Office of Community Oriented Policing Services

Investigations

The following are examples of cases handled by the OIG’s Investigation Division during this reporting period involving recipients of grants from COPS:

• A joint investigation by the OIG’s Chicago Field Office and the FBI resulted in the arrest of a Department grantee in the Southern District of Illinois on charges of misapplication of federal grant funds and making false statements. The investigation determined that the grantee, while acting as a purchasing agent for the Sheriff’s Department in Pulaski County, Illinois, stole approximately $67,000 of a Community Oriented Policing Program Methamphetamine Initiative grant awarded to the Sheriff’s Department and used it instead in his personal business. In addition, the grantee made false statements to the OIG in claiming that he had $90,000 in a personal trust account which he could use to replace the missing grant money when his account actually contained less than $50. Judicial proceedings continue.
  
  
• A joint investigation by the OIG’s Fraud Detection Office and the FBI led to the arrest of the chief of police for the Law Enforcement Department of the Sault Tribe of Chippewa Indians and his office manager on grant fraud conspiracy charges. The investigation determined the chief of police conspired with his office manager to steal $242,230 in grant funds. The police chief allegedly used the grant funds to purchase items for his or his family’s personal use, such as vehicles, jet skis, and recreational activities. The office manager was not charged with receiving any funds for personal use, but pled guilty to conspiring to conceal the theft from COPS. Sentencing is pending against the office manager. Judicial proceedings against the police chief continue.
  
  
• In our September 2008 Semiannual Report to Congress, we reported on a joint investigation by the OIG’s Denver Field Office, the FBI, and the IRS that resulted in the arrest of the former president of the San Juan Southern Paiute Tribe pursuant to an indictment charging her with making false statements, theft of public money, theft from an Indian tribal organization, theft from an Indian tribal government receiving federal funds, and money laundering. The investigators developed evidence that the tribal president obtained federal grants funds, including a COPS grant to hire police officers. However, she converted federal grant funds to her own use and made false statements concerning how she used the funds. During this reporting period, the former president was sentenced in the District of Arizona pursuant to her guilty plea to false statements, theft from an Indian tribal government receiving federal funds, and money laundering. She was sentenced to 24 months’ incarceration followed by 36 months of supervised release and fined $75,000.

Criminal Division

Reports Issued

The Criminal Division’s Laptop Computer Encryption Program and Practices

The OIG’s Audit Division examined the Criminal Division’s laptop encryption program and practices. The audit reviewed laptop computers owned by the Criminal Division and laptop computers owned by contractors, subcontractors, and other vendors working for the Criminal Division.

In our test of 40 of the 799 laptop computers owned by the Criminal Division, we found that 10 did not have encryption software and that 9 of those 10 did not have Windows passwords enabled, as required by Department policy. All of the unencrypted laptops, which were deployed in one Criminal Division section, the International Criminal Investigative Training Assistance Program, contained sensitive departmental data.

In addition to our testing of laptop computers for encryption, we found weaknesses in other areas of the Criminal Division’s laptop encryption program. We determined that at least 43 laptop computers did not comply with Department standards and Criminal Division requirements for laptop security settings. Our audit also found that seven of the nine contractors we tested processed sensitive Department data on laptops without encryption.

We also found weaknesses in oversight of data security policies for the Criminal Division’s contractors. The two contracts under which most litigation support contractors are hired did not have the required security clause requiring encryption, and the Criminal Division had not implemented alternative controls to compensate for the contracts’ deficiencies. We made 10 recommendations to the Criminal Division to enhance its safeguards over Department data on laptop computers. The Criminal Division concurred with all 10 recommendations.

Equitable Sharing Audits

Under the Department’s Asset Forfeiture Program, state and local law enforcement agencies receive equitable sharing assets when participating directly with the Department’s law enforcement components in joint investigations that lead to the seizure or forfeiture of cash and property. To be eligible for equitable sharing proceeds, law enforcement agencies must submit a request within 60 days of an asset seizure.

During this reporting period, the OIG’s Audit Division reviewed the following law enforcement agencies’ use of equitable sharing revenues:

• During the period of January 1, 2008, through December 31, 2008, the Minneapolis Police Department was awarded equitable sharing revenues totaling $366,489 to support law enforcement operations. Our audit found that the Minneapolis Police Department generally complied with equitable sharing guidelines with respect to accounting for equitable sharing receipts, the use of equitable sharing funds, supplanting, and reporting.
  
