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u.s. Department of Justice Office of the Attorney General

On Cour,se and Getting Results

135532 U.S. Department of Justice National Institute of Justice

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A Report to the President of the United States April 1, 1990 Department of Justice Accomplishments (January 1, 1989 to April 1, 1990) ...... NCJRS ~ ~The United States wins its point whenever justice is done its MAR 12 1992 citizens in the courts ~ ~ Inscription on the rotunda outside . ACQUtSITI"(~NS the Attorney General's Office

The Department of Justice has always had alized society which fouls our landscapes and two mandates: to enforce federal laws and to washes up on our beaches is simply unac­ ensure the administration of justice. But the ceptable. challenges in law enforcement and for provid­ Our criminal justice system is under particu­ ing justice for all Americans in the 1990's are lar strain because of the war against drugs. We unprecedented. are, in a sense, victims of our own success. We are now faced with ruthless, international Because there are more arrests than ever be­ criminal organizations which deal in illegal fore, we require an increased capacity for drug trafficking, terrorism, and .violence in our prosecution, trial, and incarceration. And we states and communities and against our citizens must seek to continue to attract the best quali­ worldwide. fied people to administer this system. In addition, we have seen an onset of serious These are some of the challenges for the "white collar" crime scandals -- especially in 90's. But the Department of Justice, supported the savings and loan industry, defense procure­ by the President and Congress, has already set ment practices, and in the securities and com­ in motion many of the programs and policies modities markets. needed to get these important jobs done. We have also seen the increasing spread of Of initial note are some of the major legisla­ regional and international organized crime tive undertakings of the year: through the Colombian drug cartels, Asian The crafting and submission to Congress of groups, Jamaican posses, the Crips and Bloods the President's 1989 Crime Package, which is youth gangs which, along with traditional or­ aimed at providing more law enforcement ganized crime, continue to be a major objective agents, more prosecutors, and more federal pri­ for federal law enforcement. son space. Under this proposal, criminals will Justice for all Americans requires constant face stiffer sentences for using firearms when vigilance especially since the reach of civil committing a crime and the death penalty will rights laws has become more comprehensive in be applied for homicide, espionage, treason and its scope. The Department has and will expand new offenses including violent felonies involv­ its efforts to ensure equal opportunity in all ing a firearm. areas including housing, the job market, pro­ Other reforms sought include a "good faith" tection for persons with disabilities, and for exception to the exclusionary rule permitting senior citizens. police greater ieeway in their search for evi­ This Administration and the Department are dence, and habeas corpus reform which will also committed to increased protection of our ease the clogging of the federal courts. nation's environment. Waste from our industri-

1 Passage of the President's anti-crime package Ballesteros this year on seven counts of drug is a key for successful law enforcement in the violations. Not only was Matta a source of ille­ futU1;~.4 ; '~ ~.r: gal drugs, but he played the role of broker put­ ting together million-dollar deals between drug Law Enforcement Resources suppliers in Colombia and distributors in this ~{.'~ ~~ i ~~f'~. ,: country. With a fiscal 1990 record budget of $7.7 bil- Another major figure in the war against lion, up by 30.6 percent in a single year, the drugs, Manuel Noriega, ousted leader of Pana­ Departmerttis now adding additional Drug En­ ma, now awaits trial in Miami and in Tampa. forcement Administration (DEA) and Federal The Miami indictment charges that between Bureau of Investigation (FBI) agents, more 1982 and 1986, Noriega and 15 other defen­ Border patrolmen, U.S. Marshals and correc­ dants participated in a variety of illegal drug tional personnel to our anti-crime effort. In ad­ trafficking activities that involved cocaine dition, the Department will be able to hire 900 smuggling to the U.S. The Tampa indictment new Assistant United States Attorneys, on top charges that between 1982 and 1984, Noriega of the 440 hired last year as a result of the conspired to import and distribute more than passage of the Anti-Drug Abuse Act of 1988, one million pounds of marijuana into this meaning that the number of federal prosecutors country. on duty will have increased by over 50 percent In March of 1990, Attorney General Thorn­ in just two years' time, a record addition to burgh announced that self-admitted opium our prosecutive efforts. warlord Chang Chi-Fu, also known as "Khun Congress has also provided $1.4 billion in Sa," who operates in the "Golden Triangle" new funding for the construction of approxi­ countries of Laos, Burma (now Myanmar) and mately 22,000 new prison cells, which will Thailand had been indicted on 10 federal drug translate into a doubling of the federal prison trafficking counts. The indictment includes system capacity since 1981. charges involving the largest heroin seizure ever made - 1,086 kilograms in Bangkok, Thailand Drugs destined for New York City in February 1988. The Department has established a close Khun Sa is also charged with importing or at­ working relationship with the Office of Nation­ tempting to import a total of over 3,500 pounds al Drug Policy and its Director William Ben­ of heroin into New York between 1986 and nett in the development of the President's February 1988. strategies for dealing with our responsibilities In 1989, $580 million in assets from illegal to prosecute illegal drug trafficking. A particu­ drug trafficking profits were seized and lar contribution to this effort was the first ever deposited in the Department's Asset Forfeiture comprehensive report on drug trafficking or­ Fund. Of this amount, $160 million in cash ganizations in the United States -- a "Dun and and property was turned back to state and local Bradstreet" I of these illegal enterprises -­ governments for law enforcement efforts. presented to the President and Director Bennett Another $300 million was transferred, ironical­ in August, 1989. ly, to the Bureau of Prisons for the construc­ International drug trafficking suffered a tion of additional prison cells, mostly to house major blow when the U.S. Attorney in Los convicted traffickers. Angeles secured the conviction of Juan Matta

I Drug Trafficking: A Report to the President of the United States (U.S. Department of Justice, August 3, 1989).

2 This year also saw the culmination of "Oper­ charged with drug trafficking violations to the ation Polar Cap;' a lengthy federal investigation United States. Nothing, he noted, frightens into a billion-dollar, money-laundering ring Colombian drug traffickers more than facing with direct links to the Colombian Medellin American justice, and we intend to pursue Cartel. As a result of this operation, 127 per­ these defendants relentlessly. Fifteen Colombi­ sons were charged, and more than a ton of co­ ans, under indictment in the United States on caine was confiscated along with more than drug trafficking and money laundering charges, nineteen thousand pounds of marijuana and have thus far been returned to the U.S. to stand $105 million in cash, jewelry, and real estate. trial. More arrests as a result of collateral investiga­ The U.S. Senate last year ratified the United tions are expected. Four major federal inves­ Nations Vienna Drug Law Enforcement Con­ tigative agencies -- the FBI, DEA, the U.S. vention, drafted by over 100 nations, which can Customs Service and the Internal Revenue greatly enhance the focus of international law Service -- worked closely together on a nation­ enforcement efforts on the interdiction and allevel to make this operation a success. eradication of drugs, money laundering, inter­ In the largest bank. forfeiture case to date, national transportation of precursor chemicals two branches of a Luxemburg-based banking used to produce illegal drugs, the tracing and company pleaded guilty to charges of money seizure of laundered illegal drug trade profits of laundering and agreed to cooperate with federal the drug cartels, and the worldwide extradition prosecutors. The Bank. of Credit and Com­ of drug criminals. merce International Overseas Ltd. and the Bank In an effort to assist in the war on drugs at of Credit and Commerce International S.A. the state and local levels, the Department also forfeited a record $15 million to the federal awarded more than $350 million in anti-drug government. abuse grants in fiscal 1990 to the 50 states, five As a result of an unprecedented exercise in territories and the District of Columbia. This is international cooperation in the war on drugs, more than triple the $118.8 million awarded last $90 million belonging to the late Jose Gonzalo year. Rodriguez Gacha, a kingpin in the Colombian Medellin drug cartel, has been frozen in over­ White Collar Crime seas bank. accounts. Gacha was on the Attorney "Crime in the suites" has become a top pri­ General's "dozen most wanted" list of the ority with the Department of Justice. Colombian drug kingpins and was later killed In addition to convictions of such high pro­ in a firefight with Colombian authorities. file criminals as television evangelist Jim Bak­ The drug war has truly become an interna­ ker, political activist Lyndon LaRouche, hotel tional battle. Attorney General Thornburgh met executive Leona Helmsley, and computer virus with heads of state and his law enforcement defendant Robert Tappan Morris, major ad­ counterparts during trips to Mexico, Peru, vances were made in dealing with systemized Bolivia, Colombia, and Uruguay, seeking their white collar crime. cooperation in stemming the flow of illegal drugs into this country. Drugs were also a major topic during Thornburgh's trips to Savings and Loan Fraud Western Europe and the Soviet Union. . A highlight of the year was the announce­ In the third quarter of 1989, thanks to the ment of a 27-cinJ attack on savings and loan courageous action of President Virgilio Barco, fraud cases. Armed with a $50 million ap­ Colombia began extradition by decree of those propriation from Congress, the Department will

3 be able to double the number of FBI agents and Robert M. Freeman of Goldman, Sachs and Assistant US. Attorneys to deal with the and Co. in New York pleaded guilty to mail over 8,000 pending bank fraud cases na­ fraud in an insider trading scheme and now tionwide. awaits sentencing. The offensive will be built around the model Penny stock broker Meyer Blinder and four of the Department's Dallas Fraud Task Force others in Las Vegas were also charged under which has thus far secured 47 convictions and the Racketeer Influenced and Corrupt Organiza­ $12.5 million in fines and court-ordered restitu­ tions (RICO) law with 66 separate incidents of tion since 1987. Key victories during 1989 in­ wire and securities fraud and money laun­ clude the court convictions of top officials of dering. Vernon Savings and Loan. Overall, in 1989 the Dallas Task Force undertook 36 prosecutions Defense Procurement Fraud securing 22 convictions to date and with only In the area of defense procurement fraud, the two acquittals. Department has thus far obtained 35 convic­ tions and more than $15 million in assessed Securities and Commodities Fraud fmes and related recoveries as a result of the Investors in the securities and commodities ongoing ILLWIND probe. markets have been bilked out of hundreds of Major defense contractors and individuals in millions of dollars annually by white collar their employ who have been successfully criminals who operate through deceit, conceal­ prosecuted include: ment or breach of trust beneath a veneer of • Hazeltine Corporation: conversion of legitimacy and respectability. government property, making false state­ In response last year, the Attorney General ments, wire fraud, conspiracy to defraud announced the formation of Securities and the US.; Commodities Fraud Task Forces in U.S. Attor­ o Teledyne Industries, Inc.: wire fraud,'" fIling ney ·Offices across the country -- Chicago, Los false statements, conspiracy to defraud the Angeles, San Francisco, Kansas City, Denver US., conspiracy to bribe a public official; and Manhattan and later expanding to Philadel­ • Unisys Corporation: conspiracy to commit phia and Salt Lake City. bribery, filing false statements, fIling false A major white-collar crime victory was claims, income tax evasion, conspiracy to achieved through convictions of 15 persons on defraud the Federal Election Commission, charges involving allegations of illegal floor theft and conversion of government trading at the Chicago Board of Trade and the property; and Chicago Mercantile Exchange. • Whittaker Command and Control Systems: The government also scored an important conspiracy to defraud the U.S., bribery, success when Drexel-Burnham Lambert Inc. and interstate travel in aid of racketeering. p!eaded guilty to committing crimes on Wall The Department also conducted an exhaus­ Street which triggered payment of more than tive criminal investigation resulting in the Boe­ $650 million in fmes and penalties as a result ing Corporation entering into a $13 tpillion of the Department's most massive investigation civil settlement to resolve allegations of defec­ into securities fraud. tive pricing by Boeing military airplanes. In other significant cases, Paul A. Bilzerian, In "Operation Uncover," five major defense fonner Chairman of the Singer Company, was contractors: Raytheon, Hughes Aircraft, Grum­ sentenced to four years imprisonment and fined man Corp., Boeing and RCA were all convict­ $1.5 million for securities fraud in New York ed on charges which involved the illicit

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trafficking in sensitive Department of Defense public officials at all levels of government. documents. Former Congressman Robert Garcia (D-N.Y.) and his wife Jane Lee Garcia were convicted in HUD Fraud October 1989 of accepting unlawful payments Since 1985, the Department has obtained from Wedtech, a New York defense contractor. nearly 600 convictions with almost $23 million The Garcias were each convicted of two counts in rmes, recoveries and restitutions relating to of extortion and one count of conspiracy. Each fraud in programs under the Department of received three year prison terms. Housing and Urban Development (HUD). In On June 20, 1989 former Congressman 1989 alone, the Department secured over 140 Patrick L. Swindall (R-Ga.) was convicted on convictions. nine counts of perjury. Swindall was sentenced The Attorney General has directed all 93 to 12 months incarceration. U.S. Attorneys to "give HUD fraud cases a top The Department has convicted more than priority" and has established a HUD Fraud 7,000 public officials for corruption violations. and Corruption Coordinating Group within Justice's Criminal Division to monitor the de­ Organized Crime velopment and disposition of HUD investiga­ After a year of planning and consultations tions nationwide. with Congress, efforts have begun to strengthen One of the most significant BUD cases to the Justice Department's efforts to combat or­ date was the conviction of former contractor, ganized crime elements across the n~tion, in­ .Marilyn L. Harrell of Waldorf, Maryland, cluding the merger of Organized Crime Strike known as "Robin HUD" on charges of embez­ Forces into the U.S. Attorneys' Offices. zling $5.6 million from the sales of HUD­ The Department scored major victories owned properties. This case may represent the against organized crime leaders including largest single theft of government funds ever Philadelphia LCN boss Nicodemo Scarfo and charged against one individual. LCN co-defendants. Scarfo received a 55-year In other major cases prosecuted by the prison sentence. Department, Reba Louise Lovell, a HUD con­ The Department, after a 30 year effort, re­ tract closing agent in Texas, pled guilty to em­ moved organized crime influence from the bezzling federal funds after converting $2.5 leadership of the Teamsters Union. million from the sale of HUD-owned residen­ Also this year, Teamsters Union official tial properties to personal use. The Department Harold Friedman and business agent Anthony also prosecuted the highest-ranking HUD Hughes were prosecuted for labor racketeering officer ever convicted -- former HUD Deputy and embezzlement. (Co-defendant Jackie Press­ Assistant Secretary DuBois Gilliam -- on er, former Teamsters Union president, died pri­ charges of receiving illegal gratuities in connec­ or to trial.) tion with HUD grants he approved. In addition, the Department also successfully prosecuted Genovese Family consigliere Louis Public Corruption Manna and five LCN associates in a RICO In 1976, recognizing the need to assure pub­ prosecution based on multiple counts of mur­ lic confidence in its elected officials, the der, gambling, labor racketeering, and extor­ Department of Justice formed the Public In­ tion. Marma received an 80-year prison tegrity Section to oversee the federal effort to sentence. combat corruption of elected and appointed

5 Organized crime associates Donald Epstein of In Virginia, Frank Arnold Nesbitt pleaded Washington, D.C. and Rubin Gottesman of Los guilty to violation of the Espionage Act. Nes­ Angeles were convicted on obscenity-based bitt had been indicted on two counts of passing charges and distribution of child pornography information to the Soviet Union and conspiracy. respectively. Longtime "Porn Czar" Reuben Nineteen people in Los Angeles were Sturman was found guilty in Cleveland of evad­ charged with kidnapping, murder and narcotics ing millions of dollars in federal income taxes. charges involving the abduction and murder of In February of 1990 the Attorney General DEA Special Agent Enrique Camarena-Salazar announced the indictment of 20 alleged mob­ and others. sters on charges including murder, extortion Heroin kingpin Johnny Lee Sanders was and racketeering in Chicago. The indictment found guilty in Oklahoma City of running a followed an eight year probe. Also that month continuing criminal enterprise from 1983-1987, the Department filed a massive civil racketeer­ violating the RICO law and for distribution of ing lawsuit against top officers of the Interna­ heroin. This is believed to be the third-largest tional Longshoremen's Association, several domestic drug distribution ring ever investigated dockworker employers and dozens of alleged by the Department. organized-crime figures for an alleged takeover A 41 unit apartment building, used for crack of the New York and New Jersey waterfronts. distribution in Brooklyn, was forfeited to the In March 1990, Attorney General Thornburgh government by verdict and was the largest real announced three indictments in Boston charging estate forfeiture ever in a case in which the virtually the entire active leadership and mem­ owner was not charged with criminal responsi­ bers of the Raymond Patriarca Family of La bility. Cosa N ostra with criminal activities including Under the new federal drug kingpin statute, murder, conspiracy to commit murder, extor­ Michael Palmer was the fIrst defendant sen­ tion, kidnapping, drug trafficking, gambling, tenced to life without parole in the District of wire and mail fraud, obstruction of justice and Columbia for operating a multi-million dollar intimidation of witnesses. Twenty-one defen­ crack cocaine ring from a D.C. apartment dants will face 113 counts. complex. Another D.C. drug lord, Rayful Edmund ill, Other Significant Criminal Cases and four associates were also given life sen­ Young & Rubicam, Inc., headquartered in tences for heading one of the District's largest New York City and one of the world's largest cocaine-distribution networks. international advertising agencies, pleaded In New Jersey, three former owners of a guilty to conspiring to violate the Foreign Cor­ Camden County, N.J. meatpacking firm paid $1 rupt Practices Act in connection with the million in fines for their role in a scheme to award-winning "Come Back to Jamaica" cam­ increase the weight of packaged hams by in­ paign and fined $500,000. jecting excess water into meats. Six U.S. Eighteen people from South Korea, Chile, Department of Agriculture inspectors were also Mexico, Puerto Rico, San Diego and Cincinnati indicted in the case. were indicted in Phoenix on charges of con­ In Brooklyn, a federal grand jury returned a ducting an international counterfeit athletic shoe 31 count indictment charging the National ring. Nearly two million pairs of imitation Mortgage Bank of Greece and 13 employees in shoes bearing the trademark names of Reebok, the U.S. with accepting hundreds of millions of Converse, Avia, and Puma are suspected to dollars of illegal deposits, conspiring to defraud have been sold. the Internal Revenue Service and laundering millions of dollars in cash deposits.

6 Tax Division equal opportunity, with a special emphasis on The Tax Division annually secures billions of those who seek to use violence and intimida­ dollars for the Federal Treasury by prosecuting tion toward particula.r racial, religious, and eth­ suits which lead to the collection of revenue nic groups. and by representing the Government's interest The Department played an important role in in refund suits and bankruptcy cases. The liti­ fashioning the Hate Crime Statistics Act. Work­ gation conducted by the Tax Division has a ing with the White House on an acceptable "ripple" effect in the nation's tax system, as the data collection process, the Act won ultimate cases often establish the "rules of the road" for passage in the Senate and was adopted in the millions of other taxpayers. For example, the House. Government's victory in Landreth v. Commis­ The Civil Rights Division had its most suc­ sioner, in which the taxpayer sought to deduct cessful year yet in terms of criminal prosecu­ losses purportedly incurred in the trading of tions. The Division had a nearly 90 percent commodity future straddles and which directly success rate and investigated over 3,000 matters involved only $19,000 in tax, produced an esti­ in 1989. This year also saw a record number mated savings of over $8 billion for the Federal of prosecutions of racial violence, or so-called Treasury. Similarly, in Martin v. Commissioner, "hate crimes." Highlights included prosecution the Sixth Circuit held that certain benefits paid and subsequent pleas of a New Jerf.ey local tel­ under the Railroad Retirement Act were not ex­ evision news reporter and his mother for hav­ empt from federal income taxes, a decision in­ ing threatened a young Chinese woman who fluencing the result in 5,400 similar pending sought to purchase the same house that they cases. wanted to buy; the conviction, after five years In the William Herbert Hunt and Nelson of litigation in Alabama, of ten Ku Klux Klan Bunker Hunt bankruptcies, the largest individu­ members indicted for interfering with a march al bankruptcies in history, Tax Division attor­ held by the Southern Christian Leadership neys were instrumental in drafting, negotiating Conference in Decatur, Alabama in 1979; con­ and obtaining Bankruptcy Court confirmation of viction of 13 persons associated with a Dallas plans of reorganization under which the racist skinhead group called the "Confederate Government immediately received $170 million Hammerskins" who were charged with and should receive an additional $165 million threatening blacks and Hispanics for using a in the future. public park and vandalizing Jewish properties. The Tax Division continued to enjoy success The Department also filed a civil rights suit in the Supreme Court. For example, in the against the state of Virginia and the Virginia Colonial American Life Ins. Co. v. Commis­ Military Institute (VMI) for refusing to con­ sioner, an insurance case in which millions of sider qualified females for admission. dollars of revenue were at stake, the Court sus­ As a result of the Faj~' Housing Amendment tained the Government's position that certain Acts, the Division has more than tripled its in­ "ceding commissions" on reinsurance policies itiation of housing discrimination cases, filing were not currently deductible by insurance under every fair housing category, including companies. discrimination based on family status (number of children) and disability. The Dcpartment set­ Civil Rights tled two Fair Housing lawsuits in lllinois and The Department takes seriously its responsi­ Pennsylvania which were based on discrimina­ bility to firmly enforce the nation's civil rights tion agaianst group residences for persons with laws and to seek to remove existing barriers to disabilities.

7 The Department and the Attorney General was abandoned. Also in June the Division assisted in the development of the '~ericans declared it would oppose a joint venture be­ with Disabilities Act;' a bill, already passed by tween American Airlines' Sabre computer the Senate, which seeks to provide the first reservation system (CRS) and Delta's CRS sys­ comprehensive civil rights protection to in­ tem because this venture wouJd have substan­ dividuals with disabilities. tially lessened competition. This venture was also abandoned. Antitrust The Department charged two major firms, Emphasizing the Bush Administration's com­ Borden Inc. of Columbus, Ohio and the South­ mitment to keeping American business com­ land Corporation .of Dallas, Texas with long­ petitive in a global economy, the Department is running conspiracies to rig bids to supply dairy committed to providing protection to U.S. con­ products to federally subsidized school milk sumers, while ensuring that American compa­ programs and military installations. Both Bor­ nies can compete effectively in the world den and Southland agreed to plead guilty and marketplace. to pay $11.5 million in fines. "Regulations which made good sense and The Department has also played an important worked well years ago, today may no longer role in supporting U.S. Government efforts to strike the important balance we are constantly enhance Japanese antitrust enforcement and to struggling to achieve;' the Attorney General open Japanese markets to U.S. firms. said in a speech to the Economic Club of New York. Environmental The Department has advanced proposals to On June 6, the Department of Jus&e an­ eliminate antitrust uncertainty with respect to nounced that it had begun a criminal investiga­ joint production ventures by extending the re­ tion into possible violations of the nation's quirements and safeguards of the National environmental laws at the Rocky Flats Weapons Cooperative Research Act. The Department has Plant near Denver, Colorado, a major environ­ also supported an increase in criminal fines for mental investigation symbolizing the Adminis­ Sherman Act violations including an increase in tration's comm.itment to protecting all aspects of the rme for corporate violators to $10 million. the environment. In 1989 the Antitrust Division undertook Criminal enforcement activity increased 70 major price-fixing and bid-rigging cases involv­ percent in pleas and convictions and Superfund ing school milk contracts in Florida and the settlements reached a record $1.02 billion. sale of soft drink products in various regions In February, 1990, the Attorney General an­ nationwide. It has also begun major investiga­ nounced a five count indictment against Exxon tions in the important education and health care Corporation stemming from the Valdez oil spill sectors of the economy. in Alaska. Exxon could face as much as $600 In major merger and acquisition cases, the million in potential crinlinal fines: Department filed suit to block two proposed In two other key oil spill cases, Shell Oil joint ventures between Westinghouse and ABB, Co. paid $19.7 million for damages from an oil a Swiss company, on the grounds that they spill of 400,000 gallons into the San Francisco would lessen competition in the U.S. markets Bay area, the largest recovery ever in the Unit­ for a number of products, and announced it ed States. Ashland Oil paid a $2.5 million rme would seek to block the sale by Eastern after dischaJ:ging 500,000 gallons of diesel fuel Airlines to USAir of its gates at the Philadel­ into the Ohio River. phia International Airport, whereupon the sale Under the Clean Water Act, the government

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filed civil and administrative actions against 61 craft hijacking and hostage taking involving a cities in the U.S. for failure to "pretreat" toxic Royal Jordanian aircraft at Beirut, Lebanon, discharges into their municipal sewage systems. with three Americans on board. He was sen­ tenced to 30 years in prison, the first convic­ Civil tion under U.S. law of an international terrorist for acts committed outside the United States. The past year has seen continued success in This was the first overseas arrest by U.S. law the representation of the government in major enforcement officials under the so-called "long­ civil litigation. In 1989, over $21 billion in arm statute;' designed to fight international ter­ claims against the United States were defeated rorists. with only $123 million paid -- less that six­ The Depattment also provided the bulk of tenths of a percent of the amount claimed. In the evidence and assisted West German prose­ affirmative litigation, judgments and settlements cutors in the successful conviction of Moham­ of $521 million were secured. mad Ali Hamadei who was sentenced to life in Notable victories include U.S. v. Daewoo prison for murder, air piracy, and other crimes Corp. , a customs fraud case, settled by pay­ resulting from his participation in the June, ment of $34 million to the United States, the 1985, hijacking of TWA Flight 847 and the largest penalty ever paid in a customs fraud killing of Navy diver Robert Stetham. case, as a result of uncovering a scheme to Justice also managed and coordinated signifi­ conceal the true prices of steel products so as cant international calls for assistance, including to evade anti-dumping duties. requests from the Federal Republic of Germany In a landmark victory in the history of as­ and Switzerland concerning the Pan Am 103 bestos litigation, Claims Court actions brought investigation, and from Japan regarding its by seven industry giants were dismissed and criminal probe of the JAL Boeing 747 that the government defeated over $9.7 billion in crashed, killing all on board. claims. In December the Antitrust and Civil Divi­ sions recovered a record $32.7 million payment International from 99 Japanese construction companies in Recognizing the need to fight many of the settlement of bid-rigging charges on the con­ crimes described above on a global basis, the struction of a U.S. Navy base in Yokosuka, Department is moving to strengthen its interna­ Japan. tional criminal operations. The Attorney Gener­ After more than a decade in litigation, a set­ al has also proposed establishing a new tlement with LTV Corporation for their abuse international office to oversee and coordinate of the Federal-Insured Student Loan Program these law enforcement efforts. secured $29 million for the federal treasury. Representing the President, the Attorney General traveled to the Soviet Union this year Terrorism to open a dialogue on the rule of law and hu­ The Attorney General met regularly to dis­ man rights with Soviet officials, and to discuss cuss anti-terrorist policies with his counterparts US-USSR cooperation in hunting ex-Nazis, in the European Community's TREVI Group, combating terrorism, and drug trafficking. an international organization devoted to fighting The Department of Justice, in conjunction terrorism. with the State Department, has also provided In a case of first impression, the Department police training and technical assistance to for­ secured the conviction of Fawaz Yunis for air- eign governments through its International

9 Criminal Investigative Assistance Program defendant wishes to use funds to pay his attor­ (ICITAP). After consultations with Colombian ney; employment civil rights cases, including officials, the Attorney General authorized City of Richmond v. J.A. Croson Co. ,1. Ward ICITAP training for Colombian court security Cove Packing Co. v. Atonio and Martin v. personnel following Colombia's "declaration of Wilks, all decided consistent with the presenta­ war" on its drug cartels. tions made by the Department. The Court also The Department also secured Senate ratifica­ accepted the Department's arguments on behalf tion of Mutual Legal Assistance Treaties with of the Equal Employment Opportunity Com­ Mexico, the Bahamas, Belgium, Canada, mission in a gender discrimination case against Thailand, and the United Kingdom for the the University of Pennsylvania. Cayman Islands. These treaties will greatly The validity of federal drug testing programs facilitate the exchange of evidence, including was upheld in National Treasury Employees access to foreign bank records. Union v. Von Raab, and Skinner v. Railway Labor Executives Association, and the Court in Federal Judiciary Webster v. Reproductive Health Services upheld a Missouri statute imposing certain restrictions The Department seeks to recommend to the on abortion-related activities by public em­ White House the most qualified men and wom­ ployees and public hospitals. en to servo on the federal bench. The evalua­ In a major victory for law enforcement, the tion procedures are long and comprehensive. Court agreed with the Department in the U.S. The President has thus far nominated 45 per­ v. Verdugo-Urquidez case in which the Court sons to serve on the federal bench, following ruled that U.S. agents do not need warrants the screening of over 200 candidates. when they go abroad to search the homes of Th;:! year also saw the Department and the foreign nationals. American Bar Association (ABA) resolve a lengthy dispute over the criteria the ABA should use in evaluating the President's Conclusion nominees so that the evaluation process can The Department of Justice has had signifi­ proceed in a more timely manner. cant accomplishments in virtually every area Thy Department played a leading role in the undertaken during the past year. passage of the President's ethics reform pack­ There is now a formal recognition by the age, which included a substantial pay raise for Department that international operations and judges, and supports the Judicial Conference cooperation are necessary to deal with criminal recommendation for the addition of 75 new organizations which conduct their business by judges to the federal bench. utilizing worldwide organizations. There is a strengthened commitment to the Supreme Court cause of justice and civil rights. This quest will be much mor~ comprehensive and will include The Solicitor General participated in a num­ not just minorities but women, the elderly and ber of important Supreme Court decisions this our citizens with disabilities. year, including Mistretta v. U.S. in which the There is a renewed recognition of the need Court upheld the validity of federal sentencing to protect our environment and shrinking natur­ guidelines; Caplin & Drysdale, Ltd. v. U.S. al resources. and U.S. v. Monsanto, where the Court held And there is also now a more vigorous com­ that federal forfeiture statutes permit the forfei­ mitment by the Department to protect con- ture of illegally obtained funds even if the

10 sumers and at the same time allow American recognition of the fact that a changing world businessmen to compete on an equal footing in requires that the Department must change with the international marketplace. it so as to provide more effective law enforce­ These new, corrective courses have been set ment and to better serve the cause of justice in by the President and the Attorney General in the coming decade and into the next century.

u.s. Department of Justice Management Structure

Attorney General Dick Thornburgh Deputy Attorney General Donald B. Ayer Solicitor General Kenneth W. Starr Assistant Attorney General Edward S.G. Dennis, Jr., Crinrinal Division Assistant Attorney General James F. Rill, Antitrust Division Assistant Attorney General Stuart Gerson: Civil Division Assistant Attorney General John R. Dunne, Civil Rights Division Assistant Attorney General Richard B. Stewart, Land and Natural Resources Division Assistant Attorney General Shirley D. Peterson, Tax Division Assistant Attorney General William P. Barr, Office of Legal Counsel Assistant Attorney General (Acting) Bruce Navarro, Office of Legislative Affairs Assistant Attorney General Harry H. Flickinger, Justice Management Division Assistant Attorney General Richard B. Abell, Office of Justice Programs Director J. Michael Quinlan, Bureau of Prisons Administrator John C. Lawn, Drug Enforcement Administration Director William C. Sessions, Federal Bureau of Investigation Commissioner Gene ]\1cNary, Immigration and Naturalization Service Director K. Michael Moore, U.S. Marshals Service Inspector General (Acting) Anthony C. Moscato Director Grace F. Hughes, Community Relations Service

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