washington Field Office determined that the employee, a travel account representative responsible for handling the official travel requests for the USAO for the Southern District of New York, used government credit cards to obtain travel services that she sold or provided to friends. The investigation determined that the employee inappropriately charged approximately $13,000 to the USAO credit cards. She previously was arrested in 1996 and convicted for airline ticket fraud and was serving probation at the time of her arrest. Sentencing is pending.

• A former BOP correctional officer previously assigned to the Beaumont Correctional Complex was arrested on charges of theft of government funds. The Houston Area Office initiated an undercover investigation after receiving an allegation from a cooperating inmate that the correctional officer had agreed to bring cocaine into the prison in exchange for $3,000. An undercover OIG agent, posing as the cooperating inmate’s outside contact, arranged a meeting at which the correctional officer took $3,000 from the OIG agent’s vehicle but left the drugs in the car. The correctional officer admitted stealing the $3,000 and acknowledged accepting payment from inmates in return for preparing memoranda for “reduction of sentence” requests, but he denied introducing contraband into the prison. The correctional officer resigned from the BOP. Judicial proceedings continue.

• A technician employed by the Border Patrol in El Paso was arrested pursuant to an indictment filed in the Western District of Texas alleging that he intentionally and knowingly received material involving the sexual exploitation of children and engaged in theft of government property. A joint investigation by the OIG El Paso Field Office and the Customs Service revealed that the technician ordered and took possession of a videotape depicting child pornography. A subsequent search revealed that the technician was illegally in possession of a computer and monitor belonging to the Border Patrol. Upon learning that he was under investigation, the technician stole the computer hard drive from his Border Patrol workstation in order to obstruct the investigation. Judicial proceedings continue.

• Our March 2000 Semiannual Report to Congress reported a case in which two Border Patrol agents were arrested on charges of conspiracy to steal government property, theft of government property, and aiding and abetting. An investigation by the San Diego Field Office disclosed that Border Patrol agents assigned to the “Retro-Fit Unit” removed vehicle equipment from the Border Patrol warehouse for resale at a local retailer. In total, the investigation disclosed that the agents stole approximately $260,000 in government property. During this reporting period, the agents were convicted in the Southern District of California following a jury trial on charges of conspiracy to steal government property and theft of government property. The Border Patrol agents each were sentenced to four months in a halfway house and two years’ supervised release.

Alien & Drug Smuggling

• In the Northern District of Georgia, a deportation officer assigned to the INS Atlanta District Office was arrested and pled guilty to an indictment charging him with harboring and transporting an illegal alien. An investigation by the Atlanta Area Office developed evidence that the deportation officer induced a deported alien to illegally reenter the United States. The alien, a Turkish national, had been ordered deported after serving prison time for a felony conviction. Following her deportation, the òeportation officer returned the alien’s green card and passport and later provided her with an airplane ticket to reenter the United States. The deportation officer resigned from the INS after his indictment. Judicial proceedings continue.

• The San Diego Border Corruption Task Force arrested five Mexican nationals on charges of smuggling narcotics and aliens. The San Diego Field Office participated in an investigation that was initiated in early 1998 when a Mexican national attempted to smuggle 200 pounds of marijuana into the United States through a POE. Through the use of informants and undercover operations, 12 individuals were identified as members of the smuggling organization. During a search of the alleged ringleader’s home, agents found approximately 1,200 pounds of marijuana. The alleged ringleader has since pled guilty to charges of possession with intent to distribute 1,200 pounds of marijuana and awaits sentencing. Judicial proceedings continue for the four other Mexican nationals. The remaining seven individuals are being sought.

• Our September 2000 Semiannual Report to Congressýreported a case in which a civilian narcotics smuggler and a Mexican national were arrested on multiple drug charges, including importation, possession, and intent to distribute. A joint OIG McAllen Field Office and FBI investigation into allegations that an INS immigration inspector had aided a narcotics smuggler in transporting drugs through the Pharr POE resulted in the seizure of more than 1,000 pounds of marijuana. Both defendants pled guilty. During this reporting period, the civilian narcotics smuggler and Mexican national were sentenced to 108 months’ incarceration and 48 months’ supervised release, and 12 months’ incarceration and 36 months’ supervised release, respectively. The INS immigration inspector committed suicide during the investigation.

Introduction of Contraband

• In the Western District of Oklahoma, an ordained minister who leads the Native American Indian Worship Services at the Federal Correctional Institution (FCI) in El Reno was arrested and pled guilty to charges of possession with intent to distribute marijuana. A joint OIG El Paso Field Office and FBI Oklahoma City investigation revealed a scheme in which inmates used the inmate telephone system to arrange for the delivery of marijuana to the minister, who would then bring the marijuana into FCI El Reno in exchange for money. To date, two inmates and two civilians have been implicated in the scheme; all have been charged and pled guilty to various drug distribution charges. The minister was sentenced to five years’ probation. Sentencing is pending for the inmates and civilians.

