Semiannual Report to Congress April 1, 2001

Semiannual Report to Congress

April 1, 2001 – September 30, 2001
Office of the Inspector General

HIGHLIGHTS OF OIG ACCOMPLISHMENTS

Following are highlights of OIG accomplishments that are discussed in detail in this Semiannual Report to Congress (Report).

Statistical Highlights
April 1, 2001 - September 30, 2001

Allegations Received by the Investigations Division
Investigations Opened
Investigations Closed
Arrests
Indictments/Informations
Convictions/Pleas
Administrative Actions
Fines, Restitutions, and Recoveries

Audit Reports Issued
Questioned Costs
Funds Put To Better Use
Recommendations for Management Improvements 5,239
363
307
92
74
80
93
$769,698

240
$47 million
$15 million
382

Investigations

The Investigations Division investigates allegations of bribery, fraud, sexual abuse, theft, alien and drug smuggling, introduction of contraband into federal prisons, and violations of other laws and procedures that govern Department employees, contractors, and grantees. Examples of the cases described in this Report include:

Three joint investigations by the OIG New York Field Office, FBI, and Federal Bureau of Prisons (BOP) into bribery and contraband smuggling at the Allenwood, Pennsylvania, federal correctional institution resulted in the arrest and prosecution of 11 defendants, including three BOP correctional officers, who pled guilty to accepting cash payments to smuggle contraband into and out of the institution.

An INS immigration inspector assigned to the San Francisco International Airport was sentenced to one year’s incarceration and three years’ supervised release after pleading guilty to charges of bribery of a public official; fraud and misuse of visas, permits, and other documents; and theft of public property. A joint investigation by the OIG San Francisco Field Office and the INS revealed that the immigration inspector stole two INS immigration stamps and two bottles of security ink and agreed to sell those items to confidential informants for $85,000.

New York Field Office agents arrested two Immigration and Naturalization Service (INS) employees, an INS contract employee, and a civilian document broker after an undercover investigation into allegations that the broker was providing valid INS employment authorization documents (EADs) to ineligible aliens. The broker, who was arrested first, agreed to cooperate with investigators. Her cooperation and an analysis of the improperly issued documents led to the arrest of an INS district adjudications officer, an INS clerk, and an INS contract clerk. They confessed to issuing at least 50 fraudulent EADs and placing 10 to 15 ADIT (I-551) stamps in the passports of ineligible aliens for between $500 and $2,000 each.

Audits

The Audit Division reviews Department organizations, programs, computer technology and security systems, and financial statements. Audit also conducts or oversees external audits of expenditures made under Department contracts, grants, and other agreements. Examples of audits described in this Report include:

In response to congressional requirements, in 1995 the INS began developing a system to automate the processing of airline passengers’ I-94 forms to collect arrival and departure data. We audited the design and implementation of the INS’s Automated I-94 System and found that the INS has not properly managed the project. As a result, despite having spent $31.2 million on the system from fiscal year (FY) 1996 to FY 2000, the INS (1) does not have clear evidence that the system meets its intended goal, (2) has won the cooperation of only two airlines, (3) is operating the system at only four airports, and (4) must modify the system to achieve its intended uses.
The OIG audited the Combined DNA Index System (CODIS), a national information repository maintained by the FBI that stores, maintains, tracks, and searches DNA specimen information to facilitate the exchange of DNA information by forensic laboratories aıross the country. We noted that the FBI needs to improve its oversight of participating laboratories to ensure they comply with the FBI’s quality assurance standards. For example, at six of the eight laboratories audited, we found 49 unallowable or incomplete forensic profiles in CODIS out of the 608 forensic profiles reviewed.

Inspections

The Evaluation and Inspections Division (E&I) produced management assessments and program evaluations that reviewed the efficiency, vulnerability, and effectiveness of Department operations. Examples of reviews discussed in this Report include:

The OIG reviewed the INS’s practice of escorting criminal aliens on commercial airlines when the aliens are removed from the United States to non-border countries. The OIG found that the INS is placing the traveling public at potential risk because it does not consistently follow its established escort policy. In three of the four districts visited by OIG inspectors, INS managers disregarded INS policies, resulting in the removal of violent aliens without escorts on commercial airlines. In addition, we found that the INS does not adequately coordinate the alien escort process with the Department of State.
OIG inspectors reviewed the treatment of unaccompanied illegal juveniles who are held in INS custody for more than 72 hours and placed into formal immigration proceedings. The OIG found that the INS has made significant improvements in its juvenile program. However, we found deficiencies at INS districts, Border Patrol sectors, and INS headquarters that could have potentially serious consequences for the well-being of the juveniles. These deficiencies included the failure to separate non-delinquent from delinquent juveniles.

Special Reviews

The Office of Oversight and Review (O&R) investigates sensitive matters involving Department programs or employees. Examples of reviews discussed in this Report include:

At the request of the Attorney General, the OIG is investigating the belated disclosure of documents related to the government’s prosecution of Timothy McVeigh and Terry Nichols for the 1995 bombing of the Oklahoma ‹ity federal building. An OIG team of attorneys, special agents, auditors, and support personnel has conducted on-site investigations at 13 FBI field offices and is currently drafting its report of investigation.
The OIG is continuing its review of the Department’s performance in preventing, detecting, and investigating the espionage activities of former FBI agent Robert Hanssen. By the end of this reporting period, the OIG team of attorneys, investigators, and analysts had obtained and was reviewing more than 100,000 pages of documents from the FBI related to this investigation.