only one attorney working on environmental matters. This year, over half of the entire staff, since Earth Day 1990, of what is now the Environment and Natural Resources Division, is concentrated on reducing threats to the environment - enforcing legal standards, prosecuting environmental profiteers, and coordinating closely with other federal agencies involved in this effort. In the area of civil rights, the Hate Crimes Statistics Act, with the support of President Bush, has now been signed into law, and we are preparing implementation Guidelines. Five members of the Confederate Hammerskins, who had vandalized Jewish-owned property and assaulted blacks and Hispanics in Dallas, were sentenced last week to jail terms ranging up to 9 1/2 years. Moreover, the task force established under the Immigration Reform and Control Act of 1986, chaired by the head of the Civil Rights Division, John Dunne, already has begun its study of the GAO's recent report on employer discrimination. Yesterday, the Administration submitted its antitrust initiative on joint production ventures. This proposal, which would extend the coverage of the National Cooperative Research Act of 1984, authorizes such ventures where they will achieve pro-competitive efficiencies. It should assist United States firms to compete more successfully in the world marketplace while still protecting American consumers. I hope that the Senate can turn its attention to this area soon. - In conclusion, I would like to note my personal satisfaction with the continuing implementation of one of my key management goals. In the past, as I know from experience, both in the field and at headquarters here in Washington, our individual United States Attorneys and litigating Divisions, and our various investigative arms, have occasionally worked independent of one other. Today, more than ever before, the individual "components" that comprise the Department of Justice are working together as a cohesive unit sharing information and resources, pursuing both civil and criminal remedies together, cooperatively. This can be seen clearly in the coordinated activities of the United States Attorneys, the Criminal, Civil and Tax Divisions, and the Federal Bureau of Investigation, along with many other agencies of the United States, in the investigation and prosecution of Savings and Loan Fraud; in securities fraud investigations alongside the SEC; and all of our components joined in the war on drugs. The Congress and this Committee have been very generous to the Department, and we hope and expect to continue to justify your assistance and support. Thank you. - 2 Oklahoma, area since the end of 1987, 17 of the 21 persons sentenced have received imprisonment. o Securities Fraud: Former arbitrager Ivan Boesky was sentenced to a three year prison term and former investment banker Dennis B. Levine was sentenced to two years' imprisonment for their roles in a series of insider trading transactions. R. Foster Winans, former Wall Street Journal reporter, was also sentenced to 18 months in prison for illegal insider trading. o Antitrust: 47 persons have received prison terms in the past 18 months for mail/wire fraud, false statements, perjury, and obstruction of justice in cases arising out of Antitrust investigations. o Public Corruption: In 1989, approximately 355 persons (all either public officials or employees, or persons acting in concert with them), including two Members of Congress, received jail sentences on charges stemming from abuse of the public trust. o Environmental Crimes: 23 persons, including 15 company presidents, have been jailed in the past 18 months for environmental crimes. o Food, Drug and Cosmetic Act Violations: 10 persons have been sentenced to prison terms as a result of white collar criminal cases handled by the Civil Division. Most of them involve violations of the Food, Drug and Cosmetic Act, including 2 corporate officials given 24-year terms for distribution of counterfeit birth control pills. o Tax Fraud: Between October 1, 1988, and May 9, 1990, of the 1803 defendants sentenced for tax evasion, knowingly filing a false return, failure to file or pay a tax, and conspiracy to impede the IRS, 942, or 52%, were sentenced to imprisonment. This does not include another 402 defendants who were sentenced to prison terms which subsequently were suspended. o Telemarketing Fraud: "Televangelist" James O. Bakker was sentenced to 45 years' imprisonment and a $500,000 fine for his mail fraud, wire fraud, and conspiracy convictions involving the sale of lodging partnerships at Heritage Village, U.S.A. As I indicated, we will provide you with additional data when it becomes available. I believe, however, that the sentences of imprisonment we are obtaining in white collar crime cases reflect the hard work of countless investigators and prosecutors who are committed to the Department's priority goal of attacking "crime in the suites." As I have said previously, these are not the kind of cases in which it is possible to break down a door, handcuff a defendant and take him or her immediately - 3 off to trial. They involve, instead, painstaking, laborintensive work and preparation to first unwind a complex business fraud case and then to explain it carefully to a jury. of course, the Department of Justice does not sentence anyone and can only seek to affect the ultimate sentencing decision of the courts. Nevertheless, the sentences we have obtained, while they include some disappointments, are, on the whole, tough and prompt me to say "well done" to the investigators and prosecutors involved in this effort. I trust that, after reviewing this record, you will agree. I would appreciate it if you would request that this letter be placed in the Committee record at the point at which our discussion took place. If I can be of any further assistance, please do not hesitate to let me know. ert cc: Senator Joseph F. Biden Senator Strom Thurmond Dick Thornburgh All Members of the Senate Judiciary |