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118567438
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ABSCAM (2 of 4)
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118567438
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ABSCAM (2 of 4)
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Records of the Office of Counsel to the President (Reagan Administration)
John Roberts' Subject Files
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1986-12-31
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Roberts, John G.: Files Folder Title: ABSCAM (2 of 4) Box: 1 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ 37 through pay-ofts. Blackinail following sexual enticement is a well-known example. Getting information en the extent of this is very difficult since undercover police and those blackmailed have a shared conspirational interest in keeping silent In some jurisdictions where employees are required to report illegal activities. they may face double testing. Thus a New York City buildings superintendent was approached by an undercover investigator who offered him a bribe il he would submit falsified architectural plans The bribe was rejected. However, the superin- tendent was neverthers suspended from his jub for failing to report the bribe attempt. While letti. this takes the traditional into rity test to it He'll extreme. A person may become the tanget of an undercover apport mity scheme, not because of suspected corruption. but merels (i) SWG it requirements that bribes For reported are followed: The potested for misuse is clear. This can be a tool for getting rid of employees seen as tro ablesome on other grounds Exploitation of the system by informers an be a maior problem. The frequency and seriousness of the problems informets can cause make them the weskest link in undercover systems Most underceser Aperations must rely to smille dearee on infor- mants in the crimmid mailed for information. technical advices "clients," contacts and legitimation of their disreputability A heavy price may be paid Sir this Wille informers face except and risks. they MISE face exceptional opportunities Some recent cases appear to represent a significant delegation of law entorcement investigative authority Informers can be offered 3 hunting Adense to give after whomever they WITH as long as Chev assett that the target they choose is pre- disposed to illegablictions: According to the new qualifities a person 09 be invired di to engage: in an addition such as Absoum TAS a target 90 the basts of an inform. or account that Be or she the enviloing has eneaged. or is likely do bridade 11) illegal activity of 3 similar type: Verification of such accounts is other difficult and the say nothing about this These who know, for selventi-rested respons will obviensis otten not SW Those who SMN: may well not know or nivea rested interest in tring This is bleedy to be particularly true of criminal intermers where professional lives mutinely require deceit, lying. and covering UP When the informer has a motive to he, in If often the case. matters are even worse. Because or charges they are seeking to avoid. the promise of drugs or money or .1 desire to runish competitors or enemies, they may have strong meentives to that others break the law. This can mean false claims about past mishehavior of thrigets and ignoring legal and departmental restrictions. Whether out of self-interest or deeper psychological motives seme in formers undergo a transformation and become realous super-cops creating crimit nals, or sniffing them out using prohibited methods. According to media accounts the convicted swindler in Abscam described by Judge Fullam as an "archetypical, amoral tast-buck artist had a S-year prison sentence waived and received $183.150 for his cooperation in the two-year investiga- tion. Accounts in an internal Justice Department memorandum further indicate that he "would be paid a lump sum at the end of Abscant. contingent upon the success of the prosecution." In testimony the informer acknowledged that he expects to make more than $200,000 from his undereover activities: The bridge to the truth is further weakened when informers draw brokers or middlemen into the operation. The latter do not even know they are part of a police operation. For example a middleman in the Abseam case was apparently led to believe that he could earn broker's lets of millions of dollars for helping an Arab Sheik invest $60 million in real estate. It IS not surprising that he apparently east a wide net in seeking to gain "cooperation" from public officials. Claims about past misbehavior, or predisposition of potential targets become even more suspect when this circuitous path is followed: This may help account for why, under the vers tempting and facilitative conditions of Abseam. univ hall of those approached Look the bait. Informers and to an even greater extent middlemen. are formally much less accountable than sworn law officers and are not as constrained by legal or depart- mental restrictions Increased police respect for individual liberties and rights may come partly at a cost of decreased respect of them by informers and other civilians in law enforcement such as "professional witnesses and private detectives. What police need to have done but curnet themselves do legally. may be delegated to others. The greater the restrictions on police the greater the delegation This need not involve police telling informers to act illegally, But the structure of the situa- tion with its insulation from observability, skills at deception and strong incentives on the part of the informant. make supervision very difficult. Videotape and record. ings are a means of monitoring informer behavior. But the crucial and generally unknowable issue is what takes place off the tape recording. To what extent are 38 events on the tape contrived? Informers and middlemen are well situated to engage in entrapment and the fabrication of evidence The structure of the situation may also tavor informers committing crimes of their own. apart from their role as law enforcement agents. The informer-controller relationship is usually seen to involve the latter exercis- ind coercion OVer the former Through 11 kind of Institutionalized blackmail. the threat of inil. or public denouncement as an FTRST is held incompoyance as long as cooperation is torthcoming What IS less Importantly realized Se the doublised_ed sword potential of such relationships When not able to hide crinsmal behavior the skilled. or Firtunately situated informer may the able to manufacte or correr the controller as well with 3 kind of stand-off resulting The price of caining the comperation of mothers may Ven 10 iznore their review breaking But besind this participled nonsentirvement, these structions baid them solves well to exploitation the informers For Their OWN criminal unds. Major cases may respire the government to desd: WHIT subster consultants intervating in their natural habitat. They are DRAW to have accomplitive edge over being An institution expert. planning an undersiver the in Copyrate (2) trint load Investe gating organi ed crune in the construction was applicant's able to Samphon in less and issued worthless insurance performance holder Is part of CI+ cover he was certified in an what of the New Hampshire Instructionce Group with be power to issue bonds The Groblems in this expensive Cash which resulted in the indictments Der the known through a stat agringt the government this many other such cases are Miere that We not hear about because no 480 brings suit" An informer ID the Abscant Cash With apparent(s) able to exploit his rule and tidse Front the had bein ->> UP Abdil Insterprises Ltd 50 sundle West businessment anzing they and here taken. the businessment complained to the FBE However, the informer WILL altre traditory en nor a year and 0 salf The FRI think no detion, essentially customs; up his notif after because pullic Here we see a type of immainity that under NOT work mas other in this B was only temporary to protect the speracy of 13 ongoing investmention. Once the investigation was over the MY emer was indicted. through any Call speculate OR the harm done and Hick of compensation In value Their Victurezation was indires th aided by the government. first through helping provide the opportunity and tisen If: failing to intervene or to warmenthers Even meme troubling afe-cases where inform ers can essentially blackfaail potice into granting them permanent immunity This happens when a trial and related publicity would reveal dirts tricks and on the part of government agents, secret techniques of operation, projects or classified information. Undervorer HOTN grout risks and temptations to the pour involved the with informants, the secreta of the situation. the protected areass to illegality. and the usual absence of a complaimant can be conducive to corruption and above Undercover operations can offer a way 111 make PASY cases or to retaliate. damage, or gain leverage against. suspects not otherwise liable to prosecution: Issues of entrapment. blackmail. and leaks were considered in the section on targets. Here the focus IS on direct implications for poince The character of police work with its isolution. secrecy. discretion. uncertainty, temptations. and need for suspleisusness, is Irequently drawn upon to explains powr police-community relations. the presence of a police subculture in conflict with formal departmental policy. and police symptoms. The Number are even more pronounced in the case of undercover Work In addition it involves other Castors that may be further conducive to problems Beyond the threat of physical danger from discovery there max be severe social and psychological consequences but police who pays un foreover rules 1945 an extensted period of time Unde reaser situations and by be more fluid and unpredictable than with reutine patrol or invistigative work There is creater automomy buid Dates and procedures are less clear. De expenses in setting up an undercover operation are often signifi cant. The financial cost of instakes or Luture IS much greater than with conventions al investigations The need for accentuates problems of coordination and concern over all that can 20 wrong Undercover police may unknowingly enforce the law against each other or have it enforced against themselves, sometimes with tragic-consequences. Undercover signts are removed from the usual controls of I uniterm. a hade: :1 visible supervisor. a fixed place of work. radio or beeper calls and a delimeated assignment. These have both a literal and symbolic significance in reminding the officer who he or she is. Unlike conventional police work. the undercover agent tends to deal only with criminals and is always carrying out deception A criminal environment and rele 39 models replace the more usual environment The agent # encouraged to pose as 3 criminal. The ability X Nend in and no aked and accepted, is central to effective- ness It also serves 15 :00 indication to the agent that ne OT she is doing a good job. As positive personal relationships description the agent may experience zuilt and ambivalence may over the the wal itcherent in the deceptive role being played The work Intense Throught is always For suffer operatives The work becomes allows State: The agent may come 01 the sense of power the rele-otters and its operated contrict terminal activity Isolution from and Contacts and the and to the and agreested can have unintended conservições Playing max extracism And ambrya- lease about the person and maker to have 1:1/0 the Stated and united invatts: July agency mapt water In CAS boxe) Mather Night. Kant the THat Was which we present to DE all We De careful about whit we provide to Me WISL become OF purveyous of the vice this sel all Frie as part to M. divestigation Chicago policiman pased and and minità to A phosidable FINE He continued in the pimp ride after the constitution ethled and Was midd A member of (1) elité dear entorcement in the Bown with became as and withheld (11) as disability Rentern The Francial :- ISSNE corruption. particularly in gambling and nativative he del chances they and 0 rather good Francatly, effect, and application unless for THEN attention Hand in hand Police Superves "> are they Reserved difficulties in knowing weat undersiter (% means - DE Awarenting of the OSTATES $ inderented activity explain J Edgan Hunvers 014 [1] having - NO agents in The reputal from of the FBI für to parting (X) the that AS wonts under Howver did NOT Pac Date STREET As and in requirely involved in undersi well intivities Pulice folklare that this MIN work VICE and underswer roles are sometimes different negatively withheld by the experience Paid non aware of any studies at the the and of long better ment in undercover theoretical and the impressionistic evidence 1 would predict that undersover agents wind disproportenally show symptoms of street The possible duriner 14 third purties In one of the least explored aspects of undergover work of the SUCTIVEN and second war ripple checks much of it never comes to put-in attention and Nove who are hurt may not even be sware of it to complain or SEN termites. Its devisibility makes 11 even HAVE problematic One type of damage [4] third parties these already been considered. crames commit- ted by informants under the protection Art their role. but unrelated to on investiga- tian. A second type COM THE directly invoice the intended his enforcement rele. The must obvides cases involve the victims of governmentrestired OF facilitated crimes In Denver two vounz Dien learn that 1: local Tenat ANA reality a police sting. is by stolen cars the then steal a on kill its owner in the process and then sell the car to the Tener That repeat and are then arrested According to one estimate only half of the property stolen in time hope of being sold to a police-run fencing Operation is actived returned to 15 owners. People may not report their less or 18+ property may with distinctive identification Even in cases where people du wet they property back. should the trauma of their vistimization entitle them to sure special compensation because of the government refel For security reasons or to gain CHIZENS OF established businesses approached about excepting with AC underenver operation may IN be given the full and candid account necessary for truey informed worm. Such was apparently the case with the KIN move in "operate : trent load In seeking his certification as an insurance agent with the power to insue bonds. FBI currents described him to the insurance company In cuestion as a furmer police officer and "a straight arrow" and used a false name The insurance company was not toid of his criminal record. or of the fact that he agreed to be an informer to avoid a nume-vear prison sentence and fine. Because of the mishehavior of this informer, as of May 197M damage suits had been filed in five states against the New Hampshire Insurance Group the certifying insurance company Company officials claim that his actions in issuing take per- formance bonds to construction companies vost them and insurance brokers more than SGO million in numbers losses The head of : meago insurance firm states "What the FBI dad Was a disgrace they ve mined US. He is suing for S40 million dollars The web of human interdependence IS dense and deceptively triffing with one part of it may send out reverberations that are no less damaging for being unseen, The 40 damage to third parties need not be only economic The latter may have negative consequences for health and family relations Have any small businesses been hurt by the competition from proprietary fronts run by police? To appear legitimate. such fronts may actually become competitors during the investigation. Government agents with their skills and no need to make is profit, would seem to have an obvieus competitive edge over many small business- frem. Their exemption from many of the kews requiating government financial transactions can tie conducive 00 curstionable practices: The most private and details 42 human stations and relationships may be violated under the mantle of government develt Thus as part of an attempt to infiltrate the Wasther understrund at Federal developed an onganiz relation- ship with II worner. She become pressunt. Attut onsiderable indecision and at the unting of the NEMBER who decided to have an aboution. The agent's work then took him elsewhere und he ended the relationship with the wornan apparently never knowing his secret identity 000 True motive- Other can imagine the publicity and law suits if kept the child and the virculostances of the paternity became known. OF X site had dird in or become centaily unstable Indirect damage to third Ratties may be seen in the increase in non-uniformed police impersumentors which approves 10 be necommunying the stirend of undercover putier work. Profersonators are Chered rule invelting and their natial tales are made Shart credible VAT the public's KG that underenver work in common Accord- into 101 one extimate several varies 350 more titum :: Quarter of the complaints filed adamst the New York City involve impersemations Chaste con games. such as that where the Student is persuaded :: draw mones Priorty the bank in under to secretly lest the honests of Bank employees, may be made more behevable by the actual spread of VITIONS kinds of government secret interity tests Official statistics prob. abiv greativ underestimate the extensiveness 40 this since Hear preved upon are often prostitutes. come extras and persons serving to buy or sull narcoties. who are less Trely to report their victimization An additional problem are law 711 the he by buowledge about the intended und performed costs of such operations -TH- wase for the newer Fand some of the older) forms nots on a member of inadequately tested assuraptions, The public relations efforts of advocates of these taetles and media intituation with them glosses OVER this They are heralded as facties that finally work in the war against crime. and as the only way to deal with conspirators, The dramatic impact of suddenly making a large number of arrests and receivering substantial amounts of property is stressed But fir less attention is even to questions such as: What nappens to crime rates durihs and after the operation? Who is heing arrested? How does the number of arrests made or property recovered compare to that which would be expected over a comparable period of time using conventional methods? What is the CUST per arrest or value of property récovered as compared to conven- tional methods? Any assessment of costs must include undercover effort: that had to be closed down because of leaks. Their high vulnerability to discovery an added cost What side-effects might the tacties have? Assessment of the consequences requires that and anti-crime decoys direct- ed mainst a general "market" of suspects be separated from undercover work used against subject whose identity is known in advance. as with the infiltration of particular organizations, police posing as hit men. at the offering of opportunity for corruption. The latter are judged be their success in the individual case in question. Was a serious crime prevented? Were convictions obtained that would not have been otherwise possible, or ass expensively that with the Use of conventional methods? The forther CHSUS have general deterrence as it goal. The offences here involve a victim who can report the incident. milher than being reported only as a result of arrest actions. as IN the CBP with consinsual crimes Analyzing their consequences 1> UNISHING The available research has dealt with anti-erime decoys and fencing stinds Even in these cases the evidence is quite limited and not very reassuring. An analysis of New York City's much herated Street Crime Unit which special- izes in décov operations) while laudatory of the group's arrest and conviction record did not find that the unit was decreasing either robberies OF grand larcenies from a person Abt Associates, 1974 New York City Anti-Crime Patrol Exemplary Project. Washington, D.C. National Institute 454 Law Enforcement and Criminal Justices Not did a sophisticated unalysis of Birmingham's experiment with an anti- robbery unit. which relied heavily on decoys, find any impact on rates of lareeny or rubbery M. Wyenth C Brown. and R. Peterson. 1980, Birmingham Anti-Robbery Unit Evaluation Report. Washington, D.C... Police Foundation A 1979 in-house Justice Department Study entitled "What Happened" makes rather grandiese claims for the success of 10 antistencing sting operations carried 41 out since 1974 But a careful re-analysis of these data by tencing expert Carl Klockars (1950, Jonathan Wild and the Modern Stink in C Tapet History and Crime: Implications for Contemporary Criminal Justice. Saze Publications. Beverly Hills, Cab: casts serious doubt on the quality of these data and their interpretation. Klockars concludes that there is not sound statistical evidence to suggest that the stinz operations produced a decline in the rate of property crime An malysis of the use of Federal tunds for anti-feneine projects in Sun Diego file year period concluded that notner the market for stolen procerty. not the includente of property crimes had been reduced $ Provide Sept 1976 Eventing Minis and Prive Strategy, The Police Chief Mary Walsh in Strategies :45 Constructir the Criminal Receiver of Studen Gorids Washington. Dr. Law Assistance Administration notes that poties changed in operations were positively effected by the experience. but had questions as Remeat had really been accomplished. If the evidence is trius fir MJ that - nichts crime on an instruction busis, 15 11 presible that disture SIDE they Day actually increase ( or through then uniterides starts THANK any enforcement more difficult Among Ways that undercoser instres DEIV critiv are Generation of a market for the burchase or an Bleeni and services and the morrest generation of for other NEW activities at 13 anz the underower operation is in in STREET generation or the the INF 1 orders of a ministry provision of a scarer skill or INSURANCE without While the crispers the not be earned out or provision of IS seductive complation to With west the notikels the encounter it were $1 net for polar actions: exemination. - offer person otherwise not predisposed NA commit the dependent of a even opportunity structure Lot actions on the of the drank were agent or informant; some of these max be necessary to gain creditions in the role. while others will represent exploitation ST the rate correction. belows. Lickmil friends, Fraud. or the very the action is directed stationation of a wartern et crimes on the Ruft of those not brain of the undersed operate IL impersonation of a police officer: vigilantelike associts or crities committeed realnst undercover officers by people WITH do not realize they are designe with person. and relatiatory violence against informers. Highly complex questions involving difficult measurement ISSUES are involved here. Research will always be relatively weaker in this area. However there is a need to ask hard questions about these operations If claims about the effectivoness and benefits of these are to be accepted. the Justice Department must go much further in permitting research by disinterested Hotside evaluators Such research should be concurrent with the investigation. und not restricted 10 evaluations done six months after the close of the investigation. A number of problems with undercover Eaches have been considered. As the longer paper I brought indicates." it IF relatively to document Xamples Given effective use of the media by law enforcement in revent undercover operations and the secrecy that surrounds such operations with Its conduciveness TAX not reging. or covering up mistakes, abuses. and costs) public perceptions are probably skewed toward over-estimating advantages and under-estimating the disadvantages of the tache Because of at lack of research we can not say much about how requently or when the problems with undercover work occur. Not can we adeptifitive answer maier questions such ast di Under what conditions are the gains worth the visits? (2) Can the gains be obtained in 1 costly alternative ways CO What additional policies, quidelines. oversien: practices, sections. and train- THE are needed to minimize problems. for those Cases of last resort where the tactle may be deemed appropriate? There are many types of undersover activity and these vary creatly in their potential for problems As an aid to thinking abhut this and relating policies to specific forms. the following section describes of the mare setient types of undercover operation and activity. B. TYPES OF UNDERCOVER ACTIVITY AND THE RECENT 61 IDELINES The politically and emotionally charged climate around undersover police work can lead to extreme positions. Some critics elicim that such tastes violate basic rights and ought to be banned cutright. while supporters uncriticative advocate any use of them in the struggle adainst crime. Taking an informed position requires making distinctions between types of undercover operations. G. T. Marx. "The New Police Undercover Work" Vitan Lite. rid * Junuary BEST 220-146 42 Table I lists dimensions by which they can be contrasted. Certain combinations are much more fraught with difficulty than others. In general the more the factors. on the right side of the table we present the more problematic the use of the tactic. These dimensions do not occur together randomis, but tend to cluster: Recent undercover activities tend to be set apart from eather efforts: aside from their scale and complexity by a shift to factors on this right side For example the classic Cactic of infiltration rends to involve police selection