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working with DEA in the past 2 years to develop the kind of relationship which will permit Federal agencies in a cooperative way to successfully deal with the narcotics menace.

[At this point Senator Javits withdrew from the hearing room.] Mr. WEBSTER. Some of our efforts have not been particularly productive; others have been strikingly so. The work in Florida, the bank investigations have proved extremely useful. Our people have been meeting regularly with Administrator Peter Bensinger's people in the key cities around the country.

We did not do as well in New York or Chicago as we would have liked. In Florida and Los Angeles, we developed quite a bit of cooperative effort. Both Peter Bensinger and I are committed to increasing that cooperative effort.

Senator DECONCINI. What about the local law enforcement area of organized crime and FBI involvement?

Mr. WEBSTER. Local law enforcement generally has been most cooperative in working with us. In some areas where there is a question of involvement of local law enforcement with political groups that have underworld tie-ins, we have not attempted to be forthcoming with the investigations that we were conducting, but wherever it has been possible to do so, we have worked closely with local law enforcement.

Senator DECONCINI. Judge Webster, the GAO did a study regarding Federal law enforcement successes over the last 10 years on narcotics. As part of that study they point out that in their estimation. there is about 15,000 local law enforcement officials that are "credible" and could be used by Federal efforts and are not, for the most part. Would you say that is probably true on the FBI's effort in organized crime also?

Mr. WEBSTER. Well, I think that the vast majority of law enforcement agencies are-it is only the occasional one, and not the organization itself

Senator DECONCINI. Does the FBI get involved in coordinated efforts with local law enforcement agencies on organized crime? Mr. WEBSTER. In some cities that is so; yes.

Senator DECONCINI. Is that prevalent? Is it an expanding effort? Mr. WEBSTER. Yes; I believe it is commonplace.

Senator DECONCINI. Can you give us any examples of local law enforcement that your agency is involved in on organized crime without giving a specific case?

Mr. WEBSTER. In New England, we conducted a fencing operation directed against some highly organized hijacking operations of trucks and cargo. We were losing the trucks as well as cargo. The trucks were disappearing into the chop shops at the rate of about two a week. Working closely with local New England law enforcement agencies, we set up an undercover operation which, when we concluded it, not only had restored the money and stolen cargo, but for 7 months there was not a recurrence of that hijacking operation in the New England

area.

Senator DECONCINI. Is that a pretty common type of cooperative effort?

Mr. WEBSTER. It is a good example of the deterrent effect in working together. There are others that could be given utilizing the same basic

Chairman NUNN. Senator DeConcini, we are delighted to have you with us today. We will be pleased for you to participate.

Senator DECONCINI. Mr. Chairman, I thank you for the time. Realizing I am not a member of the committee, I will be as brief as I can. I thank you, Mr. Chairman and Senator Percy, for the invitation.

I have a couple of general questions for the judge. In your estimate, how successful has the effort been on the Federal level of reducing organized crime influence in the United States?

Mr. WEBSTER. I think that this has been one of the most difficult areas and probably one in which successes have not been spectacular in the sense that our real objective in organized crime is to reach the top.

That has been difficult because of buffering and insulation that protects the top figures. Early on, there was a problem of actually identifying the top figures. So that if you were to ask me over the last decade how successful we have been, I would say not as successful as the FBI would have liked to have been.

You are asking where do we think we are going at the present time, I think the curve is going up because we have been more successful in identifying our targets, and we are using techniques that were not used successfully or at all in the past. We have demonstrated the validity, the effectiveness of undercover work, for instance.

We now have enhanced our ability to analyze, which was not really present in the past, through the use of computer technology, the organized crime information system, which is a program we have had on various major investigations which went on line April 15 in Detroit and in a very short while will be in all of the major cities where organized crime is present.

The commitment of resources is there. We moved more of our troops into this field than we have in the past. So the promise is considerably brighter.

Senator DECONCINI. Over the last decade, would you say, generally, the Federal effort had not been very successful?

Mr. WEBSTER. Well, it is a question of relative to what? Organized crime continues, the same family units are still in existence. We have

some new ones now.

