Detailed Information on the
White Collar Crime Assessment

Monitoring success against long-term and annual performance goals to demonstrate the contribution of the program, and to justify continued investment.

Measure: Number of criminal enterprises engaging in white collar crime dismantled over 6 years.

Explanation:While individuals do commit white collar crime, criminal enterprises engaged in white collar crime represent the most serious threat to U.S. citizens and businesses, and are the FBI's investigative priority.

Measure: Number of criminal enterprises engaging in white collar crimes dismantled.

Explanation:Dismantle the operations of an organized group so that they cannot continue as an entity.

Measure: Cumulative number of major corporate fraud cases successfully investigated over 6 years.

Explanation:Fraud cases will be determined to be "major" using criteria established by DOJ and FBI.

Measure: Number of major corporate fraud cases successfully investigated .

Explanation:"Successful" cases will be those in which prosecutive charges have been brought.

Measure: Percentage of major financial institution fraud (FIF) investigations to all pending

Explanation:This measure looks at the percentage of all active FIF cases that meet the minimum dollar loss necessary for the cases to be considered major FIF cases.

Is the program purpose clear?

Explanation: White Collar Crime (WCC) encompasses a wide range of criminal activities including: Corporate Fraud; Securities and Commodities Fraud; Health Care Fraud; Financial Institution Fraud; Insurance Fraud; Governmental Fraud; Money Laundering; Public Corruption; Telemarketing Fraud; Bankruptcy Fraud; Environmental Crimes; and Identity Theft. The purpose of the WCC Program is to reduce the effect of these crimes against U.S. citizens, the U.S. Government, and financial entities through the vigorous investigation and prosecution of individuals and criminal enterprises.

Evidence: The Congress has provided the FBI broad investigative authority for White Collar Crime in Title 18 of the U.S. Code. In addition, specific statutory authority has been provided for Public Corruption and other programs. These authorities and Congressional intent are reflected in the mission statement for the WCCP.

Does the program address a specific and existing problem, interest, or need?

Explanation: The WCCP focuses solely on fraud schemes for which the FBI has Federal jurisdiction and other crimes which Congress has assigned to the FBI by statute, such as Public Corruption. However, the large variety of WCC crimes and frequent changes in their nature and volume make it essential to continually assess the problem. WCC schemes continue to plague the U.S. and the expansion of technology and the global economy have only heightened the problem. U.S. citizens are now just a likely to be defrauded by a scamster from another country as they are from one here in America.

Evidence: Each year the 56 FBI field offices undertake evaluations of the nature and level of WCC crime in their geographic area. In addion, there are a small number of industry-related reports, mostly done by major accounting firms, that provide information on the extent of fraud that corporations are aware of within their own organizations. This information is used by the field offices and the WCC program office in Washington to determine appropriate investigative priorities and resource allocations. Adjustments are made during the year as needed to ensure continued relevance.

Is the program designed so that it is not redundant or duplicative of any Federal, state, local or private effort?

Explanation: Most violations within the WCC Program involve interstate commerce, while others, such as Public Corruption, are unique Federal crimes, and therefore not redundant of state and local efforts. The FBI has primary Federal jurisdiction for many violations, such as Insurance Fraud; Bankruptcy Fraud; Public Corruption; Intellectual Property Rights; and Financial Institution Fraud. Where the FBI shares jurisdiction with other Federal agencies, the program is designed to avoid duplication through task forces and by being selective in investigations undertaken. In addition, Congressional mandates and/or requests assist in prioritizing efforts. Although the FBI Cyber Division also engages in some fraud investigations, they focus on crimes that rely solely on use of the Internet to commit the fraud.

Evidence: Examples of joint investigations and areas of cooperation with other Federal agencies include work with: U.S. Postal Inspection Service on the Life Insurance Fraud Initiative; 56 Offices of Inspectors General on government fraud; HUD on Mortgage Fraud; Department of Homeland Security on Intellectual Property Rights; and Securities and Exchange Commission (SEC) on Corporate Fraud.

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: The WCC Program is carried out by the FBI's field offices, with guidance and oversight by Headquarters. Through a combination of national initiatives and local priorities, the Program is able to address the most serious WCC problems. MOU's and joint investigations leverage Federal resources and avoid duplication. There has been no definitive evaluation of this approach. At the same time, there is no evidence that another approach would be more efficient/effective in achieving the intended purpose.

