POLICING WCC KEY TERMS FBI Grew into largest most highly regarded police agencies during reign of J Edgar Hoover Bank robbery kidnapping and activities of alleged subversives During 1980s focused on protecting government and major financial institutions from fraud Sept 11 2001 shifted to counter terrorism leaving few to investigate WCC Since 2008 focused on financial crimes FDA Food and Drug Administration created by Food and Drug Act of 1906 Regulates inspects monitors and tests a wide range of foods drugs cosmetics medical and veterinary devices Issues recalls on all products deemed unsafe for public consumption FTC Federal Trade Commissions 1914 Federal governments principle weapon against trusts Contend with deceptive business practices including deceptive advertising Require businesses to produce various forms of information Prevent unfair competition and anti competitive mergers Issue trade regulation rules SEC Securities Exchange Commissions Government s response to the massive stock manipulation and frauds that contributed to the 1929 stock market crash Regulates and police securities market Provide information on securities to investors Advise bankruptcy reorganizations Investigate when federal securities laws are violated EPA Environmental Protection Agency Established in 1970 in response to growing public concern of harm to the environment after a dramatic oil spill in 1969 off the coast of California Monitor practices relating to air quality water quality and disposal of various forms of hazardous waste OSHA Occupational Safety and Health Administration 1971 Established as a Labor Department Agency One of the most controversial regulatory agencies Empowered to conduct workplace inspections and issue citations for violations Reports from vets stating people impersonating OSHA inspectors running scams on In charge of standards for workplace health and safety industry Scams collect money for bogus fines sell of products in lieu of a fine CPSC Consumer Product Safety Commissions 1972 Established during height of the consumer movement Protecting public from dangerous products Ordering bans on products or demanding redesign Investigating causes of product related deaths illnesses and injuries Imposing civil fines IRS Tax frauds or misrepresentations involving corporations businesses and individuals Tax audits and investigations may lead to investigations of other types of corporate and occupational crime Secret Service Investigates WCC involving counterfeiting or forgery of any form of federal currency Inspector General Created by Inspector General Act of 1978 as a response to Watergate Scandal To detect and prevent fraud waste abuse and violations of law and to promote efficiency and effectiveness in the operations of the Federal Government Have authority to conduct audits and investigations of government departments or agencies Expected to report to the Attorney General and Congress any wrongdoing that they uncover U S Marshals Law enforcement and court related duties Pursue and capture fugitives dispose of seized assets in WCC cases U S Postal Inspection Service Oldest federal law enforcement agency founded by Ben Franklin Approximately 1500 postal inspectors in U S who enforce 200 Federal statutes In charge of maintaining overall security of the mail system Inspectors work closely with others to investigate postal cases U S Customs Service Investigates money laundering falsified import or export documents illegal product dumping and foreign corrupt payment Regulation Any attempt by government to control behavior of citizens corporations or sub governments Self Regulation Regulation directed at one s own company or professional peers Due to limited resources the government cannot fully regulate all the activities Notion of self regulation distinguishes WCC from conventional crime Self regulation has advantages of economic efficiency and appropriate expertise Compliance v Deterrence Compliance strategy emphasizing persuasion and cooperation Deterrence strategy emphasizing prosecutions and punishment Regulatory Agencies Created by congressional action Its members are appointed by the president and are subject to congressional conformation Professional Misconduct Behavior outside what is considered acceptable or worthy of its membership by the governing body of a profession Internal Audits conducted by organizations accountants Forensic Accountants review financial records to determine if fraud has been committed can be conducted by an outside agency FBI or internally US v Grimaud 1911 Grimaud let sheep graze in Sierra National Forest with out permit Fined by USDA and appealed Argued fine was unconstitutional because USDA shouldn t have power to write regulations Supreme Court said it would be impractical for Congress to provide general regulations for grazing rights therefore it is within their power to confer that power to an administrative agency Economic v Social Regulation Economic addresses market relations and attempts to ensure stability in economic market Social addresses harmful consequences to workers consumers and citizens of productive Regulatory Cycles Occur though U S History Regulation scaled back Pushed for more regulatory oversight Favored regulatory agencies activities Reagan Clinton G W Bush Obama unsuccessful Moved toward massive overhaul of the regulatory system but has been IRS Forensic Crime Lab Able to reconstruct shredded documents enhance voices on tapes and analyze altered documents fingerprints ink paper and polygraphs POLICING WCC KEY POINTS Be familiar with the following o The main law enforcement agencies and their responsibilities o For the agencies we talked about be familiar with the events that prompted their creation FBI Grew into largest most highly regarded police agencies during reign of J Edgar Hoover EPA Environmental Protection Agency IRS Tax frauds or misrepresentations involving corporations businesses and individuals Secret Service Investigates WCC involving counterfeiting or forgery of any form of federal currency Inspector General Created by Inspector General Act of 1978 as a response to Watergate Scandal U S Marshals Law enforcement and court related duties U S Postal Inspection Service Oldest federal law enforcement agency founded by Ben Franklin U S Customs Service Investigates money laundering falsified import or export documents illegal product dumping and foreign corrupt payment o 3 basic functions of regulatory