- JULY 1970

VOL. 39, NO. 7

THE COVER­The FBI National Academy Seal. See article on 35th An- niversary of Academy, • page 2.

LAW ENFORCEMENT BULLETIN CONTENTS

Message From Director]' Edgar Hoover 1 I-

Change Through Training 2

Good Public Relations Is Good Business, by Lt. Jack W. Johnson, Police Department, Burlington, • Iowa ~ '" Insurance Fraud­A CRIME, by W. G. O'Neal, Chief Investigator, orth Carolina Department of In- surance, Raleigh, N.C. . 8

An Electronic Wonderland, by Harry C. Huskisson, Chief of Police, Knoxville, Tenn. 12

The Forty Thieves (Part l) 16

Crime and the Credit Card, by Milton Lipson, Vice " Published by the President, Corporate Security, American Express FEDERAL BUREAU OF INVESTIGATION Co., New York, .Y. (Conclusion) 20 UNITED STATES DEPARTMENT OF JUSTICE Wanted by the FBI 32 Washington, D.C. 20535

• MESSAGE

FROM THE DIRECTOR • • •

. . . To All Law Enforcement Officials

THERE I~ SOMETHING DISTRESSING about free barrier between society and the criminaL How• people having to restrict and alter their daily ever, history dating back to Biblical times teaches pursuits and activities because of brazen us that high walls as such do not necessarily pro• criminals. vide sanctuary. If we are to find relief from crime, we have to shore up our legal walls to pre• Is it right that bus passengers in many metro• vent lawbreakers from slipping back and forth politan areas must always have the exact fare through loopholes to prey on the public and then because busdrivers cannot carry money to make hide behind legal sanctions to avoid just and ade• change without being robbed? Is it right that quate punishment. If we are to contain the spiral• motorists in some cities must buy gasoline in ing crime rate and bring a higher degree of amounts for which they have exact money, or use security back to the law-abiding citizens, then we a:redit cards, to keep station attendants from must make justice swift and certain. In spite of ~ eing held up by thugs? Is it right that downtown what some courts and legal theorists may pro• merchants in some areas should lose their cus• claim, justice is all-inclusive; it means justice for tomers, and perhaps their businesses, because the victims and the public as well as for the citizens are afraid to venture into crime-infested accused. streets? " Soon, we will have to stop granting conces• Let us face it. Are we, as a free society under the sions to marauding criminals and stop reshaping rule of law, shaping our own destiny, or are we our lives to conditions thrust upon us by exces• being pushed and boxed in by those who defy the sive crime. I am fully convinced that one of the law and have no respect for the rights of others? most effective moves we could make to combat The truth of the matter is that more and more crime in the 1970's would be to speed up and of our Nation's total energy and effort is needed improve our judicial processes 0 that the time to protect people against crime. For instance, element between a criminal violation and its more theft-prevention devices are being installed disposition in court is sharply reduced. The old in new automobiles. More homes are being truism notwithstanding, it would appear that not equipped with bigger and more complex door all criminals and their attorneys today believe locks. Banks are taking action to reduce the that "ju tice delayed" is "justice denied." amount of cash exposed to bank robbers. In some Let us stop reacting aimlessly to the pressing cities, police patrol school corridors and grounds demands of the lawless. Rather, let us start ap• to keep troublemakers from disrupting classes plying the legal remedies and safeguards of the and as aulting students. The list goes on and on. law which is meant to penalize those who break We are a ttempting, in effect, to erect a protective it, not those who abide by it.

JULY 1, 1970 35th Anniversary of FBI NA-

Change Through Training.

In the true sense, training is a requi• site of preparedness. Thirty-five yea ago, Director J. Edgar Hoo. in appraising our fast·changing, com• plex society and the rapidly rising crime rate, recognized that if law en• forcement was to be even minimally The Bulletin is pleased to salute the FBI National prepared to meet its responsibilities, ' Academy on its 35th Anniversary. It is significant to note, professional training was imperative. as we glance back at the outstanding accomplishments of With the cooperation of local and the FBI Academy in the past, that the key to its success State law enforcement officials, the .. has been its forward-looking, progressive programs to FBI, under the leadership of help achieve effective law enforcement throughout the Mr. Hoover, laid the groundwork for country and the free world. While there is still much to a "Police Training School" which • be done, the Academy and FBI Director J. Edgar Hoover, would, so far as possible, provide an who launched the training school on July 29, 1935, can be answer to every problem normally proud of its record of service. arising in law enforcement work. After month of planning and prepa• ration, 23 police officers from agen• cies throughout the country a sembled ... at FBI Headquarters in Washington, D.C., on July 29, 1935, to attend the opening session of what today is known as the FBI ational Academy. The 12-week course was free. Trans• portation and subsistence while in .. Washington were the only expe_

2 FBI Law Enforcement Bulletin An aerial view of construction progress of the new FBI Academy.

going the course of instruction, will "There is nothing more permanent than change, and return to their communities equipped nothing that m~ets with more resistance. Yet nothing to inform their respective depart• ments in the new things learned con• stands still. Everything either moves forward or falls cerning crime problems." backward. Man has progressed through the centuries In so stating, the Director pin• because man has had the intelligence to meet change with pointed what has been a primary ob• change. Individuals, too, must heed that lesson of the race. jective of the Academy over the years. And, of course, men can master change by training today Since it is not feasible to accept and for the opportunities which new conditions will open train all law enforcement officers in tomorrow. It was good advice a generation or so ago, and a 12-week course in Washington, the it is even better advice today." FBI strives for the next best thing. ­Jacob M. Braude It endeavors to qualify every gradu• ate as an instructor or administrator. On May 27, 1970, graduation cere• the attending officers had to pay. To• ment level to practic al application of monies were held for 99 officers of day, all expenses connected with the enforcement duties. the 85th Session of the Academy. This training of the student officers are Commenting on th e opening of the brought the total number of officers paid by the FBI. training school in h is message to law who have received this specialized The curriculum of the opening ses• enforcement officials in the August training in the past 35 years to 5,734, sion of the Academy covered a broad 1935 Bulletin, Mr. Hoover stated, "It including 183 officers from 40 foreign ~ e of subjects from the manage- is hoped that the D1en, after under- countries. Some 28 percent of the

July 1970 3 The Academy dining room begins to take shape as seen in this view from the road which separates the Academy site from the ~ FBI flring ranges.

e graduates still active in law enforce• to 200. In addition, 1,000 other offi• Change has been a constant factor ment hold top executive positions in cers can be handled in shorter, spe• of the National Academy agenda. their agencies. Consequently, over the cialized training courses. From the outset, the police training years, the FBI has trained a nucleus The spacious and modern training has been tailored to the needs and of carefully selected officers in the complex underway at Quantico is a desires of the agencies requesting the II latest methods and trends in crime tribute to the continuing efforts of training. The curriculum of the first detection and investigative proce• Director Hoover to professionalize session was drawn up by the FBI dures. Thus, when the officers return law enforcement and to his firm belief with the assistance of a committee of to their various departments, they are that brains, science, and hard work police chiefs. Since that time, every prepared to organize and set up their are the most effective weapons against succeeding curriculum has been own police schools and make avail• crime. closely examined, revised, and ex• .. able to their fellow officers the knowl• Upon completion, the multiple• panded to meet the needs of the times. edge and practical experience gained building training center will feature at the Academy. two seven-story dormitories contain• Advanced Studies ing 356 bedrooms accommodating New Facilities two men each. The classrooms will Currently, in addition to the prac• have the latest and most advanced tical and specialized subjects, officers ... Currently, new training facilities audiovisual teaching and training are trained in such advance fields as which will greatly enhance the scope aids. This giant stride forward in sociology, psychology, criminology, and capacity of the National Academy training facilities and equipment is police-community relations, police are being constructed at Quantico, Va. truly in keeping with the spirit of the ethics, police management, public With completion date set for 1972, FBI ational Academy and the ag. speaking, and highly sophisticated the new facilities will enable the gressive determination for excellence laboratory techniques. Academy to train 10 times as many which has caused it to be called the The faculty of the ational A• officers a year-2,OOO as compared "West Point of Law Enforcement." (Continued on page 25) • • 4 FBI Law Enforcement Bulletin .,

BURlII'IG10N . IOIIA ..

The First National Bank drive-in facility provided an excellent place to exhibit the patrol car. ood Public Relations Is Good Business

By LT. JACK W. JOHNSON In February 1969, the possibility of Police Department, establishing a police.community rela· Burlington, Iowa tions (PCR ) unit in the Burlington Police Department was discussed at a staff meeting of the police command. After presentations of information showing a definite need for such a ". . . to provide an op• unit, a decision was made to proceed portunity for parents and with the plans immediately. Police children to become ac• Chief R. E. Dunham outlined the goals quainted with police of• and objectives of the unit, and officers ficers." interested in this area ()f service were asked to submit their names. There was a feeling of frustration at first concerning the development of the unit. We realized a police.com. munity relations unit would be ex· posed to a broad field of involvement, and that there was so much ground to

July 1970 5 cover it would be impossible to do this weekdays. This is how we set up the in a short time. We read and reo project: ~ searched publications and gathered 1. We displayed one of the new patrol cars helpful information from other police in the entrance·way parallel with the departments who were fortunate sidewalk. A shotgun (unloaded) was enough to already have a peR unit. A displayed in the electrically locked gun· ~ rack, and handcuffs were hung on the lot of time was used in planning. dash. Displayed in the rear·window deck .. On April 1, 1969, our police depart· were two of our riot helmets and a police ment officially formed a two-man baton. police-community relations unit. I 2. The police radio was left on and chan- was appointed director of the special neled through the car's public address unit, and Officer Ronald E. Mason system. • 3. Our miniature electric school stop sign was selected as the other member. with written instructions on its use in .. With our first project, we wanted to relation to the regular stop signs at reach a large number of young people school locations was displayed. and adults alike to attract their atten- 4. Two card tables were placed near the glass­partitioned walkway and stacked tion to this special unit. with informative handout pamphlets. Officer Mason and I decided that in These were: order to do this we would open a citi- a. Our own narcotics pamphlet and a reprint from "Reader's Digest" en- zen contact and information center. Mr. Robert E. Dunham, Chief of Police, We also decided to coincide this ven- Burlington, Iowa. titled: "But, Mom Everybody Smokes Pot." ture with the first day of the annual b. Another "Reader's Digest" reprint, Burlington, Iowa, Steamboat Days and children to become acquainted with police officers. Through such "Five Common Frauds and How to celebration. This would give us ex- Avoid Them. ' posure to many people from our own contact we hoped to encourage public C. Prevention points on home burglary. city and those who were visiting for support for law and order from the d. FBI "Child Molester" color posters the event. parents and the young people. On for young children. Saturday, June 7,1969, we opened the e. What to do about annoying e booth. Our hours were after bank phone calls. Project Site f. A special message pamphlet from closing which was 12 p.m. on Saturday law officer to parents, teachers. citi- and from 2 :30 p.m. to 9 p.m. on We found a convenient place for zens, and children on molestation prevention. such a project. This was the First a- g. "What Knowing All the Answers Officer Ronald E. Mason is thl! second member t tional Bank Drive­In located on orth of the 2­man unit. Can Mean to You," by the Iowa Main Street. We explained our plan State Bar s OClatlOn. and purpose to the bank officials and h. CRIME ALERT bumper stickers they gave us their wholehearted sup- and AAA safety slogan litter bags. i. ummer Recreation Schedule: Burl· port. ington Department of Parks. The drive­in facility was excellent 5. On the gla s partition numerous items for our specific objective. The roof were po ted and explained in an in- gave us cover. The site was located formative way. They were written with a typewriter having large letters for close to the sidewalk, and only a block easy reading. from the carnival location and the a. Purpo e of CHILD ALERT. Poster crowds. A real asset to us was the and backside in tructions shown. glass­enclosed partition or walkway b. The 41 topics taught at the required leading into the main bank. 4·week course for recruits at the police academy. The newspaper and radio tations C. FBI CIC ( ational Crime Infor- gave excellent coverage, both before mation Center), where and how and after the project, on what we were used. trying to do and what had been ac- d. Our contact points and services ~ complished. rendered through our police tele- type. The real purpose of the project is e. Our radio and telephone cont. to provide an opportunity for parents and services. .. 6 FBI Law Enforcement Bulletin f. Sample teletype messages. ~ . Color prints from Walt Disney used -- for explaining safety in the school classrooms. h. Enlarged 8" x 10" black and white official Burlington Police photos showing vehicle accidents (fatality, wrecked stolen auto, bicycle, etc.). i. 8" x 10" photos of police communi· cation center. 6. We demonstrated the patrol·car radio and public address system. We ex- plained the electric gun lock system and answered all the questions from adults and the yo un g alike. Many of the young people had a great desire to get into the patrol car and we encouraged them to do this. 7. We had 2,000 plastic "Honorary Police" buttons which we gave to the young people as a memento of their visit. The buttons had plastic attachment pins so as not to cause injuries. 8. Also for the very young, we distributed plastic hand puppets on which were im· Many youngsters found the numerous items posted to be very interesting. printed a school safety patrol boy. These were furnished by the AAA Motor cial programs were put into effect. The ceived a big assist from representa- Club. Crime Alert system was instituted. tives of various professions, including 9. On the outside drive, near the sidewalk and facing street traffic, we exhibited a More and more citizens are becoming the bar, schools, medical and phar- 5' x 4' sign which read: aware of this, and it has been benefi· macy, and experts from other enforce- cial to our department. Great strides ment agencies. BURLINGTON, IOWA POLICE· COMMUNITY were made in alerting the public to The previously mentioned program, RELATIONS UNIT drug abuse. We accomplished this by Child Alert, is a citywide PTA project WELCOME speeches to church groups, schools, for the prevention of child molesting. It received strong support from our The first day we opened, a Saturday, PTA, youth groups, and by a series of unit through appropriate film show- the response was very good. This was special drug abuse programs. The + parade day and we had 800 visitors. seminars, staffed by our own unit and ings and appearances throughout the In 2 days we had depleted our supply other members of our department, re­ (Continued on page 31) of 2,000 buttons. At the end of the third day we estimated that the total Children were encouraged to explore the patrol car. ) 3­day visitation was over the 3,000 .. mark. This included adults and chil- dren of grade school age, most of whom were with their parents. The teenage response was greater than we had anticipated. Officer Mason and I • manned the booth for the 3 days. We did not mind the long hours each day as we felt the public response offset this. We wondered whether the par· ents were bringing in their children, ' , or the youngsters were bringing in ,., their parents. Once our goals and obj ectives were f t r set through meetings and planning, I ~ e unit gained momentum. Many spe- ~ July 1970 Insurance frauds are more than an offense against the insurance industry. They are crimes against all citizens who buy insurance.

Insurance Fraud-A CRIME •

As a rule, damage to tobacco during a hail storm would show all the leaves broken downward. This tobacco plant shows one leaf broken upward and another leaf broken downward. .. By W. G. O'NEAL Chief Investigator, North Carolina Department of ... Insurance, Raleigh, N.C.

t

Before discussing insurance fraud, I would like to give some brief infor- mation on the Investigation Division of the North Carolina Department of • Insurance. This division serves a dual role in the investigation of criminal offenses. First, we conduct all criminal inves- tigations dealing with violations of the insurance laws of North Carolina, .. including fraud, and, secondly, we serve the same function as a State fire marshal's office in the investigati0"e

FBI Law Enforcement Bulletin .. the crime of arson and unlawful burn- daughter was married on June 21, s_ By having this dual authority, we 1961. On May 23, 1966, the son­in- • e the opportunity to investigate all law purchased a life insurance policy types of insurance fraud_ At the pres- naming his wife the beneficiary. On ent time we have nine investigators December 5, 1966, they separated and who are duly sworn law enforcement the husband moved away . • officers with full powers of arrest. On October 18, 1967, the subject There is a great need for an effective went to the Register of Deeds in the fraud suppression program, and the county where the son­in­law's father first element is adequate fraud laws_ had died on November 2, 1951, and In our State it is a felony to knowingly secured two copies of the father's file a false or fraudulent insurance death certificate. These certificates .; claim. showed that the father died as a result " Secondly, there must be active in- of "cerebral vascular accident, mas- vestigations and enforcement of the sive." The subject then altered the Mr. Edwin S. Lanier, Commissioner of fraud laws. There are many officers death certificate to fit her son­in­law Insurance, Raleigh; N.C. ­; who feel that fraud is an offense as to age and also showed that he died against the insurance industry, and, on September 2, 1967, and after cause located about 40 miles away and was therefore, the public has not been in- of death she added "result of water very surprised to learn that a death jured. othing could be further from skiing accident." This false death claim had been filed in his name. the truth. If a fraudulent fire insur- certificate was then forwarded to the A confession was obtained from the ance claim is paid, this expenditure, in life in urance company requesting subject who admitted altering the part, results in an increase in pre- payment. death certificate and filing the false ~ mium rates to the public. When the insurance company noted claim. She was charged with filing a the changes on the death certificate, fraudulent insurance claim, convicted Crime Against All they requested that an independent and received an active prison sen- investigating firm verify the death tence. I a ccordingly, insurance fraud is a certificate and have the beneficiary crime against all citizens who buy in- complete a "claimant's statement." Bizarre Cases surance and should be of interest to The claimant's statement was com- the law enforcement officer. Thirdly, pleted by the subject and returned to One of the most bizarre cases of the average citizen does not look on the insurance company showing that fraud occurring in our State involved t insurance fraud as a crime in spite the son­in­law died in a water skiing fraudulent claims filed against sev- of the fact that he is paying the bill. accident at Buzzards Bay, Mass., on eral insurance companies writing ac- Let us take a look at several actual September 2, 1967. cident and health insurance. A citizen insurance fraud cases in order that The independent investigator re- found the accident policy he held pro- ... we might better understand this ported to the insurance company that vided that the loss of four fingers on problem. there wa no death certificate on file one hand constituted "loss of hand" as The first case involves a fraudulent for the son­in­law. Upon receiving defined in his policy. This policy pro- life insurance claim. The subject of this information, the insurance com- vided for a lump sum payment in the this investigation became upset over pany reported this claim to our De- event of the loss of either the entire the failure of her son­in­law to ade- partment, and investigation revealed hand or the loss of four fingers on one i' quately support her daughter and that the son­in­law was alive and hand. This individual acquired sev- their children. When the daughter and further that the death certificate fur- eral additional policies containing the her husband separated, the subject nished to the company was originally same provision. He visited a doctor in decided to report the son­in­law as issued to the son­in­Iaw's father who a neighboring town who agreed to in- dead to the insurance company in died in 1951. ject his hand with some deadening order that her daughter might collect When our investigatpr went to the agent. Next, he went to a local rental J; the proceeds of his life Insurance Register of Deeds' office to check on agency and rented a 4­inch ripsaw. He policy. the death certificate, he learned that then went home and had his brother t Following are the fact developed the son­in­law had just left after saw off four fingers on his left hand. • investigation: The subject's securing a marriage license. He was This individual then filed several r July 1970 9 385­741 0­70­­2 insurance claims and collected a total tence. The third individual was tinuously through October 1967. It of 3,125. Experiencing no difficulty charged on two counts of filing a revealed that claims were filed wIA in collecting this sum of money, he fraudulent claim, convicted, and re• no hail fell as well as evidence of m. contacted a friend and explained the ceived an active prison sentence. made damage. operation to him. His friend agreed The brother of the third individual As our investigation proceeded, we to participate in this scheme and was charged with one case of maim• solicited the assistance of a fraud in• bought several insurance policies, ing, as he helped cut off his brother's spector with the U.S. Postal Service. rented a ripsaw, and amputated four fingers, and he was convicted and re• As a result of our combined efforts, fingers on his left hand. As a result of ceived an active prison sentence. The two insurance agents, three insurance this, he filed his claims and collected doctor in the neighboring town was adjusters, and seven tobacco farmers a total of $3,000. He then paid his charged on two counts of being an ac• were tried and convicted of fraudulent advisor $1,250 for his counseling in cessory before the fact in the maiming activity in the filing of hail insurance .. this operation. cases and was convicted and received claims. All 12 defendants received ac• Later these two individuals sought a suspended sentence. tive prison sentences as well as fines out a third victim and assisted him in totaling $16,500, and they were also buying several accident insurance Crop Loss Claims required to pay back to the insurance policies. As before, they went to a companies $71,611.67. One of the most detailed and time• neighboring town and contacted the One insurance agent admitted that consuming fraud investigations in• same doctor who agreed to deaden this he had assisted in the filing of volved claims filed alleging hail losses individual's hand. After receiving the $94,672.28 in fraudulent hail claims in tobacco crops. North Carolina is a injection, they again rented a ripsaw on tobacco losses in 1965. This scheme leading manufacturer of cigarettes and amputated four fingers on his left was carried out in the following man• and also a leading producer of to• hand. As a result of the claims filed ner: The agent conspired with the bacco. While the tobacco plant is by this individual, he collected 1,250 farmer to defraud the insurance com• growing in the field, it is extremely from the insurance companies. pany. The farmer and agent would vulnerable to damage from hail; then insure several acres of tobacco therefore, most tobacco farmers in• Act Intentional in the names of persons who had . sure their crops against this peril. interest in the crop, usually in In the late growing season of 1965, A report was made to the local po• name of a tenant or sharecropper. The this Department received information lice department advising that several agent then conspired with the insur• that farmers in one county who had individuals had lost fingers, and it ance adjuster, and when there was a purchased insurance from two par• was believed that this act was inten• hail storm anywhere in the area, the ticular insurance agents were collect• tional. As a result of this information agent and the adjuster would get to• + ing hail payments when no hail being furnished to the police depart• gether and make out a false hail claim occurred. The tobacco growing sea• ment, they requested that our Depart• and submit it to the insurance com• son lasts from early May until Sep• ment assist them in the investigation pany. The farmer, agent, and adjuster tember, and due to the short growing of this matter. Following the ensuing would then split the proceeds three season, all of the tobacco had been investigation, the brother of the first ways, each receiving 33% percent. In harvested before an investigation individual was charged with three all of these instances the farmer would could get under way. counts of maiming. He was convicted have his true tobacco crop insured in and received an active prison sentence. We did check the hail losses of the his own name and would collect under The fir t subject was charged with two suspected insurance agents and that policy in the event that hail ac• 14 counts of filing a false and fraud· found that they collected hail pre• tually struck his tobacco. ulent insurance claim (by stating that miums of 148,573. The insurance Tobacco hail losses in this county he had lost his fingers in an accident company paid losses to the farmers in in 1965 amounted to $319,286 and when in truth and fact they were lost the amount of $295,843 which is a losses dropped from this amount to by a deliberate act). He was convicted loss ratio of almost 200 percent. After $58,660 in 1967 while this investiga• and received an active prison entence. checking the loss ratio of other agents tion was in progress. This gives you The second individual was charged and finding it far below this amount, some indication of the fraudulent ac• with three counts of filing a false and we felt a full·scale investigation tivity in this particular area. These fraudulent insurance claim, convicted, should start in 1966. This investiga• are the types of losses which are and received an active prison sen• tion began in May 1966 and ran con· passed directly back to the farmer .