Evidence: The current structure allows the shifting of resources within the Program at the field level, as well to other field programs, in response to investigative requirements. Other approaches, such as centralizing WCC resources in large field offices or Headquarters, offer few advantages and reduce resource flexibility in the field. The annual assessment of the WCC problem by field offices ensures the program reflects priorities. The WCCP is not a candidate for out-sourcing.

Is the program effectively targeted, so program resources reach intended beneficiaries and/or otherwise address the program's purpose directly?

Explanation: The WCC Program focuses on those fraud schemes which have the greatest effect on the nation. In addition to field office priorities, based on the assessment of local WCC trends, National Initiatives are undertaken to address highly prevalent and detrimental WCC schemes. In recent years, National Initiatives have included: Life Insurance Fraud; Bank Securities Fraud; Internet Fraud; Telemarketing Fraud; Ambulance Transportation Fraud; and Bankruptcy Fraud.

Evidence: The FBI does not maintain data on trends in WCC rates or economic losses that can be correlated with its efforts and funding level. However, the successful results (arrests, indictments, convictions, fines, recoveries, restitutions, forfeitures, seizures) from both national initiatives and priority local investigations indicate a significant impact has been made on the problem. In FY 2001 the WCC Program realized $521 million in Fines and $5 billion in Recoveries/ Restitutions.

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: The FBI is proposing a new long-term outcome measure to reflect its success in dismantling organized criminal enterprises engaged in white collar crime. Criminal enterprises represent the most serious WCC threat, and are an FBI priority. This measure will include results related to Mortgage Fraud, Identity Theft, Telemarketing Fraud, and Insurance Fraud. A separate measure is being proposed to track successful outcomes in major corporate fraud cases.

Evidence: These measures have been incorporated into the FBI's Strategic Plan and DOJ's Performance Plan.

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: The WCC Program is setting ambitious targets for its two new proposed long-term programs.

Evidence: These targets will be incorporated into DOJ's Annual Performance and Accountability Report.

Does the program have a limited number of specific annual performance measures that demonstrate progress toward achieving the program's long-term measures?

Explanation: The WCC Program has established one annual measure for each of the two long-term measures. Each annual measure will demonstrate progress toward the long-term goal.

Evidence: The WCC Program will report annually on the number of criminal enterprises dismantled and the number of major corporate fraud cases that are successfully investigated.

Does the program have baselines and ambitious targets and timeframes for its annual measures?

Explanation: Ambitious targets have been set the two annual measures. Baseline data are available for both measures.

Evidence: These targets will be incorporated into DOJ's Annual Performance and Accountability Report.

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, etc.) commit to and work toward the annual and/or long-term goals of the program?

Explanation: Although the FBI does work with other Federal agencies on specific investigations, the frequency and nature of these investigations does not require their formal involvement in program planning efforts. In adddition, other entities that partner with the FBI in WCC investigations often have qualitatively different types of program goals (e.g., civil actions) than the FBI.

Evidence:  

Are independent and quality evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: Independent evaluations have not been conducted on a regular basis. Although subject to GAO and Justice IG audits, none have been conducted in recent years. The FBI's Inspection Division has conducted recent audits, but these are more oriented to management, finance, and resource issues.

Evidence:  

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: The FBI has proposed a methodology and structure to estimate and budget for the full annual costs of operating the WCC program beginning with the FY 2004 budget. If Congress approves, this will be a major accomplishment. However, additional work will be required to tie funding with program performance.

Evidence: The Department, FBI, and OMB have worked together to develop a new budget structure for the FBI that is more closely aligned with program mission. As part of this process, all administrative and overhead costs will be allocated to program areas.

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: The FBI has acted to address organizational and strategic planning deficiencies. In response to shortcomings identified in the PART prepared for the 2004 budget, the FBI has addressed the need for improved performance measures.

Evidence: The Financial Crimes Section program plan was revised during FY 2003. It included a heightened emphasis in corporate fraud and the criminal enterprise theory of investigation. Two long-range outcome goals have been proposed, along with annual performance measures and targets.

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: The WCCP program uses a variety of quantitative and non-quantitative performance information to adjust program priorities, make resource allocations, and take other appropriate management actions.

Evidence: Data are collected through a variety of means including Annual Field Office (AFOR) reports, evaluation of National Initiatives, and on-site reviews of select investigative operations. The WCC Program also maintains liaison across a broad spectrum of industry to ensure up-to-date information on crime trends.