of Pargets, HOMAGON in response to complaints and entimal intellizence in environment. intermers. an active conspirational miles Aredim in invisted prove intentive, in Miller cuses what seemed to be ministry in NO artitud environment and the use of informets and unwitting informers smirting infeltration the selection of sustects and an THE Direct TABLE Pip Six Source for institute the may actions In to with complaints IN pattern Criteria for transfers XxM D- person the basis of experience Responsibility No minuting the the by provide offered an opportuner's Desire of activity in underciser Passics Name Naturesof their Victim CONSEPTIONS Type of entire Natural submit Who plays the my stortners Turnina to the differents, 5333 addit decides in currite as dister- cover investigation" One et on Harry respirates of the Ancli-American legal system to its historie tendialley for policies be involved in response 141 complaints. rather than ON their GWA initiative This 15 a of the distrust of minent and concern over on the Contract R has protobly meant lesser Unit of secret police practices than is the Case en Europe But even where present in the United States. traditional police undervover activities have rended to be mobilized in response to complaints and information from informants Anticrime deem units UTY digs ID response to revent crime pat- terms: When police pose as hast men or arsonists this is m response to an informant tip about planned crimes In many cities vice enforcement is curried out primarily in response to complaints of merchants, WIVES whose husbands have last money gambling, parents concerned about temptations for minors. OF where other crumes are present While this "reactive police henavior Call be exploited and has other costs such as writing until If crime occurs before taking action. it introduces a degree of citizen control and can direct the were police discretion: In contrast are investigations undertaken enterely at police initiative in the absence of grounds for suspecting that erime is occurrent The rationale for this may be to establish an impressive arrest record. to gather intelligence, to damage a person reputation. to harass those suspected of other crimes for which evidence to establish guilt is lacking. to gain coercive leverage over the target. and to test levels of intecrity After a decision to inituate an undercover investigation has been made. what criteria are used in deciding whom to direct If against? At one extreme. and most troubline. we have what amounts to rundom integrity tests. training): OF for would be offenders. in the assence of THE information under the suspect prist criminal behavior or melinations For example last wallets are left in various places where police will find them: the them Delhi to see it they will be turned in intaet: undercover police pose as thieves and INA to bars and appliance stores offering bangains on stolen television sets and stereos: middlemen hoping to earn huge commissions cast a wide not in bringing in elected officials as targets for bribes. At the other extreme are targets or locations chosen on the busis of criminal intelli- Lence Here authorities have information about a person's previous or current criminal activities. or know that a INVOICE area is the scene of criminal activities The intelligence directs and limits the investigation. The goal is cathering evidence and apprehension of a person thought to be criminally predisposed. rather than seeing at what point people will break the law if given a contrived chance Many of the lesal questions turn on the nature of the role plaved by the under- cover person: Was it passive or active? If the latter. just how active was it? What was supplied by the agent-whe idea and plane for the crime, incentives, tempta- tions. and persuasion? Were skins and resources ottered without which it could not 13 be carried out? Dezree of varies from szubed surveillance to intensive and directed interaction with the that In a crimizial conspiracy When the goal is not crime prevention or counter- Relitzence the more passive the law enforce- ment role the lewer the problems An important aspect of the underencer Foie :- whether it involves playing the parential vieum or posing as 11 Examples of the termer His Rade the decoy who invites attack by was 3 drunk with in exposed walled or Nee KBI agent who presented to state casbage -1) owsiness in the hope of bederaing the target of on exception nil in such Card assuming the termination offered No the decov victim is with what modit Se expected in the caniral ment the the of the metic Whitten scoblemato The initial) comes than the suspect who is and No understand agent plays A provide rise with respect to any Commity THE It in ventral DA chaying the the of the withing curther who with the subject - ver investigation to breas the law Examples of this assude the as a and porhographic book setten DE man. et or cheut INF sure. Here DESCRIPTION differ likely to the to max on access min Sona underviser apportus and as that there 1+ residents :- believe that the new who extr 00 explain them were premsposed Signature Unders No or stutions that INVOICE with the Wart of new titesforms am preferable to there where send 20 be and take SEVE actions in to sure the taxes Linderseven situations When cents or are likely to the 33 self-selection. For exprepte WIS you the Brut APR decos with exposed wallet. Sittle will in and bising mas the promon who dries tax money and FRA nos shown a DE M. these informs Similarity ID of police-rin lenking treats $11 fixed Mout as Phone with South goods to come to the tender withouth 912 exception to -M drawn MA JC a result of the reging actions needed to Word Out the relicies 2% baseness In CASES agents Get the bread tall pollumity 4th * the water. NT letter the streets. and wait to State who taxes the With respect tas the noture- the creation the state il 10 a part of DP natural world the less production is Pat watner W.Y. the IVES the deveption the better: This has birth and test wantages Thus information INTO an enzome criminal enterprises subturing 10 24 This with a bribe outer. or tirmme a genuine fencing operation service 1 publice ENTRA 4999 more appropriate than bights iginative creations which may mave 10W IN unterporets in redidy or lead to victimization This contrasts with many prostitution, and homosexuality vases, and the recent bribery cases where selects a carticular person Ha approach. Of course it could be arrave that even in such GISUS that there is a degree of sell- selection since the person UNITED always Say, THE Star Hall of the Congressinen was were approached in Abscant did Yes the sujects in the cases first discussed has a more assertive quality IN the taxe of an available. her relatively passive opportunity. In the first section the reflematic uspects of undercover work US they may involve prilice. informers. and unwitting informers were considered. Here We can simply note that The we move trom the use of SWORT agents. to cooperating informers to those who do not even Know they are part with all undercover operation. control and accountability become PM more difficult THE Gt WELINES Public guidelines for BOW enforcement services each as these issued DA the Justice Department ON courtivers, senter warrants, Packetouring entergrises. and most recently on undersiser operations, are in principle an admirable policy device. As Coluntary restrumts on the use et poise power they can help protest privacy and liberty They can increase accountability by offering outsiders enteria by which to judge government performance. can create a moral climate within JR agency. and can help limit the wide discretion in the law entorcement role. They can be a useful tool along with Judicial review. Congressional oversight. internal supervision training and evaluation: Yet the impact of guidelines in practice depends on their implementation and on their substance The general issue around implementation is whether the cuidennes will be applied in a serious and recorous way, of, as if often the case in bureaueratic organizations. will come to be applied largely ritualistically with acquiescence to whatever is asked for. within broad extremes A more specific issue involves the question of how apparent abuses. as in many of the Abscam cases, came to happen. The recent guidelines are sand to make formal 44 existing procedures, If this is the case it appears that a number of guidelines were violated involving informers: the need to make clear the corrupt nature of the activity: reasonable indication that the subject is engaging. has engaged. or is likely to engage in rilegal activity of the type in question: and entrapment. To the extent that this is correct, how did it happen? is It the FBI's newness to complex undercover operations, relative to the Drug Enforcement Administration or the Alcohol. Tobacco and Finarms Bureau" Were the guidelines not fully under- stoud or known Is there a weakness in supervision? Did the dioseness of the Justice Department to the FBK relative to other law enforcement agencies, lead to a less critical look we what was come 43. is it a wee of the possibility of catching regily big fish overwhelming the custelines. as thereostly investigation developed its own momentum." IN it a case where because of the secrecy une temptations even with good faith. endelines can not DV carried out VETA well? Or same might conclude that Abseam was carried out consistent with the currielines. as the testimony last March sucgested Yet this conclusion is even troubling: If 2 18 correct. then the substance of the guidelines is worfully inadequate. Let me consider the substance: With respect to substance in the guidelines there are IND areas ni convern The first concerns what they do SEX and the what they fall to say, or CA not say clearly enough I approach the topic with Sugarity It IN difficult for an outsider to comment un these matters There IS the of Monday morning quarter-bicking from the safety of the university or press far removed trem responsibility or First hand experience: However outsiders ANY in a good position to more fundamental questions about deals, purposes. and bread trends The edidemes can be seen RS 3 compremise between the needs of citizens in a democratic security and the needs of law enforcement. NM Chere is a dircuded tilt toward the latter The critic THEY see them as :1 way of maining legitimacy for the prost cirregious or practices. at a minor und of listing possible dangers and restrict THE the discretion of lodal cents initiation and carrying out certain Name of undereover activity However these can always be carried out if approval $ the tained This is .1 little like saving to a child that because porson can kill VISA it should only the used when recessary and it your parents approve your using it For examile it is all to the good that for 11 agents can that initiate undersover operations ID B. under "sensitive circumstances HAS making untrue representa- tions concerning innocent persons: engaging in most telonies: attending in an under- cover capacity a meeting between a subject of investigation and his or her lawyer: posing as an attorney. physician. clergyman. or journalist when there is a signifi- cant risk that another person will be drawn into a professional or confidential relationship with the undercover person as a result: and when there in a significant risk of violence or physical injury or a significant risk of financial loss to an innocent individual. But when will higher authorities use their power to authorize such activities? Apparently they can be approved when there is a "need" for them. Thus on p. 6 the guidelines state that underciever operations are to be conducted with mini- mal intrusion consistent with the need to collect the evidence 4F information in a timely and effective manner situlies added? Crimes by agents can be approved when there is a need to obtain information or evidence necessary for prosecution and To establish and maintain credibility or cover with persons associated with the criminal activity under investigation If police are to be given the power to engage in felonies. make untrue representa- tions about third parties, violate professional confidentiality and privilege, and take actions where there is a signaticant risk of damage to innocent third parties we need to know more specificates under what conditions this will be done Justifica- tions via the need for information and evidence. or to establish and maintain 3 cover. are insufficient because they are so ameral. To be sure. there is need for some flexibility and openness in any guidelines. Reality's richness can never be fully anticipated by a listing of formal rules, First breaking developments, extenuating circumstances and emergencies require that those in termal organizations have room to maneuver. Yet 1 think the guidelines offer too much Entitude for approval as currently written. Should any thetics be categorically prohibited. regardless of the circumstance? The exceptional conditions which may. require using such tacties should be enumerated. Other areas in iteed of work or clarification are: di The conditions governing the use of unwitting informers. middlemen or bro- Kers who do not know they are part of a law enforcement operation. It their accountability and respect for legal requirements can not be increased by "turning them". should their use be prohibited? 121 A clearer statement of the temporal dimensions of the activity is needed. Is there any limit to how many times a given target can be approached? If a person 45 refuses the illegal epportunity should they be tempted again and again? Where the target is a diffuse group. as with thieves how long should a fencing front continue. to operate? Where the activity involves progressively greater rule violations. at what point should police intervene. There IS something of a conflict here between the law enforcement goal of prevention and apprehension. There is no easy answer to such questions. They illustrate how comblex the crime can be. They demon- strate the inter-dependence between police and violators in the production of certain types of crime. 3) On P. 11 the guidelines state that entrapment "should be scrupulously avoid- ed" and then give a definition which does not reflect the varving jadicial perspec- tives on this This should be becaused to indicate that due process may be denied reven with predisposition and when the behavior of the government is suiti- ciently ontrageous. As Justice Frandrurter anzared in a 1934 dissent in treine Calif. "observation of due process has to de not with questions of ruilt or innocence, but the mode by which guilt is ascertained (4) The descree et certainty required by determine that a person is predisposed to the illegality 10 question and the methods of validating this Extreme care hould be taken to insure that the unscrutions have and sederated a pretext to make it appear that the conditions for authorizing undersever operations and opportunities exist. when in Part they do not to some blaces the concept of repping a dime on someone (phoning in an anonyments commint CAD be 0 of making what is essentially a productive police responsible appear to the resictive. in Once general approval granted. unser what conditions must changes in the original phin, or the USE the tactic new subjects his approved Unless supervision IS close and it 18 HOST to magine how obtaining general approval for an operation nught serve to lezitimate subsequent incremental changes which violate the spirit of to letter of Har zadelines. the A clearer statement of the kinds of claimate to third parties that may occur and of the government's procedures. it any, for restressing these 5 A statement about records and retention. What happens 10 the video types and buys of opportunities the activity created by government agents when no wrong doing is discovered or no charges brought Are these destroyed Who has access to them? INJ The composition of the Undervoyer Operations Review Committee. How have is it. what specific type of persons will be on it. how long will they serve? de How broadly do the guidelines apply? Will the FBI refuse to participate in am joint undereover operations where the behavior of state, local, or private police is not consistent with the guidelines) Should there be broad standards across Federal agencies or whenever Federal funds are used by state and local agencies? (111) A new phenomenon has been private financing of public police ventures. At the local level this has involved factories paying much of the cost of having under- cover police pose as workers in an silurt to break up suspected drug activity. Some police fencing tronts have been paid for by private sources including insurance companies, businesses, and chambers of commerce. At the Federal level an FBI investigation into the selling of pirated records and tapes received a substantial contribution from the record industry There IS a need for public information on how widespread this practice IS While private cooperation and support may be welcomed in financially restrictive time. other issues are raised. Just what is being bought with the private sector contribution? Will the highest bidders be able to garner a disproportionate share of public supported law enforcement because of the contribution they can offer? H the money comes with no strings attached and is for an investigation consistent with an agency's priorities taxe one that it would have been likely to carry out anyway, there can be little problem. How wer to the extent that law enforcement priorities, discretion. tactics. confidential information. or prosecutorial actions are affected. then the factic must be closely looked at What limits should be placed on what may appear to be the private sector's ability to hire public agencies to pursue its own interests. even though the public interest may also be served? If private financing is to continue. then there is a need tot guidelines in this area. (11) Because the use of undercover tacties has expanded so rapidly: and because of their problematic aspects relative to more conventional tacties. shouldn't there be a periodic review. not only of the effectiveness of these particular guidelines. but of the undercover tactic as a whole? C. BROAD CHANGES IN SOCIAL CONTROL Whatever their legal and ethical implications. or short term effects: actions such as Abscam and police-run tencing operations may be portends of a subtle and perhaps irreversible change in how social control in our society is carried out It was 83-566 81 - roughly a half a century 020 that Secretary of War Henry Stimpson indiznantly observed in response to proposed changes in national security practices) "gentlemen do not read each other's mark" His observation seems touchingly quaint in light of the invasions of privacy and routinization of surveilance that subsequent decades have witnessed. How far we have come in such a short time Fifty years from now with observers End our wondering about the propriety of police agents trying to bribe Congressment distributing pornographic film. and running feriving operations equally quantity FBI expenditures for undercover work have more than quadrapied in the last three rears, smith from one million to a requested as million dollars for BY Is recent yours millines of dollars in new federal and has gone to New police for undersiner activities Broad changes in the nature of American social control to be taking place We are experiencing a extretal shift YORK trom some of the ideas central to the Anglo-American police readition The = servi English reside system which Hubert Peel established 111 2320 was to provent crime by & und emed visible Cl-bour presence As societal conditions have you filend and WS the deterrent Whet at this visible and predictable presence lass been questioned an alternative consept tion has cradually emitized Rather than only trying 10 decrease the emertunity for case through a unitermed police or recent target approaches HARRY- the more secure physical structures are securition for STING presention authorities ROW seek 10 selectively increase the education of may structures THE weak- entry operating under strailed windit: THE with Def: police Anticipal tory pulice strategies have comme more of DISCOUNT In trus respect police the paralleling the modern CARL rutton which not only to anticipate demand through Matali research. DM :- develop and manager that demand through Entern and the went types of interven- from Secretiv gathering information and conditating NUME anner controlled Caridi- tions effersca degree of control over the declared for program wrates hardly presible with litional reactive practices, Whenever a market is created rather than being 11 response to citizen demand. there are turticular dancers of exploitation alid misuse This :- as True for consum- er goods as for criminal Abtice processing In legal systems where authorities respond to citizen complaints. rather 15 #: undependently generating cases, hberty is likely more secure There #1 danger that ence undercover resources are provided, and skills are developed. that the taches WILL be used From uindiscrimmatelv Given pressures on police to produce. and the compt of such It is an easy move forward from targeted to indiscriminate Une of integrity WNS and from investigation to instigation. The bureaucratie imperative for intellizence can easity lead to the seductions of counterintelligence On this Inkage former FBI executive William Sullivan observes "as far as I'm concerned. We might as well net engage in intellicence unless we also engage in counterintellizen.ce One 15 the right arm. the other the left. They work together. The allure and the power of undercover tasties may make them irresistible Just as any society that has discovered alcohol has seen its USP rapidly spread. once undercover tacties become exitimate and resources are available for them. their use is likely to spread to new areas and illegitimate uses. To some observers the use of questionable or bad undererwer means $5 nevertheless justified because it is used for good ends. Who after all cannot be indicnant over violations of the public trust on the part of those sworn 11 uphold it or the hidden taxes we all pay because of organized crime? One of Me problems with such arguments is of course that there IS no guarantee that bad Healths will be notricted to good (Mide One important party to the elaboration and diffusion et undercover theties is likely to be police trained in government programs who may face mandatory retire- ment at age 3.1. if they are not attracted to the more lucrative private sector long before that Perhaps we will get to the point where some type of registration will be needed for former Government agents trained and experienced in highly. sensitive operations who continue such work in the private sector From current practices we may not be far from activities such as the following Rather than infiltrating service criminal enterprises. or starting up their own pretend ones. police agents such the accounting specialists micht infiltrate legiti- mate businesses to be sure they are obeving the law. or would obey it if given a government engendered chance not to In the private sector husbands or wives or those considering marriage might hire attractive members 01 the opposite SUX to test their partner's fidelity Businesses might credito false fronts using undercover agents to involve their competitors HI illegal actions for which they would then be arrested. 