10 FBI Law Enforcement Bulletin This is one of the pieces of furniture which was claimed to have been damaged in a fire . The waffle-type doors of the buffet are not structurally .. sound and do not close properly. an increase in hail insurance pre• were concerned because they would sprinkler heads were activated as a miums, and, therefore, the farmer answer an alarm at a factory and, result of this small fire. Eight pieces himself was being inj ured in this in• after the fire was extinguished, the fire of dining room furniture were ac• stance and not just the insurance com• prevention personnel would estimate tually involved in the fire and 42 panies alone. the damage as being several hundred pieces damaged by water. This loss dollars. was estimated to be somewhere in the Fire Losses Later they would learn from the vicinity of from $4,000 to $5,000, in• insurance company that the damage cluding damage to the building and We have examined fraud in life amounted to several thousand dollars. furniture. Later the fire department insurance, accident and health insur• The fire chief had discussed this situ• received information that an insur• ance, and crop insurance; now let us ation with one of our investigators ance claim had been filed by the take a look at fraud in connection with and indicated that he was going to call furniture factory claiming a loss of fire insurance. This particular case for assistance from this Department $22,745. involves a claim filed by a large fur• if he learned of a similar fire in the Our Department was then requested niture manufacturing concern after a future. to assist in the investigation. Investi• small fire occurred in a spray booth Shortly after this, an alarm was re• gation revealed that the factory had where furniture was painted. ceived and the fire department re• manufactured a dining room buffet The fire department in one of our sponded and extinguished a fire in a with waffle-type doors, and that after large furniture manufacturing cities spray booth. The fire department the buffet had been manufactured, started keeping accurate records on noted that the building was equipped they determined that it was not struc• e losses in furniture factories. They with overhead sprinklers and that 27 (Continued on page 31) I ~ July 1970 11 Knoxville's New Safety Building-

•

• An Electronic Wonderland .. When the finishing touches were the Mayor, the city council, and other being applied to the new Public city officials who supported the enter­ • By afety Building in Knoxville about a prise from the beginning to its HARRY C. HUSKISSON year ago, a local newspaper referred completion. to the splendid structure as the" ew It is located just outside the main Chief of Police, ~ Knoxville, Tenn. Police Palace" and stated that it had business district with easy access to more electronic gadgets than a tele· the expressway. It has 90,000 square vision show. feet of floor pace in four floors and a " In spite of its numerous excellent basement and cost $2 million, exclud- features, I suppose we must admit ing equipment. There is ample park- that the new quarters fall short of ing for employees and visitors. A

being a palace­but not by much. We fenced area is provided for police .oj feel it is one of the finest and most vehicles. The basement contains modern police and safety installations locker rooms, training facilities, a in the country, and its electronic firing range, a photo laboratory, a wizardry, aside from being fascinat- rollcall room, the paddy wagon ing, comes close to moving police entrance, a garage for motorcycles, • administration and communications and a lunch room. .. into the next century. Briefly, here are some of the other The new Public afety Building is developments incorporated into the • a tribute to the citizens of Knoxville, building or made possible by it: e 12 FBI Law Enforce me nt Bu lleti n A pneumatic tube system large enough • to carry criminal folders. This elimi- nates personnel constantly running between offices. 2. An intercom system throughout the huilding makes everyone available instantly. 3_ There is a security elevator which can • be operated from the receptionist's desk at the main entrance. This restricts the traffic flow to only those with a need to use this service_ 4. Ample locker space is provided for the officers. There are separate locker rooms for patrolmen, sergeants, lieutenants, captains, and commanders. 5. The training academy has its own spe- cially designed facilities. 6. Police photographers have facilities for processing colored as well as black and white photographs. 7. Escape­proof passageways through which prisoners are transferred from j ail to court. B. A closed­circuit television system which extends to the courtroom, and the Chief of Police, if he desires, can sit in his • office and hear the testimony of officers and defendants which can be video taped if needed. a he Municipal Court is located in .,ing adjoining the first floor. The first floor, which includes the main entrance, houses the Records Bureau, the Juvenile Bureau, the Communica- .. A portable radio system is used along with the two­way radio patrol cars enabling an officer tions Center, Offices of the Assistant to be in constant communication with the dispatcher when he leaves the automobile. Chief, Traffic and Patrol Detachments, Women's Bureau, Planning, and other being received almost daily. Each arrived at headquarters. The solution administrative offices. The jail takes complaint had to be investigated. The would, therefore, require a means of up the entire second floor. Located expense in time lost "from other duties closely supervising all persons booked and costs involved were becoming and incarcerated from the time of v on the third floor are the Detective Bureau and Fire Prevention Bureau. alarmingly high. their arrival until their release or Offices of the Chief of Police, Director The City of Knoxville was in the departure. of Public Safety, Criminal Intelli- process of constructing a new public The decision to install closed­circuit gence, Internal Inspection, and the safety building at this time. Included television was made after much dis- Conference Room are located on the in the plans for this facility were pro- cussion. Wide publicity was given to fourth floor. visions for installing the most modern this decision during the construction " Since our department moved into communications and records systems, phase of the building and the subse- its new quarters, complaints of as well as placing the best available quent opening of the new Public "brutality" against its members have equipment throughout the building. Safety Building. Consequently, a all but ceased. We feel there is a Was there, then, anything that "brutality" complaint is rarely re- reason for this, and other law enforce- could be done, as far as equipment ceived today. " ment agencies planning new facilities was involved, that might help solve The patrol wagon has a special may want to consider features which this problem of "brutality" com- entrance to the building at the base- • we believe are responsible. plaints? Analysis showed that such ment level. From the time the wagon .Jwo years ago such complaints, complaints most often resulted from is driven into the entrance, a tele- .tof which were unfounded, were alleged actions after a prisoner had vision camera relays the scene to July 1970 13 various police offices. The offi. knows this; some prisoners are aw. of it. Television cameras are stationed along the route the prisoner will follow from the entrance level through the booking office on the second floor of the four-slory building, including the elevator. There are no blind spots; the cameras overlap to avoid this. These cameras relay the action to several monitors, and at least two• the j ail office and the building captain's office--are manned at all times. By simply pressing a button at any time, a video tape of the proceed• ings can be made. No more does "John Doe" claim without cause that he has been mis• treated, for there have been "eyes" watching. or does an officer risk un• necessary roughness, for he also is watched and he knows it. While there have been instances of " both in the past, none has occurred since the Knoxville Police Depart• A close-up look at the console in the dispatcher's office where all communications with other law enforcement agencies in the area are handled. ment moved into the new facilitiee

The dispatcher's office where all communications are handled shows the control map of the city with lights to indicate assignments for all police cars. • t

)'. :uo 204 , ~) 301 n' 101 III \r 30) ))3 '04 U 4 ) . s :US • ,.6 U4 11 ' 27 1 ,7 U1 '1 )J' I' )3' ,23 17. ,. :I.' 2'4 17 S 11 '4' 1 7 " U ,., ., ,t. 5'"' .1IIt . .. ,M ~ In'" HI ,no. ., ,. H' • .. -

~ •• :'7~fiI~ ;to';. ' •• p. .rjlUI~q ••- • • ~ • , •• The closed-circuit television system ing two vehicles with one man each t about $30,000, and it is paying instead of one car with two men each. or itself. Any chief who has spent Our coverage, of course, is almost time himself, or who has assigned doubled. ' other staff personnel, to check out The communications system has "brutality" complaints knows what is four channels: A for traffic and involved. patrol; B for detective and juvenile • At Knoxville, the time-consuming, officers; and C is a common frequency demanding investigations have been of the Police Department utilized by all but eliminated. This can be all divisions within the department. attributed to our new monitoring This frequency enables the uniform • system. officers to communicate with the plain- clothes officers and vice versa. Further, Video Tape Mr. Walter A. Bearden, Director of it enables all officers to have direct Public Safety, Knoxville, Tenn. communication with the Records Another great advantage of dosed- Bureau. It is also the emergency the system, the better the enforce- circuit television for law enforcement back­up frequency to be used in the ment capability will be . ..; agencies is the use of video tape. event of failure of channels A and B. Along with other changes, we de- Video tape provides excellent evi- D is for administrative purposes ~ cided to switch to portable, two­way dence for court. The judge can see only. for himself the actions of a defendant communications in our patrol cars. Previously, with a radio unit fixed in This system enables us to monitor after arrest. For instance, the actions, or use an inter­city network which speech, and appearance of suspects a cruiser, the officer had no contact with headquarters or other officers serves Knox County and 19 adjoining charged with driving while intoxi- cities and counties; thus, our dis- when he left the vehicle. Now, he cated are recorded for all to see and patcher can hear what is happening hear. takes the portable unit with him, re- maining in contact at all times. This throughout the metropolitan area. _ The monitoring system also pro- In addition, other systems that can has allowed our department to reduce observation of work areas, such . es most cars to one­man patrols, provid- (Continued on page 27) as the complaint processing office, the dispatcher desk, and the records sec- tion, among others. Recently, the chief of police from a neighboring city called concerning a certain subject. It was easy to have a clerk in the records section pull the subject's criminal folder and place it before a camera, which transmitted it visually to the monitor in my office. I read him the full report in a matter of minutes. The rollcall room for traffic and patrol officers is on the basement level; the chief's office is on the fourth floor. The closed­circuit television allows me to listen to or give briefings without leaving my office. It also allows the records section to transmit a picture of a subject to the rollcall room without having the file removed from the section.

