larceny, theft, fraud, and white collar crime

Larceny, Theft, Fraud, and White Collar Crime

Mike Steeves

La Junta Police Department

La Junta, CO 81050

Objectives

• Go to page 479, Criminal Investigations

• Be able to answer the questions in “Do You Know?”

• Understand the terms under “Definitions”

Introduction

• Larceny/Theft is one of the eight Part I Index Crimes

• Fraud and White Collar crimes are not

• But all three have common threads...

Introduction

• Some states eliminate the distinction between larceny, fraud, and white-collar crimes, combining them into the single crime of theft

• How about Colorado?

Colorado’s Theft and Fraud

• Colorado theft statutes begin with 18-4-401: Theft, and include a variety of detailed offenses

• Fraud statutes begin with 18-5-101

• Note that Theft is merely a subsection of Crimes Against Property, while Fraud is a section unto itself

Elements of Larceny/Theft

• Felonious stealing, taking, carrying, leading, or driving away…

• Of another’s personal goods or property…

• Valued above…or below…a certain amount…

• With the intent to permanently deprive the owner of the property or goods

Elements of Larceny/Theft

• Note that the book specifies “feloniously”

• But what about misdemeanor theft?

• See the Colorado statutes defining levels of thievery

Elements of Larceny/Theft

• What is personal property or goods?

• How does Colorado break out value relative to offense?

• How do you prove the intent to deprive permanently?

Classification of Larceny/Theft

• Book definitions: Grand Larceny and Petty Larceny, the former a felony, the latter a misdemeanor

• By now we should understand how Colorado breaks it out

Found Property

• Keeping or selling property lost by its owner is a form of theft

• Colorado does not specifically address the issue of ‘found property’

• But look at 18-4-401 (1)

Preliminary Investigation

• Similar to investigating burglaries

• Less physical evidence is usually present

• Examples of physical evidence?

Types of Larceny/Theft

• Purse-snatching (what about robbery?)

• Theft from coin machines (see 18-4-204)

• Shoplifting

• Bicycle Theft

• Theft from Motor Vehicles (see 18-4-502)

• Theft of Motor Vehicle Accessories

• Jewelry Theft

Pickpockets and Purse-snatchers

• Hard for the victim to identify the thief

• Obtain info from the victim as to what was stolen and its value

• Does the victim recall being jostled or bumped or otherwise distracted?

• Serial crimes

Employee Theft

• Most thefts from stores are internal, more so even than shoplifting

Shoplifting

• Normally committed by potential customers during business hours - anything else would probably be burglary

• Does not include thefts from warehouses, factories or theft by employees

• Major business loss; pain in the ass for cops

Elements of Shoplifting

• Similar to those of theft

• In Colorado, the simple act of concealing goods is prima facie evidence of shoplifting - they do not have to leave the store (18-4-406)

Investigating Shoplifting

• The store staff usually has everything you need

• You will need a statement from the clerk or owner

• You will need a photograph of the merchandise

• You will need the value and so on

Investigating Shoplifting

• Major stores usually have a form which lists everything you need to complete the case

• Most of our shoplifters in La Junta are catch and release, munisummonsed offenses

Officer Safety

• Shoplifters can be dangerous and can inflict some serious stabs, slices, and gunshot wounds…could even be fatal

Shoplifting Rings

• These are highly professional and take a lot of goods out of the big stores

• Use distraction techniques at or near the store exit, so a confederate can get out with the items

• Sometimes will return with an item, and ask for a cash refund… “I lost the receipt.”

Shoplifting Rings

• Go much deeper than you might think

• Look for dope connections

• Shoplifting crews may be well-dressed and put on the air of ‘upper crust’ … or start screaming racism in the middle of the store

Bicycle Thefts

• ID is difficult due to lack of a registration system

• La Junta has a bike registration database, but there is no requirement that bikes be registered

• Most of our bike thefts are non-registered bikes

Bicycle Thefts

• A single bike theft is usually investigated by the patrol force

• A series of thefts indicates a ring is at work, and requires more investigative resources

• You can make a bike hot sheet in the same manner as other hotsheets

Bicycle Thefts

• Stolen bikes are used for personal transportation by the thieves

• Sold to chop shops or bargain hunters

• Bikes are easy to disguise by repainting and/or removing ID numbers

Jewelry Theft

• Most often taken by professionals

• Also a target of armed robbers and burglars

• Jewels can be very difficult to identify once removed from settings

• Most thefts are from vehicles owned by jewelry salespeople

• Also from citizens who are careless

Jewel Thefts

• Professionals usually operate interstate

• Local FBI office maintains a file on known jewel thieves, MO’s and last known location

• Always notify the FBI of significant jewel thefts

• Investigation is handled as you would for any other theft

Art Thefts

• FBI created the National Stolen Art File in 1979 to cope with increased art thefts

• There are some surprisingly valuable collections and pieces in some surprisingly small towns

• The Koshare collection in La Junta is valued at over

Art Thefts

• The second most important international criminal activity

• Any guesses on what the first might be?

Numismatic Thefts

• Coins, Stamps, Metals, Paper Money

• Coin and other numismatic thefts usually occur during burglaries

• Other metals are stolen…electrical and phone wires…thieves burn the insulation off, and selling the copper

Proving the Elements

• Gather evidence to prove ownership, that the property was taken without permission, and that indicates there is no intent to return the property

• Obtain evidence that the owner no longer has the property

Intent to Deprive

• Selling

• Concealing

• Denying possession or knowledge despite contrary proof

• Conversion to personal use

• Pawning

Recovering Stolen Property

• Larger departments will run a pawn detail that checks on property in the shops.