47 A rival's business could be subotaged by infiltrating disruptive workers, or its public image damaged. by taking false front actions in its name. One rationale for such techniques is a hope that they will have a general deter- rence. The goal here according to an experienced undercover worker IS to create in the minds of potential offenders an apprehension that any civilian could in fact be a police officer." While the costs and risks of the illegality may be increased. the effect on those committed to taking serious criminal actions may simply be to make them more clever. rather than to deter them. There is likely to he a diminischen returns effect. particularly with more sophisticated criminals. The tacties de Date 13 attack the basic motivation of those involved in consensual crimes. where are breaking is a corporative activity. Were this their ents effect. R might be as just another innovation in the never ending. and evolving. strudule between TOUNT breakers and enforcers. But even if we grant that such tactics were effective as deterrents. there are other issues to be considered Law enforcement is very different from other terms of government service such DE education. since we sulf-conscionsly hmit its effectiveness by balancing it with and liberties Simply put we want law entercement to be optimatly. rather than manimaliv, effective and efficient. In this recard we can note how the spread 34 esse more sophisticated ruses and elaborate surveillance damages Trust in a signature American society is fragmented enough without adding a raver of suspects, ness and distrust The greater the public's knowledge of such Lictics the creater we distrust or indevuduals for one another. In recent decades undercover police activities such as COINTEL and the RUSS local varieties. dearly damaged the protected treedoms of protical dissenters But new, through a spill-over effect. they may be ininiting the speech of a SUN broader segment of the society The and speech protected by the Boxes Rights may be chilled for everyone, After Abecam. for example. people in ment cannot help but wonder who it is they are dealing with Communication may become more cuarded and the free and opent dialogue traditionaly seen as have sarv in high levels of government inhibited. Similar effects Mark occur in numbers and private life A major demand in totalitarian countries that undergo Eberalization is treat for the abolition of the secret police and secret police taeties. Fake documents. subterfure. infiltration. secret and intrusive surveillance. and reality creation are nut generally associated with United States law enforcement However WP Date De taking small: but steady steps toward the paranota and suspiciousness that charae- terize many totalitarian countries. Even if these are unfounded. once they are *** 211 motion and become part of the culture. they are not easily undone Soothsayers of doom are likely to become increasingly apparent as we approach 1941 The cry of wolf is easy to utter and hence to disiniss. Liberty is complex and multifaceted and in a context of democratic government there are forces and counter-forces. Double-edged swords are ever-present. Tacties which threaten lib- erties can also be used to protect them. However. neither complexity, sophistry, nor the need for prudence in alarm- sounding should blind us from seeing the implications of recent undercover work for the redefinition and extension of government control The issues raised by recent police undercover actions go for bevond whether a given Congressman was predis- posed to take a bribe or the development of effective guidelines Such police actions are part of a process of the rationalization of crime centrol that began in the 19th century Social control has gradually become more special- ized and technical. and in some ways-more penetrating and intrusive The State's power to punish and to eather information has been extended deeper into the sendial fabric. though not necessarily in a violent way, We are Sweing a shift in social control from direct correion used after the fact. to anticipatory actions involving deception. manipulation. and planning. New technocratic agents of social control are replacing the rough and ready cowboys of an earlier era They are a part of what French historian Michael Foucault refers to as the modern states subtle calculated technology of subjection. Here undercover practices must take their place alongside of New or improved data gathering techniques such as lasers, parabolic mikes and other bugs, wire taps. videotaping and still photography, remote camera systems. periscopie prisms. one way mirrors. various intrared. sensor. and tracking devices. truth serum. poly- graphs. voice print and stress analysis, pen registers. ultra violet radiation. dog sniffing (dope dogst. and helicopter and satellite surveillance: new data processing techniques based on silicene computer chips which make possible the inexpensive storing, retrieval: and linkage of personal information that previously was not collected. or if collected. not kept, or if kept. not capable of being inexpensively brought together in seconds. To this must be added the increased prominence of X computers with their attendant records) in everyday affairs. whether involving commerce. banking, telephone. medical. educational: employment. criminal justice, pay television. or even hbrary transactions. The amount and variety of retrievable data available on individuals is continually increasing the vast and continuing expansion of the relatively uncontrolled privately security industry raccording to some estimates new three times the size of the public pasice forcet This - IS staffed by thousands of former military; national security and mestic police adents schooled and experienced in the latest control recomques while working for government, but now much less subject to its control: and evolving IN soldues or behavior modifica- tion. manipulation and control including sperant conditioning. pharmacelogy. genet- ie engineering, psychosurgery. and substanal communication. Taken in isolation and with appropriate safe-buirds each of these may have appropriate uses and justifications. However, they become more problematic when seen is consurt and as part of an enterne trend. Observers will differ as to whether they see in this an emerging totalitarian testress. or benigh tools for a society ravaized by crime and disorder Rst regardless or how it is seen. it is clear that seme of our traditional notions of social control are underscher protound change. There is a need for careful amexes and public discussion en the complex issues involved. Because undercover practices can & costly to other values. and have such potential for andse and unintended consequences. they ought to be used only under the most limited and careficity specified and evaluated circumstances. and as tactics of last. rather than first TESTIMONY OF GARY MARX. PROFESSOR OF SOCIOLOGY. MASSACHUSETTS INSTITUTE OF TECHNOLOGY Mr. MARX. Thank you. Mr. Chairman. 1 am very pleased to be here. 1 brought a lengthy statement which 1 will summarize. In my statement I trv and develop three broad areas. The first has to do with the problems that are associated with undercover police work. The second deals with the need to make some distinc- tions among types of undercover work: and related to that, some comments on the recent guidelines. The final section deals with some broad changes in social control. Let me say a bit about each of these areas. I am talking about the problems. because I think it is important to be aware of the problems of undercover work. as well as the advantages. In testi- mony last March, you heard about a number of the positive aspects of undercover work. and in my remarks I have chosen to emphasize some of the negative. In the case of problems, I have found it useful to approach this by looking at four groups that are involved. The first are the targets of the investigation, the second are informers. the third are police. and the fourth are third parties who may be damaged by these activities. I will say a bit about each of these. In the case of the targets, they may be victims of trickery, coercion. or unrealistic temptations. In the case of trickery, for example. people may be led to believe that they are participating in an activity which is socially legitimate. The illegal aspects may be minimized. The illegal aspects may be hidden or disguised, SO they are not made aware of the fact that law violations are going on. Or the weakened capacity of the target to judge right and wrong may be drawn upon; for example, by getting someone drunk. The issue of temptation is a fascinating one. The basic point is: Are we dealing with people who are corrupt? Or: are we asking the question: Is someone corruptible? And here there is a parallel to Job, I think, where God was seeking to test Job without any prior evidence that Job had done anything wrong. Another Biblical parallel the message gets shifted to lead us into temptation, and deliver us to evil. 49 There are other problems involving targets, such as the invasions of privacy, damage to réputation, the potential for blackmail and harassment. In the case of exploitation by informers, they are clearly the weakest link. What we see here is something relatively new in law enforcement, where informers are being delegated significant au- thority. Informers are put in a position to choose who it is that is going to be investigated. This becomes doubly troublesome when we deal with unwitting informers, with people who are not aware of the fact that they are part of a law enforcement operation. A third problem area has to do with the great risks and the temptations to the police who are involved. There is a line from a novel from Kurt Vonnegut. where he says: we have to be careful about what we pretend to be, because we may become what we pretend to be. When police are in undercover roles for long periods of time. removed from their normal occupational situation and from super- vision, they may come to question the traditional restraints on police behavior. In the case of damage to third parties. the issues are very trou- bling. There are ripple effects. Where there is any secret or covert action. it is hard to know where it will eventually go or who it will effect. There was a case in Lakewood. Colo., that received some atten- tion recently, where two young men learned of a police fencing front, They stole several cars and sold these to the front: They also at this time displayed a weapon that they had previously stolen. They then went, I think the following day, and stole another car, killing its owner. They again sold the car. They then committed another murder while stealing a car and again sold it to police. Another problem involves the issue of the fence providing a market. People who tend to steal in neighborhoods near where their fences are. And to the extend that you have marginally effective thieves, the offer of a government-provided facility to purchase goods. may stimulate these people in their crimes. Another area where there are major problems, has to do with our lack of knowledge in cost-benefit terms about the intended effects of these operations. Here I'm not talking about things like ABSCAM. but rather activities such as police fencing fronts or the decov activities that are directed at a broader kind of audience or market. All sorts of grandiose claims have been made about how finally we have something in law enforcement that works. I have reviewed the evidence and it is rather meager. One can certainly not con- clude that there is an abundance of evidence that these activities decrease crime. In fact, under some conditions, one could even argue the opposite, that they may stimulate or amplify crime. I will mention some of the ways that this can happen. They can generate a market for the purchase or sale of illegal goods and services. While the undercover activity is going on they may gener- ate capital that can be used for other illegal activities. There may be generation of the :dea for 1 crime. There may be generation of a motive. There may it a of a scarce skill or resource without which the crime could not be carried out. 50 There may be coercion, intimidation or persuasion of a person not otherwise predisposed to create a crime. Covert opportunity structure for illegal actions can be created. Some of these may be necessary to gain credibility in the role. while others will represent exploitation of the role: Corruption. bribes, blackmail, frames. fraud or the very crimes the action is directed against may Finally, there is the possibility of stimulating a variety of crimes on the part of people who are not a target of the undercover investigation; for example. imp rsonating a police officer for vigilan- te-like assaults by people who don't know the undercover person is a police officer. There is also the issue of retaliatory violence against informers. Questions regarding effectiveness are very complex. And unfortu- nately. there's not been adequate cooperation from the Justice Department in its sponsorship of research. Bevond a lack of fund- ing. there are some restrictions that severely limit research. such as requiring that it be done 6 months after an operation is closed down. The problems mentioned do not occur randomly. They tend to be associated with particular types of undercover operation. One of the problems with this whole area is that people take a polemical response. They either say: This undercover stuff is teriffic; or they sav: It's terrible and we should ban it. Clearly, there is a need for a middle ground. To move toward that middle ground, it is important to make some distinctions. In my testimony on page 31, there is a table which contrasts different types of undercover activity. To the extent that those things on the right side of the table are present, I think the tactic becomes more and more troubling. The most troublesome situations are those undertaken at police initiative that involve random integrity testing: those that involve police playing or taking an active role where they initiate the crime as coconspirators, rather than appearing as victims; and those involving an artificial environment and the use of unwitting informers. Let me turn to the guidelines. Public guidelines for sensitive law enforcement activities. such as those issued by the Justice Depart- ment, are important for a number of reasons. Yet the impact of guidelines depends very much on how they are implemented. and on their substance. The general issue around implementation is whether the guide- lines will be applied in a rigorous and serious way, or as if often the case in bureaucratic organizations. will come to be applied largely ritualistically, with acquiescence to whatever is asked for, within broad extremes. A more specific issue involves the question of how apparent abuses, as in many of the Abscam cases. came to happen. The recent guidelines are said to make formal existing procedures. We were told in the hearings last March that Abscam was carefully supervised, that it was conducted in a way that was consistent with Bureau policy. If that is the case, it would appear to me that a number of the guidelines were violated: those involving informers, those involving a need to make clear the corrupt nature of the 51 activity. reasonable indication that the subject is engaging or has engaged in illegal activity of the type in question, and SO on. Now, to the extent that this is correct. one can ask: How did it happen? Is it that the FBI is relatively new to complex undercover operations. relative to the Drug Enforcement Administration or the Alcohol. Tobacco and Firearms Bureau? Were the guidelines not fully understood or known? Was there a weakness in supervision? Did the closeness of the Justice Department to the FBI. relative to other law enforcement agencies. lead to a less critical look at what was going on? Is it a case of the possibility of catching really big fish overwhelming the guidelines. as the costly investigation devel- oped its own momentum? Is it a case where. because of the secrecy and temptations, even with good faith. guidelines could not be carried out very well? Or one might conclude that Abseam was carried out consistent with the guidelines. as the testimony last March suggested. Yet this conclusion is even more troubling. If it is correct. then the substance of the guidelines is woefully inadequate. One always needs a balance in a democratic society and the needs of law enforcement and liberty, Yet there is a decided tilt toward the latter here. The critic may see the infidelines as a way of gaining legitimacy for the most egregious of practicies, at a minor cost of listing possible dangers and restricting the discretion of local agents initiating and carrying out certain forms of under- cover activity. However, these can always be curried out if approv- al is obtained. This is a little like saving to a child that because poison can kill you. it should only be used when necessary, and if your parents approve your using it. Police are given the power to engage in felonies, to make untrue representations about third parties, to violate professional standards of confidentiality and privilege, to take actions where there is a significant risk of damage to innocent third parties. We need to know more specifically about under what conditions can this happen? In terms of specific comments on the guidelines. there are areas where they should be strengthened and where additional informa- tion is needed. The most serious lack is the failure to specify the conditions governing the use of unwitting informers. middlemen and brokers who don't know they are part of a law enforcement operation. Now. in many investigations. the accountability of such people is increased by "turning them. Their cooperation is gained by hold- ing off on prosecution or sentencing When that isn done. I think their use is very problematic. The Government may have incentive for using them because if an informer entraps someone in a case, that is grounds for dismiss- al. But if an unwitting informer entraps someone. then the govern- ment is in business. So. I think much more attention has to be given to the limits on the use of unwitting informers. The second area has to do with the temporal dimensions of the activity. Is there any limit to how many times a given target can be approached or tempted? What if a person refuses the illegal opportunity the first time. or a second time? Should they be tempt- ed again and again and again? What about situations where the 52 target is a diffuse group. as with thieves? How long should a false fencing operation continue to operate? Where the activity involves progressively greater rule violations, at what point should police intervene? One strategy is to get the largest fish. This can operate to keep the undercover operation going as long as possible, even though damage at a lower level may. in fact, be done. There is an interest- ing conflict between the police goal of prevention. and apprehen- sien. This points out the need for more research and thought. The guidelines state that entrapment should be scrupuously avoided. Then. they give a definition of what entrapment is. which doesn reflect the varying judicial perspectives on this. I think it should be broadened to indicate that due process may 30 denied, even if there is predisposition and guilt. when the behavior of the Government is sufficiently outrageous. Another area in need of work has to do with the degree of certainty that is r( juired to determine that a person is predisposed to the illegality in question and the means of validating this Extreme care has to be taken the insure that the unscrupatous have not generated a pretext to make it appear trat the conditions for author zing undercover operations and opportunities exist. when in fact, they do not In some places. the concept or dropping a dime" on someone can make a reactive publice response appear to be proactive response. I think a clear statement is needed of the kinds of damage to third parties that may occur, and of the government's procedures, if any, for redressing those. Something is needed about records access and retention. What happens to the videotapes and bugs of opportunities for illegal activity created by government agents when no wrongdoing IS dis- covered or no charges brought? Are these "estroyed? Who has access to them? I think the composition of the Undercover Operations Review Committee needs to be more clearly spelled out. How large is it? What specific types of people will serve on this committee? For how long? How broadly do the guidelines apply? Will the FBI refuse to participate in any joint undercover operations where the behavior of State, local or private police is not consistent with the guidelines? There is a new phenomenon which some Federal law enforce- ment agencies prohibit. This involves the private financing of public police ventures. At the local level. this has involved factories paying much of the cost of having undercover police pose as work- ers in an effort to break up suspected drug activity. Some police fencing funds have been paid for by private sources. including insurance companies, businesses. and chumbers of commerce. At the Federal level: an FBI investigation into the selling of pirated records and tapes received a substantial contribution from the record industry. There is a need for public information on now widespread this practice is. One could, of course. welcome private cooperation. Yet if support may be welcomed in financially trouble times. other issues are raised. Just what is being bought with the private sec- tor's contribution? Will the highest bidders be able to garner a 33 disproportionate share of public supported law enforcement be- cause of the contribution they can offer. If the money comes with no strings attached and is for an inves- tigation consistent with on agency's priorities and one that it would have been likely (i) carry out activity. there can be little problem. But to the extent that law entercement priorities, discre- tion. tacties. confidential information (P) prosecutorial actions are affected. then the thetic must be closely leoked at. Because the 1180 of undercover thereof aus expanded SO rapidly and because of their problematic aspects relative to more conven- tional tacties. shouldnd : there DO a performe review. not only of the effectiveness of these particular guidelines. but of the undered. er tactics as a whole? In summary. M me SUN a bit about some broader implications of undercover work. I think that whatever their legal and ethical implications. whatever their short-term Shirts. things like Abscan and police teneing operations may to cortenus of a subtle and perhaps irreversible change in how social control in our society is carried out. It was roughly a half : century age this Secretary of Ware Henry Stimpson. indignantly onserved in response to proposed changes in national security practices. "Gentlemen do not read each other's mail. In light of the invasions of privacy. we TO conte a long way in a short time. Drty years Trum now will observers find our wondering about the propriety of police agents trying to bribe congressmen. distributing pornographic trim. and running fencing operations equally quaint? FBI expenditures for undercover WORK have more than quadru- pled in the last 3 years, going from 51 million to 3 requested SI million for 1981. In recent years, millions of dollars of new Federal aid has gone to local police for undercover activities. This represents a broad change in the nature of American social control. We are seeing a shift from some of the ideas that were central to the Anglo-American police tradition. There are parallels to the modern corporation. which seeks not only to anticipate demand through market research. but to develop and manage that demand through advertising. solicitation. and more covert types of intervention. Secretly gathering information and facilitating crime. under controlled conditions. offers a degree of control over the demand for police services. hardly possible with traditional reactive practices. Whenever a market is created. rather than being a response to citizen demands. there are particular dangers of exploitation and misuse. The alure and the power of undercover tactics may make them irresistible. Just as any society that has discovered alcohol has seen its use rapidly spread. once undercover tactics become legitimate and resources are available for them. their use is likely to spread to new areas and illegitimate uses. One justification for such means is that they are used to obtain good ends. This is the classic means-end problem. The danger, of course, is there no guarantee that the bad means won't be used for bad ends. 54 From current practices. we may not be far from activities such as the following: Rather than infiltrating ongoing criminal enter- prises. or starting up their own pretend ones. pelice agents such as accounting specialists might infihrate legitimate businesses. to be sure they are obeying the law. or would obey it if given a govern- ment-enzendered chance not to In the private section. husbands 05 wives or those considering marriage might hire attractive of the opposite SOX. TO test their partner's fidelity, Businesses might chrate falsé fronts. using undercover agents to invoive their competiters in iflecti actions. for which they would then be arrested Vrivils business could be subotaged by infiltrat- ing disruptive workers: or its public image damaged by taking false-front actions in MS name. In recent decades. undercover police activities such as COINTEL and the many local varieties cleariv damaged the protected tree- doms of political dissenters I think there may be A spillover effect These activities may the inhibiting the speech of a much broader segment of society. After Abscam. for example. people in govern- ment cannot hele but wonder who it is they are dealing with. Communication may become more suarded, and the free and open dialos traditionally seed as necessary in high levéls of government inhibited. Similar effects may occur in business and in ivate life. It's interesting to look at the demands that are made $ totalitar- ian countries that undered liberalization. A frequent der and is for the abolition of the secret nolice and secret police taeth Things like take documents: lies. subterfuge. infiltration. secret and intru- sive surveillance. and reality creation are not generally associated with U.S. law enforcement. It's possible we are taking small but steady steps toward the paranoia and suspiciousness that characterize many totalitarian countries. Even if these are unfounded. once they are set in motion and become part of the culture. they are not easily undone. Now, southsayers of doom are likely 10 become increasingly ap- parent. as we approach the year MM. It's easy to cry wolt and. because of that. it easy to dismiss the cry of wolf. Liberty is complex. It's multifaceted and. in a context of demo- cratic government. there are forces and counterforces. Double- edged swords are ever present. Tacties which threaten liberties can also be used to protect them. However. neither complexity, sophistry, nor the need for pru- dence in alarm-sounding should blind us from seeing the implica- tions of recent undercover work for the redefinition and extension of government centrol The issues raised by recent police undercov- er actions go far bevond whether a given congressman was predis- posed to take a bribe. or the development of effective guidelines. These police actions can be seen as a part of a process of the rationalization of crime control that began in the 19th century: Social controls are becoming more specialized. technical. penetrat- ing. and intrusive. The power of the State to punish and gather information is extended ever deeper into the social tabrie, but not, in a violent way. 55 We are seeing a shift in social control away from directly coerc- ing people. after the fact. to anticipatory actions involving decep- tion, manipulation, and planning. New technocratic agents of social control are replacing the rough and ready cowboys of an eartier era. They are a part of what French historian Michael Foucault refers to as the modern state's "subtle calculated technology of subjection. In conclusion. let me note that in this regard. recent undercover police practices have to take their place miengside of ther develop- ments in social control. Things like new or improved data-gathering tochniques, such as lasers. parabolic mikes. and other buss wire taps, videotoping and still photography, remete camera systems. periscopie prisms, one way mirrors, various infrared sensor and tracking devices. fruth serum. polygraphs. voice print and stress analysis. pen registers, ultraviolet radiation. sniffing as well as helicopter and sateliste surveillance. New duta processing techniques. based on silictine computer chips. which make possible the inexpensive storing. retrieval. and linkage of personal information that previously was But collected: or if collected. not kepc: or if kept, not capable of being inexpen- sively brought together in seconds. To this must be added the increased prominence of computers in everyday affairs. whether involving commerce. banking. telephone. medical. educational. employment. criminal justice. pay television. or even library transactions. The amount and variety of retrievable data available on individuals is continually increasing. The vast and continuing expansion of the relatively uncontrolled private security industry. according to some estimates now three times the size of the public police force. is also a factor. This is staffed by thousands of former military, national security. and domestic police agents schooled and experienced in the latest control tech- niques while working for Government: but now much less subject to its control. Evolving techniques of behavior modification, manipulation. and control. including operant conditioning. pharmacology. genetic en- gineering, psychosurgery. and subliminal communication are fur- ther examples. Taken in isolation and with appropriate safeguards. each of these may have appropriate uses and justifications. However, they become more problematic when seen in consort. and as part of an emerging trend. Observers will differ as to whether they see in this an emerging totalitarian fortress. or benign tools for a society ravaged by crime and disorder. But regardless of how it is seen. it is clear that some of our traditional notions of social control are undergoing profound change. There is a need for careful analysis and public discussion of the complex issues involved. Because undercover practices can be $0 costly to other values. and have such potential for abuse and unin- tended consequences. they ought to be used only under the most limited and carefully specified and evaluated circumstances, and as tactics of last, rather than first. resort. Thank you. that these things are SPECIMS but that will not change the situation. The guidelines any 3001 will довии se ROA outsse seur insurance pausep 10 sisnotios waye) you expens by 01 April are et your pur ou US are your asneway mys St Tuned NW Advis D Dug 100 pinos pue sour -apina upns ME THAT availation Sjatanduno элом STATEM us NJOM our '01 ayeds S.I 100154850 out ou peq sees asup DLI am was last in the mail for time. these thirt two works I called the Now York office of guidelines. 