Communications is vital to lawen- A view of the closed­circuit television receivers in the building captain's office where he can _ cement agencies; and the better visually oversee a number of rooms.

July 1970 15 Man's inability to resist temptation is as old as man himself. Given the necessary circumstances, nearly any man might be tempted to steal. He could be in any position in any business, anywhere. Whether or not he will yield to temptation cannot be determined in advance, as we know all too well. The willingness of one man to trust another-or to accept the responsibility of being trusted-is basic to all The 40 thieves stole money. They business and commerce. The incidence of employee dis- also stole: appliances, tools, lum- honesty, the betrayal of trust, is of alarming proportions. ber, ga oline, liquor, beer, clothing, Its impact on the business community, indeed, cannot be zippers, lace goods, woolens, furs, fully measured. furniture, boxes of food and a copy You will find the stories of "The Forty Thieves" inter· of TV Guide, color television sets, esting, we feel, and thought provoking. But you will also refrigerators, stereo hi­fi sets, stereo find them tragic. They represent not only money lost. tapes and record albums, dehumidi- They also represent mental anguish, destroyed families, fiers, aluminum, copper cable, auto· shattered hopes, broken people, loss of faith and, indeed, mobiles, and more. In short, they life. stole money and almo t everything In previous studies on the ubject of embezzlement, we money can buy­ or that can be con· have tried to draw a portrait of the typical embezzler, verted to money. They were thieves based on compilations of data and statistics drawn from who betrayed the trust of other company claim files. However, in the final analysis, it has people in order to steal. They were to be concluded that there is no such thing as a typical embezzlers.

embezzler. The personal characteristics, the background, The a rli(' le, "The Fori ), Thieves," h a r e print the job status, the motives and the economic position of o f excerpts fro m 11 b oo kl e t b y the so m e title embezzlers are as varied as humanity itself. pre p a red a nd publish ed b y the United Statel Fide lity a nd Gu aranty Co., Ua ltimore t Md. It is r e pro duced in the Uulle tin with s p e da. per· W. J. JEFFERY, missio n of the United ' ta tes F id elity a nd Gua r. Chairman of the Board and President, anty Co . The a rticle is b eing presented in two p a rts ; the sec­o nd a nd concluding p a rt ""ilIA United States Fidelity and Guaranty Co. Il ublis h ed n ex t month. _

16 FBI Law Enforcement Bulletin ings IS usually an impersonal, in• lettered stock clerk. It is not necessary animate company or corporation. that he handle money. If he has the Thus many people feel that, as indi• intent to embezzle, the opportunities viduals, they are in no danger from to put his intent into practice will him. They do not consider the fact present themselves to him. that the embezzler takes money from all of us in the form of higher prices Damage to Business for the products and services of industry_ An estimated 1,500 firms are forced "embezzlement-n-fraudulent Perhaps, also, some people can see to the wall of bankruptcy every year. appropriation of property by something of themselves in the em• Of this number, more than 30 percent t4 a person to whom it has been bezzler, and thus they may judge him result from employee dishonesty. It is entrusted." leniently. The embezzler is frequently calculated that 25 percent of the a member of the middle or upper profits on sales made by the Nation's class. Often he is college educated retailers go down the drain because and has been exposed to all the ethical of internal dishonesty. Manufacturing values that Western civilization holds firms have a similar experience, dear. Usually, he does not consider although the true extent of their losses himself to be a "real criminal." He is is often obscured by their differing convinced that he is just "borrowing" methods of cost accounting. A study the money or taking something which by the National Industrial Conference the employer "owes" him. Board of 473 companies indicated 20 But despite the sometimes benign percent of all companies, and 25 per• The accompanying stories of forty image of the embezzler, the fact re• cent of those with more than 1,000 cases of employee dishonesty present mains that he is dangerous and does employees, found employee theft of ~r oss section of a crime that is wide• serious harm to thousands of Ameri• tools, equipment, materials or com• . ead in American business. In fact, can businesses every year-to the pany products a "real problem." More today, no business is safe from the management, to the stockholders and than half the companies indicated that threat of dishonest employees. Em• to the employees of these busi• the problem included both white• bezzlement, say the experts, is increas• nesses and to depositors in financial collar and blue-collar workers. The ing at the rate of 15 percent each year institutions_ profit margin in most industries today and is now believed to be costing U.S. The American embezzler lives in is narrow. The loss of just a few companies nearly $4 billion annually. every State in the Union, in large thousand dollars is often enough to According to a management consult• cities and small towns. He may be put a small firm out of business. Even ant who specializes in the study of employed in any business, industry in a large firm, the financial picture employee dishonesty, there is a better or financial institution; he may be a can be significantly altered by em• than even chance of sizable dishonesty public official. He can hold any posi• ployee dishonesty. in any firm at any given time. The tion from company president to un• And this most costly of crimes is losses to employers from embezzle• ment exceed those caused by fire in substantial measure. A large percent• Material and articles published in the age of all business failures is attribut• EDITOR'S NOTE: FBI Law Enforcement Bulletin are solely for the informa• • able to employee dishonesty. tion and assistance of law enforcement members. While brand names and companies may be mentioned from time Who Embezzles? to time, this is done in a strictly objective manner to help present stories in their entirety from authoritative sources. Perhaps one reason people tend to In such instances, publication of the article in the Bulletin be tolerant of the embezzler is that ~ should not, under any circumstances, be construed as an they do not feel personally threatened endorsement or an approval of any particular product, .. by his transgressions. The embezzler dom has to resort to force or course, or equipment by the FBI. lence. The victim of his purloin-

July 1970 17 ' becoming costlier every year. An esti• falsify records and cover up bling, drinking and the "ot ~ mate of overall losses from embezzle• defalcations. woman"-are still predominant, '9 ment is a rather imprecise thing for The ways of the industrial thief are drug addiction now a factor as well. the reason that many losses are not manifold. Whether it is the appliance But there are other less dramatic reported and many are undetected, store repairman who carts new mer• reasons, such as the expense of operat• but the most authoritative estimates chandise out of the store by attaching ing a small business on the side, the place the loss at some $4 billion a false repair tickets, the store clerk need for home improvements, or year. The amount increases with each who places expensive merchandise in heavy medical expenses. Or the passing year as the number of boxes marked for cheaper items, the embezzler may feel a need to get even embezzlements continues to grow. sales girl who wears store clothing with his employer for real or fancied home under her own, or the super• wrongs. How Do They Steal? market manager who sets up his own The President's Commission on '" cash register and check· out lane, the Law Enforcement and Administration There are literally hundreds of men and women who steal more than of Justice says "Corporate and busi• known ways of stealing from an $10 million a day from American ness white collar crime is closely asso• employer, and security experts warn business are the everyday people we ciated with a widespread notion that, that new methods or new twists in all know and work with. Employee when making money is involved, any• existing methods are being devised dishonesty accounts for a third of the thing goes." almost every day. Business thieves are undercover work of the famous One of the chief reasons an em• ( extremely resourceful and will take Pinkerton Detective Agency, and it is ployee will steal is that he has been advantage of every weakness in an reported that the schemes that agency living beyond his income, a fairly employer's operations, such as un• uncovers can boggle the imagination. common practice in these days of policed trash barrels, employee park• In an article in The Wall Street high taxes, installment buying, and ing areas too close to receiving Journal, a 33·year.old data·process• large families with higher living and lots, and factory exits that are not ing specialist was quoted as saying, education costs. Another common supervised. "I could steal a company blind in reason is the existence of an extended At the white-collar office level, three months and leave its books look• illness in the family, which consuze pilfering of the petty cash, kiting ing balanced." He added that it is a the family savings. in the accounts receivable, over• simple matter for a crook with techni· Embezzlement is an insidious extension in cash returns, falsification cal know-how and a little imagination crime. It usually starts with small of records on accounts payable, and to program a computer to fleece a thefts and grows as the embezzler be• other forms of embezzlement, involv• company and fool its auditors. Ac• comes bolder. Even after an employee t ing even larger losses to the employer, cording to him, executives seldom has been caught in the act, the em• are common. More often than not, question the reliability of financial re• ployer will often try to "play it down." poor supervision, bad or antiquated sults that come from complex million• He may be embarrassed that someone office procedures or bookkeeping dollar machines. "They simply forget in whom he has placed his faith and methods and too much trust in key that the machines have been built to confidence has taken advantage of y personnel make it all too easy for the do whatever the operators direct," he him, or, ironically, he may pity the dishonest employee to steal from the explains. "There's nothing to stop employee and refuse to prosecute be• company shelves or coffers, sometimes them from working quite efficiently cause of his feeling for the employee for years without detection. for a crook." or his family. Unfortunately, this at• The essential difference between titude can encourage other employees "white-collar crime," as embezzlement Why Do They Steal? to try their luck at dipping into the is often called, and robbery or bur• till. If a greater amount of publicity glary is that white·collar crime is in• The embezzler often seems to be a were given to embezzlements within variably concerned with the violation pretty nice fellow on the surface. So private industry, far more employers of trust. Unlike burglars, embezzlers what makes him steal? The motive would be aware of the serious expo• are employees in positions of trust. may grow out of anyone of a whole sure existing within their own busi• They already have the key or the right range of human emotions, ambitions, nesses. Paradoxically, embezzlement ~ combination. Many have access to difficulties, and desires. The tradi• increases in times of prosperity. Em- ~ company funds, by one means or tional causes, and those which appeal ployees become over-extended for another. They can find ways also to to the public's imagination- gam• credit, loan interest notes are ofe

