Crime and Justice

Addiction Treatment Facility 

Operators Sentenced 

in $112M Fraud Scheme

    (DOJ) - 3/21/2022 - Two brothers who operated multiple South Florida addiction treatment facilities were sentenced to prison Friday for a $112 million addiction treatment fraud scheme that included paying kickbacks to patients through patient recruiters and receiving kickbacks from testing laboratories.

    “These substance abuse treatment facility operators, through brazen tactics driven by greed, took advantage of vulnerable patients seeking treatment,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “These sentences demonstrate the department’s unwavering commitment to protecting patients and prosecuting fraudulent substance abuse treatment facilities through our Sober Homes Initiative.”

    Jonathan Markovich, 37, and his brother, Daniel Markovich, 33, both of Bal Harbour, were sentenced in the Southern District of Florida to 188 months and 97 months in prison, respectively.

    According to court documents and evidence presented at trial, the defendants conspired to unlawfully bill for approximately $112 million of addiction treatment services that were medically unnecessary and/or never provided, which were procured through illegal kickbacks at two addiction treatment facilities, Second Chance Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility, and WAR Network LLC (WAR), a related outpatient treatment program. The defendants obtained patients through patient recruiters who offered illegal kickbacks to patients, including free airline tickets, illegal drugs, and cash payments. 

    The defendants shuffled a core group of patients between Compass Detox and WAR in a cycle of admissions and re-admissions to fraudulently bill for as much as possible. Patient recruiters gave patients illegal drugs prior to admission to Compass Detox to ensure admittance for detox, which was the most expensive kind of addiction treatment offered by the defendants’ facilities. In addition, therapy sessions were billed for but not regularly provided or attended, and excessive, medically unnecessary urinalysis drug tests were ordered, billed for, and paid. Compass Detox patients were given a so-called “Comfort Drink” to sedate them, and to keep them coming back. Patients were also given large and potentially harmful amounts of controlled substances, in addition to the “Comfort Drink,” to keep them compliant and docile, and to ensure they stayed at the facility.

    “To manipulate and exploit patients seeking help in their most vulnerable state is unacceptable,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These individuals orchestrated a scheme that sought profits over the well-being of patients, and they will be held accountable for their actions. With the help of our law enforcement partners, the FBI continues to investigate, bring down these criminal enterprises, and protect our citizens.” 

    After a seven-week trial in November 2021, both defendants were convicted of conspiracy to commit health care fraud and wire fraud. Jonathan Markovich was convicted of eight counts of health care fraud and Daniel Markovich was convicted of two counts of health care fraud. They were also both convicted of conspiracy to pay and receive kickbacks and two counts of paying and receiving kickbacks. Jonathan Markovich was separately convicted of conspiring to commit money laundering, two counts of concealment money laundering, and six counts of laundering at least $10,000 in proceeds of unlawful activities. He was also convicted of two counts of bank fraud related to fraudulently obtaining PPP loans for both Compass Detox and WAR during the COVID-19 pandemic.

    The FBI’s Miami Field Office, Department of Health and Human Services, Office of Inspector General, and the Broward County Sherriff’s Office investigated the case.

    Senior Litigation Counsel Jim Hayes and Trial Attorney Jamie de Boer of the Criminal Division’s Fraud Section prosecuted the case.

    The National Rapid Response Strike Force, Miami Strike Force, and Los Angeles Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.

Crime and Justice

'Operation Legend' Nets Arrests, But

Questions of Efficacy and Motive Remain

Federal DOJ Initiative Expands to St. Louis, Memphis

 

