NCJ Number
79179
Journal
Police Magazine Volume: 4 Issue: 5 Dated: (September 1981) Pages: 24-27
Date Published
1981
Length
4 pages
Annotation
The scope and nature of stocks and bonds theft, aspects of associated investigative procedures, and some preventive measures are discussed.
Abstract
In 1971, the staff of the U.S. Senate Permanent Subcommittee on Investigations estimated that $400 million in stocks and bonds had been stolen during the previous 2 years. Today, the problem has grown to the extent that at least $3.5 billion worth of securities have been reported as lost, stolen, or counterfeited since 1979 and are still missing. The Federal Bureau of Investigation (FBI), which has the chief responsibility for investigating such cases, reports that usually there is a well organized group with accomplices working as low- or medium-level employees in banks and brokerage houses. Stolen securities are often sold at a fraction of their true value to experienced con men, stock swindlers, and bank fraud artists. Reselling the paper at market value is often easier overseas, because foreign banks and brokerages are not required to check the Security and Exchange Commission's 'hot list.' Frequently, stolen securities are converted to cash by the thieves before the theft is discovered. Usually, the first step in investigating securities theft is determining the last known location of the missing securities in order to ascertain who might have had access to the securities prior to the theft. Polygraph tests are often given to employees who might have contacted the securities at the place of theft. Informers often play a role in helping unravel a securities case. Law enforcement officials say that securities thefts could be curbed if banks and brokerage houses took more effective security precautions.