18 FBI Law Enforcement Bulletin The Thieves' Stories

e "You will find the stories of 'The Forty Thieves' interest• The 40 case histories that follow ing, we feel, and thought provoking. But you will also were taken from actual claims made find them tragic. They represent not only money lost. under fidelity bonds written by The They also represent mental anguish, destroyed families, United States Fidelity and Guaranty shattered hopes, broken people, loss of faith and, indeed, Co. More than 40 people were in• life." volved in these 40 embezzlements. In some instances the thief worked alone, higher and labor shortages prevent posits should be verified as to their as in the case of the timid clerk in the employers from fully checking the individual entries and not as to totals religious bookstore. In other cases, references of job applicants. Inflation only. And this should be done by several people worked in collusion. and spiraling costs of living put in• someone other than the person pre• Some cases ended in prison, some in creasing strain on the ability of em• paring the statement. Also, the flight, some in suicide, and some sim• ployees to resist the temptation to monthly itemized statement should be ply ended. embezzle. verified with the bank. Each case is an intriguing, often Spot-checks, audits, and inven• tragic, human interest story. The What Can Be Done? tories should be made at frequent in• motivation of the thieves runs the tervals, and on a surprise basis, and gamut from mere opportunity to Where embezzlement is concerned, the results compared with other re• desperate need of funds to feed and no area of an organization is beyond sults that will corroborate them or clothe a family. If the collected stories suspicion. Employers should institute prove them in error. prove anything, they prove that em• procedures that will permit them to Depending on the nature of the bezzlement is a crime that is com• detect dishonest actions in any divi• business, there should be periodic re• mitted by all kinds of people in all sion of the firm as soon as possible. visions of the auditing and security kinds of situations for all kinds of The procedures should be such that measures to avoid a pattern that can reasons. They prove this because, supervision and verification at all easily be detected and taken advan• although names have been changed, ges of an operation promptly bring tage of by dishonest employees. all of the stories are true. • light any irregularities and lead to Keys should not be distributed Now, meet the 40 thieves. * the detection of a dishonest employee. among too many of the personnel and It is generally good practice not to the safe combination should be known Cocktail Lounge Receipts Go to put one employee in complete charge by as few persons as possible. of anyone phase of administration the Races ; Finally, fidelity bonds covering the where accounts receivable or payable employees can be a deterrent. Firms As bookkeeper for a company that are involved j for example, a credit that purchase fidelity coverages re• operated a cocktail lounge in an manager should not be permitted to gard the insurance as part of their ocean resort, Lillie W. had complete receive money and at the same time inventory-control and theft-protection charge of bank deposits, checking be in charge of posting and deposits programs. Security experts claim that accounts and cash receipts. She an• and the preparation, mailing and dis• fidelity insurance has an important swered to no one except to a firm of tribution of monthly statements to deterrent effect on employees who accountants who periodically audited clients. might otherwise succumb to the temp• the books. Finally she did not even Cashiers or accountants should pre• tation to steal. Experience shows that answer to them-she skipped town pare the reports of receipts, which employees who know they are bonded when they found evidence of false should be verified by someone else are far less likely to steal from their statements in her accounts, leaving who would be responsible in turn for employer than those who are not her company short more than $18,000. deposits and the posting of ledgers. bonded or are unaware that they are For 3 months, Lillie W. had stalled Shipping and receiving, whenever covered by a bond. Even when all the the regular visit by the accountants, possible, should be two completely recommended precautions have been using one ruse or another to postpone separate operations and the respon• taken, this is no guarantee that em• sibility of at least two individuals, bezzlement will not occur. But it .Because of space 1imitations, all 40 of the thieves' stories cannot be printed. A representatil'e number, ) each having to submit individual re• should be less likely to occur, and ('overing as many embezzlement areas and tech· turns to the accounting office. more easily discovered when it does niques as possible, have been included. e:ollection receipts and bank de- occur. (Continued on page 29) r July 1970 19 •

A restaurant manager uses a card dialer telephone to contact the computer at American Express headquarters to get authorization for a dinner party check.

This is the conclusion of the two-part article on credit card theft. In this issue, Mr. Lipson discusses mail theft prob• lems, cancellation bulletins, techniques of some card thieves, and new, sophisti• cated equipment to improve security when authorization is checked by busi· nessmen honoring the cards.

C,.ime and the C,.edit Ca,.d «

20 FBI Law Enforcement Bulletin President Smith (name fictitious ) of ficiencies. He had little difficulty in the ABA at its main office in ew obtaining access to them through York. Special Agents first contacted friendly operators or employees of the ABA personnel office and learned various service establishments who re- that the alleged vice president was ceived them. It has not been uncom- actually an employee in its mailroom. mon for police officials and special By The employee later confessed the theft agents of the card companies, in wit- MILTON LIPSON of the card involved and of others. nessing illegal sales of credit cards, ., Vice President, Even cards in the possession of an to see those involved take cancellation .Corporate Security, authorized cardholder, with his name bulletins from their pockets to de- American Express Co., signed in the appropriate panel, are termine whether or not the stolen New York, N.Y. sought by professional thieves. They cards being traded are listed. The are stolen by burglars, holdup men, built­in delay of the cancellation pickpockets, car thieves, prostitutes, bulletin system gave the thief a period hotel thieves, purse snatchers, and of relative safety during which he other criminals. could misuse a stolen card. Liability for credit card charges by To combat this, credit card com- ., unauthorized persons is governed by panies began to improvise systems contract. Many companies relieve the that would avoid the cancellation bul· .. Credit cards are particularly vul- cardholder of all liability for fraudu- letin problems. In conj unction with ~ nerable to thievery during the time lent misuse from the moment the com- its bulletin, American Express began they are in transit from the issuer to pany is notified of the loss. American to use a card file system which was the customer. A large number of cards Express does so, but imposes a maxi- updated immediately on notification, • have been stolen from the mails. mum liability of $100 if for any rea- listing all reported and stolen cards • Postal authorities have cooperated in son the cardholder does not make such from the closing time of the last can- every way possible to apprehend those notification. cellation bu Hetin. Service establish- ...onsible. Arrests and conviction of ments were provided with a telephone ~ tal employees in connection with Limitation of Bulletins number to call on aU uses beyond a credit card thefts from the mails have predetermined or authorized amount. occurred in many areas of the country. Once the number of a stolen card When such a call was received, the Within the last few years, many of is known to the credit card company, updated card system was searched. the credit card issuers have learned it is usually placed on a warning or The telephone numbers and time the rt to coordinate their mailing activities cancellation bulletin, copies of which authorization office was open were ~ with officials of the Bureau of the are sent to all honoring service estab- printed on the bulletin. This manual Chief Postal Inspector to reduce the lishments. These establishments are authorization system, as an adjunct risk of loss in the mails to a minimum. charged with consulting these bulle- to the cancellation bulletin, proved 'i Theft from the mails remains a major tins. If one of them honors a bul- effective but slow. source of credit cards to professional letinized card, it usually becomes The cancellation bulletin included '. criminal groups. liable for the loss. a statement of the authorization • The mail­type exposure continues These cancellation bulletins have unit' regular office hours. The unit after delivery, particularly if the become voluminous. They cannot be was advertised as being closed from destination is a mailroom of a large made up and distributed to service 6 p.m. Sunday to 9 a.m. Monday, nor- ... concern or apartment complex. An establishments on a national basis in mally slow business hours. Profes- example of this type came to light re- a period of less than 5 to 10 days after sional thieves who had access to the " ~ cently when a suspect, questioned in notice of a loss is received by the bulletin quickly took advantage of the act of using an alleged stolen issuing company. Because it takes too this published safe period and ram- ( credit card by American Express much time to prepare, print, and mail med many fraudulent charges through Special Agents in California, identi- bulletins, attempts to use special bul- during these hours. ," fied himself as an employee of the letins between regular issues did not A new method of updating au- American Bankers Association prove satisfactory. thorization, capturing detail more ~ (ABA). He said his identity could be The thief soon b~ame aware of the quickly and peeding the answer back ~ _ ified by a telephone call to Vice bulletins and of their built­in de- to the service establishment, was ft July 1970 21 needed. In the case of American Ex• which have been announced, is an air• credit card thief to obtain another press, it was built into a computer line ticket vending machine created stolen credit card, return, and e which now houses all negative in• and being tested jointly by American again. formation and is updated instantly Express, American Airlines, and In• The proof of the effectiveness of the upon the arrival of new material. ternational Business Machines Corp. American Express philosophy, sup• Service establishments with touch-tone at O'Hare Field in Chicago. This ma• ported by an adequate team of in- ~ telephones touch·tone directly into the chine dispenses airline tickets, vali• vestigators and operational machinery computer over a W ATS line network dated by a specially designed card. designed to work with them, lies in and use the same keyboard to input The entire operation, including the company fraud loss figures. American ,.. their own service establishment serial search for available carrier space, the Express reduced dollar losses in 1969. number, the number of the questioned assignment of a flight, the validation to a point below the losse it experi• card, and the dollar amount of the of the credit card used, and the is• enced during the previous year. This to transaction. suance of a ticket, is performed with• absolute reduction is emphasized be• in 45 to 60 seconds. Included in the cause the volume of credit card busi- " Fast Service design of the machine are access to the ness increased by more than 30 per- 4 negative file and a procedure to notify cent during 1969. In more than 85 percent of all such authorities of an attempted use of The misuse of a credit card leaves a calls, the computer, using its vocab• a stolen credit card. broad trail for law enforcement agents .. ulary of 60 words, responds auto· Other card issuers have their own to follow. Every time a stolen credit matically, informing the caller that variation of an authorization system. card is used, the user or passer ex• the transaction is authorized and is· one that I know of are as extensive poses himself to the scrutiny of wit- • suing a precoded number. These en• as the one used by American Express nesses and in most cases leaves evi• tire transactions take approximately on a national and international basis. dence in the form of a signature on 30 seconds. When no touch-tone pad From its entry into the credit card each record of charges. Every credit • is available, ordinary telephone calls field in 1958, American Express has card company can, within varying • are placed to company personnel with maintained the philosophy that each short periods of time, reproduce the touch-tone pads who process informa• and every known criminal misuser of entire trail from its own records. A 4 tion directly into the computer. a credit card should be arrested and A classic example of the effect. When negative information is on prosecuted. This conclusion was use of a trail of clues is illustrated in line, such as the report of the loss of reached on the basis that this is the a case involving a murder in Bronx a card, the computer is programed best method of discouraging criminal County, .Y. The homicide squad of to inform the caller to hold the line. The call is automatically transferred to one of a group of authorizers "Every time a stolen credit card is used, the user or seated in front of cathode ray tubes passer exposes himself to the scrutiny of witnesses and in on one of which the entire history of most cases leaves evidence in the form of a signature on the questioned card is simultaneously each record of charges." flashed. In cases involving lost or stolen oards, the authorizer and the inquir• ing service establishment arrange for attacks and that to do otherwise would the ew York City Police Department a call to the local police to apprehend be to encourage criminal to continue was investigating a case in which the the user. their illegal activities. As a deterrent, murder victim was found seated in an Presently, American Express is collection of the amounts involved automobile. In determining the handling 120,000 authorization calls from the criminal is of secondary im• ownership of the car, police learned a month, on a 24-hour-day, 7-day. portance to arrest and prosecution. it had been rented from a car rental week basis. Some companies in the credit card firm with an American Express card. StilI classified as business secrets field do not follow the same line of Contacting the Inspector's Office at are details of new sophisticated equip· reasoning. It is sufficient for them if American Express, detectives were ment which will further automate au• the stolen card is confiscated. Collec· able to quickly obtain the information thorization calls. One of these pieces tion takes priority over prosecution. that the card involved had been re• of equipment, existence and use of This is literally an invitation to the ported as stolen sometime bef_ -

