NCJ Number
60872
Date Published
1978
Length
98 pages
Annotation
WORKING PAPERS CONCERNING THE TASK FORCE APPROACH TO COMBATING BUSINESS OPPORTUNITY FRAUD AND ECONOMIC CRIMES ARE PRESENTED IN THIS HANDBOOK FOR PROSECUTING ATTORNEYS.
Abstract
THE SUCCESSFUL PROSECUTION OF ECONOMIC CRIMES WILL BECOME MORE DIFFICULT AS SOCIETY BECOMES MORE COMPLEX AND AS CRIMINALS BECOME MORE SOPHISTICATED. THE PROBLEMS OF BUSINESS CRIME DEMAND A COORDINATED AND MULTIJURISDICTIONAL APPROACH TO LAW ENFORCEMENT. COPING MECHANISMS DEVELOPED BY THE ECONOMIC CRIME PROJECT INCLUDE THE STRICT REVIEW BY PROSECUTORS OF COMPLAINTS REGARDING CONTRACTUAL BUSINESS INVESTMENTS, THE DEVELOPMENT OF FILES ON ADVERTISED BUSINESS OPPORTUNITIES, AND REQUESTS TO NEWSPAPERS TO SCREEN SUBMITTED ADVERTISEMENTS. LEGISLATIVE REVISIONS NECESSARY FOR COMPLETE CONTROL OF BUSINESS FRAUD INVOLVE LONG-TERM STATUTORY DEVELOPMENT. THEREFORE, PREVENTION OF FRAUD IS A PRIMARY LAW ENFORCEMENT RESPONSIBILITY. PREVENTION TECHNIQUES HAVE INCLUDED THE UNDERCOVER INVESTIGATION OF MERCHANTS, THE PUBLIC WARNING OF INVESTORS BY CONSUMER GROUPS, AND THE OBTAINING OF INJUNCTIONS AND RESTRAINING ORDERS AGAINST FIRMS WHICH FAIL TO REGISTER AS FOREIGN CORPORATIONS. ATTEMPTS TO EDUCATE THE PUBLIC THROUGH SEMINARS AND PAMPHLETS ARE NOT AS EFFECTIVE AS THE REMOVAL OF THE FRAUDULENT BUSINESSES BY EFFECTIVE LEGISLATION AAD PROSECUTION. SAMPLE NEWS ARTICLES ON BUSINESS FRAUD ARE DESCRIBED. INVESTIGATIVE TECHNIQUES INVOLVE USING OFFICERS OR AGENTS POSING AS PROSPECTIVE CUSTOMERS TO DETERMINE THE AMOUNT OF MONEY INVOLVED IN THE POTENTIAL INVESTMENT AND ANY PROBLEMS WHICH MAY CONFRONT REAL INVESTORS. A SAMPLE PROSECUTION IS DESCRIBED, AND RECOMMENDED LEGISLATION IS PRESENTED. APPENDED MATERIAL INCLUDES SAMPLE LETTERS OF INQUIRY FOR ADVERTISED INVESTMENTS. (TWK)