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My conclusion is that legislative action is essential. and I would like to pass to what action is appropriate Before stating my recommendations. I would like to step back a moment from the technicalities of guidelines. An undercover operation. with its attendant infiltration into the associations of its targets, is potentially an enormous intrusion into provate affairs: The guidelines themselves point this up. by specifying no less than reselve "sensitive methods of infilitration And the Zuidelines Names allow there the six months at a shot. without Birther intervention. Think of the number or Medical the number of parties. the number of conversations that wobel community Der mont tored in a period of SIX months It is in fact 00 intrusion service than any that is possible either by of -warch or envestrepping both deview which are reded round with protections für privacy. The united to establish an underwover operation and sweet for reportation into entimes puts thito the hands in 10% DEVERTMENT de puller to décide who Shall be tempted If is a pawer which can Aven USED in Problems or eliminate an enposition: Finally the ability to Set 00 an entire and operation. meradina 4 of contraband and even as apparates for sulv. partiplies the DIAKET shill in If the government stands ON use supply side you it criminal fulled starts W :- criminal numbers. in mans Cases : artses whether WA writinate -sate interest is being served. Ant criminals Neina defected of created When 10 is brigaded with the power 10) select whosever Der tempted. the NATIONAL Not by the ambitious and unprincipaed is clean The most tamiliar device ter the control at discretion he 2017 where prevacy is threatened is that of a warrant It in more that the carder lines" which are SO elaborate that permans 1243 one will M. the to them It replaces them with a neutral magistrate 400 may take ass DI (5) Include in the guidelines MID account He Can call a halt to an ambitions pressure when 12 TO tact serves TO lecitimate governmental function in detecting existing criminals. simply by refusing to sign the warrant Such a warrant should be required for the use of informers. for offering an exportunity for come. and for undersiver operations or course. there will be emergencies, when Have is no time to supply for a warrant and in those Cases the agents should be permitted to RU to the maintrate after the explain the circumstances. and apply for in continued warrant Surth devices exist in current law for search warrants and are provided for in these guidelines. I know that the warrant proposal is anathema Itv the mustive Department or course it is. because it is the only one that offects even a chance-ot real control over police discretion. I want to emphasize here what sort of a warrant requirement I am talking about: It is not a very strong one I do not NO that the stringent standard We call "probable cause: should be adhered to by the magistrate 111 Issuing the warrant I know that agents may often have no more than an informed su-sicion as the basis for their application. and I know that magistrates will usually Live them the benefit of the doubt and grant the request I am not concerned SEX much what standard is used by the magistrate. The important things. it seems to DMS are that the officers should be obliged by law that "guidelines to state in writing to neutral persons their reasons for suspicion. and then that they should return at trequent intervals. no more than forty-live days, summarize what they have learned: and extrium why they ought to be allowed to 120 UNI. These requirements have the extra benefit of recording the work of agents and especially informers 11 2008 along. >>> that testimony cannot be tailored in the light in hindsight. Yet these are less than what we impose as requirements for wiretaps. a less intrusive device than underower work. and they are the irreducible minimum to protect 12- from the dangers of government infiltration and manipulation of our lives In closing. I might mention that although I think a system of warrants, renewable at short intervals. is essential, failing that I would not mind spette these new guidelines. slightly amended to put them into legislative torm. enacted mto law. That would at least make them mandatory for law-enforcement personnel and would prevent them being changed overnight I assume that the Justice Depart- ment's representatives would vigorously oppose any such enactment That taxt only reinforces for me that they do not take their own guidelines THE seriously If they did. they ought to be happy to see them be made the law of the land It they wish the strictures on their agents to be left JM "guidelines" outside the eintrol of Congress. that can only mean that they want to be free to incore or change the guidelines. TESTIMONY OF PAUL CHEVIGNY, PROFESSOR OF LAW. NEW YORK UNIVERSITY Mr. CHEVIGNY. Thank you very much: 1 have had a lot of experience with these problems. but because I was coming here to speak to a legislative body. and I knew that you had received a great deni of testimony concerning the empiri- cal problem and you were experienced with it, I thought that I would shorten my testimony, in respect to the nature of the prob- lem. and talk about what 1 SPO as the simplest legislative solution. 1 did that primarily in my testimony. ! will come to that in a mement. I am glad I did. because Professor Marx has given us $0 much information on the empirical aspects of the problem. 1 want to sav a couple of words about these guidelines. these undercover guidelines--recent undercover guidelines-and about the use of guidelines generally by law enforcen ent. These guidelines are a reform in some respects. I think the chief respect in which they are a reterm is that they require. in certain cases. that the FBI reach outside the FBI to obtain approval for certain types of surveillance. at least in sensitive areas. That's an important concept. Nevertheless. there are weaknesses, structural weaknesses in them. One principal weakness simply surrounds the area of deciding when an issue is sensitive. and en it isn't I mean, that's for the local person to decide-when it ought to 20 to Washington. and so on. in general. And that leads to another problem: that the guidelines are com- plex. They are difficult to read. And. 1 venture to say, very difficult to administer. But another point about them that's interesting is that. in effect, they summarize for you, as Congresspeople, all the problems. When they say "sensitive," they re not kidding They emphasize for you all the empirical problems that have come up in the last few years, in the administration of law. by means of undercover operations. That word "sensitive" is a very euphemistic term for the kinds of practices they describe. They describe practices which have come under serious question by the courts, by this body, and by other congressional bodies in the last few years. All they do is establish a group of internal guidelines for them. And. furthermore. they permit an investigation conducted in accordance with these guidelines. in those sensitive areas-which you know to be sensitive areas-to be conducted for 6 months, without any further oversight. Now. that characteristic of the guidelines points to the empirical problem that's a legislative problem. I want to say to you now why it isn't a guidelines problem, why it's not a law enforcement prob- lem. It's very simple. These guidelines are not a law. And they say so at the end. And it's no good saving: "Well. law enforcement need flexibility." The courts are perfectly well able to give flexibility in enforcement of law. That's one of the things the courts are for. But the guidelines can be changed overnight. They have been changed repeatedly. And, furthermore. they are not even enforce- 59 able. There's no sanctions for them. If not followed-the failure to follow them doesn't give anybody any rights, at all. So. that means if they re ignored. they re ignored. That's too bad. Somebody made a mistake. Pity, Because they are not a law. and because they have the character- istics that I mentioned. law enforcement people tend not to follow them. They tend to be ignored. If not in the short run, at least in the long run. There were guidelines in New York City for undercover work in political cases, that were established in MER They were ignored. There's a case that I cité for you in the testimony. I tell a story in this testimony about my attempt to find a copy of these guidelines in New York. The FBI office in New York doesn't have one. Two U.S. attorneys-assistant U.S. attorneys-didn't know what I was talking about. They never heard of them. I find in that-I detect in that it contempt for law enforcement guidelines. which I've always found in district attorneys. and U.S. attorneys. and policemen with resuect to guidelines. We need a law. Now, let's talk a little bit about it. The only kind of intrusion that we have experience, within our legal system. with the control of-is search and seizure-invasions of privacy under the fourth amendment. We require-our law requires warrants for searches and war- rants for wiretaps. Searches and wiretaps fall. if you like, on either side of the kind of intrusion we're talking about here, which is an infiltration by a person. Not an eavesdropper. not a person who comes and kicks in your door: but somebody who infiltrates himself into your life or your organization. As to that. our law-our constitutional law and our legislation- at present requires no warrant. All I've come here to say to you is that a warrant is a relatively simple device. We have hundreds of years of experience with it. And a warrant-a legislative provision for a warrant for the use of the offering of an opportunity for crime, and the conduct of an undercover agent, would be a relatively simple legislative device. The need for flexibility could be explained to the magistrate who administers the warrant. Furthermore. I want to give a couple of details about the -war- rant. It's been objected to on the grounds. for example, that the use of warrants is too rigid. That they require probable cause, which is a. high standard. I'm not asking for a high standard. because an undercover oper- ation is often something which is used in order to try to obtain the kind of probable cause-that you would need to get a search was rant. Obviously, you need a lower standard for undercover oper- ations. Let it be reasonable suspicion. I'm not terribly concerned about the standard. Emi concerned about the control that the judiciary should have. and that the legislature should have. with respect to the actions of law enforce- ment people. 60 It may be said. also, that emergency situations will arise in which an opportunity will arise, on the street, or in which, sudden- ly. a possibility of solving a criminal-the investigation of a crimi- nal conspiracy will jump out of the situation. And it's an emergen- ey: Well. obviously. provisions can be made for emergencies. Provisions are made for emergencies in current warrant law, that. for example. searches can be made under emergency condi- tions. And these guidelines provide for emergency conditions- when the guidelines can't be complied with There's nothing miraculous about legal provisions to cover emer- gencies. Now that Eve said that. I want to go back a step and talk about why I think this is SO important. 1 think the Abscam situation emphasized. for most of us. the fact that the problem isn't only one of Terml entrapment, in which the law says, the detinition that the law has come up with in the last 50 years or SO-18 one of whether the person was predisposed to commit the orime. And it may be that all of those cases-when they go up on appeal. it will be determined that some of the persons involved were predisposed. by some definition and: therefore. there is no entrapment. That's not going to solve the problem of such opportunities for crime. for this Congress. The reason is that persons were selected- persons in political life were selected for temptation. On what basis were they selected? Why did the law enforcement people decide that they wanted these people? 1 don't know why. Now. there may be an excellent reason: I venture to say there is an excellent reason. But the fact that We don't know what the reason is suggests that there may not be an excellent reason, and that, in other cases. it would not be at all difficult. to construct a case in which particular- Mr. EDWARDS Professor Chevigny- Mr. HYDE. May I ask you a question on that point? I think your point is perfectly valid. But when you want a public exposition of the reasons why there was a reasonable suspicion, aren't you indicating somebody on hearsav. and other material which might never be admissible in court? But the word is that Congressman so-and-so is on the take. because somebody else's brother-in-law-and you don 1 want that The basis which would be-probably be inadmissible as evidence, but still provide enough suspicion 10 says Let's take a look at this guy. Isn't that the problem? Mr. CHEVIGNY. You mean the problem with the warrant system is that information would become public? Mr. HYDE. Yes: Mr. CHEVIGNY. The application for a warrant. prior to the time the warrant is executed. is ordinarily not public. It's usually sealed, for very good reasons; the targets want to find out about it. if it's public. So. if it isn't sealed. it doesn't work. There's no problem with sealing it. 61 There's a problem that the law enforcement people raise. about the confidence of the person who gives information. Are we going to expose him to possibly being killed? The Supreme Court says that. for search warrants, the name of the informant doesn't have to be revealed necessarily, so lane as a sworn affidavit can be supplied concerning the 3 per of information he's given. Now that. in itself. is something that is difficult to apply. and defense attorneys unject to it. But let's take : on its face. The name of the informant doesn't have to be Liven for that very reason. In other words. in search warrants. the Supreme Court and the Congress thought of that problem. They said: OK. Let's not give the name. Let's describe the nature of the intermation: Mr. HYDE. But would you support. then, it contidentiality on the basis of reasonable suspicion? My point being that prejudices the defendant enormousiv to have not only what actually happened. but the basis LOT the "reasonable suspicion. on his back. Mr. CHEVIGNY. I would support such contidentiality until the time that an arrest 84 made. And if in fact. the problem does away because the person resists the temptation. then I would not be opposed to continuing the confidentinlity. with the possible proviso that under a Freedom of Information Act request or something. that the victim may someday find out whether on inquiry had been made against him. Mr. HYDE I'm thinking of public opinion that gets formed: Can- gressman A was arrested today. and SO on. and 50 forth. The FBI spokesman said that "we had reasonable suspicion. because other people had told us he had demanded money to perform this Name: tion. I'm just saying, you're putting a lot of information in them which is going to be a mostie of the credibility and the Interested this person. that might never be admissible; and add to his the 100 Mr. CHEVIGNY. That happened in the Abscam case, the sense that, at the time they were arrested. the public Wills some intimation as to the reasons for it. I don't know 1500 entirely possible to control that. Mr. HYDE. You want that public. though? Mr. CHEVIGNY. If there's any way to keep it secret until Doe of trial. I wouldn't necessarily be opposed to that But I'm not sure there is any way to prevent persons Hom talking about it, between the time of arrest and trial. M least. it you want to protect persons of whom an inquiry is made through investigative means. and who. in fact. do nothing wrong. this conti- dentiality within the warrant system seems to me to be essential. I'm all for that. My point is, I don't think that is difficult to do. We have experi- ence with protecting the confidentiality of the sources of warrants. Mr. SENSENBRENNER. Would the gentleman vield? Mr. HYDE. Just one more question. Do you set some value in the periodic testing of a group of people whose vulnerability or suscep- tibility or accessibility to such criminal acts is high? Let's say a bank teller who handles a lot of cash particularly, or eashier at 83-555 62 racetracks or things. Do you see some therapeutic value to having them know that they re being tested occasionally? Mr. MARX. First, it makes a difference whether or not people are told that such tests will be a part of the conditions of employment. I think when they re not told. it is inappropriate to use the tactic. Mr. HYDE I see great therapeutic consequences from Abscam, however, but Mr. MARX. I think it depends on your theory of crime causation. Why do people break rules? And if people are motivated to break rules, then the kind of test you proposing may simply make them more clever. Maybe you'll deter some marginal people. I think there's always that question with any innovation in law enforcement. Does it simply up the ante a bit? Mr. CHEVIGNY. I don necessarily disagree with you about the therapeutic effect of Abscam, Congressman. But it would have had the same deterrent effect If a warrant system had been used. If you passed a law providing for an undercover warrant, 1 don't have any reason to think that a judge would deny it. Mr. SENSEN BRENNER. Would the gentieman from Illinois yield? Mr. HYDE. Les. Mr. SENSENBRENNER Building on that particular statement-- Mr. CHEVIGNY. Yes, sir: Mr. SENSENBRENNER. 1 seem to recall that most of the details of the Abscan operation were leaked to the press before actual arrests took place. Don't you think that if there was a warrant system. the individuals who were arrested would be tried in the press to an even greater extent than they were before the case was even presented to a grand jury for indictment and trial took place? Mr. CHEVIGNY. I don't see why, I mean. the risks ought to be about the same. The risks are always rather serious in our society. I think judges. especially Federal judges. are among the least likely people to do that. And if the record's been sealed. I never thought of this before. but if the records could be sealed under a court order, then the violation of that court order would be a contempt. Whereas now, if it's just done by the law enforcement people, if somebody violates the rules and lets the cat out of the bag. what's going to happen? He's going to be disciplined, maybe, if the people feel strongly about it. Mr. SENSENBRENNER. But the same sources in the Justice Depart- ment who seem to leak the gorey details of the Abscam scandal to the press also would have known of the existence of a warrant. So. the fact that the warrant was extant would have to be a part of those processory reports at the time the Abscam scandle broke. Would that not have further prejudiced is dissent by any Member of Congress who was caught in this net? Mr. CHEVIGNY. It would have prejudiced it the same way in the sense they would have known there was an investigation going on. My point is. if you had a warrant provision and the judge forbade the persons involved in seeking the warrant to talk about it, then it would be contempt of court to talk about it. and the court would have some control over the leak of evidence. The présent way, they don't have any control. Mr. SENSENBRENNER. Except to cite someone för contempt. you've got to know who did it. and the former Attorney General, Mr. 63 Civiletti, had a rather extensive in-house investigation involving the U.S. attorney from Connecticut. to try and find out who did the leaking to the press, and there, as I recall. there was no real conclusive evidence linking a name or names with the leak. So, who would the court cite for contempt under that circum- stance? Mr. CHEVIGNY Sure. if may become an insoluble problem, but it seems to me it's the same problem in respect to the warrant. It's the same problem with or without a warrant provision. if you follow me. In other words. if somebody leaks the fact that an investigation is going on. or that a warrant has been sought. and you can't find out who it IS it seems to me that the damage to the reputation of the person you investigated is the same. Don get me wrong. that 1 don't think it's terrible. I do think it's terrible, but I don't think that's a criticism of the warrant. of the idea of a warrant, if you follow me. Mr. EDWARDS. Well. also. if the centleman would yield. In a wiretap case. where a warrant is required. I don't think that we have been plagued with an epidemic of leaks SO that reputations are damaged or the threeted person is advised or there are rumors about the warrant being issued. are there? Tye never heard of any, Mr. CHEVIGNY. There are a couple of cases where somebody was paid a bribe to tell. and did. at the local level. it has happened. Nothing works perfectly. I mean. there's no protection which is absolutely immune to corruption. There's no protection in law enforcement and there's no protection in-well. not only Congress, but I hasten to say, there's none in the judiciary. We have to do the things which seem as though they will give us the maximum possible coverage. it seems to me. Mr. EDWARDS. Thank you. The gentlemen from Illinois. Mr. Hyde. Mr. HYDE. Well. I want to compliment both viteesses. I think they made a great contribution to our understanding of the myriad of problems involved in undercover activities. T detect. from Profes- sor Marx, a real distaste for undercover activities. And he men- tioned psychosurgery as one of the tactics. I don't recall that the police or FBI uses psychosurgery too often. But it certainly is a possibility. We live in an enormously complex society. We are changing our traditional approaches to law enforcement. But soci- ety has changed rapidly. and it much more sophisticated. We deal with the old. simple idea that. if we do away with poverty, well do away with crime. That doesn't answer computer crime and white collar crime and some of the very sophisticated examples of espio- nage that we've had. Narcotics cases involve classic money. And while undercover operations may be distasteful. I've talked to some people who say. well never lick that crime because of the amounts of money involved and the corruption of police officials. How many people have had a hundred thousand, two hundred thousand. five hundred thousand dollars put on the table in front of them and said, touch it and feel it. So. the police have to be sophisticated. too, if they are to maintain the balance that we all want. And 1 think of the definition of Woodrow Wilson at the Paris Peach Conference that someone portrayed that he was a virgin in a bawdy house yelling for a glass of lemonade. We can't have our police in a 64 similar situation. Meaning the. FBI and the CIA and others in a very sophisticated world where these crimes are not simple in their effect on society. if they re big enough. They can be profound. So. it's a problem. My own solution is get the best guildlines you can. the fairest. But in the last analysis, you re going to need people to administer them and to implement sensitivity, judgment and perspective. That's true in just about everything in govern- ment. Political dissenters. some Communist may be just a Marxist theo- retician who is a dissenter. Somebody else might have much more activist motives in mind. And who's going to make that judgment? Do we treat them alike? And what are reasonable suspicions? You said police might intiltrate legitimate businesses It's my experi- once that the police have such limited funds. that sometimes you need to build if fire under them to look at something that really ought to be looked at The FBI. in particular. has budget problems of serious dimensions and there are areas I wish they'd get into. And I haven been successful in getting any enthusiasm for legis- lation. So. there are two sides to that. Hid. Professor Marx. would you say that undercover activities are just SO inherently dangerous. they ought to be shelved by the FBI? Mr. MARX No. 1 would not say that 1 think they have to ne carefully supervised. I think distinctions have 10 he made between types of undercover activities. 