By Steve Rensberry
RP News /Analysis
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    EDWARDSVILLE, Ill. -- (RP News) 8/11/2020 - The U.S. Department of Justice, Western District of Missouri, melded public relations with hard news in a recent press release pertaining to “Operation Legend,” a federal law-enforcement initiative the release describes as “a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020.” Reducing violent crime is everyone's goal, but apart from making 59 arrests -- a fraction of the total arrests most city departments make in one week -- the release declines, unfortunately, to detail the larger scope of the initiative or to provide any real hard data justifying federal intervention, not even a citation.
    Another DOJ announcement on July 29 did detail the expanding scope, but similarly glossed over its unilateral nature and the fact that some local authorities and residents have not particularly wanted the federal government's involvement, nor thought it was necessary. As far as we can determine, no governor or mayor in the country was actively seeking such federal law enforcement assistance prior to this initiative, though not all have objected. The July 29 announcement states that the operation has been expanded to include Cleveland, Detroit, and Milwaukee. Other announcements have been released noting its expansion to Chicago and Albuquerque on July 22, and on Aug. 6 it was announced that Operation Legend would be expanded to St. Louis and Memphis, Tenn.
   Another thing the release did not address: the fact that some elected officials resented being told “after the fact,” as was the case with Cleveland Mayor Frank Jackson, who said he had only learned about it after receiving calls from reporters. “That's not how partnerships work,” he said. His reaction has been widely reported elsewhere.
    Chicago Mayor Lori Lightfoot said she was not opposed to the operation as long as the effort was a genuine partnership, and as long as it was not going to be like Portland, with “unnamed, secret federal agents.”
    How much is being done out of genuine necessity and how much is being done for political reasons or for some co-joining purpose?   
    Department of Homeland Security officials have said the federal government's response to the Portland protests is unrelated to the federal effort in other cities, with the focus primarily on stopping violence and crime that they maintain is out of control. In contrast, the stated reason for the federal effort in Portland was to protect federal buildings.
    As for the crime rate, FactCheck.org provides a detailed analysis by Lori Robinson that shows, somewhat convincingly, that the president is simply wrong. Robinson quotes Richard Berk, professor of criminology and statistics at the University of Pennsylvania, as saying that FBI statistics show “crime generally has been going down [for] quite some time, and well before Trump took office. If you believe the national data, there has been a pretty long term decline.”
    Statista provides a useful report using FBI statistics for the years 1990-2018, and states: “The rate of reported violent crime has fallen since a high of 758.20 reported crimes in 1991 to a low of 361.6 reported violent crimes in 2014.” The rate in 2018 was marginally higher at 368.9 per 100,000.
    Noting the arrest of 59 more people in Kansas, the latest release states that seven arrests involved murder suspects, some involved stolen vehicles and illegal drugs, and a total of 17 firearms were seized. It also included photos and captions about a meeting U.S. Attorney Tim Garrison had with Pastor Darron Edwards of the United Believers Community Church, where they apparently discussed the federal initiative. “U.S. Attorney Tim Garrison met with a group of pastors this week to discuss Operation Legend, listen to their concerns, and respond to their questions,” one caption reads.
    The release marks a noticeable shift from most justice department announcements, which rarely, if ever, include photos or other extraneous appearances by officials connected with such operations.
   “Among the remaining 53 arrests in the past week, 35 were fugitives with either state or federal warrants for their arrest. The remaining 18 non-fugitive arrests were referred for prosecution in state court. Seven arrests were for homicides, for a total of 12 homicide arrests under Operation Legend. Other offenses cited in the arrests included assault (including non-fatal shootings), drug trafficking, illegally possessing firearms, robbery, bank robbery, child molestation, sexual assault, possessing stolen property and possessing stolen firearms,” it states.
    Operation Legend comes at a time when protesters around the country are calling for a reduction in police department funding, citing abusive and excessive practices. Some local leaders, however, such as Detroit Mayor Mike Duggan, said they welcomed the push and federal help in reducing violent crime.
    The Aug. 6 announcement about the expansion to Memphis and St. Louis repeats the same statement that Barr has made in other announcements: “The most basic responsibility of government is to protect the safety of our citizens.” It notes that Barr has directed agents with the ATF, FBI, DEA, and U.S. Marshals Service to “significantly increase resources into Memphis and St. Louis in the coming weeks.” 