22 FBI Law Enforcement Bulletin 1 Some 30 records of charges had been There is ample evidence that the "to make a buck" in whatever way ived since the date of the theft. credit card industry has attracted the possible. This professional, the study • e e handwriting on these records dif- attention of both organized criminal declared, is turning his attention to fered from that of the true cardholder. groups and professional criminals. new crimes. Credit card crime was One of the records was of the rental Among those members of organized listed as one of them. charge for the car mentioned above. crime and persons closely associated This conclusion is borne out by the ~ Handwriting experts indicated that with them who have been convicted of experience of American Express Spe- the same person had signed all 30 involvement in the fraudulent misuse cial Agents who, in 1969, paved the • charges. Thus, the investigating of credit cards are a number of way for the arrest of 1,182 persons in detectives had a list of 30 places in ranking members of La Cosa Nostra connection with credit card frauds. We which investigations could be con- families. found that a great majority of those .. ducted, and they also had physical Mr. Charles A. Miller, Director of arrested had prior criminal records evidence proving that the person who the Post Office's Fraud and Prohibited for crimes in the following categories: had rented the car must have been in Mailings Division, has publicly stated homicide, bookmaking, robbery, bur- ~ all of these places. Sales clerks, that his service has also found evi- glary, auto theft, check fraud, and nar- waiters, and others were interviewed dence of Mafia involvement in credit cotic violations, including both ped- and, within a short time, a descrip- card cases. dlers and users. It is of interest to note • tion of such detail was obtained that that a number of those arrested for the investigating detectives were able A Hustler credit card fraud in various parts of to return to the service establishments the country were, after apprehension, ~ with a series of photographs. Four The existence of other professional found to be recent escapees from penal who had witnessed the signing of a criminal interest was one of the con- institutions. record of charges were able to make clusions made in the study financed by A much larger percentage of per- ~ positive identification; others, tenta- the Department of Justice's Law En- sons apprehended in connection with tive identification. The man whose forcement Assistance Act program en· credit card misuse have turned out to " picture was selected was apprehended titled "Crime as a Profession." This have been on bail stemming from ) ~ t on a charge of forgery. He was study found that the modern profes· other criminal charges. indicted and convicted of the sional criminal is a "hustler," one who In their probing for weak links in .rhomicide. is in constant search of opportunities credit card security systems, criminals

A credit authorizer at American Express headquarters, responding to a telephone request for credit authorization from a business establishment, ... reviews card history on screen of cathode tube display station.

., focus on possible alliance with service cers to handle this important work. bitually and rapidly move from one establishment owners, or employees, In major metropolitan areas such city to another, who cross the co. or both. As recently as 2 years ago, as New York, Miami, Los Angeles, and nent, and who may travel abroad .. senior security officials of major petro• San Francisco, credit card special in• well. No local law enforcement agency leum companies indicated that as vestigators are holding regular meet• keeps segregated statistics or intelli• much as half of their entire fraud loss ings in conj unction with local and gence on credit card misuse. To find could well be the outgrowth of such Federal law enforcement officials. these statistics, one would have to " alliances. The most glaring evidence These meetings have been most useful bisect the general statistics under the of this type of arrangement appeared to all parties concerned, and the _ex• headings of robbery, burglary, for- ,.. in Cook County, Ill., immediately fol• change of information has resulted in gery, receiving stolen property, and lowing the unsolicited mailing of bank the identification, arrest, and prosecu• the like. Similarly, intelligence infor• credit cards. More than 70 separate in• tion of known violators. mation would have to be sought from '" dictments involving such conspiracies American Express printed a hand• squads or files assigned to these same have been filed there. book for its own Agents' use which major classifications. is an exposition of all of the provisions W aiters' Scheme of the newly adopted credit card fraud Conclusion amendments taken from the Wein• American Express Special Agents stein-Farer Model Law and now in• The credit card is the most rapidly • have uncovered evidence indicating cluded in the ew York Penal Code. growing form of commercial value in criminal activity ~n the part of itiner• This has been made available to all use in the country today. Its rate of ant waiters. The modus operandi of credit card investigators and copies increased use during the 1970's is ex- f• these waiters is to seek employment in have been requested for training pur• pected to be more rapid than that of establishments that permit the waiter, poses by local law enforcement de• the past decade. Unfortunately, with himself, to operate the imprinter. The partments. this healthy growth there will also be ~ waiter, while returning a credit card In many areas, despite the effective a corresponding increase in exposure to a customer, adj usts the table set• cooperation between credit card in• to criminal attack affecting all areas or ting, and slips the card under a plate vestigators and local law enforcement of law enforcement. The convenie. or another object on the table. If the officers, a problem still exists. Their of the credit card and its rela customer asks for the card, it is, of best efforts are often negated by safety compared with the use of cash• course, found immediately and re• needlessly lenient prosecutors and where rising crime rates indicate that turned with the profuse apologies of judges. it is prudent not to carry much ... the waiter. If the customer leaves the The credit card crime is one in• money-warrant greater law enforce• premises without the card, it is pock• volved in movement. The largest losses ment attention to this mounting f eted by the waiter. Later, when receiv• are caused by profe sionals who ha• problem. f@ ing a cash payment, the waiter pockets the cash, imprints the card, and forges the customer's name. Some of these TRANSPORTING STOLEN ROUND TRIP THEFT ~ waiters exchange cards in an attempt to destroy the trail. PROPERTY A juvenile being interviewed by an •

There is no doubt that the credit Law enforcement officers In the FBI Agent admitted that he had stolen " card industry is becoming more aware Southwest report an increase in the approximately 68 automobiles during and more proficient in combating use of rental trailers for the trans• a 3-year period. He explained that his credit card frauds. portation of stolen property. The girlfriend lived in a neighboring town " Many companies now engaged in approximately 40 miles away in the closed trailer behind a car conceals this business have begun to establish, same State. Many times, when he vis• the tolen goods. enlarge, and professionalize their ited her, he would teal the first car ~ own security forces. Horse trailers are also being used to available, make the round trip, and Some which have used credit in• transport stolen goods. The stolen abandon the automobile. Local a\lJ• vestigators or placed responsibility for goods are placed in the front portion thorities were relieved to learn who " fraud control in their controller's de• of the trailer in the area ordinarily was respon ible for leaving stolen partments are now recruiting recently used for saddles, harness, and food cars in the same general area over a retired Federal agents or police offi- supplies for the animal. long period of time. .. SI}(!_/~1 5/}f!.. ' ~ 24 /I ;.U ;L~. cbJilL ~ I Law nforce ment Bulletin 3- ~ 1- 70 /.2- 11&.- b 9 FBI NA (Continued from page 4) emy consists of a staff of full-time FBI instructors, supplemented by FBI experts in various fields_ It also in- cludes a number of nationally known visiting faculty members­outstand- • ing criminologists, police officials, and educators selected from higher institutions of learning for their ... unique and special contributions to law enforcement

,. Rigid Qualifications

Beginning with the opening session • in 1935, qualifications for appoint- ment to the Academy have been high and rigid. The officer must be nomi- of nated by the head of the agency, and the application is considered by the FBI without regard to race, creed, Officers receive individual firearms instruction from experts of the FBI Laboratory. • color, or national origin. In effect, an .. agency in selecting a man to meet the chosen its best all­around officer to sidered in terms of the law enforce- requirements as to age, physical con­ fulfill the purpose for which the ment profession, is one marked by the dedication and determination of J> ••on and health, education, charac- Academy was created­to turn excel- and reputation, and advancement lent officers into trained instructors men to im prove themselves to better potential will, in most instances, have and administrators. serve their country and their fellow The history of the FBI National man. In the demanding task of en- Each officer is shown the complete operations Academy, although brief when con­ forcing the law, competence based on of the National Crime Information Center located at FBI Headquarters, Washington, D.C. A document examiner explains ways in which written documents can be traced.

July 1970 trammg and knowledge is a va, · hallmark. Competence engenders spect and confidence, and, subse· '" quently, the cooperation and assist• ance of the public. And to be effective, law enforcement must have public .. cooperation and assistance. Adhering to the proven principle

that law enforcement is an individual ,4 community responsibility, the FBI National Academy has as its primary goal the preparation of police officers .... to fully meet this responsibility. Today-as it was 35 years ago and <: as it will be 35 years from now-men can master change through training. It is the solemn purpose of the FBI National Academy to assist Federal,

• ..