1 think they should De tacties, really. of last resort. I think before using them. one should ask the ques- tion: is there an alternative way of getting this information? Is getting this information worth the risks that. in fact. are there? And a very important question which has not been addressed is: Does the tactic work? Is it. in fact, effective? Even if you held apart all of the civil libertarian concerns, I think there's a cost effective, pragmatic question. Is this a good way to go about law enforcement? It would be hard to do a broad cost analysis of it. Anti-fencing operations for example. may have a stimulative effect. Where police pose as fences and they run these operations for 6 months. an enormous amount of crime may be generated its a result of that activity. Then, you have expenses of renting the store or paying the salary of the undercover people who do it. Then. you recover a lot of stolen property. You have to balance out how much crime was stimulated by your being there. offering that opportunity. and what effect would then have been if the resources were used in some other way? Mr. MARX. It's fairly hard to measure deterrence. You can look at crime rates, in a similar situation and see what happens. But measuring crimes that weren't committed because of a fear of detection and prosecution is hard to measure. Using before and after measures a deterrent effect has not been found. Mr. HYDE What about Operation Lobster? Mr. MARX. | think there's not been sufficient data on that to reach any informed judgments. After the initial activity. it did go down. But we don't know if it was displaced. It might have gone down in the New England area. Did.it go up in the New York area or in the Midwest? Displacement is a very, very big issue. If you stop people- 65 Mr. HYDE You got catch 22 situation then. If the rate goes down, you say it was displaced or it might have been displaced. The former Assistant Attorney General said that the rate of hijacking decreased two or three per day to only one in the 6 months follow-, ing the arrest But you say there may have been displacement. Mr. MARX. What happened during those 6 months: did bljacking increase during the period when Operation Lobster was in effect and people suddenly had a ready market? Congressman Elvdo, let me respond to 11 couple of carker comments that you made. In talking about psychosurgery, I wasn't suggesting that it was literal- ly a police tactie Was trying to sar that how we control people in our society is is general pnenomenon. At an abstruct level what the FBI or police or private detectives del can be seen as equivalent to what doctors and teachers are doims And control. generally in our society. may De shifting in terms at becoming more intrusive, pre- cise and scientific. As far as society changing, yes, it's changing But it seems to me that we don-t have to simply sit back and which it change. That we have a moral responsibility to try and guide that change and to structure it as best we can. Mr. HYDE Hel. you've been yery zenerous with time. did find both of your presentations fascinating and well worth studying I don't find an omnipresent police presence stuffitying crime in this country. 1 think the Chief Justice had a few points the other day which were perhaps in the other direction. but the dangers are there. 1 thank the Chairman. The subcommittee has direction and obligation to examine all of the activities of the FBL That our job. Certainly, that includes the guidelines. Like in years past. We examined with great care the domestic security activities of the FBI and with them. in a yyry friendly fashion. worked out where they developed guidelines in cooperation with Attorney General Levi, S0 that they were able to reduce their caseload from several hundred thousand down to fewer than one hundred There is no complaint from the FBI or partment of Justice that they re getting out of that type of investigation. It wasn't one of the best things they'd ever done, especially as Mr. Hyde points out. they have very few agents now compared to what they really feel they need. They have fewer than 8,000 agents to cover the SU States: And that's a lot of responsibili- IN. But the guidelines are there and it's it our job to examine them. It's our joh to see how well they TO working and to suggest improve- ments. if they need improvements And certainly, Professor Che vigny's point that 6 months is a long time without checking. that is a long time. And internal security guidelines. they must be re- viewed. I believe, by preliminary investigation. after 30 days. This is all internal. But 6 months is a long time. Professor Chevigny. you have first-hand experience because of your suit brought against the New York City Police Department. special services division. Mr. CHEVIGNY. Yes, sir. Mr. EDWARDS. You were able to get a settlement for your clients which creates a control mechanism over the use of undercover operations. The court imposed this mechanism on the New York City Police Department. isn't that correct? 66 Mr. CHEVIONY. Yes, sir. Mr. EDWARDS. Just like a court could impose a mechanism on the FBI guidelines. if the court found that they were legally required. is that correct? Mr. CHEVIGNY Yes Mr. EDWARDS How do the mechanism established in your case deainst the New York policy differ from three provided in the FBI guidelines? Mr. CHEVICNE Well. in detail: as guidelines. they differ in the sense that the New York City court order deals with undercover operations in one of the sensitive areas. von might say: which is to say political cases. That is. cases of persons who are exercising their First Amendment rights. They may also be committing crunes. of course. That presents the case in which the police think there is a mixed bag of crime and political expressions. In that case they're supposed to apply to this authority that's been established. two policemen and a civilian for approval to continue such an investigation. Now. as guidelines. these were merely guidelines The difference it that there 18 a court order in New York. Here. obviously, you don't have the power to napose a court order be- cause you re not a court. You do have the power to impose a law. Although it is not as good as a law. A court order is better than guidelines because it has teeth. It can't be changed at with And a violation is contempt of the court But there isn't such a case pending against the FBI SO for as I know Mr. HYDE In Chicago, There's one in Chicago where a settlement was reached similar to yours. I don't know the details of it. Mr. CHEVIGNY. That's a police case. though. I believe. Mr. HYDE. I think it's the FBL The FBI was involved in it. M.: CHEVIGNY. You may be right. FII leak into it and try to get- maybe the FBI can help us on it. In any case, if history had been different. there might have been such a court order. I feel some teeth have to be given to these guidelines I just want to say, Em: not opposed to all police undercover work: emotionally, for me. that's really water under the bridge. We've passed that point in history. But 1 do agree with Mr. Marx as strongly as I can, that we cannot just let it go on at the discretion or even subject to guide- lines of law enforcement people. I think essentially that society has to have control over it. Traditionally. we have done that through judges. I don't see as a result there should be any less undercover work. I just think that the choices ought to be made bx people like you. in a position like you. de to whether it would be done. That's all. Mr. HYDE I agree completely with you. You can't leave the autonomy of that to-1 don't like one agency being the investiga- tor. the prosecutor. the runge. the jury and the embalmer and all that. Somebody from the outside should look over their shoulder from a more objective perspective. What's the matter with having an FBI informant join an organi- zation that occasionally claims credit for planting bombs here and there? The FALN or. you know. everytime a building 2005 up. you get the phone calls from Puerto Rican nationalists who have said what they re going to do. What's the matter with having somebody join that? 67 I mean. a newspaperman could do it and win a Pulitzer Prize. Why not have an FBI man just 10 go to the meetings and make a report.' Mr. CHEMIGNY Em all for that Mr. HYDE That knit spving ON civilians. Mr. CHEVIGNY. I'm not necessarily opposes to surveillance on civilians in cases where it's justified: I just thank a neutral person ought to decide whether it's justited. In the Euerto Rican cause. one of the things that happened-I can't swear to This-but the evidence that 1 have indicates that the police and join Puerto Rican organizations. They didn't join the FLAN They couldn' find it for a long time. So. they joined all the Puerto Rican organizations. If that be necessary and is judge NIVS, OK. there no other way, then in an isolated case. maybe you would have to do that But some- body's got to make a neutral decision. I don't think that the police- man should have the power to should say. OR my God. the papers are on our backs. the VP ent to do something about it. Go down on the lower east sitle and do something about it. words to that effect All kinds of stun may get putled in and surveillance may 10 on for a year. Mr. HYDE. You would have the judge-OR Supposing if they have a member who is Puerto Rican and of the FBI. and who would be accepted in some of these organizations before they could join a Puerto Rican political study group. that might lead them to inform with the FALN. You'd have a judge OK that? Mr. CHEVIGNY Yes. I think they ought to have a little something to go on to indicate which ones are merely political and which ones have some tradition of violence. Otherwise. it's the same thing as joining all the political organizations in town But 1 don't think a very high standard ought to be required. because if you raise it to anything approaching possible cause. then you're making it too hard. Mr. HYDE. Thank you. Mr. EDWARDS If the gentleman will yield. The warrant is pie in the skv. especially under present circumstances, with the climate that is in this country. So we are going to ask you, as expert witnesses and other witnesses, what can be done to improve the present situation without going as far as a warrant. Mr. MARX. Well. 1 think with respect to the weaknesses in the guidelines that I noted. if we are going to have guidelines as the main supervisory principle, then the guidetines have to address some of these other issues that I mentioned The question of the unwitting informer. questions of the damage to third parties. ques- tions of how long you let the thing go on. are central. And I think by making distinctions between types of undercover activity, you may have rather different standards. For example, it seems to me you need a different standard where you have a courageous FBI person pretending to open a garbage collection business in the hopes of being the victim of extortion. from what would be needed to infiltrate a respectable business in search of wrongdoing. Mr. EDWARDS. You suggest that at least the undercover operation review committee that is established in the guidelines should be is beefed up. .SO that it would have more responsibility to look into what the plans are and how things are going, is that correct? Mr. MARX Yes and Tex more closely relate standards to the type of operation. Mr. EDWARDS. Mr. Longren. it's : pleasure to use you aboard. Mr. LUNGREN. Thank you. Mr. Chairman. Untertunately, I had another meetime that. as they saw precedent 3 and as a result. I wash't still to heat in person the the intend to leak at it and study it and unforminately don think Pine prepared at this time to ask any questions, Mr. Knwarns. Thank your Mr. CHEVIONE Ed like 20 say with about the YOU R the sky, il 1 may, Corraresman pertify VOICE wrong. receive you HRIX be right. but my experiencess lite the the hope that you me written But if vou-re not WITH is menths way too AMC $ intrude on people's uns. The other thing to there eacht to 12 some kind of post oversent set epsay IN the Study I Know that which time Tions were done by the FRE there WHEN ways It 401 that there weren't intrusivos on privacy For excepts files would Be serviced at middle. names could be blanked out and those Does could he risad to détermine what hape pened in those cases without intrudius INT the provides of the per- sons: Three are pretty awkward ways on checking on whether the guidelines are being complied with and they to expensive But they been done in connection with the FBI off part of an investi- gation. They could be done by this body. If you think that's teasi- ble. that would be a lot botter than nothins But really think that a warrant is 50 simple and we have NO much experience with it. that it's essential: Mr. EDWARDS. Em state that there would be no objection by any member of the committee that we pursue our oversight in the traditional way. through the General Accounting Office. which was the agency that we used in the must of domestic security cases Confidentiality of investigative files is insured. And I think that's the way we will continue, because We have a rather large obliga- tion in this particular area. We have not been able to an even an estimate of the damage to innocent people that might have been done in the country as a result 01 the undercover operations to date. In your testimony, Professor Marx. you mentioned many many billions of dollars in lawsuits am a result 191 Operation cront-load where the civilian agent of the FBI issued all of the performance bonds illegally and got the insurance companies into the trouble. And in my home town of San Jose. Calif. there's a guy that thought he was getting a loan to huv the San José Earthquakes, a soccer team. from someone involved in an undercover operation. It resulted in him losing his wife. his house. and his into He had counted on a rich heir to put up the money and of course, the heir didn exist. How are you voing to keep control of these agents. these middlemen. purveyors. who don't know they re working for the FBI or the police organization? Mr. MARX My sense is you can't keep control of them and they probably should not be used. Where the cuidelines and the restric- tions cannot be made clear to it person, then I think it's holding 69 matches to dynamite to use such people. They run a number on everyone. They increase the possibility of all sorts of suits against the Government They can do damage to third parties. It violates some basic notions to set people-whose profession is deceit=leose in the name of government and law when they, in fact. don know that they are a part of 11 law enforcement operation. nwitting informers present major problems. They should be used sparingly, if at all. I think as you move from having patice play the undercov- er role to civilian informers to unwitting informers. things become evermore problematic. The issue really is even in the case of whiting informers superve sion. Informers may be in a position to dise Be police Doe reform is to have more than one agent involved in supervision N inform- ers. Whenever there a meeting with the informer or suspects, the agent should take notes: This forms part of the record to determine that the person was prodisposed and that Visa really are dealine with people encased in serious criminal addition Such 3 process does not appear to have Pern followed many at the Anscian cases. In one of the Abseam an unwitting informer WITS told that he could earn XII million by helping Arab businessmen invest their money and "make friends 10 high places. New with appearies to Congressman Hvde. i like lemonade. but if somebody affered me XG million to do something that was questionable. Ed like to think Fd do the right things But. the temptation is certainly there Mr. HYDE If I may, there are a couple of rejoinders to that You quoted Vonnezut as saying we must be careful who We pretenc to be because WP tend to become that person. Em told there was an actor McGlvnn years age who played Lincolni He started to wear Lincoin's clothes off the stage and it was said that he wouldn't be satisfied until he Lot assassmated. Didn't you give the FBI a the- mendous inprimatur to Abscam when you said God tested Job? If God did it. why can't the FBI do if? Mr. MARX Yes Mr. HYDE. That all. Mr. EDWARDS Mr. Kastenmeier? Mr. KASTENMEIER have no questions. Mr. EDWARDS Mr. Lungren? Mr. LUNGREN. Nothing Mr. EDWARDS Counsel? Ms. COOPER Mr. Chevicny. I'd like 10 currify the difference be- tween the role that the magistrate or a rudge can play in this process versus the role that is assigned to the approving authorities under the guidelines. specifically, the undercover operation review committee. It seems to me that the magistrates role is primarily one of deciding whether or not there is a sufficient amount of evidence to proceed. It's a question of degree of suspicion, whereas the committee is primarily performing adalancing act. a question of balancing the various values. various risks, the various intru- sions. It's not 50 much an evidentiary question. If that's the case. then, if you create a warrant system, how does that deal with the problem of balancing the values that are at stake and the question of whether or not to authorize an undercover operation? TO Mr. CHEVIGNY. You mean. for example, that the review board has a list of cases and issues that are called sensitive, and, accord- ingly. they are treated in a slightly different way from issues that are not called sensitive. Ordinarily. under a warrant system. the magistrate just makes a decision about the evidence. To some extent. the value judgment is made by the establishment of a warrant system. In other words. we say that by establishing a warrant system, all the undercover operations represent intrusions. And to control the intrusion, we establish a neutral magistrate. Now, history has resolved the value judgment by saving we think it all an intrusion. That's why we asked for a judge. It's very rare in legal practice that before something can be done: a trizzering mechanism from the judiciary is required. That's an unusua, thing and important. But at this time. there's no such law. so we really are talking about pie in the sky. There's no reason that a statute providing for undercover warrants could not provide for the mains- trate to take "sensitive Rectors" into account. There's just no stat- ute at present. Mr. EDWARDS TM make it clear that I agree with your except that it's just not feasible. That Was the point I made Mr. CREVIGNY. Yes, It's the question she asked the The feasibil- itv question is another question. Ms. COOPER. Well, what I'm getting at can be illustrated in a hypothetical. Assume the subject is a politician or a member of the media or something like that. It's that kind of sensitive circum- stance. Plus. you've got one or more of the risks that are enumer- ated in the guidelines. But there's a lot of evidence that there's some illegal activity going on or a predisposition to Mr. CHEVIGNY. An informer who has previously taken a bribe, that kind of thing. What's the question: then? Ms. COOPER. Well. would the decisionmaking be any different? Wouldn't the magistrate just be deciding on the question of the weight of the evidence or whether or not he supports an undercov- er operation and really not be considering the sensitive factors and the risks that are present? Mr. CHEVIONY. I think that ves, the decisionmaking process is similar to what you describe. But 1 think that a judge. when he sees a case involving a political person. whether that political person be in or out of office. he savs, is there a first amendment problem involved here? And in the case of a person in office. is there an interference with office? That's one of the values that underlies the protections which are contained in our fourth amend- ment provisions and in a warrant requirement. And SO. the deci- sionmaking process is similar, yes, But it's important that the decisionmaking process be done by somebody who is not in the law enforcement establishment. Because. as we.see from recent history, very often the decisionmaking process doesn't get done by the law enforcement people: They just don't follow the guideline. And if they find the requirement onerous. they just change the guidelines. And finally, there are plenty of other difficulties with acting as both judge and jury, as Mr. Hyde said, that don't exist with a neutral magistrate. Ms. COOPER. As far as bringing outsidérs into the decisionmaking process. do you see any value in trying to broaden the base of the 71 undercover operation review committee? As it's described now. it includes only some unspecified number of criminal division lawyers and FBI personnel. It does not include personnel from the other divisions, nor does it include anybody from outside the Justice Department system. Mr. CHEVIGNY. I think it would be wonderful if it could include somebody whos genuinely outside the Justice Department system. Mr. HYDE. A consumer. a Hispanie, a blnek: a homemaker, you know. the usual a Catholic and a handleapped person. rheat? Mr. CHEVIGNY. All of the things would be terrine. But that really is pie in the sky. Mr. Hyde: Mr. LUNGREN. How about a Republicant Mr. HYDE. Well. let's not 20 too far Ms. COOPER. Professor Marx. it seems to The that the guidelines are based on a view of undercover operations as beinz relatively static. The guidelines require prior approval only before various operations are bezun or before various inqueements are offered. But from your analysis of the way operations actually operate, and from what we know from reading the trides of recent cases. they not that way. They re very organic. They te very changeable. The agents are constantly improvising. Is that your view of the reality of the typical undercover operation, and If SO. do the guidelines make any sense? Mr. MARX. I think it makes more sense to have them than not to. I think some situations are probably. if not impossible, very, very difficult to regulate. You're right. The situation is highly fluid. And one of the problems. of course. is that the undercover person, whether it's a sworn police agent or it $ an informer, has a strong vested interest in seeing this thing 10 forward and seeing prosecutions. If a lot of Federal time and money are spent and no case emerges, it doesn't help the agent. In the case of the informer who may be facing charges. who may stand to earn vast amounts of money from the operation. there's a strong incentive that crimes occur. And I think we have. to some extent. been misled by hearing about the virtues of video taping in such operations. This can give a false sense of certainty. We don't know what goes on off the tape or to what extent what is on the tape is deceptively stage managed. When there's suddenly a break in the tape. was that because the informer stopped it. or was it because of natural causes? Daily monitoring of informers IS required. The supervision of the inform- ers in the Abseam cases apparently left much to be desired. Another factor conducive to accountability is having the inform- er introduce a sworn agent into the situation rather rapidly. This offers much more control than having to rely on the accounts of informers. Doing this of course, can be difficult. too: One of the problems with some of the high roller kinds of activities. going after high status offenders is that it appears to be much more difficult to introduce a Government agent into those situations. than it is in street situations. In street situations. the operative policy is often to introduce a sworn agent into the situation as soon as possible. Mr. EDWARDS. Should there not at least be. as there is required in wiretapping. a public announcement made yearly about the 72 number of undercover operations that the FBI has in that particu- lar fiscal year? Otherwise the public would not know what the trend would be. Since this technique is so new to our country and imposes such problems. that information is very important. Do you agree? Mr. MARX Yes. I think it's crucial to have that kind of documen- tation and also, as you suggested earlier, to have some analysis of it. What are the COSTS and what are the benefits coming out of this? How do you weigh the prosecutions that emerge as against the damage that may he done to third parties? And in weighing the COST. a crucial thing to look at are the investisations that don't go anywhere: 1 know of four or tive large and costly investigations that were stopped because there Was a leak. And one of the disadvantages of undercover work relative to conventional police practices is they re more vulnerable to leaks. The large investment in an investization CITY literally disappear overnight once the operation likes its cover. That's a cust nictor that is rarely considered. And one of the interesting things about a number of the investigations where the covers been blown. is that these tend to involve people of high status. It admirable to go after offenders, regardless of who they are in in fact. they re engaged in serious rule breaking. However, when the investigation points 10 people in high places, and then the investigation is called off because of a leak. that may be even worse, than no investiga- tion at all. Ms. COOPER. On the question of the need for evaluation. you stated earlier that one of the problems was that the Justice Depart- ment. among others. was not very cooperative about providing the kinds of data you need to make these kinds of judgments. What would you. as a social scientist, need? Mr. MARX. When you do evaluations, they TV never perfect. They obviously better than shooting from the lip When you do one. it's best to have information about the state of things before you begin your intervention, before you start your experiment. So, you'd want to know about crime patterns. You'd want to know about what criminal intelligence says about the problem. You'd want to know about how law enforcement resources were being used before you start your intervention. Then you start your inter- vention: You do it in one area and not in another equivalent area. You also look at the intervention while it's going on At the end of it. you collect information about displacement. to other areas or crimes. as well as about the crime in question. What we have now, basically, is a measure after the fact. We don't really know what went on beforehand. We don't know about the process involved during the operation. And what happens now when you are forced to do an evaluation 6 months after the operation is over is you've taken the context away. All you have is what's on paper, what on tape: With all due respect. things may get cleaned up. So, 1 think it's important to have an ongoing evaluation. And if you would take the logic of the current evaluation. which is to come in 6 months after things are over and apply it to any of the large Federal programs that are evaluated in sophisticated ways, it would be severely criticized. You don't evaluate things 6 months 73 after they're gone. People are transferred. Ther've forgotten what happened. Mr. EDWARDS Mr. Bovd! Mr. Boyd. Thank you: Mr. Chairman, Professor Chevigny, assuming that there's he must to the o month period. and as the enairman 30 days under other systems has been used: weat do you VISA as being an appropriate period of time before an undersiver investigation should their some sort of review? Mr. CHEVIGNY. It's awainly bard If Blake those decisions. like 10 people on a jury: 00 GONS or days sectis to bir a good number. That doesn't mean the surventance THIS to stop, it just means somebody has to review wind come THE Another important thing about that is an aspect mentioned be Mr. Marx in these hearings. and that IS that a report vild be made Now: this could be drine under these guidelines. It would be enormously helpful that a written report should be made 1 am desuming that one or more of these agents am going write daily reports on what goes WW That's not unusual: I USS MW they that or that they cati in and someone else takes it down Phose dails reports should be taken in hand by the review committee and because there's always a controversy in these Clises about what really happened. Unless someone is wearing a but an the Have which is incredibly danger- ous. then got to take the informers word as to what hati- pened. And now, obviousis TIM informer can tailor his testimony on a day-to-day basis. But its extremely difficult to see what going to happen the next day, but whereas in retrospect. it's real easy to tailor your testimony. But if every 30 days you Wei all et these records and impound them. and the review-I'd rather it Were a judge. BIK skip it. it pie in the sky. If the review committee would keep it under lock and key and make sure they've not that record. that would be enormously helpful. Td like to say it would be enormously helpful to law enforces ment, too. because in the cases where there's a story about entrap- ment or about the fact that they took me out and wined and duned me and got me drunk. If that's a lie. then those reports would be enormously credible evidence in establishing that it is a lie. Where- as at a trial. there's an ene rmous risk that some informer WHOS an informer and being crossexamined by some able defense attor- nev will be blown to pieces And there will be an acquittal in a case where. in fact. a person is guilty. Em not in this to protect defendunts or prosecution's rights. Because 1 would like to see the things done in a rational way and the truth to come out So. Em for a Su-day limit for all those reviews, but if it's 13. it woaldn't be the end of the world. Mr. BOYD These guidelines: as I understand. have already been used by some defense counsel for purposes of cross examination. Mr. CHEVIGNY. Oh, sure. Mr Boyn. You indicated also that you have problems with lack of disciplinary action in the event these guidelines are violated. Mr. CHEVIGNY. Lack of what? Mr. BOYD. Disciplinary action in the event these guidelines are violated. How would you prefer to see that disciplinary action 74 initiated, and what sort of procedure do you want to follow? How do you perceive that action? Mr. CHEVIGNY. It's very hard. You obviously can't put somebody out of the Bureau for violating a new set of guidelines, particularly if it's a minor violation. All I'm saying is that it's too heavy a sanction. Mr. BOYD. Should good faith be a defense? Mr. CHEVIGNY. Not in a disciplinary proceeding. It seems to me that what ought to be done is that the guidelines ought to be announced. They ought to be periodically announced. We've done this in cases involving the police. in which the courts have made orders. The order has to be brought to the notice of everyone who's liable to act in pursuance of it. Periodically, it's got to be rean- nounced. That might be kid stuff as far as the FBI goes. but in any case, it's got to be brought to their notice and if there's a factor of people forgetting or it's becoming customary to do it a little differ- ently, then it should be reannounced. Then. we're sure everybody knows and every Bureau office ought to have a copy and post it and announce it and make sure that the people know about it. Then you can have a rational disciplinary proceeding and try some- body. Why didn't you follow the darn things? A person may be fined a few dav's pay for a minor violation. I'm not asking for the world. But the point is that a psychologi- cal set has got to be created in a burenucracy whereby people feel that the agency takes it seriously and they re going to crack down on people who don't follow it. I mean, I gather in the FBI. that in the old days, the problem was that people said that the black bag jobs had to stop. but eveybody sort of knew that they didn't have to stop. And they went on. And there have been some disciplinary proceedings about that. There's a problem with that that I'll come to in a minute. But the point is the FBI agents feel that that's not fair. That they had these announcements and they didn't mean it and we all knew they didn't mean it and now we get discipline for something they didn't mean. That's another problem. You ve got to take it serious- ly and consistently S0 the people can't say this ain't fair later on and have the public feel that they are sincere: Another thing is that I'm not saying that names ought to be named as to who is disciplined. and 50 on. But I think the public ought to be made aware that there are such disciplinary proceedings and that at least some statistical report ought to be made of the fact that it occurred. Otherwise people tend to feel-well. they say there's a disciplinary proceeding going on. but We don't really know. Some kind of public annoucement has to be made without naming neces- sarily who it was. but a statistical report or a disciplinary report. Mr. BOYD. After the fact? Mr. CHEVIGNY. Yes, because after those disciplinary proceedings with respect to the FBI agents from the old days, it was said that New York-1 think it Was the New York director-announced the disciplinary proceedings had been undertaken with respect to these people. We never knew what had happened. We didn't know whether they had been fined. whether they had been cashiered, what the dickens happened. So. there was a feeling, I mean, there 73 was a public feeling that we don't know whether it was a serious matter or it wasn't a serious matter. So, to summarize, if you're going to make guidelines work at all. vou've got to have a tight system of internal review. You've got to have a consistent set of disciplinary rules. You've got to follow them and enforce them. You've got to make sure that everybody knows about it and that they continue to know about it on a periodic basis. And you've got to make the public aware that you are taking it seriously and that you are enforcing it and that disciplinary proceedings are being carried out. i know law enforce- ment officers hate this They say it - a terrible system of harass- ment and it's constant gumshoeing around them. and SO on. Pm tempted to say better them than us. but I don't really mean that It's a characteristic of that kind of public work that there's going to be a lot of oversight and I don't see any alternatives. There are too many temptations. And accordingly. it is a characteristic of law enforcement WOTK that there's zoing to be a list of oversight from the higher-ups. I don't see any real alternative to that Mr. Boyn. Thank you. I have no further questions. Mr. EDWARDS. Along-the same lines. don't you think that as this approval is given up the line-and that's what we're assured ot by the guidelines-the higher it goes for approval. the supporting information should be furnished in writing SO as to leave a paper trail? And the same kind of information ought to be furnished to the higher official in the FBI to justify the next step in the under- cover operation that a magistrate would be furnished when a war- rent is asked for? Mr. CHEVIGNY. Absolutely. We can at least get the protection of the paper record through these guidelines. If we can't get a magis- trate, we can at least get that protection that a record is made, which is. in effect, if you like. sealed in amber. in the sense that it cannot later be changed by the informer tailoring his testimony to fit the case. Mr. MARX. I think one of the problems currently is the guideline says almost nothing about the conditions under which higher-level authorities can and should approve undercover operations. The guidelines basically affect and prohibit actions on the part of the local agent. They don't really tell us when higher officials should. in fact. use undercover work. I think it's crucial to spell out these criteria, not in a rigid way, but to say; here are the kinds of factors that would make it appear that this tactic is appropriate. That's a big lack. Mr. CHEVIGNY. In answer to counsel's question about the disci- plinary actions, there's an interesting point about discipline. and it's something that I observed in connection with discipline in the New York police. which we quarreled about for the past 15 years. We tried to have outside review and didn't succeed. and they now have an internal review. which is pretty good. as internal reviews go. It has the characteristics that I mentioned. An additional one is that it has people who are-not independent in the political sense-but are structurally independent. who do the investigation in the sense that it has people assigned to that body, who do its 76 investigations and don't do anything else. unless they get trans- ferred. But a fatal mistake in the investigation is to send it. as it. were. to the local commander. In other words. to send it to the superior of the person invoived for an informal review. seems to me a Fatal mistake. Because there is a systemic bureaucratic tendency on the part of superiors to cover their people. It's natural. It's human. Mr. Boyn. You're talking about internal affairs of public? Mr. CHEVIGNY Yes. Mr. KASTENMEIER. Mv question IS somewant tangential. but out of cariosity, I was wondering why Professor Chevigny Stagested a magistrate. I assume meaning the U.S. magistrate rather than a U.S. judges Nuting that many jurisdictions. district furisdic- Pons. they either do not have magistrates PP the mainstrate's role is assigned by the U.S. judge And generatly, they are not categori- cally used rather than assigned specific Pm INS various Mr. CHEVIGNY, Fm surry, I washit USING MONTH M term at art. I meant it as a generic term. That is as a officer Mr. KASTENMEIER. Thank sure Mr. LUNGRES. Mr. Chairman? Mr. EDWARDS Mr. Langren: Mr. LUNGEEN. I have just one othestion 2 kind of N reheral question: But you were critical of the length of time which would go on before there would be a review of these programs and sug- gested a shorter period of time. Isn't there always the problem it you have people reviewing them too often. they become so familiar with what they re reviewing that they don have the distance you want, so that they are not a part of the operation itself? Mr. CHEVIGNY. Do you want to answer it? Mr. LUNGREN. Aren't you talking about an independent judg- ment? Mr. MARX. Life is complicated. There are always tradeoffs. Su- pervisors can be rotated and they should be subjected to review. Mr. LUNGREN. That's not my point. My point is. they become SO identified with it. they can't step back and see the whole picture. If you've got them reviewing every couple of weeks or maybe-even every month. I don't know. I haven't seen enough evidence to what is reasonable. They become so identified with the ongoing investi- gation, they don't come in as a supervisor with some distance to look at different things than the people actually involved in the process would. Mr. MARX. Partly, it may depend on the quality of the people doing the oversight. I think the key thing is not that you become too familiar with it, but that your overall career rewards are not tied into it. To the extent that supervisors are not going to be promoted or demoted as a result of the success or failure of the investigation, I think it's less of an issue. Mr. LUNGREN. The other thing ra like 10 just throw out is that we've been sort of analogizing this to the experience with the New York Police Department and other police departments But it seems to me the FBI is somewhat different than those. Mr. CHEVIONY. Yes. Mr. LUNGREN. The education level is certainly different. The type of investigations that they have ongoing is certainly different. 77 They re not involved in day-to-day street crime. And perhaps the analogy is not quite as valid as we might assume, just on the face of it. Mr. MARX I think because they re BSE as much involved in day- to-day street crime, where police are really familiar with who the bad actors are, these taeties become more problematic. Because FBI agents are unlikely to be involved in high roller activities as a matter of course they are at a disadvantage relative to who are more likely to be clase to lecal police. street crime. However, the broader constitutional principles and also the social aspects in terms of unintented consequences, in terms of what happens when you have secret operations, what happens with covert tactics. that those things are the same regardless ist the level of government: Mr. LUNGRES. understand. It strikes THE at times that our concern often us legislators. IN with creating paper trails and creat- ing many. many different boxes where you have braker tion. which almost takes the idea of checks and balances to such an extreme thit. in fact. inertia sets in. But when you get down to 11; it's the quality of the individuals involved: no matter how much you want to create various types of assistance. They may not bank at this in types of assistance. But that's what you re basically saying. You re protecting them as will as pretecting the operation and protecting the public. Mr. CHEVIGNY Ed like to SILV something about that if I may. I think it is true that it depends on the individuals. But it seems to me from the history of the FBL it seems to depend more on the character of the individuals than the character of the agents. In other words, the agents who are highly educated men were accused of what seemed to he terrible abuses. I haven't 44y doubt that they wouldn't have done those things on their own hook. But they did them because Mr. Hoover and others approved them or they thought they did. the atmosphere. That means something's got to be done about that atmosphere. You've heard what I think is the best thing. But obviously. guidelines can make a difference in the atmosphere But there's got to be control over people at the top. If you've got control over policy. policy with respect to are we going to chase the left. which was one of Hoover's policies, I take it that's not an option that open any more. Those kinds of policies have got to be stopped. Mr. Enwards: One last question. In the Abscam cases, there were four. live or six-1 can remember how many conuressmen- absolutely turned all of the inticements down and practically said get out of my office. But they claimed they were damaged severely and the FBI regrets it in his other to write letters. and 50 forth. Now. how would the guidelines have been improved SO that this very unfortunate situation. where these reputations were greatly damaged by the actions of the unwitting purveyors in practically all the cases? Mr. MARX think that a crucial question. It gets to the point of how good is the evidence that someone is predispased to this type of activity. The guidelines now talk in very general terms about this. They don't talk about degrees of predisposition, the relative merit of different kinds of evidence. or to what extent you have to cross check. So. I don't think they particularly speak to this prob- 78 lem. In fact, in the testimony here last March, it was claimed that Abscam was done in a way that was very consistent with the guidelines. Now, either the guidelines are lacking, or the operation wasn't done in a way that was consistent with them. Predisposition. is a very, very slippery kind of concept. I think it could happen again very easily, until it's made very clear how strong a predisposition has to be. It gets back to the issue of, are we trying to apprehend people who are corrupt? Or are we trying to see if someone is. in fact, corruptable? And as long as the latter is an operational stand- ard, I think there are going to be the kinds of problems that you suggest. Mr. EDWARDS. Well. especially when the person making the deci- sion as to predisposition doesn't know that he or she is working for the FBI and thinks that be or she actually is working for a billion- aire shiek. Mr. MARX. Yes, Mr. LUNGREN. I just wanted to see what point we are going on here. The fact that a number of people turned it down does not necessarily mean that the guidelines were improper. Unless you suggest that somehow you have to have 100 percent batting aver- age. I mean that might even go to the justification for the manner in which they operate. That they did not intice people who other- wise would not have been inticed. That is, that these people turned it down. I don't see how that proves the case that somehow the guidelines weren't in operation or weren't being followed. Mr. MARX. Yes: that's a good point. And people can differ about what batting average you have to have to conclude in the fact that someone was predisposed. it seems to me given the risks and the damage to the people involved, that they really ought to err in a much more conservative way. If half the people took it, I think there was insufficient evidence of predisposition. If it was higher. you might conclude predisposition was there. You also have to look at the quality of the temptation. If the temptation is 50 enticing and inviting, there may be no predisposition at all. You may simply be overwhelmed DV the incredible opportunity you have to help your constituents and/or yourself. Mr. EDWARDS. Further questions? Well. the witnesses have given us valuable in-depth information and we appreciate it very much. Mr. HYDE Indeed. Mr. LUNGREN. Fine: Mr. EDWARDS. So. we thank you very much. Mr. HYDE Excellent. Mr. EDWARDS. Tomorrow. the committee meets with the Depart- ment of Justice. [Whereupon. at. 11:30 a.m., the hearing was adjourned.] FBI UNDERCOVER GUIDELINES THURSDAY. FEBRUARY 16, 1981 House OF REPRESENTATIVES. SUBOOMMITTEEON CIVIL-AND CONSTITUTIONAL RIGHTS COMMITTEE ON THE JUDICIARS. Washington, D.C. The subcommittee met at 950 mm. in room 2226, Ravburn House Office Building: Hon. Don Edwards (chairman of the subcommittees presiding. Present: Representatives Edwards Kastenmeier, Lungren, and Sensenbrenner. Staff present: James Cooper, assistant counsel, and Thomas M. Boyd, associate counsel Mr. EDWARDS. The subcommittee will come to order. Today witness is Mr. Paul Michel. Associate Deputy Attorney General of the Department of Justice. In that position. Mr. Michel has become very familiar with the inner working of the FBI: that expertise proved invaluable to us last year when we began considering a legislative charter for the Bureau. Equally complex and difficult will be the task of controlling problems associated with undercover operations. the have been studying undercover operations for many, many months and prob- ably in the years ahead. We have learned enough in the last few days of hearings to sympathize with th Justice Department's difficulties in devising guidelines. The nature of undercover work itself creates a tension with a desire for control. However, the guidelines are definitely a step in the right direc- tion. And today. we hope to learn more about what they are intended to mean. Before I introduce Mr. Michel, I recognize the gentlernan from Wisconsin, Mr. Sensenbrenner. Mr. SENSENPRENNER Mr. Chairman. I ask unanimous consent from the Subcommittee on Civil and Constitutional Rights that the House committee permit coverage of this hearing in whole or in part by television broadcast. radio broadcast, and still photograph or by any of such methods of coverage pursuant to committee rule 5. Mr. EDWARDS. I thank the gentleman. I recognize the gentleman for any remarks he may care to make. Mr. SENSENBRENNER. No remarks. Mr. Chairman. Mr. EDWARDS. Mr. Michel. again. we welcome you and please read your statement in full. since we didn't receive it until late last evening and haven't had a chance to review it ourselves. 17% 80 TESTIMONY OF PAUL R. MICHEL, ASSOCIATE DEPUTY ATTOR- NEY GENERAL, OFFICE OF THE DEPUTY ATTORNEY GENERAL Mr. MICHEL. Thank you. Mr. ( hairman. Congressman Sensen- brenner. Pm VATY pleased to bei before the committee today to Have the opportunity to testify on undereover matters and particularly about the recent developments in the Department of Justice paties governing FBI undercover operations. And know that the pri- mary interest of the committee is on the guidelines issued by Attorney General Civilett: OR January 3. 19st The reason that Eve been asked to appear before the committee to testify SINGH these rundines is that handward participated: along with many others. 100 theyr precuration and therefore. 