VII. COUNTERFEITING AND FULLERTON, CALIF.-COUNTERFEITING FOOD COUPONS (Case No. SF 2742-22) This report was initiated as a result of arrests made on May 28, 1974, by the United States Secret Service for counterfeit food coupon operations in Fullerton, California. Those arrested were: and Mrs. allegedly married to Seized were $350,000 worth of counterfeit food coupons, a printing press, other printing material and equipment, and two loaded weapons. signed a consent search for the garage and apartment of his residence, which ultimately resulted in the seizure of $750,000 worth of counterfeit food coupons along with plates and negatives. Also, in his apartment were several uncut sheets of counterfeit food coupons which were seized. Ernest J. Kun, Special Agent, U.S. Secret Service in charge of this investigation provided the following additional detail and background information: an experienced printer, told him that while unemployed in San Francisco he was a food coupon recipient. After examining the food coupons he realized that it would be quite simple to counterfeit them due to the simplicity of the design and limitation of the coloring. He considered the $5 denomination coupon to be easy to produce because of the maroon shadings involving no other colors and the ordinary quality of the paper which would not be too difficult to acquire. An offset press was also necessary to make the coupons. It was at this point that he conceived the idea to counterfeit the coupons and later got together with and They pooled their resources to buy the decided to come to Orange County to necessary equipment. He, Secret Service had an undercover Agent in on the investigation acquiring information. They did not wish to delay the apprehension and seizures for fear of allowing the coupons to be circulated. To the best of his knowledge, none of the coupons were released into circulation. All of the suspects felt that they would have no trouble in unloading the coupons in the Los Angeles and San Francisco areas, and back east. The coupons were classified as being good to very good. They had a supply of the cardboard stock to be used for the covers of the books and the necessary staples and cutting tools. The $5 denomination coupons were printed on sheets of ordinary bond paper, five coupons to a sheet, and some coupons had serial numbers. Reporting Agent examined some of the counterfeit $5 denomination coupons and noted that some were a shade lighter in color compared to the legitimate coupons he had in his possession at the time. The paper was somewhat less glossy and for someone experienced, this characteristic would be immediately noted. It should be pointed out that the suspects contemplated putting oupons in books, which would not have been necessary if they were going to deal with an authorized retailer, as the retailer, when redeeming them at the bank does not have them in books. All banks prohibit coupons in books for counting purposes, and have in the past, instructed retailers as such. It is possible that the suspects were not completely aware of the procedural steps food coupons undergo until their ultimate redemption. On August 6, 1974, was apprehended for the theft of mail and had in his possession, on apprehension, a food stamp letter addressed to another person. During questioning, admitted to the theft of food stamp test letters and advised that he had sold the coupons contained in these letters to a man known to him the operator (owner) of as A search warrant authorizing the search of obtained, based upon information furnished by was This search was accomplished and disclosed the food coupons book covers of the food stamp books that were mailed in test letters on July 31, 1974, and August 5, 1974. Upon being questioned, admitted that he had purchased food coupons from a person known to him as and that he had been making these purchases since about May 1, 1974. He identified the food coupons book covers, recovered during the search, as being purchased from (79) |