Chuck Rosenburg Selected to Head DEA

   (DPA) - 5/30/2015 - A senior F.B.I. official and former U.S. attorney, Chuck Rosenberg, has been selected by President Obama as acting director of the Drug Enforcement Administration. Rosenberg has served as the chief of staff to the F.B.I. director, James B. Comey, for the past 18 months.
   Outgoing DEA head Michele Leonhart announced her retirement last month in the wake of numerous scandals. She came under intense criticism for opposing the Obama administration’s efforts to reform mandatory minimum sentencing laws, and for opposing the administration’s hands-off approach in the four states that have approved legal regulation of marijuana.
   The DEA has existed for more than 40 years but little attention has been given to the role the agency has played in fueling mass incarceration, racial disparities, the surveillance state, and other drug war problems. Congress has rarely scrutinized the agency, its actions or its budget, instead showing remarkable deference to the DEA’s administrators. That has started to change recently, and Leonhart’s departure was seen as an opportunity to appoint someone who will overhaul the agency and support reform.
   “The new DEA chief has a tough job ahead,” said Bill Piper, director of national affairs for the Drug Policy Alliance. “Let’s hope he’s in line with the political consensus in favor of scaling back mass incarceration and the worst harms of the drug war.”The Drug Policy Alliance’s online campaign has raised awareness of the damage the DEA is causing, and the organization and its allies have been working with members of Congress to cut the agency’s budget and reduce its power.
   The DPA recently placed a mock “Help Wanted” ad in Capitol Hill newspaper Roll Call that highlights the major flaws with Leonhart’s regime – and that lays out all the problems that the next DEA administrator must try to avoid. The tongue-in-cheek ad sought a new head of the Drug Enforcement Administration (DEA) to “prolong the failed war on drugs,” with primary areas of job responsibility to include “Mass Incarceration,” “Police State Tactics,” “Obstruction of Science,” “Subverting Democracy” and “Undermining Human Rights.”
   “Drug prohibition, like alcohol Prohibition, breeds crime, corruption, and violence – and creates a situation where law enforcement officers must risk their lives in a fight that can’t be won,” said Ethan Nadelmann, executive director of the Drug Policy Alliance. “It’s time to reform not just the DEA but broader U.S. and global drug policy. The optimal drug policy would reduce the role of criminalization and the criminal justice system in drug control to the greatest extent possible, while protecting public safety and health.”
   DPA also recently released a new issue brief, The Scandal-Ridden DEA: Everything You Need to Know. The brief covers numerous DEA scandals, including the massacre of civilians in Honduras, the inappropriate use of NSA resources to spy on U.S. citizens and the use of fabricated evidence to cover it up, the warrantless tracking of billions of U.S. phone calls, and the misuse of confidential informants. The brief notes that the traditional U.S. drug policy goal of using undercover work, arrests, prosecutions, incarceration, interdiction and source-country eradication to try to make America "drug-free" has failed to substantially reduce drug use or drug-related harms. It instead has created problems of its own – broken families, increased poverty, racial disparities, wasted tax dollars, prison overcrowding and eroded civil liberties.
   Even as U.S. states, Congress, and the Obama Administration move forward with marijuana legalization, sentencing reform, and other drug policy reforms, the DEA has fought hard to preserve the failed policies of the past. Last year, Leonhart publicly rebuked President Obama for saying that marijuana is as safe as alcohol, told members of Congress that the DEA will continue to go after marijuana even in states where it is legal despite DOJ guidance stating otherwise, and spoke out against bipartisan drug sentencing reform in Congress that the Obama administration is supporting.
  The DEA also has a long history of obstructing scientific research and refusing to acknowledge established science, as chronicled in a report by DPA and MAPS last year, The DEA: Four Decades of Impeding and Rejecting Science. DEA administrators, including Leonhart, have on several occasions ignored research and overruled the DEA’s own administrative law judges on the medical uses of marijuana and MDMA.
   In a recent report the Justice Department’s Office of Inspector General found that the DEA withheld information and obstructed investigations. In a hearing last week senators grilled the DEA for failing to provide information and answer basic questions. “It’s been now eight months — I still don’t have a response from DEA to these questions,” Senate Judiciary Chairman Chuck Grassley said. “When we don’t get responses to our letters, that colors our view of the agency — particularly when we’re writing about a constituent who suffered from a real lapse in process,” Senator Diane Feinstein said.
   Last year Congress passed a spending limitation amendment prohibiting the DEA from undermining state marijuana laws. It was signed into law by President Obama, but expires later this year. The U.S. House also approved two amendments prohibiting the DEA from interfering with state hemp laws. An amendment to shift $5 million from the agency to a rape kit testing program passed overwhelmingly. Numerous hearings have already been held this year scrutinizing the agency. Reformers say more amendments, bills, and hearings are on the way.
- See more at: http://www.drugpolicy.org/news/2015/05/president-obama-selects-chuck-rosenberg-head-beleaguered-us-drug-enforcement-administra#sthash.FLNnsyuq.dpuf
   Source: Drug Policy Alliance

FBI Releases Data On Officers Killed in 2012

   (FBI) - 11/15/2013 - According to statistics collected by the FBI, 95 law enforcement officers were killed in line-of-duty incidents in 2012. Of these, 48 law enforcement officers died as a result of felonious acts, and 47 officers died in accidents. In addition, 52,901 officers were victims of line-of-duty assaults. Comprehensive data tables about these incidents and brief narratives describing the fatal attacks are included in the 2012 edition of Law Enforcement Officers Killed and Assaulted, released today.  

Felonious Deaths

   The 48 felonious deaths occurred in 26 states, the U.S. Virgin Islands, and Puerto Rico. The number of officers killed as a result of criminal acts in 2012 decreased by 24 when compared with the 72 officers who died in 2011. The five- and 10-year comparisons show an increase of seven felonious deaths compared with the 2008 figure (41 officers) and a decrease of four deaths compared with 2003 data (52 officers).
   Officer Profiles: The average age of the officers who were feloniously killed was 38 years. The victim officers had served in law enforcement for an average of 12 years at the time of the fatal incidents. Forty-three of the officers were male, and five were female. Forty-two of the officers were white, and six were black.  
   Circumstances: Of the 48 officers feloniously killed, 12 were killed in arrest situations, eight were investigating suspicious persons or circumstances, eight were conducting traffic pursuits/stops, six were ambushed, five were involved in tactical situations, and four were answering disturbance calls. Three of the slain officers were handling, transporting, or maintaining custody of prisoners; one was conducting an investigative activity, such as surveillance, searches, or interviews; and one officer was killed while handling a person with a mental illness.
   Weapons: Offenders used firearms to kill 44 of the 48 victim officers. Of these 44 officers, 32 were slain with handguns, seven with rifles, and three with shotguns. The type of firearm used was not reported in the deaths of two officers. Two officers were killed with vehicles used as weapons, one with personal weapons (hands, fists, feet, etc.), and one with a knife.
   Regions: Twenty-two of the felonious deaths occurred in the South, eight in the West, six in the Midwest, and six in the Northeast. Five of the deaths took place in Puerto Rico, and one officer was killed in the U.S. Virgin Islands.
   Suspects: Law enforcement agencies identified 51 alleged assailants in connection with the felonious line-of-duty deaths. Thirty-three of the assailants had prior criminal arrests, and eight of the offenders were under judicial supervision at the time of the felonious incidents.

Accidental Deaths

   Forty-seven law enforcement officers were killed accidentally while performing their duties in 2012. The majority (22 officers) were killed in automobile accidents. The number of accidental line-of-duty deaths was down six from the 2011 total (53 officers).
   Officer Profiles: The average age of the officers who were accidentally killed was 39 years, and the average number of years the victim officers had served in law enforcement was 12. Forty-five of the officers were male, and two were female. Thirty-six of the officers were white, nine were black, and two officers were Asian/Pacific Islander.
   Circumstances: Of the 47 officers accidentally killed, 22 died as a result of automobile accidents, 10 were struck by vehicles, six died in motorcycle accidents, three were killed in falls, three died in aircraft accidents, two were accidentally shot, and one died in another type of duty-related accident.
   Regions: Twenty-seven of the accidental deaths occurred in the South, nine in the Northeast, eight in the West, and three in the Midwest.

Assaults

   In 2012, of the 52,901 officers assaulted while performing their duties, 27.7 percent suffered injuries. The largest percentage of victim officers (32.5 percent) were assaulted while responding to disturbance calls. Assailants used personal weapons (hands, fists, feet, etc.) in 80.2 percent of the incidents, firearms in 4.3 percent of incidents, and knives or other cutting instruments in 1.7 percent of the incidents. Other types of dangerous weapons were used in 13.9 percent of assaults.
   Source: Federal Bureau of Investigation release of 10/28/2013

FBI: Violent Crime Up During First Half of 2012

   WASHINGTON, D.C., - 1/27/2013 - Statistics released this month in the FBI’s Preliminary Semiannual Uniform Crime Report indicate that the number of violent crimes reported in the first six months of 2012 increased 1.9 percent when compared with figures from the first six months of 2011. The number of property crimes increased 1.5 percent for the same time frame. The report is based on information from more than 13,300 law enforcement agencies that submitted three to six comparable months of data to the FBI in the first six months of 2011 and 2012.
   Violent Crime: Two of the four offenses in the violent crime category—murder and non-negligent manslaughter and forcible rape—show decreases when data from the first six months of 2012 are compared with data from the first six months of 2011. The number of murders declined 1.7 percent, and the number of rapes decreased 1.4 percent. However, robbery offenses increased 2.0 percent, and aggravated assault increased 2.3 percent.
   Law enforcement agencies in all but one of the six city population groups reported increases in violent crime. Cities with populations of 250,000 to 499,999 showed an increase of 4.7 percent, the largest increase among the city population groups. Cities with less than 10,000 inhabitants experienced the only decline (0.7 percent) in violent crime offenses.
   Violent crime increased 0.7 percent in metropolitan counties and 0.6 percent in non-metropolitan counties.
Violent crime increased in each of the nation’s four regions. The largest increase, 3.1 percent, was in the West, followed by 2.5 percent in the Midwest, 1.1 percent in the South, and 1.1 percent in the Northeast.
   Property Crime: All three categories of property crime—burglary, larceny-theft, and motor vehicle theft—showed increases in the number of offenses from January to June 2012 when compared with data for the same months of 2011. Larceny-theft offenses increased 1.9 percent. There was a 1.7 percent increase in the number of motor vehicle thefts and a 0.1 percent increase in burglary offenses.
   Each of the six city population groups had increases in the number of property crimes. Law enforcement agencies in cities with populations of 10,000 to 24,999 inhabitants reported the largest increase, 2.9 percent. Property crime in non-metropolitan counties decreased 0.4 percent; property crime in metropolitan counties remained virtually unchanged.
   Three of the four regions reported increases in the number of property crime: 4.7 percent in the West, 4.0 percent in the Northeast, and 1.3 percent in the Midwest. Property crime declined 1.4 percent in the South.
   Arson: In the Uniform Crime Reporting (UCR) program, arson offenses are collected separately from other property crimes. The number of arson offenses increased 3.2 percent in the first six months of 2012 when compared with figures from the first six months of 2011. Three of the four regions reported increases in the number of arsons—11.0 percent in the Midwest; 6.4 percent in the West; and 5.7 percent in the Northeast. There was a 5.6 decrease in arson offenses in the South.
   Arson offenses increased 19.1 percent in cities with populations of 25,000 to 49,999, the largest increase within the city groupings. Arson offenses decreased 6.0 percent in metropolitan counties and 4.3 percent in non-metropolitan counties.
   Caution against ranking: When the FBI publishes crime data via its UCR program, some entities use the information to compile rankings of cities and counties. However, according to the FBI, such rankings do not provide insight into the numerous variables that shape crime in a given town, city, county, state, tribal area, or region. "These rankings lead to simplistic and/or incomplete analyses that can create misleading perceptions that adversely affect communities and their residents. Only through careful study and analyses into the range of unique conditions affecting each local law enforcement jurisdiction can data users create valid assessments of crime," bureau sources stated. "The data user is, therefore, cautioned against comparing statistical data of individual reporting units from cities, metropolitan areas, states, or colleges or universities solely on the basis of their population or student enrollment."