1 hope to be able to respond questions about their scope or intent or purpose. Atterney General Smith and other senior department officials the presently reverwing Pay condelines en undercover operations in order to whether any revisions may be necessary Last March the subcominittee received testimony From the for of the FBI and the Assistant Attorney General in charge of the criminal division concerning underedver operations There appears ance followed completion and public disciosure of several nacor undercover operations. including ABSC Mill Mr. Chairman. if I may, I world like to ask the committee to make part of the record of this proceeding, the statements and testimony of Director Webster and Assistant Attorney General Hevmann from that session. because ) think that they lav a dation which is pertinent to the injury with receive to the states lines. Mr. EDWARDS. Is there objection" Mr. SENSENBRENNER. No. Mr. EDWARDS. Without objection. SUI ordered See appendixo Mr. MICHEL Thank you. In the intervening time. there have been three major developments in the area of undercover oper- ations. First. juries have convicted all of the defendants brought to trial on the basis of ABSCAM, alt with the controversy surround- ing some aspects of that operation continues, both in the courts and in public debate. Second. the undercover review committee which studies proposed undercover operations. was established and begin to timetion and handle a great many of the cases: Third. after 18 months of intensive collaborative effort: de DE partment of Justice and the FBI commleted the custeines on 40- dereover operations With Director Webstees concurrence there guidelines were issued last month. The guidelines do not change established practices and proce- dures in ; By significant way. These practices and procedures have been developed gradually and carefully over the past-several vears The procedures have as their centerpiece. the reporation of that undercover review committee. Theretore: the et the guidelines should not, in my cause any confusion or disruption in FBI operations. I may SIIV that with regard to possible disruption that your colleague. Congressman McClory recently sent a letter to Attorney General Smith. The letter. which was dated January 24. asked whether the guidelines would have an adverse impact on the uper- ational effectiveness of the FBI. and particularly whether their use-whether the enidelines would make the ise of undercover operations by the Bureau difficulti il not proctically impossible. That possibility, of crease. whs much in our mind from the outset of efforts to develop the I know that in reviewing this issue. and indecd: M preparing materials which will soon INSURE in a responsive letter Congressivan Director Webster has indicated that the currentines do from make the net of the Darisiti more sitheulf. I muslit ulso SHAL SIGNATURE usere Will seme contusion about the miths mentation and at one WERE expressed difficulty or tered intriculty in a that No are 1MST now in the of better emplemented and nons are SWDE out to all FIN Hold others stå this Matter Mr. SDW TRIN Yes mean by their that the held nations have Down operating without ati Hus time Mr Micnik The Beld offices have been oberating for the entire period EYE estensive undervoyer WANTS. which is : and 3 vears without armatized sustelines That IF that 1.1 say THAT their have been operating without careful- ly structured procedures. Because the procedures have been tather well structured and Shipwed closely What the andelines basecully did was to build on MOSE procedures and to formanize them and if I can misuse a word, codity them into guidelines. I might MY with recard to questions of interpretation, since the guidelines are fairly lengthw-and fairly specific and contain awver like terminology, that EVe been advised by FRI officials that there have been no significant questions of interpretation that have come to the surface to date Mr. Chairman, let ne briefly describe the processes by which these guidelines were produced. It began in the early fall of when the Attorney General asked the Assistant Atterney General in charge of the criminal division to supervise the drafting of a number of possible zuidelines on different topies, including under- entier operations. The broad outlines for each of These guidelines were taken from the proposed FBI charter. which had to on jointly developed in the preceding year by FBI and department extends: Under the charter. the department would be required N with guidelines ON all maior areas of investigative activity Attorney General Civileni determined. however. that the benefit of under lines to the effectiveness of FBI operations had been sufficiently established by i years experience with the three guidelines pro- mulcated by Attorney General Levi. that additional guidelines ought not to await Contressional action on the proposed charter. Although Congress didn't take action on the charter proposal. various committees. including this one: did hold hearings on many parts of the charter. These hearings sharpened the issues and tested the reasoning underlying each of the provisions in the pro- posed charter. The hearings also underscored the need for assuring that in estigative activities are not only conducted vigorously and effectively, but also lawfully and reasonably. The zuidelines on undercover operations were put through innu- merable drafts. The dratts were written on the basis of extensive consultation with FBI officials actually administering and supervis- R2 ing the organized crime, white collar crime and other investizative programs. The initial drafting was done by two departmental attor- neys who were members of the Undercover Operations Review Committee. The draits were reviewed by FBI employees at every level in both headquarters and in the field: This included the special agent investigator, the proverbial "brick agent. The ten comments were prepared and became SSD 3 extensive discussion among members of the review committee. That committee was chaired by the Assistant Attorney General in charge of the criminal division and it included among others. the FBCs Assistant Director of the Criminal Investigative Division, his deputy, the chiefs of the organized crime and selective oper- ations units. the special assistant to the director. several career Justice Department prosecutors and myself While the text did change somewhat during the long process. there was agreement from the start between FBI and department Officials on all its basic provisions. As the project proceeded. only relatively cuner issues arose and all of them were resolved rather readily in : mutually satisfactory manner. In fact. by the end. there was such complete agreement by every- one on the guideline committee. that not a single issue had to be submitted to Director Webster or the Attorney General for resolu- tion. Both. of course, did personally review the final draft before the Attorney General promulgated the guidelines. Now, the process followed in preparation of these guidelines was nothing new. We simply followed the basic model established in 1976. when a similar committee Was commissioned by Attorney General Edward Levi. That committee developed various guide- lines. including those ultimately promulgated. which were three. and as you know. they concern No. 1, Informants: No. 2. domestic security investigations; and No. 3. civil disturbance investigations. Indeed. some of the members of the earlier guideline committee also participated in the current project. The guidelines on undercover operations like those on other topics. were drafted on the basis of certain underlying principles. Three of the most important of these are as follows. First: guide- lines should not be a catalog of "do's' and "don'ts." Rather, they should focus on establishing or formalizing sound procedures to assure that critical judgments are made at appropriate levels of authority and are recorded and therefore. susceptible to subsequent review within the Bureau, by the department. and by the Congress. Second, the guidelines must be clear enough to be readily under- stood and followed by all agents and must contain standards which are realistic enough 30 as not to interfere with effective and appro- priate investigative activities. Third. the guidelines should not merely meet the minimum re- quirements of constitutional and statutory law. but should also reflect sound law enforcement policy. I might say that these three principles, in my view. were precisely the same principles that formed the basis, a th poretical basis, for example, for the guidelines on domestic security investigations, which were issued in 1976. And I would submit to the committee that if you lay-the domes- tic security guidelines side-by-side with the undercover operations 3 guidelines. that while on the surface the language is different. because the subject is different. there are very striking similarities in the basic approach. Now no one could perfect Line issues they deal with are controversial and not every- one is going to arrive at precisely the same sense as to now to balance competing interests. But I would submit that the guidelines are based on idens that have been proven in practice. that their central design. of course. was to assure that investigations are conducted effectively, but also, appropriately and sensible. The latter considerations in the lang run are as important as the former. because successful crime fighting ultimately requires ac- ceptance of our work by the courts. including the appellate courts. which review convictions we obtain. and in the Congress which annually appropriates the funds We need and affords us authority for our activities Now. 1 would stress, Mr. Chairman. that the guidelines do not unduly hamper actual operations. And they do contain realistic but meaningful standards, But I would readily admit thist the guidelines are not Immune from criticism. There is, for example. one sense in which the guidelines micht be viewed as far less than ideal And that is that these guidelines- and, I would submit. any other version that could he written-cant absolutely guarantee that no undesirable incident will ever occur during the course of an undercover operation I think the guide- lines substantially reduce the risk. but they cannot eliminate it altogether. Let me give just a brief example, It involves the circumstance in which a suspect is offered an opportunity to commit a criminal act. And the issue is, what scrt of test ought to be met before that opportunity can be offered? As you know. Mr. Chairman. the guidelines essentially provide that we can make such an offer only under these circumstances. One, a middleman. who may be a witting person cooperating with us, or may be unwitting, implicates and produces the suspect at our location. Or two. the suspect. having heard of our operation. brings himself in. In addition. once the suspect is there. any offer made to him must be clearly criminal in nature. must be one that is mod- eled on real-life situations, and must be one in which the incen- tive-for example. the size of a bribe-is not disproportionate to the service sought or the normal expectations for that type of criminality. Now. some outside observers have suggested that the Govern- ment should be required to have probable cause of similar past crimes by a particular individual before it offers him an opportuni- ty for crime. Our view is that this suggestion is impractical. For one thing. we often do not even know the identity of the suspect until he appears at the location where the offer will be made. More fundamentally. such a suggestion. in my opinion, mis- understands the extent to which investigations are inherently and unavoidably evolutionary in nature. / They often begin with rélatively uncorribreated suspicions. They progress to some corroboration or additional kinds of allecations of suspicions. And ultimately. the progress 10 the point of probable cause to arrest and indict. To regitire provide cause DV If We eree nike the investigative the 019 waking an is to DEED the FM in it enten II We already had the the the past entue, we and simply make at arrest and prosecure in thirt past create in lock Nr. very need for making the offer is to convert reisonable Indication of criminality into strong and evidence DO that would amount to probable couse or indeed: more Mr. hairman. We looked If surrer 01 receive undercover operations-and of 1 cash discuss sectifies of Abscan that are under but in general If We ONE at past operations, would Say that NHE kind DI review would to this conclusion: The matority ist sustivets WAS were offered A cleariv criminal opportunity and 13. acceptivit. brand or whetever it WITHS were not people 11> to which we had crobable at the time en the offer And theret if the with required the invest Cigations would have Stopped the spot Now. the Artiback argument is, in will, it THE probable cause What an at a somewhat Statement! Perhars reasonable suspicion. One problem with reasonable suspicion N that it IS canalog to probable cause in this sense Both under elaborately developed case law. require. really. two things. The limit is sufficient indica- tion or criminality But the second-and this is an indispensable test as much as the listeds that the information establishes to the same degree of certitude that the particular individual it the one involved Now. as I pointed out earlier. frequentiv the identity of the prospective brince sn't even known. And therefore it would be impossible in those circumstances to meet even the test of reason- able suspicion. at least as defined in classic search-warrant law. That's not to SQV that undereover operations ought to offer op- portunities for criminality in the complete absence of reasons to suspect that the activity is going on and that the people who will present themselves or were presented and produced at the location in fact are involved in that kind if criminal business. We used in a charter. as you will recall. Mr. Chairman. the concept and the phrase reasonable indication. And that same nation is adopted in the cuidelines and is men's tioned. As I indicated carlier. WP either have to have it reasonable basis for suspecting. 3 reasonable indication that the individual in question is corrupt as a labor fax keteer. or whatever the operation involves. or he has to identity himself by comming in. with no active role on our part. Now. 1 would like to next lust briefly touch on another aspect of the eateh 22, and I have to be cireful here apout terminations Keep in mind that sometimes the players wear more than une not We all talk perhaps too facilely. about. well. yea have suspects, and you have targets. and you have defendants. and you DATE intor- mants. and SO on: But in undercover operations particulary some times they mix. We often have a man who starts out IS a suspect Let's say an informant has come and told VIS that Mr. X. who E a police captain in some metropolitan city, IS collecting birthe from cambling operators. Suppose then that the word ARE or that 3 new gam- bling operation is being established And NO nosi thing that hap- pens is. this police ceptain COPIES He Stat his superior officer. Inspector P. and shares M the hrstis WALL at that the capital has sharted nom bester metrols a subject. hocause NE the Information: a MR interme- diary But he IN to bring the night signature AND or course, we no even interested in DO In successfully Drus- ecute that individual than the NAME So has becomes exidements And Me of Obviously, He has the have that this before 35 NEGDA and IN a sotup in to detret belier consultant There are of wourse, middles en who are written This RT IN ferred to in FBI terminatory :- dermine This press ent special problems in WHICH M VII total conthil by the Government. But it = investment be the think. Mmt in most stantions the maldeman in not os the Government. The mediciman HOWE with kniw that it's an undercover operation. Now in the case where the Resteman >- substerations mehvidu- al. is fully knowle there :- a risk Mark THE will misrepresent the statements OF activities of 13 suspect. THEM NY will produce at our warehouse. or whatever the steation micht be individuals who in fact are innocent There IS. therefore, there's that an innocent individual may be ottered the criminal opportunity There are two reasons why this risk. even asute from guidelines protection, is not very great. The first is. if a cooperating individual, a middleman. brings in an innocent person. quickly discover that here either exaggerating or he doesn't know what he's taking about. THE We no longer put SO much with in white he says k corrects itself rather fast. It is quite true. in the meantime. one OF two mdividuals who are completely innocent might be drawn into the operation to the extent of having the after made, But as. I think it Was the second circuit. recently observed. that is not necessarily disastrous. be cause the honest man simply receives the inter and departs It is a risk: if is undestrable. It is nix * DIE risk. and the guidelines minimize it by: for example. stressing that the underls- ing criminal nature of the offer has to be made very clear and communicated directly to the suspect. No offers are made through third parties They're face TO face: and thew re in clear terms. And I might say that with resard to the clienty of the criminal nature. We frequently have had circumstances in actual operations where extensive script writing. in effect. Was done by teams of lawvers from both the department and the FBI So that the unders cover agent who actually makes the offer--we don't let the middle- man make the offer: the undercover agent makes the offer-does so in terms that are unmistakably clear that this IS at crune that's being offered. OK Let me just make a cotitie general observations, if 1 may First, the guidelines emphasize procedures. But the emphasis on procedures is not to minimize the importance - the judgment calls that have to be made in these operations. It really is judgment that's the key here. And in this regard. the Fact that the FBI now has been conduct- ing maior undercover operations in all of its investigative jurisdiction for several years means that we save a lot of experi- ence. We can benefit from this experience and we are benefiting from the experience. It is important. I think. to avoid the aftision that may have plagued one or more of your eather withheses There are ni effect. three time zones. Incre was the first year DE 4) of mayor undercov- er activities. That's the first time period. The second time deriod is the First year or 1425 pre-suidetine. but we had the committee. the review committee. He had the strue- tures in place. They just hadn been formatized And then, of course. the third time period is the future Some of the celebrated undereover operations in which obvious- ly. problems have come up fall in the first period, where there were neither the informal procedures nor the committee. and. obviously. not the guidelines. Operation runt-Load is an example of that It happened because the review committee wishit in place. Now. the important thing. as I tried to make clear earlier is that while there's a huge difference between the first time period, where there was way little structure or not enough structure. at least. and the second time period is a vast difference. But the difference between the second time period-the last year or two- and the immediate future is very little. It is mostly a question of formalizing structure and policies and practices already in place. Now. with regard to how that all works. i would like to make this observation. The guidelines emphasize the approval process, because that is what we thought deserved the most emphasis. That is what is going to bring the judgment of supervisors and outsiders to the field office involved to bear on this. And as you know. the guidelines provide for the operation to be recertified by the committee and the appropriate senior FBI offi- cials under any one of three tests: No. 1. at a minimum. every 6 months. no matter what else No. 2, anytime the nature of the operation changes. Il it changes (yery month. then there a whole new review every month. And % 3. any une the operation spends more than a triever sum. which is $20,000, The practical effect in those three triggers of renewed scrutiny by the committee is that in the largest and most sensitive oper- ations. the reviews aren t every 6 months: they re much more frequent than that In addition to formal reviews by the committee. however. there are reviews which sometimes are week-to-week. or even day-to-day In the most sensitive cases There are innumerable examples, for instance, where the Direc- for of the FBI hintself, personally reviewed whether a particular circumstance. as to a particular suspect. warranted the making of an offer of a criminal opportunity So. the control of these operations, and minimizing the risks of untoward events occurring. rest as much on this ongoing supervi- 1, sion at all levels of the chain of command in the FBI, as they do on the committee proposal certification process. Now. I'd also ask the subcommittee. in reviewing the undercovér operations guidelines. to keep in mind that these guidelines do not form the entire system for controlling undercover operations. The guidelines perhaps could be analogized to the keystone of an arch. But there are other stones in the arch and they re important stones: There are court decisions. statutes enacted by Congress. Your familiar. for example, with limitat ons in our appropri- ations on using money in certain undercover operations contexts. Because these other provisions were already well established. for- malized. written down, being fellowed: we didn repeat them all in the guideline. For example, the courts have elaborately developed and closely defined the law of entrapment In the guidel we don. repeat all that or try to even summarize it. We just SIX of course. stay far away from entrapment. Now. another point that I think bears keeping in mind in reviews ing the guidelines is that they, of necessity. have to apply TO an extraordinary variety of different kinds of operations, One of the troubles with the terminology. undercover operations, is that it might lead some to think that they re largely similar or that there may be two or three major categories. In my opinion, if you break it down into categories, you get into dozens or hundreds. and some of them are extremely different from others. The guidelines have to be designed to cover all of them. It is also important to keep in mind which operations are essen- tially typical. and which are atypical. The fencing sting-type operations are typical And operations like Abscam are typical. I do not think that this is the best viewpoint to look at the guidelines, only or primarily trum the standpoint of how they would effect one particular operation. The real question is: How do they effect the whole range of operations? Now. in conclusion. I would urge members of the committee and the Congress to reserve judgment on the guidelines. I'd suggest that the issues about whether these guidelines should be changed. whether they should be codified. if SO, whether they should be codified in this form or some other form-all should. be reserved. For one thing. we need substantial experience actually operating under the guidelines before well all have a sound basis for making final conclusions on these kinds of matters. For another thing. Attorney General Smith certainly should be given the opportunity to reach his own conclusions concerning these guidelines. I would suggest that what matters is how they actually work in practice. That's how they should be judged. Experience is really the best test. I know that you had eminent lawyers. and law professors. and scholars testifying about the guidelines, and I've carefully reviewed their prepared statements. And I think that observations of all interested and knowledgeable parties can be helpful. But I would suggest to the committee that law professors and lawvers-so I'm including myself-have an inherent tendency to microscopically 3 examine language and to think that that's the most important thing. I would suggest with regard to these coldelines. that's not the most important think The most important thing is How do they actually work in practice? After an appropriate period it trial and error, le-king back in actual cases where they mere applied. SPI the results to be satisfactory, or not? think that the process followed with regird to the New cridel lites maybe serves > a word model. List were BUT 200 That That were followed the an extensive persent. And then tien activity Regan to really come 10 hear 1 would UWA the approach adopted By Congress regarding the Levi 2010> HDT might also be the best approach rearding These undercover operations guidelines. MR Chairman. that concludes HW statements And 1 want to apologize about the hist that We not it to the committee me But We am in still : transitional of DE debartment. and there were a number it reasons who if WAS difficult univide the statement explier PM like to step now, because Exe talked SD loths perhaps too long, I world ask it it meets with proval. Mr Chairman. if at some pout after responding E mestrits by He menters. I might have Hert a few mintias to quickly respond to: bex selected points made by Professors Seidman: Chevicals, and Marx Thank you. ME Enwards Thank you very nuch. MY Michel it X NIWNINS a pleasure to have Voll here. Mr. Michel's prepared statement follows PREPARED Smit **** or ISSU It DUES GRANDAY 04101 TX 1984 Here ys GENERAL CIDEOXES SERVICE OPERATIONS Charman Kdwards And Subtotal Fixe Statemental Rights Lada please INC units 591 Tentaly before tree ON developments Department est Justice pritter FM underenver operativities HA Tele HAS for the issued % Gross Creditors when Total Guafefines at this the Teavises been spouse birthers provide and CARD qui street above the and PARK the Invent address General Smith along with provide the in ender to 2018 March the Subje N The INCLUDE the FBI and the Assistant Attorney charge 10 Primite However Davit followed maletion public is sever understand uperations, including Alber W 16 the meantar THE have N the defendants brought to what 145 the 19th of W altholigh the surbanifing of 133f Specialist with the to debate Jim. the Department and the FBC affir withs 1.5 states Med. completed Gestelmes 46 Under HVV United The Date: currenters these WITH Redid to General maym 1947 The Guidelines de THE atter from shell provided and prov need These practices and prosiders with crademic and DATE 144 me the part 2 years Tax- implementación of the Gass this should (1) 90 Very confusion or distute/airs belent have heres We vivi you FW et 150 Assistant Direct of at the FBG Craim at have Division: the the FBI this IN subsidicant questions of interpretation and na FOR profilents This Date 89 came as no surprise of the unreful and experiative process which produced the Guidelines In the early Fall int CUTY the Affiliation General asked the Assistment Attorney General in charge the Cruminal