Senator DECONCINI. Relative to the growth in organized crime and what you think it is, would you say the effort has not been very successful?

Mr. WEBSTER. The effort on the resources that were available and the know-how probably has not been as productive as all of us would have liked to have seen it, but as I mentioned earlier, we have marshaled our resources now in this direction and we are beginning to see some very real returns coming through. We will see some this year. Senator DECONCINI. Judge Webster, as part of the marshaling of the resources and giving more direction effort toward organized crime, what is the Bureau doing to increase cooperation among Federal law enforcement agencies, and if they are, among local law enforcement agencies?

Mr. WEBSTER. I mentioned earlier that joint cooperation of Alcohol. Tobacco, and Firearms, which was very productive. We have been

working with DEA in the past 2 years to develop the kind of relationship which will permit Federal agencies in a cooperative way to successfully deal with the narcotics menace.

[At this point Senator Javits withdrew from the hearing room.] Mr. WEBSTER. Some of our efforts have not been particularly productive; others have been strikingly so. The work in Florida, the bank investigations have proved extremely useful. Our people have been meeting regularly with Administrator Peter Bensinger's people in the key cities around the country.

We did not do as well in New York or Chicago as we would have liked. In Florida and Los Angeles, we developed quite a bit of cooperative effort. Both Peter Bensinger and I are committed to increasing that cooperative effort.

Senator DECONCINI. What about the local law enforcement area of organized crime and FBI involvement?

Mr. WEBSTER. Local law enforcement generally has been most cooperative in working with us. In some areas where there is a question of involvement of local law enforcement with political groups that have underworld tie-ins, we have not attempted to be forthcoming with the investigations that we were conducting, but wherever it has been possible to do so, we have worked closely with local law enforcement.

Senator DECONCINI. Judge Webster, the GAO did a study regarding Federal law enforcement successes over the last 10 years on narcotics. As part of that study they point out that in their estimation. there is about 15,000 local law enforcement officials that are "credible" and could be used by Federal efforts and are not, for the most part. Would you say that is probably true on the FBI's effort in organized crime also?

Mr. WEBSTER. Well, I think that the vast majority of law enforcement agencies are-it is only the occasional one, and not the organization itself

Senator DECONCINI. Does the FBI get involved in coordinated efforts with local law enforcement agencies on organized crime? Mr. WEBSTER. In some cities that is so; yes.

Senator DECONCINI. Is that prevalent? Is it an expanding effort? Mr. WEBSTER. Yes; I believe it is commonplace.

Senator DECONCINI. Can you give us any examples of local law enforcement that your agency is involved in on organized crime without giving a specific case?

Mr. WEBSTER. In New England, we conducted a fencing operation directed against some highly organized hijacking operations of trucks and cargo. We were losing the trucks as well as cargo. The trucks were disappearing into the chop shops at the rate of about two a week. Working closely with local New England law enforcement agencies, we set up an undercover operation which, when we concluded it, not only had restored the money and stolen cargo, but for 7 months there. was not a recurrence of that hijacking operation in the New England

area.

Senator DECONCINI. Is that a pretty common type of cooperative effort?

Mr. WEBSTER. It is a good example of the deterrent effect in working together. There are others that could be given utilizing the same basic

principles in other sting operations that were essentially conducted by local law enforcement people with our assistance.

Senator DECONCINI. Can you tell the committee how many ongoing local organized crime cooperative efforts the agency has?

Mr. WEBSTER. I can attempt to do that for the record. Some will be undercover operations; others will be a matter of supplying infor

mation.

Senator DECONCINI. I am talking about active cooperative efforts. where your agents are involved with local undercover agents. Is it a dozen

Mr. WEBSTER. More than that. I will try and supply it for the record. [The information to be furnished follows:]

Hon. SAM NUNN,

U.S. DEPARTMENT OF JUSTICE,
FEDERAL BUREAU OF INVESTIGATION,
Washington, D.C., July 2, 1980.