   Source: Federal Bureau of Investigation

IC3: Internet Crime Complaints Top 300,000 in 2011

   FAIRMONT, WV — 5/14/2012 - The Internet Crime Complaint Center (IC3) recently released the 2011 Internet Crime Report—an overview of the latest data and trends of online criminal activity.
   According to the report, 2011 marked the third year in a row that the IC3 received more than 300,000 complaints. The 314,246 complaints represent a 3.4 percent increase over 2010.
   The reported dollar loss was $485.3 million.
   As more Internet crimes are reported, IC3 can better assist law enforcement in the apprehension and prosecution of those responsible for perpetrating Internet crime.
   In 2011, IC3 received and processed, on average, more than 26,000 complaints per month. The most common complaints received in 2011 included FBI-related scams—schemes in which a criminal poses as the FBI to defraud victims—identity theft, and advance-fee fraud. The report also lists states with the top complaints, and provides loss and complaint statistics organized by state. It describes complaints by type, demographics, and state. 
   “This report is a testament to the work we do every day at IC3, which is ensuring our system is used to alert authorities of suspected criminal and civil violations,” said National White Collar Crime (NW3C) Center Director Don Brackman. “Each year we work to provide information that can link individuals and groups to these crimes for better outcomes and prosecution of cases.”
   Acting Assistant Director of the FBI’s Cyber Division Michael Welch said, “Internet crime is a growing problem that affects computer users around the world and causes significant financial losses. The IC3 is an efficient mechanism for the public to report suspicious e-mail activity, fraudulent websites, and Internet crimes. These reports help law enforcement make connections between cases and identify criminals.”
   IC3 is a partnership between the Federal Bureau of Investigation, the NW3C, and the Bureau of Justice Assistance. Since its start in 2000, IC3 has become a mainstay for victims reporting Internet crime and a way for law enforcement to be alerted of such crimes. IC3’s service to the law enforcement community includes federal, state, tribal, local, and international agencies that are combating Internet crime.
   Source: Federal Bureau of Investigation

Federal Agency Releases Crime Statistics for 2010

    WASHINGTON, D.C. - 10/11/2011 - According to figures released last month by the FBI, the estimated number of violent crimes in 2010 declined for the fourth consecutive year. Property crimes also decreased, marking this the eighth straight year that the collective estimates for these offenses declined.
   The 2010 statistics show that the estimated volumes of violent and property crimes declined 6.0 percent and 2.7 percent, respectively, when compared with the 2009 estimates. The violent crime rate for the year was 403.6 offenses per 100,000 inhabitants (a 6.5 percent decrease from the 2009 rate), and the property crime rate was 2,941.9 offenses per 100,000 persons (a 3.3 percent decrease from the 2009 figure).
   These and additional data are presented in the 2010 edition of the FBI’s annual report Crime in the United States. This publication is a statistical compilation of offense and arrest data reported by law enforcement agencies voluntarily participating in the FBI’s Uniform Crime Reporting (UCR) program.
   The UCR program collects information on crimes reported by law enforcement agencies regarding the violent crimes of murder and non-negligent manslaughter, forcible rape, robbery, and aggravated assault, as well as the property crimes of burglary, larceny-theft, motor vehicle theft, and arson. (Although the FBI classifies arson as a property crime, it does not estimate arson data because of variations in the level of participation by the reporting agencies. Consequently, arson is not included in the property crime estimate.)
   The program also collects arrest data for the offenses listed above, plus 20 additional offenses that include all other crimes except traffic violations.
   In 2010, there were 18,108 city, county, university and college, state, tribal, and federal agencies that participated in the UCR program. A summary of the statistics reported by these agencies, which are included in Crime in the United States, 2010, follows:

• Nationwide in 2010, there were an estimated 1,246,248 violent crimes.
• Each of the four violent crime offenses decreased when compared with the 2009 estimates. Robbery had the largest decrease at 10.0 percent, followed by forcible rape with a 5.0 percent decline, murder and nonnegligent manslaughter with a 4.2 percent decrease, and aggravated assault with a 4.1 percent decline.
• Nationwide in 2010, there were an estimated 9,082,887 property crimes.
• Each of the property crime offenses also decreased in 2010 when compared with the 2009 estimates. The largest decline, 7.4 percent, was for motor vehicle thefts. The estimated number of burglaries decreased 2.0 percent, and the estimated number of larceny-thefts declined 2.4 percent.
• Collectively, victims of property crimes (excluding arson) lost an estimated $15.7 billion in 2010.
• The FBI estimated that in 2010, agencies nationwide made about 13.1 million arrests, excluding traffic violations.
• The 2010 arrest rate for violent crimes was 179.2 per 100,000 inhabitants; for property crime, the rate was 538.5 per 100,000 inhabitants.
• By violent crime offense, the arrest rate for murder and nonnegligent manslaughter was 3.6; forcible rape, 6.5; robbery, 36.6; and aggravated assault, 132.6 arrests per 100,000 inhabitants.
• By property crime offense, the arrest rate for burglary was 94.3; larceny-theft, 417.5; and motor vehicle theft, 23.1 per 100,000 inhabitants. The arrest rate for arson was 3.7 per 100,000 inhabitants.
• In 2010, there were 14,744 law enforcement agencies that reported their staffing levels to the FBI. These agencies reported that as of October 31, 2010, they collectively employed 705,009 sworn officers and 308,599 civilians, a rate of 3.5 employees for each 1,000 inhabitants.

   Caution against ranking: Each year when Crime in the United States is published, some entities use the figures to compile rankings of cities and counties. These rough rankings provide no insight into the numerous variables that mold crime in a particular town, city, county, state, tribal area, or region. Consequently, they lead to simplistic and/or incomplete analyses that often create misleading perceptions adversely affecting communities and their residents. Valid assessments are possible only with careful study and analysis of the range of unique conditions affecting each local law enforcement jurisdiction. The data user is, therefore, cautioned against comparing statistical data of individual reporting units from cities, metropolitan areas, states, or colleges or universities solely on the basis of their population coverage or student enrollment.
   Source: FBI release of 9/9/2011

Report: Violent crime down by 5.3 percent in 2009

Arrests Total 13.68M
---------------------------------
    By Steve Rensberry
 srensberry@rensberrypublishing.com
---------------------------------
   (RPC) - 9/14/2010 - There were an estimated 1.31 million violent crimes reported in the United States in 2009, according to the U.S. Federal Bureau of Investigation's annual crime report, released on Sept. 13. The total represents a drop of 5.3 percent over 2008 figures.   Property crimes were down by about 4.6 percent, the report says.
   Crimes considered to be violent include murder, forcible rape, robbery, aggravated assault and non-negligent manslaughter. Property crimes fall into one of several categories, burglary, motor vehicle theft, arson or larceny-theft.
   Data contained in the agency's report, "Crime in the United States," is derived from 17,985 participating law-enforcement agencies and police departments across the country with jurisdiction over about 96 percent of the population.
   The were an estimated 13.68 million total arrests in 2009.
   The breakdown: Murder and non-negligent manslaughter,12,418; forcible rape, 21,407; robbery, 126,725; aggravated assault, 421,215; burglary, 299,351; larceny-theft, 1,334,933; motor vehicle theft, 81,797; arson, 12,204; violent crime, 581,765; Property crime , 1,728,285; other assaults, 1,319,458; forgery and counterfeiting, 85,844; fraud, 210,255; embezzlement, 17,920; stolen property; buying, receiving, possessing, 105,303; vandalism, 270,439; weapons--carrying, possessing, etc., 166,334; prostitution and commercialized vice, 71,355; sex offenses (excluding forcible rape and prostitution), 77,326; drug abuse violations, 1,663,582; gambling, 10,360; offenses against family and children, 114,564; driving under the influence, 1,440,409; liquor laws, 570,333; drunkenness, 594,300; disorderly conduct, 655,322; vagrancy, 33,388; all other offenses, 3,764,672; suspicion, 1,975; curfew and loitering law violations, 112,593; and runaways 93,434.
   According to the report:

• Each of the four violent crime offenses decreased when compared with the 2008 estimates. Murder and non-negligent manslaughter and robbery had the largest decreases: 7.3 percent and 8.0 percent, respectively. In addition, aggravated assault decreased 4.2 percent, and forcible rape declined 2.6 percent. 
• Nationwide in 2009, an estimated 9,320,971 property crimes were reported.
• Each of the property crime offenses also decreased in 2009 when compared with the 2008 estimates. The largest decline was for motor vehicle thefts: a 17.1 percent decrease from the 2008 figure. The estimated number of larceny- thefts declined 4.0 percent, and the estimated number of burglaries decreased 1.3 percent.
• Collectively, victims of property crimes (excluding arson) lost an estimated $15.2 billion in 2009. The FBI estimated that in 2009, agencies nationwide made about 13.7 million arrests, excluding traffic violations.
• The 2009 arrest rate for violent crimes was 191.2 per 100,000 inhabitants; for property crime, the rate was 571.1 per 100,000 inhabitants. 
• By violent crime offense, the arrest rate for murder and non-negligent manslaughter was 4.1; forcible rape, 7.0; robbery, 42.0; and aggravated assault was 138.2 per 100,000 inhabitants. By property crime offense, the arrest rate for burglary was 98.1; larceny-theft, 442.3; and motor vehicle theft, 26.8 per 100,000 inhabitants. 
• The arrest rate for arson was 4.0 per 100,000 inhabitant.
• In 2009, there were 14,614 law enforcement agencies that reported their staffing levels to the FBI. These agencies reported that, as of Oct. 31, 2009, they collectively employed 706,886 sworn officers and 314,570 civilians, a rate of 3.5 employees for each 1,000 inhabitants.

   But the agency also warns against an analysis that is oversimplified, particularly when it comes to ranking cites and counties, as is commonplace each year.
   "To assess criminality and law enforcement’s response from jurisdiction to jurisdiction, one must consider many variables, some of which, while having significant impact on crime, are not readily measurable or applicable pervasively among all locales. Geographic and demographic factors specific to each jurisdiction must be considered and applied if one is going to make an accurate and complete assessment of crime in that jurisdiction.," the report says. See: Variables Affecting Crime.

Former Financial Execs Charged in Fraud Case

By Steve Rensberry
srensberry@rensberrypublishing.com

   (RPC) - 7/27/2010 - If you were among several bidders on a municipal finance contract or bond and were able to have one last look from the broker at all the other bids that had been placed, before placing your own bid, would it give you an advantage? Of course it would, but it may also land you in jail as a clearly prohibited act under U.S. treasury regulations.
   And what if your "wink wink" agreement with said broker went even further, such as agreeing to place an occasional losing bid in exchange for a financial kick-back or two for the broker and some of his friends?
    Such is exactly the case with a 12-count indictment filed on July 27 in U.S. District Court in New York City against three former financial executives, Domonick P. Carollo, Steven E. Goldberg and Peter S. Grimm, involving investment contracts for the proceeds of municipal bonds. Each had once worked in association with General Electric Co.
   The ongoing investigation and subsequent action stems from efforts of the Financial Fraud Enforcement Task Force begun under U.S. President Barack Obama. This particular investigation involved the Antitrust Division's New York Field Office, IRS Criminal Investigation and the Federal Bureau of Investigation, in coordination with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.
   "To date, four individuals have pleaded guilty in relation to this investigation. In addition, on Oct. 29, 2009, CDR (Rubin/Chambers, Dunhill Insurance Services Inc.), two of its employees and one former employee were indicted and charged with participating in bid-rigging and fraud conspiracies and related crimes," a new release from the FBI states.
According to a new release issued by the U.S. Federal Bureau of Investigation, all three worked at one time with financial institutions or financial services companies when they participated in various illegal schemes between 1999 and 2006.
   “The individuals charged today allegedly participated in complex fraud schemes and conspiracies to manipulate what was supposed to be a competitive process,” Christine Varney, Assistant Attorney General for the Antitrust Divison of the U.S. Department of Justice, said. “The Antitrust Division has previously indicted several individuals and their employer in this matter. Our investigation is ongoing and we will continue to prosecute those who engage in such illegal and anticompetitive behavior.”
   Court documents charge that Beverly Hills, California-based Rubin/Chambers, Dunhill Insurance Services Inc. (known as CDR Financial Products) was one of the co-conspirators and had given Grimm, Goldberg and Carollo information about competing bids, as well as participated in a kickback scheme.
   “The elaborate schemes outlined in the indictment boil down to efforts by these defendants to subvert the competitive bidding process for investment agreements. In the process, they defrauded public entities—and therefore, the public—and put bondholders at risk,” FBI Acting Assistant Director-in-Charge George Venizelos said in a statement released to the public. “The FBI will continue to work with the Antitrust Division to ensure the integrity of competitive bidding in public finance.”
   A trial is scheduled to start in September, 2011.
   In a Task Force Fair Lending Forum held in Chicago this past April, Illinois Attorney General Lisa Madigan had strong words for lenders who manipulate the process for gain.
   “During the peak of the housing bubble, Chicago’s African American and Latino neighborhoods became ground zero for the worst of the mortgage industry’s toxic loans.” Madigan said. “Unfortunately, many families in these communities continue to struggle today because of the lending industry’s illegal, reckless practices. Today’s forum is critical because it enables us to combine state and federal resources and create partnerships with agencies on the ground that are committed to ending the types of discriminatory lending practices that helped cause the worst economic meltdown of our time.”

For further reading
StopFraud.gov
New York FBI
Bid Rigging

Criminologists Suggest Reasons for Drop in Crime

By Steve Rensberry
srensberry@rensberrypublishing.com

   (RPC) - 7/18/2010 - Data released this summer by the U.S. Federal Bureau of Investigation showed a decrease in violent crime last year, which was down by an apparent 5.5 percent. Property crimes also were down, by about 4.9 percent, and arson dropped by 10.4 percent.
   Among the offenses listed as violent crimes are robbery, aggravated assault, rape, forcible rape and murder. Property crimes includes burglary, motor vehicle theft and larceny-theft.
   The report stands in contrast to predictions of the year before and a January, 2009 report by the Police Executive Research Forum in Washington, D.C. That report argued that the economic recession which began in the fall of 2007 was likely to fuel a dramatic rise in crime. It involved a survey of 233 police agencies across the country.
   It may be noteworthy that a majority of the agencies (63 percent) participating in the survey also were looking at budget cuts at the time, and that roughly 44 percent reported an actual increase in certain types of crime, according to a Jan. 27, 2009 story on the report by Ross Colvin of Reuters News Service, "U.S. recession fuels crime rise, police chiefs say."
   Colvin writes: "There has long been debate over the connection between crime and the economy, but criminologists, sociologists and police chiefs interviewed by Reuters in October predicted a rise in crimes as the United States sinks deeper into recession. Crime has increased during every recession since the late 1950s, sociologists said."
   But what do we make of the Uniform Crime Reports for 2008?  Produced through the FBI's Uniform Crime Reporting (UCR) Program, the report states that:

• An estimated 1,382,012 violent crimes occurred nationwide in 2008, about 1.9 percent lower than the 2007 estimate. The 2008 estimated violent crime total was 1.6 percent above the 2004 level but 3.1 percent below the 1999 level.    
• There were an estimated 454.5 violent crimes per 100,000 inhabitants in 2008.
• Aggravated assaults - the highest number of violent crimes reported to law enforcement - accounted for 60.4 percent of violent crimes.
• Robbery comprised 32.0 percent of violent crimes, forcible rape accounted for 6.4 percent, and murder accounted for 1.2 percent of estimated violent crimes in 2008. 
• Offenders in the U.S. used firearms in 66.9 percent of murders in 2008, in 43.5
• percent of robberies, and in 21.4 percent of aggravated assaults. (Firearm data excludes forcible rape offenses).

   The UCR report looks at four major offenses: murder and non-negligent manslaughter, forcible rape, robbery and aggravated assault, and considers crimes to be violent if they involve force or the threat of force.
   Experts reference the sociological and practical complexities, as noted in a story by Christian Science Monitor Correspondent Husna Haq.
   Haq cites three criminologists in analyzing some of the key reasons for the apparent discrepancy, those being American Society of Criminology and University of Missouri Professor of Criminology Richard Rosenfeld, University of Albany Professor of Criminal Justice Shawn Bushway, and co-direct at the research group Justiceworks at the University of New Hampshire in Durham, Ted Kirkpatrick. Among the reasons:

• Higher rates of incarceration, meaning those who would commit crimes are simply unable to because they are behind bars.
• More active policing, including the increasing use of such things as video cameras and security systems
• Social program aimed at steering trouble individuals away from a life of crime
• Demographic trends toward an older, less crime-prone population
• Increased unemployment aid and social support from the government.
• Fewer opportunities for the simple fact that more people are home, and people and businesses presumably have less cash.

But crime hasn't just fallen in the U.S. England and Wales are also seeing a decrease. Guardian reporters Haroon Siddique and Alan Travis point in a July 15 story to a drop of 9 percent in 2009 compared to 2008. See: "Fall in crime allays fears of recession spike."

"The number of murders fell by 6 percent to 615, the lowest since 1997, while gun and knife crime also fell. Crimes recorded by the police fell 8 percent from 4.7 million in 2008-09 to 4.3 million last year," they write.

For further reading:
Uniform Crime Reports
Will the Recession Spark a Crime Wave?
Has the recession arrested crime?