U.S. Department of Justice Of'fice of the Inspector General The Federal Bureau of Investigation's Compliance with the Attorney General's Investigative Guidelines Ofice of the Inspector General Sentember 2005 TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................ i TABLE OF APPENDICES ...........................................................................vii INDEX OF CASE STUDIES, DIAGRAMS, AND TABLES .............................. ix EXECUTIVE SUMMARY.............................................................................. 1 I. Overview ............................................................................................. 1 II. Background ........................................................................................ 5 III. The Scope and Methodology of the OIG Review .................................... 6 IV. OIG Findings....................................................................................... 7 A. The Attorney General’s Guidelines Regarding the Use of Confidential Informants ............................................................... 7 B. The Attorney General’s Guidelines on Federal Bureau of Investigation Undercover Operations ............................................ 9 C. The Attorney General’s Guidelines on General Crimes, Racketeering Enterprise and Terrorism Enterprise Investigations............................................................................. 10 D. Procedures for Lawful, Warrantless Monitoring of Verbal Communications (Consensual Monitoring Guidelines) ................ 14 E. FBI Compliance Oversight Mechanisms...................................... 14 F. The FBI’s Implementation Process for the Revised Guidelines.................................................................................. 15 V. Recommendations............................................................................. 16 CHAPTER ONE: INTRODUCTION............................................................. 17 I. Background ...................................................................................... 17 II. Scope and Methodology of the OIG Review......................................... 21 A. Scope of the Review.................................................................... 21 B. Methodology of the Review ......................................................... 24 III. Organization of the Report................................................................. 25 CHAPTER TWO: HISTORICAL BACKGROUND OF THE ATTORNEY GENERAL’S INVESTIGATIVE GUIDELINES ....................................... 29 I. Introduction...................................................................................... 29 i II. The Pre-Guidelines Period ..................................................................29 III. Establishment of the Attorney General Guidelines..............................36 A. The Levi Guidelines – 1976 .........................................................36 B. The Civiletti Guidelines – 1980-1981...........................................39 C. The Smith Guidelines – 1983 ......................................................46 D. The Thornburgh Guidelines – 1989.............................................50 E. The Reno Guidelines – 2001........................................................55 IV. Conclusion ........................................................................................59 CHAPTER THREE: THE ATTORNEY GENERAL’S GUIDELINES REGARDING THE USE OF CONFIDENTIAL INFORMANTS .................63 I. Role of Confidential Informants..........................................................63 II. The Benefits and Risks of Using Confidential Informants in FBI Investigations ....................................................................................64 III. Significant Requirements of the Guidelines ........................................75 A. Suitability Reviews......................................................................75 B. Instructions................................................................................79 C. Authority to Engage in Otherwise Illegal Activity (OIA).................80 D. Unauthorized Illegal Activity (UIA)...............................................82 E. Deactivation of Confidential Informants ......................................88 IV. Major Revisions to the Guidelines ......................................................89 V. The OIG Review of the FBI’s Compliance with the Confidential Informant Guidelines .........................................................................90 VI. Compliance Findings .........................................................................93 A. Initial and Continuing Suitability Reviews...................................96 B. Instructions................................................................................98 C. Authority to Engage in Otherwise Illegal Activity (OIA)...............103 D. Unauthorized Illegal Activity (UIA).............................................108 E. Deactivation of Confidential Informants ....................................109 F. Seeking Approval or Concurrence from, and Providing Notification to, the United States Attorney’s Office.....................109 VII. OIG Analysis....................................................................................112 VIII. Recommendations ...........................................................................133 ii CHAPTER FOUR: THE ATTORNEY GENERAL’S GUIDELINES ON FBI UNDERCOVER OPERATIONS ................................................... 137 I. Role of FBI Undercover Operations .................................................. 137 A. The Need for Undercover Operations ........................................ 137 B. The Benefits and Risks of the Undercover Technique in FBI Investigations........................................................................... 140 II. Significant Requirements of the Undercover Guidelines ................... 144 A. Group I Undercover Operations................................................ 145 B. Group II Undercover Operations............................................... 148 III. Major Revisions to the Guidelines.................................................... 148 IV. The OIG Review of the FBI’s Compliance with the Undercover Guidelines....................................................................................... 150 V. Compliance Findings....................................................................... 151 VI. OIG Analysis ................................................................................... 156 VII. OIG Recommendations.................................................................... 164 CHAPTER FIVE: ATTORNEY GENERAL’S GUIDELINES ON GENERAL CRIMES, RACKETEERING ENTERPRISE AND TERRORISM ENTERPRISE INVESTIGATIONS.................................. 169 I. Levels of Investigative Activities ....................................................... 169 II. Preliminary Inquiries....................................................................... 170 A. Significant Requirements ......................................................... 170 B. Major Revisions to the Guidelines............................................. 171 C. The OIG Review of Preliminary Inquiries................................... 172 D. Compliance Findings................................................................ 172 E. OIG Analysis and Recommendations ........................................ 173 III. General Crimes Investigations ......................................................... 174 A. Role of General Crimes Investigations....................................... 174 B. Significant Requirements ......................................................... 175 C. Major Revisions to the Guidelines............................................. 175 D. The OIG Review of General Crimes Investigations ..................... 176 E. Compliance Findings................................................................ 176 F. OIG Analysis and Recommendations ........................................ 178 IV. Criminal Intelligence Investigations ................................................. 178 A. Role of Criminal Intelligence Investigations............................... 178 B. Significant Requirements ......................................................... 179 iii C. Major Revisions to the Guidelines .............................................181 D. The OIG Review of Criminal Intelligence Investigations..............181 E. Compliance Findings ................................................................182 F. OIG Analysis and Recommendations.........................................186 V. Part VI of the General Crimes Guidelines: Counterterrorism Activities and Other Authorizations..................................................188 A. Rationale for the New Part VI Authorities ..................................188 B. New Authorities Added to the General Crimes Guidelines..........190 C. The OIG Review of the FBI’s Use of Part VI Authorities ..............191 D. Compliance Findings ................................................................192 1. The FBI’s Use of Part VI Authorities Since May 30, 2002, and the FBI’s Implementing Guidance......................192 2. Internal Controls Regarding Predication for the Exercise of Part VI.A.2 Authorities .....................................196 3. Internal Controls for Record Retention Relating to the Exercise of Part VI.A.2