A course in public speaking is one phase of the training offered, and each member of the class is given the opportunity to speak on a su of his choice. "'I 26 FBI Law Enforcement Bulletin WONDERLAND Once the complaint card has been are within red; traffic (separate acci· completed by the processor, she dent and enforcement cars) is in (Continued from page 15) stamps the time on it and sends it via black. There are two lights with each be monitored and used are: Tennes· conveyor belt to the dispatcher. He car number: red for on assignment, see Highway Patrol (which has a stamps the time of receipt, decides white for unassigned. division office in Knoxville) ; the Uni· which car should be assigned, and When the complaint card goes into versity of Tennessee Safety and Secu· radios the assignment. Again the the slot, the white light next to the rity Department; the city's utilities complaint card is stamped with the car's number goes off and the red • agency (electric, gas, and water) ; the time. When the assigned officer com· light goes on. When the assignment city's service department (streets, pletes his investigation, the dispatcher is completed, the card is removed and sewers, etc.); the traffic engineering stamps the card a fourth time, places the red light extinguishes and the department (separate from the Police it on a conveyor belt, and it goes to white brightens. Department) ; Civil Defense; and the the records section. In addition, staff officers and ve· FBI National Crime Information This complaint card, after the beat hicles not assigned to zones are listed • Center network. officer or detective is given the assign· with red and white lights on the mar· The specially designed communi· ment to investigate, goes into a rack gin of the map. Thus, with a quick cations system has the various burglar beside the dispatcher. There is anum· glance to the board, the dispatcher alarms of commercial establishments bered slot for each card. Placement can rapidly analyze the status of all connected into it. These alarms can of the card in the slot automatically cars. be tested from the console. triggers a change on the large master Going into full detail concerning The console controls all these nets control board facing the dispatcher. the operations and capabilities of this from one microphone. The dispatcher This control board has a large map sophisticated system would obviously can tell which nets are in use by the of the city which is color coded. Zones require too much space. Suffice it to -\ panel lights which display "busy" or are within blue lines; patrol districts say that the system, which cost "mute." An officer is shown at the control panel which operates all the doors of the jail. Closed-circuit This covers the radio communica· television receivers show a prisoner from the time he enters the building until he is placed in a part of our system. Now, let us cell. • ce a complaint to see how the sys· tern operates. The department has two telephone numbers: one for administrative mat· ters, the other for emergency use. Also, there are joint fire·police alarm • boxes throughout the city. Complaints normally come in on the emergency lines which are answered by female " complaint processors. This procedure ). saves time by eliminating the neces· sity of going through the switch· T board; and in an emergency, seconds can make a big difference. The proc· essor notes on a computer card the .. nature of the complaint and other ,. necessary data as she talks with the complainant. If it is an extreme • emergency, the processor flips a switch which turns on a white light on the dispatcher's console. He is .. alerted and can listen in on the call t and perhaps have a car assigned be· fore the complainant has completed .. • g the report.

July 1970 The complaint processor's room is situated near the dispatcher's office which makes it convenient for assignments to be given to the officers who will handle the investigations.

~ $400,000, has tremendous capability, headquarters. A clerk in the records not come close to fitting in the space and has improved the department's section takes the crime report, matches used by the new automatic system; .. operations tremendously. it with the complaint, then prints via and we now have twice the filing The main transmitting tower for offset printer the necessary number of space. Too, the mechanized units. 4- • this system is located on the highest copies and begins the filing process. 9 feet tall and extend into the cei point in the city with a land wire from The miscellaneous incident report 1 foot, making the maximum use of the safety building. There are eight is made in single copies. space. All calls made to the complaint • repeater towers throughout the city, Complaints are fil ed by number; processors and the communications providing clear voice communica• the crime and miscellaneous reports traffic between the dispatcher and cars '" tions. The system has a triple emer• are filed by type of complaint. They on all four channels are taped. This ~ gency potential, with a secondary are cross referenced, and a card is practice has helped in the verification main tower on the roof of the safety placed in the master index file by of either citizen or internal com• building. name of complainant and the indi• plaints. The taping machine is equip- '( The new records setup appears to viduals involved. ped with an automatic timing 'device. be working out better than antici• The Knoxville Police Department pated. Let me explain briefly how our The jail occupies the entire second ( currently has more than 500,000 floor. eparate cell areas are provided " reports system operates. index cards and some 71,000 criminal An officer on the beat gets his as· for adult males and females and folders. Dead files, reports over 5 juvenile males and females. There also signment. After completion, he makes years old, and other data are put on out either a crime report or a miscel• is space for mental patients, and a .. microfilm. maximum security area of four spaces laneous incident report, using the Knoxville has installed a mecha• same number as on the original com• is observable from the jail office. The • nized filing system. In addition to the plaint. A crime report is for the more jail has sleeping space for 250 prison- • speed it provides, there is a major serious incidents and is prepared on ers, and it can accommodate several advantage that should be pointed master material, making it pos ible hundred more in an emergency for a out-space. We had used all of the to reproduce it quickly and easily. short time. umerous electronic .. Periodically during each hift, a file space in our old building. security controls and devices make sergeant will meet each beat officer, The 5-foot tall, manually operated the Knoxville Jail one of the most pick up his report , and take them to filing cabinets previously used would secure city facilities in the

28 FBI Law Enforcement Bulletin THE FORTY THIEVES grew to be a leader in its field and the The Stereo Sound for a Wife and trucking operation became increas- Nine Children e (Continued from page 19) r ingly complex, the regulation of the Although he was illiterate except meetings and cancel audit schedules. drivers became exceedingly lax. for being able to sign his name, Finally a showdown came and the Bobby J., Henry P., and Charlie A., Tom R. had been employed for '" audit was begun, bringing to light un· three drivers with about 10 years' several years as head shipper in the true ledgers, false entries, hidden bank service each, began to take full ad- branch warehouse of a large concern checks, contrived adding machine vantage of the haphazard record keep- dealing in gas appliances and related ~ . tapes, and fabricated bank account ing. They started to use the company's equipment. On a salary of $70 a week, totals. The situation was made more credit cards to make fictitious pur- he had to support his wife and their chaotic for the accountants when it chases of fuel and automotive mer- nine children who ranged in age from .. was discovered that, some weeks chandise, getting cash instead and 2 to 15 years old. The pressure of earlier, Lillie W. had gotten a main- splitting this with employees of cer- family expenses finally got too much tenance employee to load a cardboard tain truck stops along the way. It for Tom R. and, 4 years after he ... box full of papers in the trunk of her later turned out that the three drivers started working, he began to steal car and had driven off. got away with their scheme for as long things from the warehouse. Apparently, the bulk of Lillie W.'s as they did because the fleet dispatcher An inventory taken at year end, ..> thefts occurred during the time she was also involved in the plan. soon after Tom R. began his thefts, was stalling the audit. She was showed a merchandise shortage of Loss Discovered married, but was running around considerable proportions. When the .. with another man and "paying the The loss came to light when the loss first came to light, the general bills." It came to light that she was company's accounting department manager of the business asked the known throughout the town as a "big noticed that the three drivers were local manager if it could have been 4 spender" in bars and lounges, and that making an inordinate number of caused by Tom R., pointing out that she had a reputation as a sizable emergency purchases while on the he had a large family and could be horseplayer. The warrant for her road, often buying several tires on a in financial difficulty. The local man- ~ st on charges of grand larceny single trip, and using a disproportion- ager responded that, as far as he was W Id not be served because she could ate amount of fuel. When the matter concerned, Tom R. was an honest em- not be found. She has not been heard was reported to management, a full ployee and one to be trusted. Sus- from since. investigation started. picion was also diverted from Tom R. Amount of loss, $18,539.26­ Discrepancies were found in the when he shortly became ill and could Amount of bond, $10,000. records of all three drivers. Evidence not go to work for a month. During showed that Bobby J., for example, this time, the disappearances of mer- ~ Credit Cards Misused by Tractor• often would pull into the same truck chandise from the warehouse con- Trailer Trio stop when starting on trips and take tinued. Tom R. was later to admit on 100 gallons of fuel. But the truck that, while he was out sick, he made A large manufacturing company stop was only 250 miles away from a number of trips at night to the ware- ,. maintained a fleet of nearly 70 the plant, and Bobby J. always left the house, each time taking 12 humidi- tractor­trailers to deliver its products plant with his tanks full to their fiers. During the period of his illness, of across the country. The trucks were capacity of 100 gallons. In another he recounted, he stole some 120 fully serviced before each trip, but instance, there was a charge showing humidifiers all told. Some he sold to the drivers were given company credit the purchase of 100 gallons at this a "fence" in quantity; others he sold ~ cards because some of the trips lasted same truck stop when the driver who to individuals for $25 "cash money" • several days and involved hundreds, allegedly made the purchase was, on each. The retail value of each humidi- and often thousands, of miles. that date, making a delivery in a State fier was $87.50. • The company, which had been hundreds of miles away. Locks on the warehouse door were formed some 15 years earlier, origi- Faced with mounting evidence as changed, and other safeguards were nally ordered its drivers to bring in records were reconstructed, all three instituted. The pilferage continued. ~ copies of all charges incurred on the men admitted their guilt, as did, ulti- Finally, private detectives were called ~ road, and to turn in any worn part- mately, the fleet dispatcher. in to maintain surveillance of the such as a tire or battery­that had to Amount of loss $18,999­Amount warehouse on a dusk to dawn basis. ~ e eplaced en route. As the company of bond, $100,000. A few days later, just after 7 a.m.,

July 1970 29 the detectives saw a car back into the eventually caught up with him. sure but then gave in and took several shipping and receiving area. The Henry M. had been employed just hundred dollars more. After thi. driver walked around the corner and over a year when his employer be• was easy for Alfred G. to keep up Te .. entered the warehouse by the front came aware of large past due accounts pressure. Janet provided the money door. Shortly the same man opened in merchandise which had been sold for utility and rent payments on his the shipping door and began putting by him. A check with customers re• apartment, gave him cash, and bought "4 merchandise in the car. The detectives vealed that most of the accounts had him expensive gifts including a dia• approached the man and asked him long since been paid in full. mond ring, a stereo set, and a watch.

