STATEMENT OF JOHN J DEGNAN AND EDWIN H STIER (FROM WHITE-COLLAR CRIME - HEARINGS BEFORE HOUSE SUBCOMMITTEE ON CRIME, 95TH CONGRESS, 2ND SESSION, JUNE 21, JULY 12, AND 19 AND DECEMBER 1, 1978 - SEE NCJ-62172)

• NCJ Number: 62175
• Author(s): J J DEGNAN; E H STIER
• Date Published: 1979
• Length: 7 pages
• Corporate Author: US Congress
• Sale Source: National Institute of Justice/
• Language: English
• Country: United States of America

Annotation

NEW JERSEY'S EXPERIENCES IN DEALING WITH ECONOMIC CRIME ARE DISCUSSED IN STATEMENTS BY THE STATE'S ATTORNEY GENERAL AND ITS DIRECTOR OF CRIMINAL JUSTICE BEFORE THE HOUSE SUBCOMMITTEE ON CRIME.

Abstract

NEW JERSEY'S 1970 CRIMINAL JUSTICE ACT ESTABLISHED MECHANISMS TO FACILITATE THE INVESTIGATION AND PROSECUTION OF SOPHISTICATED ECONOMIC CRIMES BY CREATING THE DIVISION OF CRIMINAL JUSTICE AND INCREASING THE POWERS OF THE ATTORNEY GENERAL'S OFFICE. THE ECONOMIC CRIME SECTION OF THE DIVISION OF CRIMINAL JUSTICE HAS INITIATED INVESTIGATIONS INTO ENERGY THEFT, THE SHORT DELIVERY OF FUEL OIL BY COMPANIES HOLDING PUBLIC CONTRACTS, THE ILLEGAL DISPOSAL OF LIQUID CHEMICAL WASTE, FRAUDULENT RECEIPTS OF UNEMPLOYMENT BENEFITS (THROUGH THE EMPLOYMENT SECURITY UNIT), BANK AND INSURANCE FRAUD, AND MEDICAID FRAUD (THROUGH THE MEDICAID FRAUD SECTION). SPECIFIC CASES AND NUMBER OF INDICTMENTS ARE DETAILED FOR EACH OF THESE AREAS OF ECONOMIC CRIMINALITY. AN IMPORTANT FACTOR IN THE ABILITY OF LAW ENFORCEMENT TO INVESTIGATE AND PROSECUTE ECONOMIC CRIME EFFECTIVELY IS A STRONG WORKING RELATIONSHIP AMONG THE VARIOUS AGENCIES AT THE STATE AND FEDERAL LEVEL. IN NEW JERSEY, THIS RELATIONSHIP HAS BEEN FORMALIZED IN THE NEW JERSEY FEDERAL-STATE LAW ENFORCEMENT COMMITTEE, COMPRISED OF TOP LAW ENFORCEMENT OFFICIALS IN THE STATE. THE COOPERATIVE SCHEME, PARTICULARLY BETWEEN THE DIVISION OF CRIMINAL JUSTICE AND THE DIVISION OF STATE POLICE, HAS LED TO THE MOST EFFECTIVE MEANS OF UTILIZING THE RESOURCES OF THE CRIMINAL JUSTICE SYSTEM. IN ADDITION, AT THE CONCLUSION OF SIGNIFICANT PROSECUTIONS WHICH HAVE REVEALED PERVASIVE PROBLEMS, THE ATTORNEY GENERAL'S OFFICE HAS DRAFTED LEGISLATIVE PROPOSALS TO PREVENT THESE ABUSES IN THE FUTURE. THE STATE ALSO HAS THE ABILITY TO DEBAR, SUSPEND, OR DISQUALIFY PERSONS FROM PARTICIPATING IN CONTRACTS WITH THE STATE ON THE BASIS OF A LACK OF THE FEDERAL GOVERNMENT HAS BEEN ESSENTIAL TO THE SUCCESS OF NEW JERSEY'S ECONOMIC CRIME PROGRAM. OTHER RECOMMENDATIONS FOCUS ON THE IMPACT OF PRIVACY LEGISLATION ON THE ENFORCEMENT OF CRIMINAL LAWS. (WJR)