Chairman, Permanent Subcommittee on Investigations, Committee on Governmental Affairs, U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: On April 28, 1980, I had the privilege of testifying before your Subcommittee on the subject of organized crime. At that time. Senator DeConcini requested that I furnish, for the record, the number of organized crime investigations the FBI is actively conducting in cooperation with local law enforcement. The answer is as follows:

A survey of all FBI field divisions determined that for the period January 1, 1979, through April 30, 1980, the FBI conducted 245 joint organized crime investigations with state, county, and/or municipal law enforcement agencies. A review of this statistical data reflects that FBI divisions in all regions of the country, without exception, are engaged in cooperative investigative efforts with other law enforcement agencies in organized crime matters.

The specific organized criminal activities targeted by these joint operations are as follows:

[blocks in formation]

Major Impact (arson for profit, prostitution, pornography, cigarette smuggling)

33

Racketeer influenced and corrupt organization (RICO) (including

RICO-narcotics)

78

30

245

Miscellaneous (interstate transportation of stolen property; theft from interstate shipment; fencing) --

Total

Thank you for your patience in this matter.
Sincerely yours,

LEE COLWELL,

Acting Director.

Senator DECONCINI. Do you have the capacity within your agency to do sophisticated financial investigations, tracing deposits and that sort of thing?

Mr. WEBSTER. I think we probably have better capacity than any other Federal agencies. Not only that, we are not satisfied with the status quo. We have been conducting on a regular basis inservice training, and new agent training directed at the various types of activities. in which organized crime participates. That is an understanding of how to deal with loan sharking, with gambling, with arson, and so on. We doubled the number of CPA's, increasing the number of those with accounting background, as well as lawyers with financial experience.

Senator DECONCINI. Are you actively involved in any investigations relating to large cash deposits in regional branches of the Federal Reserve over the last several years, and tracing where those deposits come from.

Mr. WEBSTER. If I understand the question, we have a white collar crime commitment that involves any type of unusual activities with respect to financial institutions. If you are asking about the obligation to let us know about large sums of money that impact following up on this, yes, we do have an interest.

Senator DECONCINI. I have been advised that the El Paso Federal Reserve Office, and also the Florida Federal Reserve Office, has had a huge increase of cash deposits made in the last 12 months. Does that interest your agency to do an investigation, and do you have the capacity to do such an investigation to attempt to find out why and where those deposits have come from?

Mr. WEBSTER. We do within privacy laws. We are supposed to be informed as to certain types of cash transactions in excess of certain levels received. That information sometimes is uneven in terms of coming to us. But we do have

Senator DECONCINI. Do you have active investigations going on regarding the amounts of deposits in the Federal Reserve district offices or regional offices?

Mr. WEBSTER. It has to be tied to some other information that we have.

Senator DECONCINI. I understand.

Mr. WEBSTER. I believe the answer is yes.

Senator DECONCINI. And how many agents do you have going in those offices regarding financial tracing of large deposits, generally? Mr. WEBSTER I would have to to supply that for the record because many of these are white collar crime problems.

Senator DECONCINI. Is it difficult to distinguish organized crime from white collar crime?

Mr. WEBSTER. Sometimes.

On the organized crime side, we have extortion, fear, threats, injury, that type of activity, whereas in white collar crime, the additional badge is usually concealment, fraud, deceit.

Senator DECONCINI. Thank you, Judge Webster.

Mr. WEBSTER. Thank you. Senator.

Chairman NUNN. Judge Webster, I know you are already running late. Unless another question is forthcoming, we would be willing to excuse you and thank you very much for your testimony.

Mr. WEBSTER. Thank you very much. Mr. Chairman.

Chairman NUNN. We look forward to continuing cooperation with you and your people and we will be hearing from organized crime experts later in the week.

Our next witness is Irving Nathan, Deputy Assistant Attorney General, Criminal Division, Department of Justice.

Mr. Philip Heymann, Assistant Attorney General of the Criminal Division was scheduled to appear. I understand Mr. Heymann is sick this morning.

Mr. NATHAN. Mr. Heymann is sick today and asked me late last night if I would substitute for him today.

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