if he had a bill of sale. When he said Confronted with the evidence, They often made pleasure jaunts to• 4 "no," they identified themselves and Henry M. acknowledged that he had gether, such as to "drag races" at a asked him to go into the building with receipts which he had not turned in. nearby city. On these excursions, them and wait for the start of the He promised to bring them in himself Alfred G. later bragged, they always .. business day. The man agreed; he the next day, but instead he sent his traveled "first class" and Janet paid all ~ was Tom R son with $900 in checks and the keys of the bills for hotel rooms, transpor- At first Tom R told the detectives to the company car. Within a matter tation, meals, and entertainment. f he had never taken anything from the of days Henry M. was on his way to Janet's employer had a triplicate warehouse before without a bill of California, followed shortly there• system of invoices-the duplicate sale. By the time the other employees after by his family. It was hop and copy going to the customer as he "• arrived at the start of the business skip from then on as he tried to keep picked up his order, the original copy ~ day, however, he was making a full ahead of the company's investigator. to a clerical employee, and the tripli• confession. The confession was writ· At last report, he was still on the cate being put in the cash drawer ,.. ten down, read back to him in front move. along with the cash or check in pay• of witnesses, including the manager Amount of loss, $5,330-Amount ment for the order. However, Janet who had thought him honest and to of bond, $10,000. was often allowed to handle both the I• be trusted, and then Tom R. signed it. original and triplicate invoices. She .. Tom R's confession detailed the Boyfriend Demanded Money for would take money from the cash theft of an almost incredible number Food, Fun, and Frolic drawer in the amount of an invoa 10 of small appliances and fixtures over Janet D. was hired to assist several and then destroy both copies of _ a short period of time. Yet, as is often girls in the office of a wholesale candy invoice. She also substituted some the case, it had its touch of pathos. and tobacco distributor. Although not customers' checks for money that she "The money I got for the stock I sold highly educated, she learned the office took from the drawer. And this ap- .I. I spent as I got it on all kinds of stuff procedures well and often worked as parently led to the ultimate discovery we needed at home," Tom R said, substitute cashier. When the regular of her embezzlement which, in a " "stuff such as clothes for my family cashier resigned, Janet D. knew the period of a few months, amounted to ~ and myself ... I bought a (used) bookkeeping system so well that she $10,326. car. I also bought a stereo from was promoted to cashier. Janet D. had told her employer, Mr. --- for $250. He gave me a It was on her 19th birthday, she just before she was found out, that ~ receipt for $400 for the stereo just so later told investigators, that she first she was shortly going to leave the that I could show my family that I took money from her employer. The company to get married and move to " could buy some expensive things for amount, she said, was $300-and it another State. Then her bubble burst. .. them...." was spent on an abortion which she Her embezzlement was discovered Amount of loss, $11,340.97- indicated wa performed on her the and her boyfriend was charged in an Amount of bond, $10,000. following weekend. extortion plot directed at a local busi• 4 Apparently Janet D. did not dip nessman. Janet's mother and a friend Swimming Pool Salesman Gets into the till for some months follow• of the family made a partial repay• in Over His Head ing the illegal operation, until she met ment of the loss and undertook a re- • Thirty·nine years old, married, Alfred G. at a teenage hangout. He habilitation effort in her behalf. At with four children, Henry M. worked had a police record, was out of a job, last report, she wa working as a wait• for a sporting goods dealer selling and needed money for car payments. re and clean-up girl in a restaurant. .. swimming pools and recreational He told Janet to get the money for Amount of los, 10,326-Amount equipment. He was a good salesman, him, or his car would be repo sessed. of bond, 25,000. but his high living and gambling (To be continued next month_ .. For some time she resisted his pres• .. 30 FBI Law Enforcement Bulletin PUBLIC RELATIONS cated earlier, one of the basic prob- cellblock area each day. He realized (Continued from page 7) lems encountered is the fact that the too late that they were using the general public does not feel that it is strings from the mop to saw their ... entire school system. Other special a criminal violation of law to defraud way to freedom. programs are: A car theft campaign an insurance company. Also there is a By soaking the mop strings in water (our car theft total shows 20 less stolen great need for all law enforcement offi- and sprinkling the abrasive powder in 1969), speeches to senior citizen cers to be aware of the fact that this on them, the prisoners were able to groups on fraud and swindle, and wide is a criminal violation of law. In some ~ improvise a saw by working the string publicity on the break-away car instances there may be a Federal vio- back and forth on the window bars. hazard_ lation if a fraudulent document is After much effort they were able to Our accomplishments in a 9-month placed in the U.S. mail and travels in- sever two bars and escape. • period have had good effects. The terstate. We solicit your assistance in PCR unit has talked to approximately reporting any suspected fraudulent ac- 7,000 people, not counting several tivity to the proper authorities. ijl It thousand other contacts. Almost all of- ficers recognize PCR and practice the KEY EVIDENCE concept of police­community relations Officers of a midwest police depart- during their tour of duty. Our police "CLEAN" BREAK ment were interviewing two juveniles department has definitely concluded who had been stopped for violating Recently, three prisoners in a mid- that every law enforcement agency the hitchhiking ordinances. They western county jail volunteered to ­4 should consider a police­community noted that one of the young boys had relations unit. I@ clean their respective cell areas if pro- a key chain with a miniature license vided with cleaning materials. They plate attached_ An FBI NCIC inquiry were furnished a cotton string mop was made on the number, and the im- and an abrasive­type powder cleaner. mediate reply reported that a car bear. INSURANCE FRAUD After doing an exemplary job in ing that number had been stolen in e (Continued from page 11) their cells, they volunteered to clean another State. Further investigation the inside of the entire cellblock area. revealed that the two youths had com- turally sound as the doors would not The jailer noticed they worked hard mitted the theft and had abandoned open and close. These defective pieces but only on a small portio f e the car but kept the keys. r. ' D_., ~ of furniture had been stored in the fac- ~ SAC ~ ~J\, .&~ ~Cf tory warehouse located some 5 miles ­Le 3 ­ :/1./.­ 7D, "M 'i /{)_IO- from the actual factory. After this A CHANGE IN ATTITUDE ~ small fire, the superintendent of the furniture factory sent two trucks and In these times of hostile feelings the utmost contempt for law enforce- trailers to the warehouse across town toward law enforcement officers by ment officers, including local, State, and brought back 124 defective buf- many members of the black com- and Federal. However, he continued, • fets which were uncrated and moved munity, a recent incident that occurred the confident, courteous, patient, and ). into the area where the fire had oc- in a midwestern city is encouraging. professional manner of the arresting ~ curred, after which they were satu- The FBI arrested a fugitive wanted Agents changed his entire mental at- rated with water. Then the superin- by authorities in another State for titude regarding law enforcement. He tendent reported the loss to the in sur- False Pretense. This man was known stated further that, on the night fol- ~ ance company and stated to the ad- as a political activist and considered lowing his arrest, he had engaged in juster that all of the furniture, includ- to be very militant by members of the a heated argument in behalf of the .. ing the 124 defective buffets, were black community. The day after his FBI with an acquaintance who is • damaged in the fire. The superintend- arrest the man telephoned the local known as a radical, emotional, vocif- ent was indicted, tried, and convicted FBI Office and stated that he had erous militant in this same city. His of filing a fraudulent insurance grave misgivings about "copping out," treatment by the arresting FBI Agents, ,. claim. but felt morally obligated to inform he concluded, had given him new faith We could go on listing the different the FBI of his feelings about his in law enforcement and renewed op- types of fraud which are perpetrated arrest. timism concerning cordial relations lit e nst insurance companies. As indi- In the past, he related, he had felt among the races. (\"_O.IJ.JUr ~lN~ Ju ly 1970 31 r­­:­ ~- ..., I'~ I\ n ' c,t}('~ hte..L :J, / ­ I' U<.,. J /1'lR..f7Wo ~ ) 7 BRAZEN CAR THEFT RIN..2. WANTED BY THE FBI Police in a midwestern State h. , uncovered an unusual car theft ring. Leaders of the ring paid young car thieves $400 to steal high perform- ance "muscle cars" in models of pop- ular make automobiles. The stolen automobiles were driven .. to garages where they were stripped • virtually to the frame. The chassis, still bearing registration plates, were ~ hauled to locations where the police would be sure to find them. DEWEY CATRON, JR., also known as: Dewey Junior Catron. rWhen the owners were notified by ~ police of the locations of the stripped Interstate Flight- Armed Robbery vehicles, the victims then filed claims Dewey Catron, Jr., is being sought Nationality _____ American. with their insurance companies. Usu­ f... by the FBI for unlawful interstate Scars and marks_ Cut scar and raised ally, the insurance companies made round scar on upper total settlements on the cars and sold flight to avoid prosecution for armed right arm, scar on the chassis to a salvage company. ~ robbery. On June 1, 1968, Catron and left hand and thumb; an accomplice allegedly robbed a fam- tattoos of crossed ar· The car theft ring bought the ily at gunpoint in Tahlequah, Okla. rows above "CAT· stripped cars from the salvage com- At the time of the robbery, Catron was RON" on right arm, pany for about 350 each, reinstalled ;.. crossed arrows and free on bond from a previous robbery the parts, restoring them to complete "DEWEY" on left automobiles, and resold them for over in which he and another accomplice arm, birds on chest. reportedly robbed a couple in Hot Occupations ____ Construction worker, $2,000 apiece. a 4­ Springs, Ark., of $14,000 in money cook, electrician, oil This was a profitable opera. and jewelry. Catron's accomplices in well worker and tile until the police received a tip and, fol- setter. lowing investigation, obtained war- each crime have been located and con- FBI o. ______240, 728 C. rants for the arrests of members of victed of robbery. Fingerprint clas· . _.J-. . '+ .. sification ____ _ 24 L 5 U 12 the ring. 5f1C, j)~ J../-/o - 7~ Federal warrants were issued for 1 Ua Catron's arrest on June 14, 1968, at Caution Muskogee, Okla., and on August 16, Catron is being sought for robbery 1968, at Hot Springs, Ark. HEADLIGHTS HELP Catron has been convicted of bur- in which firearms were used; there- fore, he should be considered danger. PREVENT ACCIDENTS glary, escape from a penal institution, ous. assault and battery with intent to kill, Florida has a law which requires .. unlawful entry, and forgery. the use of low beam headlights dur­ \r Notify the FBI ing the daytime when driving in rain, Description Any person having information smoke, fog, or when visibility is re- which might assist in locating this duced to 500 feet or less. Parking • Age ______31, born Feb. 10, 1939, fu gitive is requested to notify immedi- lights or any auxiliary lights do not San Joaquin County, ately the Director of the Federal Bu- meet the requirements of the law. Calif. {not supported by birth records}. reau of Investigation, U.S. Depart- A Florida Highway Patrol official • Height ______5 feet 7 inches. ment of Justice, Washington, D.C. stated that this law is apparently un· Weight ______160 to 175 pounds. 20535, or the Special Agent in Charge known and/ or often ignored by some Build ­ ______Medium. local residents and many of the out­ 4 Hair ______Black. of the nearest FBI field office, the Eyes ______Brown. telephone number of which appears of·StaLe visitors. Adherence to this Complexion _____ Dark. on the first page of most local law, he added, would reduce accidents Race ______White. ,. directories. J~ o ~ 32 Jt11() FBI Law Enfo rc ement Bulletin -tru.s. GOVERN MENT PRI NTING OFFICE: 1970 0 - 385-741 FOR CHANGE OF ADDRESS ONLY .. (Not an order form) Complete this form and return to:

DIRECTOR FEDERAL BUREAU OF INVESTIGATION WASmNGTON, D.C. 20535

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------FBI Visitors

.... . uty AHorney General Ric hard G. Kleindienst (right), and his father, M r . Alfred R. Kleindienst, recently visited FBI Headquarters and were photographed with Direc ~ or J. Edgar Hoover. UNITED STATES DEPARTMENT OF JUSTICE FEDERAL BUREAU OF INVESTIGATION WASHINGTON. D .C . 20!53!S OFFICIAL BUSINESS POSTAGE AND FEES PAID RETURN AFTER !S DAYS FEDERAL BUREAU OF INVESTIGATI ON

INTERESTING PATTERN

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The Interesting pattem presented here Is classified as a tented arch. This Impression cannot be considered a loop inasmuch as the only possible looping ridge does not enter on one side of the pattern and pass out or tend to pass out the same side It entered. Also, no whori is present because a complete circuit is not fanned nor does the ridge in front of the left delta formation extend past or tecurve in front of this delta formation.