  
• During FY 2008, the Kimble County, Texas, Sheriff’s Office received $315,062 and spent $374,453 of equitable sharing funds. Our audit found that the Sheriff’s Office primarily spent these funds to enhance and support law enforcement capabilities. However, we found weaknesses with reporting of property purchased with equitable sharing funds and transferred to other law enforcement agencies, and in inventory procedures for property purchased with equitable sharing funds. We questioned $28,009 as unsupported for which the Sheriff’s Office provided documentation before the final report was issued. The Sheriff’s Office and Criminal Division agreed with our recommendations.

Environment and Natural Resources Division

Report Issued

Superfund Activities for Fiscal Years 2006 through 2008

The OIG’s Audit Division examined the Department’s Superfund activities in the Environment and Natural Resources Division (ENRD) for FY 2006 through FY 2008. As required by the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the OIG conducted this audit to determine if the cost allocation process used by ENRD and its contractor provided an equitable distribution of total labor costs, other direct costs, and indirect costs to Superfund cases during FY 2006 through FY 2008. Based on the results of the audit, we concluded that ENRD provided an equitable distribution of total labor costs, other direct costs, and indirect costs to Superfund cases. However, during our testing of 128 travel expenditures, we found 29 transactions with discrepancies such as missing receipts for a portion of the claimed travel cost, incorrect case classification numbers, and missing approvals on travel authorizations. We recommended that ENRD reinforce its policies and procedures for submitting complete, accurate travel authorizations and voucher summaries and that it remedy the questioned travel costs. ENRD agreed with our recommendations.

Executive Office for Immigration Review

Investigation

The following is an example of a case that the OIG’s Investigations Division handled during this reporting period:

• The OIG’s New York Field Office investigated allegations that an Executive Office for Immigration Review (EOIR) judge misused her position by trying to influence a police officer who stopped a vehicle and cited the driver of the vehicle in which the judge was a passenger. The investigation determined that the judge misused her position during her communications with local judicial officials about contesting the citation. The investigation also disclosed the judge violated Department policy by providing legal representation to the driver without Department approval. The investigative results were forwarded to EOIR for appropriate administrative action.

Ongoing Work

Administration of Immigration Courts

The OIG is examining the EOIR’s administration of the immigration court system.

Office on Violence Against Women

The following is an example of a case that the OIG’s Investigations Division handled during this reporting period:

• A joint investigation by the OIG’s Fraud Detection Office and the FBI resulted in the arrest of two employees of Safe Harbor, a Department grantee, on charges of program fraud. Safe Harbor, located in Aberdeen, South Dakota, is a domestic violence shelter that received over $200,000 between 2007 and 2009 from the Department’s Office on Violence Against Women (OVW). The investigation determined that the two Safe Harbor employees embezzled over $24,000 in Safe Harbor funding by using the shelter’s ATM and credit cards to provide funds to an ineligible relative. Judicial proceedings continue.

U.S. Attorneys' Offices

Investigations

The following are examples of cases that the OIG’s Investigations Division handled during this reporting period:

• The OIG’s New York Field Office investigated allegations that an AUSA violated conflict of interest regulations when he engaged in a financial relationship with a contractor in which he approved billing invoices for the contractor. The investigation determined the AUSA deliberately concealed his relationship with the contractor from his supervisors. The investigative results were forwarded to the EOUSA for appropriate administrative action.
  
  
• In our September 2009 Semiannual Report to Congress, we reported on an investigation by the OIG’s New Jersey Area Office that resulted in the arrest and guilty plea of an office automation clerk assigned to the USAO for the Eastern District of Pennsylvania on charges of fraud and identity theft. OIG investigators found that the clerk fraudulently used personally identifiable information from individuals prosecuted by the USAO to obtain 188 online payday loans in their names totaling more than $34,000. During this reporting period, the office automation clerk was sentenced to 42 months’ incarceration followed by 36 months of supervised release and ordered to pay $34,435.50 in restitution. The clerk resigned her position as a result of our investigation.