• The Los Angeles Field Office received an allegation that a BOP cook supervisor assigned to FCI Lompoc introduced marijuana into the institution. The investigation developed evidence that the employee used a rented post office box to receive narcotics that he would bring into the prison. OIG agents confronted the employee and he confessed to the scheme, admitting to both receiving the drugs and to bringing them into FCI Lompoc. The employee immediately resigned from the BOP. The case was presented to the USAO in the Central District of California but was declined for prosecution.

Civil Rights

• A Border Patrol agent assigned to the McAllen Sector was arrested pursuant to an indictment filed in the Southern District of Texas on charges of deprivation of rights under color of law. An investigation by the McAllen Field Office disclosed that the Border Patrol agent struck a Mexican alien on the head with a flashlight, severely injuring him, while attempting to arrest him and several other aliens. The Border Patrol agent was convicted following a jury trial. Sentencing is pending.

Obstruction of Justice

• In the Eastern District of Texas, a BOP supervisory correctional officer assigned to the U.S. Penitentiary in Beaumont was arrested and pled guilty to charges of conspiracy to obstruct justice. This Houston Area Office investigation disclosed that the supervisory correctional officer approved the submission of false statements and documents to conceal assaults on inmates. In addition, the investigation revealed that the officer was a convicted felon prior to beginning his 10-year career with the BOP. The officer resigned from the BOP as a result of this investigation. Sentencing is pending.

False Statements

• A former supervisory deputy U.S. Marshal (SDUSM), who was responsible for juror security during Timothy McVeigh’s trial, was arrested for making a false statement to the judge who conducted McVeigh’s trial. An investigation by the Colorado Springs Area Office developed evidence that the SDUSM made willful false statements concerning his personal relationship with an alternate juror in the McVeigh case. The SDUSM lied about his relationship with the juror when questioned about it under oath by the judge. Although the initial allegation suggested that the SDUSM and the alternate juror began an affair during the trial and thus potentially affected jury deliberations and the trial verdict, the OIG investigation revealed that the affair began after the jury§reached a guilty verdict in the case. The SDUSM, a 29-year veteran of the USMS, retired from the Department during this investigation. Judicial proceedings continue.

Program Improvement Recommendations

The Investigations Division prepares Procedural Reform Recommendations (PRR) to facilitate corrective action by Department components when the results of an investigation identify a systemic weakness in an internal policy, practice, procedure, or program. Provided below are examples of PRRs sent to components for action during this reporting period.

• In the Northern District of New York, the firearm of an AUSA who had received special deputation from the USMS was stolen from the AUSA’s vehicle and used in two robberies in which homicides occurred. A subsequent Boston Area Office investigation identified a number of deficiencies in the special deputation program that is administered jointly by the USMS and Executive Office for U.S. Attorneys (EOUSA) that permits AUSAs to carry firearms in certain circumstances. The OIG developed a PRR addressing the weaknesses found and offered specific recommendations to the EOUSA and USMS on how to prevent future occurrences. The OIG recommended that the EOUSA coordinate with the USMS in jointly implementing a policy under which the EOUSA requires its personnel to follow USMS firearms regulations and standards and that the USMS ensure that other non-law enforcement personnel who receive special deputations – including attorneys, judges, legislators, and other federal officials – receive appropriate training.

• The OIG receives a number of complaints alleging theft of alien detainees’ property at airports and other POEs. In response to these complaints, the Miami Field Office developed a form to track a detainee’s property and provided it to the supervisor in charge of training at the Miami International Airport (MIA). The form has since been adopted and is currently used at the MIA. The form has been forwarded to the INS’s Office of Internal Audit for consideration that it be used at other POEs across the country.

• An investigation by the McAllen Field Office found that prison gang inmates in BOP institutions were coercing other inmates to supply copies of their Pre-Sentence Investigation Reports (PSI). After receiving the PSIs, the gang inmates extorted money from the inmates by threatening to divulge sensitive, personal information contained in these reports. The OIG developed a PRR recommending that the BOP consider changing its policy to allow inmates to review their PSIs only in a controlled environment rather than providing them copies of their own reports, thus protecting the inmates from possible coercion. The BOP responded that it was in the process of changing its policies to prohibit inmates from obtaining or possessing photocopies of their PSIs.

Investigations Statistics

The following chart summarizes the workload and accomplishments of Investigations during the 6-month period ending March 31, 2001.