Chapter 14 Larceny/Theft, Fraud and White-Collar Crime Hess 14-1

Introduction Larceny/theft is one of the eight index crimes reported in the Federal Bureau of Investigation’s Uniform Crime Reports (UCR) Reported larceny/thefts exceed the combined total of all other index crimes Minimum financial threshold of $250,000 for federal investigators to take the case Hess 14-2

PROPERTY CRIME Larceny is committed through cunning, skill and criminal design No force or threat of force is involved Characterized by deceit, concealment or violation of trust Goal is monetary gain Hess 14-3 Larceny/Theft: An Overview

ELEMENTS Felonious stealing, taking, carrying, leading or driving away of another’s personal goods or property Valued above (grand) or below (petty) a specified amount With the intent to permanently deprive the owner of the property or goods Hess 14-4 Elements of the Crime: Larceny/Theft

TWO MAJOR CATEGORIES Grand larceny  Felony  In many states, $100 or more Petty larceny  Misdemeanor  In many states, less than $100 Hess 14-5 Classification of Larceny/Theft

ISSUES Keeping or selling property lost by the owner is a form of theft It is not legal possession Reasonable effort must be made to find the owner Owner, if located, must pay the cost of such inquiries Hess 14-6 Found Property

OBSTACLES Similar to investigating a burglary Even less physical evidence is available No illegal or forcible entry occurred Do not give impression that the report is unimportant Hess 14-7 The Preliminary Investigation

PICKPOCKETS AND PURSE SNATCHERS Victim must identify the thief Looping BICYCLE THEFT Bicycle theft rings Sold for parts or repainted Hess 14-8 Types of Larceny/Theft

THEFT FROM MOTOR VEHICLES Most common complaint received Small property value MAIL THEFT Flaggers Felony-level federal offense Hess 14-9 Types of Larceny/Theft

RETAIL SHRINKAGE Employee theft Shoplifting Organized retail crime JEWELRY THEFT Because jewel thieves operate interstate, the FBI becomes involved Hess Types of Larceny/Theft

ART THEFT Losses run as high as $6 billion annually International problem COINS, METALS AND PAPER MONEY Obtain exact description of the coins Gold, copper, silver and aluminum are valuable Hess Types of Larceny/Theft

AGRICULTURAL THEFT Timber Cactus Livestock Farm equipment and chemicals FISH AND WILDLIFE THEFT Poaching Hess Types of Larceny/Theft

OBTAINING PROOF Prove that the property is missing Bills of sale or receipts Evidence that the owner had custody Owner can testify to the actual value Take statements from the owner Hess Proving the Elements of the Crime

OVERVIEW General term used for deceit, trickery and cheating Activity of persons pretending to be what they are not Often involves use of interstate communications devices Most types of fraud fall under FBI jurisdiction Hess Fraud

CONFIDENCE GAMES Money or property is obtained by a trick Short and long con game REAL ESTATE AND MORTGAGE FRAUD Equity skimming Property flipping Inflated appraisals Hess Fraud

INSURANCE FRAUD Premium diversion by agents Workers’ compensation fraud HEALTH CARE FRAUD Throughout entire country Medicare and Medicaid the most visible programs affected Hess Fraud

MASS MARKETING FRAUD False or deceptive representations to induce victims Advance fee-type payments to fraud perpetrators MAIL FRAUD Perpetuating scams through the mail Contact the postal inspector Hess Fraud

COUNTERFEITING Identification documents Commercial counterfeiting CHECK FRAUD Stolen checks Fraudulent checks Forgery Hess Fraud

DEBIT AND CREDIT CARD FRAUD Elements  Possess a debit/credit card obtained by theft or fraud  By which services or goods are obtained  Unauthorized signing of the cardholder’s name Hess Fraud

IDENTITY THEFT Unauthorized use or attempted use  Credit card  Existing accounts  Personal information  Any combination Hess Fraud

OVERVIEW Illegal acts characterized by fraud Also called economic or corporate crime Perpetrators do not look like criminals Often highly educated, socially accepted people Few law enforcement agencies are equipped to investigate white-collar crime Hess White-Collar Crime

CORPORATE FRAUD Highest priority of FBI’s financial crimes section Falsification of financial information Many cases involve securities and commodities Enron scandal Hess White-Collar Crime

MONEY LAUNDERING Two-pronged FBI approach  Prong 1 Investigating underlying criminal activity  Prong 2 Conducting parallel financial investigation Uncovering the financial infrastructure Discerning how it flows Hess White-Collar Crime

EMBEZZLEMENT By a person to whom it has been entrusted Fraudulent appropriation ENVIRONMENTAL CRIME Numerous laws Often considered a civil matter Civil regulatory agencies Hess White-Collar Crime

FACTORS Monetary value of the loss Amounts of these thresholds vary with the crime FBI’s national security and criminal priorities INTERPOL Hess A Final Note about Jurisdiction

Summary Larceny/theft is the unlawful taking, carrying, leading or driving away of property from another’s possession Larceny is synonymous with theft Fraud is intentional deception to cause a person to give up property or some lawful right Main problem in investigating environmental crimes is that they are often considered a civil matter Hess 14-26