Division DV WATRING the drattions of provider Guidelines on variod- investions Informants Sectional Unitainal Invoice and Undercever United Yes The while et trank Condulinas Water Maken term the propered FBF which AND developed to the provident your DN and Department withher VALUE harten the Department was do - answer investments comes The Attenties General Shit Non be THE == tiveres set FRI had been sure institle lines should that the Yes Charter Although Constries $1.1 fact today, and proposed MI Not Summer of 1100. with in committee took section hwit service parts AF the The Partherned For - and NY THE underiving with at the Name purposed 429 surred the mark the that and AND Fut were and this The the Charter, wash part were Critk and with otherwist Inc. araits wide other of extel spe within FBI 1000 Crime Where and Other service DATE MNN years The to who of NEWER Upon memor Review which ast MM which Depositive dests Were then have his PMI of 21) bien una W The bill the Special Acent on service less agent Written were presented and his the to informative denta Shin attend the Review The Pay the ASSE Attorney Generation Childre of the Division, dan Assistant Directorio the Criminal Investigative the the Chies the Organized Crate Section and the Selective OFFICE With the Special Assist ant to the Director. reseral career Department presentations and MARCH While the text charlest somewh.k during this HAVE the Mats full NAME ment from the start Setween the HII and Departmento WISH fither plus A. the proper reserved. uran immor disagreements spose and of them with resolved rather HI a mutically satisfactory middler In laok is the and the Wils rull agreement DX everyone in the Committee Nat 3 single had to E submitted to Interter Withster or the Attorney sur resolution Both persons altv reviewed the fin draft which the Attorney General promunzated The process following was not invented for this particular provide We sumply followed the basic mixted established m 1976 when II Committee From missumed by Attorney General Resard Levi develatied Guadelines Informants. rity Investigations and Card Disturbance Investigations Indeed. - of the hers of the earlier Committee HSD participated as Bile project example is Inspector John Huts- at the FBI who in additions otherwise with Departy Avenue ant Attorney General Mary Lawton ist THIS Office of USE United WIS at principal drattsman of the proposed FBL harter The Guidelines accepted Operations, the an other Date:- to Be district on the basis of certifies orderlving principles The Baton print of First the sustences stemil New and diection Not M.D. the should focus jub estationshing exy fornalizing Extrem to TOTAL judgments are made at appropriate MAINS of anthorits and are provided and tible to subsequent review Second the Guideimes must be to M readily understood and sollowed by all signts and contain standards which realistic enough NO 05 to no. intertere with effective and appropriate invistigative activity Third the Children's should not only the the requirement- of Constitute tional and statution law her also should reflect sound Crw enforcement policies The Guidelines Committee sought to follow thrse the basic propriples Name would Craim that the Gusteh - THE perfect But they are Sexed *** stone which have been proven ID prictice The lesten of the Guidelines is in misure that invistigations are conducted both effectively and Listuily The latter consideration 177 important to the continuing clivitis of the Government to combit the as The termier because crimefichting ultimatels requires neceptance of will work DV the includes: the appellate courts which reserved the convictions We Phin and the congress which annually appropriates the funds We need and attents the authorities that our activi- tres. There is. however OR sense in which these Guadelines or any ther possible versions could be Lound unsatistactory: the Guidelines current Marantee that Del 90 undesirable incident win ever occur. They vastly reduce the risk. but they do not and cannot prevent it from ever happening. Two examples will illustrate the point. The first involves the provisions establish- ing the tests which must be met beture a suspect may be affered in opportunity to commit a crimmal act While the Guidelines cannot guarantee that an himest person will never receive such of offer. they 40 make it unlikely Some cutside observers have sucrested that the wernment must have probable cause of similar past crimes by an individual before it effers him on opportunity for crime such as a bribe. This is impractical. The effect world De to immunize from investigation probably the majority at those an past reservations actually accepted such others There are other problems 10.) BUR your things wereiten do not know the identify of the subject until he appears at the location When the other will be made fundamentally, the suggestion resumberstants the evolutionary nature of INVESTING tiens. They ordinarily bezin WILD suspicion and and with protectly cause to and indict To require prohable entire We 0.00 make an must is to trap the FIN in a If we alreads Hard prohable CROW of a part crime. we could Address arrest and prosecute for the 10:45 THE season for massing the Mar 24 the convert a reasonable indication VI expirimatory the evidence recenting to prograble cause. The second example involves the servisions diverning the natifing of interme diaries Often. 39 We have to WAVE we first toods on as institual is The word of at middleman that be has here iniminally reserved with the and visital IN the 1 to that individual indicated an H. such revervement that his creditizes ***** rarely be bevond question. Whit AS new entre melti the do? Often the only with to correber IDE mildienan insertion is to make If the middleman brinis in inform. admidists who return will other, We will quickly realize we cannot trust fatty There is risk in the meantime that more innocent individuals will be stated a opportunity Under the lines. we can cenerally make the only under these dircumstances ID it mades man implicates and produces the suspect. or 2. the suspect. hearing of our ation: comes in on his own. Madeover, ones the suspect is there the offer made to him must be clearly criminal. one that is modeled on real bite situations and eme 111 which the incentive. such as the -17P if a briter. IN tin: disproportionate to the sure ce sought. The honest man. of simply reluses and departs We cannot entirely prevent this anvimore than yy can previo any inmocent person from ever being investizated with conventional techniques such us interred tion of witnesses and examination of documents. Indeed. even searches with was rants. which are far more intrusive of privacy and which do require probable sometimes are directed at persons who turn out to be innocent Nor can We Funder using middlemen. relying only D Special Agents with undercover identities 4 is the real life con men who KNOW and are known by the criminals while or undercover agent. a stranger. would rarely be admitted to the contidences et the criminal suspect. The Guidelines intend to minimure the risk that middlen n will inisstate or exaggerate what a suspect has said or done There is simply TO practical way to eliminate such possibilities aitorether There is. however. an impractical way-that IS to require that exery such pretimi- sary conversation between a suspect and a middleman he recorded If such require ment were imposed. a wary criminal could then insist on have to use neetings and search the intermediary, knowing that If the suspected middleman is couper. Neg with the Government he will be wearing recording equipment and if he 15 not. BY cannot possibly be cooperating with the FBL Cussider too. the risk to the cooperate ing individual. How many persons will cooperate and ant as an intermediary if required to always wear recording equipment. which if detected may result in his being killed? Finally. I should like to point out that the Guidelines attempt to provide a rational structure for the careful exercise of judgment by requiring increasitiely sensitive matters to be reviewed by increasingly higher levels of authority The emphasis on procedures, however, does not numimize the importance of the judge ments themselves, Now that the FBI nas been conducting maior undercover uper- ations in all areas of criminal activity within its investigative jurisdiction for a number of years. this exercise of judgment will benefit fr. m these experiences Therefore. we are confident that a new unfortunate events which may have occurred in a few of the past operations are unlikely to be repeated. In fact. we systematical- is analyze all major operations upon completion precisely for the purpose of refin- ing our undercover techniques The lessons which can be learned from the past are being learned and applied in present cases: 91 In the Subcommittee's review of the Undercover Operations Guidelines. it should keep in mind that the Guidelines are not the entire system for controlling such operations. In addition to the Guidelines there are statutes and court decisions applicable to various aspects and there are also internal working payers of the FBI and the Department. Accordingly, the Guidelines build on but da POI rebeit provi- sions alreads established eisewhere. For example, the Guidelines do the contain lengthy or detailed provisions on entrapment. The reason is that thensaw is well settled by the courts and this subject. therefore did not fürther dévelopment and exposition in the Guidelines It is also important to KIND iN mind that the Gold THE were to apply to all kinds to undercover operations--fencine operations drug purentives Susanercial entities such as bars and waste disposal companies and all the 1 Break are the typical operations; ABSCAM AND atypical Thus, the Guidelines attend be viewed from the standpoint of whether they adepately control but not unitude encomber. the entire range of undersiver operations In conclusion. I widld united Members to reserve underent on the Guidelines 10 their present form or shme maddlied form and whether to codity them until we have had more experience under them. In addition, Attorney General Smith should be given the opportunity W reach his own conclusions concerning these I submit that now they actually work in practice is what should the Export ence is the tablet test. Rather than compating them. as Hw professors of lawvers might be inclined 19 di MV chosely anawaying the precise language IN the text. 1 suggest instead that 15:81 was and has they WORK in real CASH Foot will> the approach adopted by the becausive Branch resard KK Condulines Servicesly pro- mulizated by Attornes Octional Levi and I would IN who OF improvich regarding these Guidelines Thank you. Mr. EDWARDS. Mr. Sensenbrenner. Mr. SENSENBRENNEE. Mr. Michel. how long do you think it will be before the Attorney General is able to review these guidelines and to respond to Congressman McClory's letter of January 232 Mr. MICHEL Congressman. there are really two questions there. and i can only answer one. and that is the second one: That is 1 know with regard to responding to Congressman McClory's letter. Director Webster has sent material to the Attorney General and 1 believe that the Attorney General will have that material today. Therefore, I'm sure that Congressman McClory will promptly receive a substantive response from Attorney General Smith on the points raised in his letter. Your first question about when will the Attorney General com- plete his evaluation or review of the guidelines, I really just have no basis of making a guess on that I wouldn't think too long because I know it is a matter of importance to him. But I really can't give a time frame. because I have no way of predicting. Mr. SENSENBRENNER Mr. Chairman, in order to make the record complete. I would ask unanimous consent that the Attorney Gener- al's response to Congressman McClory be included in the record of these proceedings. Mr. EDWARDS. Without objection. 50 ordered. Information follows:) 92 Congress of the United States Committee CII the Judiciary House of Representations Mashington, D.C. 20515 Congress William Check Cover the Non 0.3. of Payments 0.1. The RNN Code: Birth the PK, on FEE return Visa before? Name 1V IPUB may NAME with the the IR proposing DI THE years with (pel with to trugs sing the No offect the most NB 09 My eite 0908 beautically, noticement too expert 10 which Residents FSS Dues recover fresh special avont X 1200 and the the fit H 100 also Armed attent the also distribution with undersover operations priorials within the In hert receipt ASSCAM investigation, and the leaks 10 cooloress attendant I believe it is braise to involve the many respite 15 the approval stocess. Nether, will i an sensitive to the risks which the Undercover Operations Period Committee streets EXITION relative $5 the effect of the undersityer operation prosecal 00 3 shold bute to she become 80 citticult is through Main VATE in the difficult if not practically incossible. have been informed that the Descriptions ON CANER and Constitutional Rights intends to told Federal 03 or what February 16. and : willd None that My that the you will bene New the to reach your OWN epectudions on the validity et MY Tack forward to seeing and nation with *** #1 that time. Regist McClary EMeCitch health Micority Menter cer Director William Astister, Federal Bureau of Investigation 93 Office if the Attorney General Mashington, D.C. 1. V. 20530 STATE FEB 9 30 THE THE may Loss which UNA and & Page IT attes NY Information 1.3 your a TOTAL and and property too 477 Stat the and UNITED After the need to in effective : you that this 143 must by partners attenties. : upreciate your ORGANIZATION of interest 10 AND information nation. and NOT Tetch in with 2013 the with M Mark sincerely, Bill William Thench FIREST Attorney 83-356 01-61-7 - 94 Mr. SENSENBRENNER. second, Mr. Mie' el. it is my understanding that there is sôme litigation going on in New York, which address- es some of the points this committee has received in testimony from earlier witnesses. Is that the case, and could the Department make available. at least. those parts of the transcript h are relevant to the earlier testimony, for inclusion in the record. Mr. MICHEL Congressman Sensenbrenner. } think that the test:- mony, which was extensive-as visu know: there were several weeks of hearmes-isn presentis available In I assume it will become available before Les long and certainive we can make SUTY that the committee and its staff BUS INVOICE to #: and that a is made at part of the record of the committee don't know from tast we can do it. but we II certainly Resit Mr. SENSENPRENNER 1 have INI further questions Mr. Bowards Mr. Mr. Lt NORKS, No questions, Mr. EDWARDS WAIL Mi Michael Em m VITA new Nint this subcommittee is supportive of the Endelines I would pants out, though. that when you menti med the guidelines on domestic secu- ritv. that Attorney General Levi worked closoly with this subcommittee in the dratting of the guidelines In contrast we SHW these guide ages only after they alreads had been promulgated. and presumably sent to all the field offices earl this year ()) yourse, we are reserving judgment. but We have our responsibilities, 100, I might also point out tha at a hearing just about 1 year ago, March MISO, the Director of the FBI Wobstor and the Assistant Attorney General Heyman testified that them was total control of the undercover operations at that ti GO: that all the decisions made in connection with the undercover operations chat this subcommit- tee was inquiring into had been supervised by the Bureau and Department of Justice on a daily basis. Yet your testimony today points city and rightly so, that that was no quite the fact. You have state E stage 2. stage 3. You were in stage 1 at that time. is that correct? And some problems did arise? Mr. MICHEL No. Mr. Chairman. The testimony of Director Web- ster and Mr. Heymann on March ; of 1980, was describing circum- stances in the immediately preceding months. And those months are in the period I categorized as period m mher 2 The procedures were it E place The Undercover Operations Review Committee was functioning 50 that in terms of what the current situation was in late 1099 and early 1980, all the controls were in place of that time. They had net been in place back in the period 1977. 1978 and perhaps into parts of 1979. Mr. EDWARDS. In then words, Operation Front-Load was in stage 17 Mr. MICHEL That's correct. Mr. EDWARDS What yours saving is Abscam was in state 22 Mr. LICHEL Most of Abscam was in stage 2. 1 believe the very beginnin, J: it were in stag: My EDWARDS. You mentioned one of the key elements in those unde reover operations. the risk of middlemen, often -urwitting 95 agents of the Federal Government. approaching innocent persons and sometimes doing damage to innocent persons. Often, these middlemen are conmen or people with long criminal records, and sometimes they are in the pay of the Bureau or of the Department of Justice. Is that correct, also? Mr. MICHEL. That's correct. There are both types. The first type is the far more common. Mr. EDWALDS. is there no auditing done? How do you control these people. these people floating around? One of them got as far as San Jose, Calif., and did great damage to an innocent business- man. How do you stop them from approaching one person after an- other and then approaching the same person again. and enticing the same innocent person again and again and again? And going to the neighbors of an innocent person and saying. do you know anything about this guy, and SO on? Mr. MICHEL Let me take it separately. With regard to the unwit- ting conman. there is no way we can stop them. And we didn't start them. He was already out there doing that. Mr. EDWALDS. No but you re paying him money to continue. Mr. MICHEL. No. no, not the unwitting conman. He thinks that he's working, with criminals and at both ends. and so. he's just operating in his normal fashion. And we cidn't put him into that business, and we're not in a position to put him out of that business. so that it just isn't a question of how can the Government let him do that? The Govern- ment ordinarily has little capacity to step him from doing that. Now. in the case of the witting interme diary. who is being paid. in some instan es, by the FBI. certainly B receiving direction from the FBI, that's quite a different circumstance. In that case, there's a lot that we can do and do do to minimize as much as possible, the risk of innocent people being drawn into this web, if you will. One of the things we do is that we require. to the extent possible, that his contacts with people that he says are corrupt. or are racketeers, or whatever the nature of the enterprise is. we require him to develop the best possible evidence. For example, if there are telephone conversations between the witting conman and the suspect, those conversations may be re- corded with consent of the cooperating individual. So that we aren't dependent on his word that the suspect showed an interest in committing a crime. The words of the suspect himself or herself are available to us. So that eliminates the risk that the middieman is lying in that kind of circumstance. Now. it is not always practi- cal to have tape recordings done But that's done where it can be done. Another device we use is that the witting middleman is ques- tioned closely after each material meeting or contact with a sus- pect. And he reports or produces information, detailing precisely what was allegedly said. Sometimes, the specifics in these reports can be corroborated through independent investigations, SO that would serve on a check that the conman is conning us and lying about someone being interested in committing a crime. 96 So those are the principal protections that prevent an innocent person from ever getting to the stage of being at one of our loca- tions. And then, as I mentioned earlier, the second line of defense, the second safety net, is our strong emphasis on making it absolutely clear that we're talking about crimes and make sure that the contact is directly between the agent and the suspect, and no one is speaking for the suspect. He's speaking for himself. And in that way, if there was anything that slipped through and an innocent person gets in there, then when he's face to face across the table with the undercover agent. who makes it clear that they're talking about outright criminality. well, then he leaves. It's not perfect. It's not risk-free. But neither is any other investi- gative technique. You talked about businessmen or public figures who were inno- cent, being embarrassed or injured in their public or business life. No. 1, I have to point out that the injury comes almost always not from the fact of the investigation, but from the leak. The problem is teaks. Second. those same kinds of injuries occur even in the most limited sort of investigations, investigations that depend only on questioning witnesses. The same thing happens. He comes in and tells us Congressman SO and so is corrupt. He takes bribes. And it may not be true. We do an investigation. So there's nothing-there's no danger that's of the sort that you focus on, that's increased by the fact that we do undercover operations. The danger is already there and it is real danger. We do every- thing we can to minimize it. But in no context IS criminal investi- gation an entirely safe and fool-proof enterprise. Mr. EDWARDS. Well, we do not agree. Mr. Michel, on the question of whether the danger is increased when there's a thug, a con man and he or she is being utilized as a middleman by the Bureau by another undercover agent of the Bureau. Based upon discussions with the undercover FBI agent, who the middleman thinks a big businessman or something, the middleman is egged on or promised good things by the FBI undercover agent. As a result, the middleman continues in business and perhaps increases the amount of his business. Isn't that correct? Mr. MICHEL. I think the answer-I hate to give this kind of answer. I think the answer is no in a way and yes in a way. When you say he's in business because the FBI is egging him on, I don't think that's quite right. He was in business before the FBI came on the scene. And likely-I can't prove it in every case-but likely, he would have remained in whatever that business is, whether or not he became involved with the FBI. There is a danger that if excessive inducements are offered to this unwitting con man, that that may increase the risk of inno- cent people being brought in. But as I said before, there's a certain self-correcting mechanism. If the con man keeps bringing in people who are-who don't go through with the deal, then he loses face, loses credibility with the FBI guy who he thinks is a criminal associate. 97 So there's a disincentive for him to be wrong very often. But there are risks there and they just can't be eliminated. Mr. EDWARDS. I don't want to take all the time. Do you have some questions, Mr. Lungren? Mr. LUNGREN. No. Mr. EDWARDS. Counsel? Ms. COOPER. I'd like to ask a few questions about the Undercover Review Committee. The description in the guidelines of the com- mittee's makeup is somewhat vague. It talks about appropriate employees of the FBI designated by the Director and attorneys designated by the Assistant Attorney General for the Criminal Division. What does this mean in terms of numbers. first of all? Mr. MICHEL The committee is basically six or seven individuals, two departmental attorneys. career attorneys. long experience. ex- tensive prior involvement in undercover operations. One is a sec- tion chief and the other is slightly below that level. The FBI members, including the Deputy Assistant Director of the Criminal Investigation Division, and I believe the head of the Selective Oper- ations Unit: that is. in effect. the undercover unit and senior offi- cials of the program involved. If it's a property crime matter. then they sit on it. If it's an organized crime matter. then people from that section sit on it. and SO on. Ms. COOPER. So when it sits, it might have anywhere from six or seven to three or four people, making a decision? Mr. MICHEL. I think ordinarily. the range is about 5 to 10 mem- bers on a given proposal. Ms. COOPER. Well then. is it an established membership? Are people definitely on the committee or definitely sometimes on the committee? Mr. MICHEL. Some of each. The committee is chaired by the Deputy Assistant Director of Criminal investigati Division. He is always on it. The two departmental attorneys are always on it. Some of the FBI membership changes. depending on which investi- gative program a particular proposal falls in. But most of the members of the committee are, in fact. permanent members. Ms. COOPER. It is just the permanent members, then. that would function in the way of receiving the annual reports, for example; is that right? Mr. MICHEL. Well. they would be the formal receivers. They may share all kinds of studies and reports with other people. But I think the answer to your question is yes. Ms. COOPER. OK. The guidelines provide for a decision being made by a consensus of the members. What does that mean if there's a substantially changing or at least possibly changing number and makeup on the committee? Mr. MICHEL. Well. let me highlight what really the most impor- tant function of the committee is. It's not a rejection commit PP. And it's not a rubber-stamp committee. It is a double check on the judgment of officials down the chain of command. It is a check that brings to bear some expertise. When you're talking about the committee including the Chief of Selective Operations Unit. permanent member, here's the individu- al who probably more than anybody else in the whole FBI, all day