• Colorado requires identification on all pawn transactions - either photo ID or a thumbprint on the ticket

Recovering Stolen Property

• Record when and where you recovered it

• Who turned it in or reported it

• Circumstances surrounding recovery

• You should do a supplemental report documenting all these things

Recovering Stolen Property

• Stolen property is reported under NIBRS and/or UCR

• Recovered property is therefore reported under NIBRS and/or UCR

• Your records management people do that part of the job - your job is to make sure the data you give them is accurate

Recovering Stolen Property

• Stolen property is also evidence

• Handle it in the same way you would any other evidence of the same type

Receiving Stolen Goods

• This is called ‘Theft by Receiving’ in Colorado (18-4-410)

• Person must have knowledge that goods received, bought, or concealed are stolen

Receiving Stolen Property

• This ‘knowledge’ part is the difficulty

• Even though it would seem that a reasonably aware person would also reasonably believe that a $3,000 laptop bought for $500.00 off a street corner is obviously stolen…it’s hard to prove that to ‘beyond a reasonable doubt’ standards.

Sting Operations

• Police legally set up a fencing operation

• Set up the front

• Spread the word that the store will ‘buy anything’

• Document transactions

• Nail the little barfbags

• This is so cool…

Fraud

• Intentional deception to cause a person to give up property or some lawful right

• Uses deceit rather than stealth to bag the goods

Fraud

• The elderly are particularly susceptible to fraud

• Disabled vets in halfway houses, or others who may have significant assistance checks but not be able to fully function in evaluating reality are likely targets

Fraud• Expect fraud, extortion, or intimidation

whenever:– Unusual or inappropriate bank account

activity– Power of Attorney given by someone unable

to comprehend his financial situation or otherwise give a valid PoA

Fraud– There is a recent change of a title of a house

in favor of a ‘friend’ when the owner is incapable of understanding the nature of the transaction

– A recent will has been made by a person who is incapable of making a will

– Promises of life-long care given in exchange for willingness to deed all property and bank accounts to caregiver

Check Fraud

• In the 16th Judicial District, Check Fraud is handled by the DA investigator. The PD handles check forgeries

• Most common check frauds are ISF, checks on closed accounts, and forgeries.

• We in Colorado see check fraud and check forgery as two different things

Check Fraud

• Forgeries are covered under 18-5-102– includes a host of document types in addition

to checks

• Check Fraud is specifically covered as a separate issue under18-5-205

Check Fraud

• Professional paper-hangers will pass a number of checks in a short time in several cities

• The FBI maintains a National Fraudulent Check file

Check Fraud

• Look for – alterations– manner in which the check was published– handwritten or typed?– any stamps or seals?– Very impressive fake checks - including US

Treasury checks - can be generated off the average home computer these days

Counterfeiting

• US Secret Service has some good information on counterfeiting

• High quality counterfeits can be run off by the bushel basket on some of the high end color copiers

• The main concern is getting the stuff to ‘feel’ like money

Counterfeiting

• Most of the counterfeit bills that we come across are going to be ridiculously obvious

• The good stuff tends to get by us

Credit Card Fraud

• Elements of the crime– Possessing a credit card obtained by theft

or fraud– By which services are obtained– Through unauthorized signing of the

cardholder’s name

Credit Card Fraud

• Credit cards, charge plate, courtesy card, or other identification card used to obtain a cash advance, a lot, or credit to purchase or leas property or services on the issuer’s credit or that of the holder

• ‘Holder’ is the person to whom the card has been issued

Credit Card Fraud

• By Colorado statute, this is included under 18-5-7xx [see definitions in 18-5-701(3)]

• Over half a billion bux went down the illegal drain in 1991 in the United States alone

Credit Card Fraud

• Obtain samples of handwriting from sales slips signed by the suspect

• Ditto for the credit application form if the card was obtained fraudulently rather than stolen

• Check cards for alterations

• Keep any transaction slips you discover on or with the suspect

Telemarketing/Mail Fraud

• Mostly sales scams

• Report mail fraud to the Postal Inspector

Confidence Games

• Four basic elements:– Find a mark – Select a game– Run the game– Leave quickly

Short Con Games

• Take the victim for what he has now

• Shell games and variations

• “Hey, buddy…can I hold your pork chop?”

Long Con Game

• Usually for higher stakes and more complex

• When cops run a long con, it’s usually called a ‘sting’ or ‘undercover operation’

• Most of what you will deal with will be home repair swindles

Confidence Games

• You need a complete description of the con artists and the type of trick, fraud, or false pretense they used, as well as the exact amount of money involved

Embezzlement

• Fraudulent appropriation of property by a person to whom it has been entrusted

• The property is then used by the embezzler or another person in terms contrary to the trust

• Embezzler usually has control over the property as an agent of some type

Embezzlement

• Most embezzlements involve employees

• Most bank losses are from embezzlement rather than robbery

• Bank embezzlement is investigated jointly by the FBI and the local yokels

Embezzlement

• Embezzlement is usually discovered accidentally, by in-depth audit, by inspection of records or property, by a sudden improvement in the embezzler’s standard of living, or by the embezzler’s sudden disappearance

White Collar Crime

• Embezzlement

• Securities theft and fraud

• Insurance fraud

• Credit card and check fraud

• Consumer fraud

• Illegal competition and deceptive practices

• Bankruptcy fraud

White Collar Crime

• Bribes

• Kickback

• Payoffs

• Receiving stolen property

• All are investigated as any other larceny; many will require the services of a good accountant

Environmental Crime

• Usually illegal dumping - but dumping what?

• Industrial waste

• Offal and refuse from butcher and packing plants

• Illegal burning

• What else?

Summary

• Page 505

• Checklist on 506

• Discussion Questions on 507

Got any questions?