Are Federal managers and program partners (grantees, subgrantees, contractors, cost-sharing partners, etc.) held accountable for cost, schedule and performance results?

Explanation: Each manager is held accountable for results within his/her program. However, there are no formal contracts with managers containing measurable performance goals.

Evidence:  

Are all funds (Federal and partners') obligated in a timely manner and spent for the intended purpose?

Explanation: Funds must be expended in accordance with the schedule and intended purpose in the FBI's annual Financial Plan. Time reports are used to track personnel levels and allocations.

Evidence: Financial reports prepared by the WCCP and the Finance Division are used to monitor spending. Changes from the Financial Plan require approval at the Deputy Assistant Director level. The independent annual audit conducted by KPMG examines and identifies (among other things) the utilization of expenditures in the financial system and how they are related to various programs.

Does the program have procedures (e.g., competitive sourcing/cost comparisons, IT improvements, approporaite incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: The WCCP has not incorporated cost effectiveness measures into its program. Since the majority of the FBI is excluded from the A-76 inventory, no outsourcing comparisons have been made. Unlike many other FBI programs, IT and IT-related productivity improvements are not a significant aspect of WCC program operations.

Evidence: Efficiency measures show the relationships between resources and outputs. Outputs for the WCCP include arrests, fines, seizures. Efficiency measures such as cost per arrest or seizures per agent would be inappropriate.

Does the program collaborate and coordinate effectively with related programs?

Explanation: The WCC Program maintains a high level of collaboration and cooperation with its partners. Liaison and outreach are two of the most important functions of the Headquarters entity and is measured as a Critical Element in job performance.

Evidence: Liaison files, interview of other WCC agencies, review Performance Plans, MOUs.

Does the program use strong financial management practices?

Explanation: For the limited funds that the program oversees, a series of internal checks and audits are established to ensure strong financial management.

Evidence: The program has no material weaknesses. A Manual of Administrative and Operational Procedures and a Confidential Funding Guide provide policy and procedures for financial operations.

Has the program taken meaningful steps to address its management deficiencies?

Explanation: When an Inspection Division or other report identifies a management or financial issues, program managers must provide status reports on the correction of identified deficiencies until they are fully resolved. Likewise, deficiencies identified in financial audits require regular reporting to FBI management and/or the auditor depending on the nature and severity of the problem.

Evidence: Inspection Division reports have been prepared for the Financial Crimes Section and Integrity in Government Section. In Fall 2002, Inspection Div. expressed a concern about the lack of guidance to the field following the events of Sept.11, 2001 on criminal matters. The WCC program has since issued an extensive increase in guidance/control files produced this fiscal year.

Has the program demonstrated adequate progress in achieving its long-term outcome performance goals?

Explanation: Although its performance measures and targets are new, there is sufficient baseline data, as well as output data in the DOJ Performance Plan, to indicate that the program is meeting its long-term performance goals.

Evidence: See baseline data and the FY 2002 DOJ Performance Report. In addition, anecdotal examples of successes include high profile and complex cases as Enron, Health South, the Columbia/HCA hospital chain.

Does the program (including program partners) achieve its annual performance goals?

Explanation: Since the annual targets are new, no annual targets have been met.

Evidence:  

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program performance goals each year?

Explanation: The FBI believes there are no meaningful measures of cost-effectiveness for law enforcement programs. Since the majority of the FBI is excluded from the A-76 inventory, no outsourcing comparisons have been made. WCC Progran Managers note that they have continued to accomplish significant results in spite of having resources transferred to the Counterterrorism Program.

Evidence: Examples of unit cost measures such as cost per arrest or cost per investigation are not valid. Comparisons between investigations such as Enron and a bank robbery would not be valuable.

Does the performance of this program compare favorably to other programs, including government, private, etc., that have similar purpose and goals?

Explanation: While other Federal agencies do work some aspects of white collar crime, direct comparison is difficult due to the FBI's greater diversity of programs and wider jurisdictional authority.

Evidence: Based on the number of agencies that approach the FBI to initiative joint investigations, and the success of those investigations, the performance of the FBI compares favorably with other agencies.

Do independent and quality evaluations of this program indicate that the program is effective and achieving results?

Explanation: As previously indicated, there have been no regular or independent evaluations of the WCC Program. The FBI's Inspection Division conduted a national level evaluation of the program in September 2002. Although the program received high marks, the nature of the evaluation was not sufficient to met the PART requirements.

Evidence: