Order Code RL32095 CRS Report for Congress Received through the CRS Web The FBI Past Present and Future October 2 2003 Todd Masse Specialist in Domestic Intelligence and Counterterrorism Domestic Social Policy Division William Krouse Analyst in Social Legislation Domestic Social Policy Division Congressional Research Service ˜ The Library of Congress The FBI Past Present and Future Summary The Federal Bureau of Investigation FBI is the Nation’s premier law enforcement organization responsible for gathering and reporting facts and compiling evidence in cases involving federal jurisdiction It has broad jurisdiction in federal law enforcement and in national security and is a statutory member of the U S Intelligence Community From its official inception in 1908 the FBI’s mission jurisdiction and resources have grown substantially in parallel with the real or perceived threats to American society culture political institutions and overall security In FY2003 the organization has approximately 26 000 employees about 12 000 of whom are Special Agents The FBI has had many successes in countering criminal and hostile foreign intelligence and terrorist activity in its storied history However in its zeal to protect U S national security the FBI occasionally exceeded its mandate and infringed upon the protected rights of U S citizens Currently the FBI is undergoing a massive reorganization to shift its culture from reaction to crimes already committed to detection deterrence and prevention of terrorist attacks against U S interests The FBI continues to be a major domestic and international force in the war against terrorism The FBI one element of the U S Department of Justice is led by a Director appointed by the President with the advice and consent of the Senate The Director is appointed for a single 10-year term to insulate the investigative agency from tacit or perceived political pressures The FBI Director is not a member of the President’s Cabinet although he reports to one – the U S Attorney General The current organizational schema of the FBI has three main elements Headquarters 56 Field Offices and 45 Legal Attaches overseas The degree of autonomy with which field offices have operated with respect to Headquarters has oscillated over time Currently Headquarters is assuming a more assertive role in directing field activities and demanding accountability particularly with respect to the FBI’s national security responsibilities While the FBI has long had counterterrorism as a top tier priority the terrorist attacks of September 11 2001 were a catalyst for developing a definitive list of ranked priorities On May 29 2002 counterterrorism became the FBI’s sole number one priority Other major priorities include countering foreign intelligence activity directed against the United States countering cybercrime and working against public corruption The FBI’s priorities continue to reflect its traditional law enforcement mission but the FBI’s national security mission has assumed an unprecedented degree of prominence In order to successfully implement its mission the FBI has extensive relationships with other federal executive agencies including other members of the U S Intelligence Community It also has an important network of relationships with state and local law enforcement and overseas law enforcement agencies and security services Relevant pending bills include H R 1157 H R 2867 S 410 S 1158 S 1440 S 1507 and S 1520 Issues for the Congress involve whether 1 the FBI can sufficiently adapt its law enforcement culture to deter detect and prevent terrorism 2 some of the FBI’s criminal jurisdiction should be devolved to state and local law enforcement 3 a statutory charter for the FBI should be developed and 4 the planned co-location of the FBI’s operational Counterterrorism Division with the newly formed Terrorist Threat Integration Center provides an opportunity for foreign intelligence entities to engage in domestic intelligence activities Contents Brief History and Program Development 1 Domestic Security and Counterintelligence 4 Organized Crime 7 Domestic Extremism 8 Counterterrorism 9 FBI Organization and Culture 10 Organization and Jurisdiction 10 FBI Leadership 14 Culture 14 International Presence and Role 17 Current Major Investigative Programs 18 FBI Counterterrorism Program 19 The Wake Up Call 20 U S Vulnerability 20 Catalyst for a War of Indeterminate Duration 21 FBI Counterintelligence Program 23 History 24 Imbalances Between Dissent and Subversion 24 The Pendulum Swings Back Oversight and Regulation 26 Year of the Spy 27 Post Cold War Counterintelligence 27 FBI Criminal Enterprises White Collar Cyber and Other Federal Crimes 29 Organized Criminal Enterprises 30 White Collar Crime and Public Corruption 32 Cybercrime 34 Other Significant Crime 35 FBI Security Program 36 Pertinent Relationships 37 Investigative Relationships 37 Congressional Oversight Relationships 38 The FBI in Transition 39 Issues for Congress 40 Appendix I FBI Field Offices By City Location 41 Appendix II FBI Directors 45 Appendix III FBI Legal Attache Offices 46 List of Figures Figure 1 FBI Appropriations FY1940-2004 3 Figure 2 Total Number of FBI Positions FY1940-2004 4 Figure 3 FBI Headquarters Organizational Chart 12 The FBI Past Present and Future Brief History and Program Development The Federal Bureau of Investigation FBI is the lead agency in the Department of Justice DOJ which has the dual mission of protecting U S national security and combating criminal activities As a statutory member of the U S Intelligence Community it is charged with maintaining domestic security by investigating foreign intelligence agents officers and terrorists who pose a threat to U S national security The Bureau’s criminal investigative priorities include organized crime and drug trafficking public corruption white collar crime and civil rights violations In addition the Bureau investigates significant federal crimes including but not limited to kidnaping extortion bank robberies child exploitation and pornography and international child abduction The FBI also provides training and operational assistance to state local and international law enforcement agencies The FBI’s expertise in national and international law enforcement may be taken for granted today 1 Because the organization had relatively little jurisdiction in its early years a result of nascent federal criminal law development the organization demonstrated substantial creativity in using its existing authority to combat criminal behavior For example in its infamous investigations into the organized crime and gangster activities of John Dillinger and others in the early 20th Century the FBI then known as the Bureau of Investigation and Department of Justice relied on jurisdiction in more discrete areas of crime such as fugitive status and interstate motor vehicle theft to arrest and prosecute organized crime cases More recently the FBI has developed into a national investigative agency and established a national identification system a uniform crime reporting system as well as a forensic science program that are heavily relied upon by state and local law enforcement Some would argue that by instituting rigorous law enforcement training and employment qualifications the FBI ushered in an era of unprecedented professionalism in law enforcement Moreover as the forces of globalization became prominent in the late 20th Century the FBI expanded its international influence by developing important relationships with overseas law enforcement and security services These relationships continue to pay dividends in the war against terrorism2 today The 1 An official history of the FBI can be found at http www fbi gov libref historic historymain htm See also Athan Theoharis The FBI An Annotated Bibliography and Research Guide 1994 2 The term “terrorism ” as used in this report means premeditated politically motivated violence perpetrated against targets by sub-national groups or clandestine agents The term “international terrorism” means terrorism involving citizens or the territory of more than one country The term “terrorist group” means any group practicing or which has significant continued CRS-2 FBI’s recent arrest of a British national alleged to be smuggling shoulder fired missiles into the United States is an example of how its national and international cooperation with intelligence and law enforcement organizations is paying dividends 3 As an organization that has been at the forefront of law enforcement and domestic security in turbulent times however the FBI has also been through its share of difficult times While the Bureau is considered one of the world’s premier investigative agencies and has had numerous successes implementing its criminal and national security missions in recent years it has been criticized for its handling of a number of cases These cases include the Waco and Ruby Ridge sieges the Oklahoma City bombing documents the Los Alamos National Laboratory espionage investigation the Atlanta Olympic Park bombing investigation the Robert Hanssen spy case 4 the degradation of the FBI crime lab the improper use of confidential informants and the failure to secure and upgrade the agency’s computer systems The September 11 2001 attacks moreover are widely viewed as a systemic intelligence failure of the U S Intelligence Community of which the FBI is one component Some Members of Congress have called for increased oversight and explored proposals to reform or perhaps dismantle elements of the FBI transferring the agency’s domestic security functions to another agency that could possibly resemble Britain’s MI-5 5 2 continued subgroups which practice international terrorism See Title 22 U S Code §2656f d There are numerous definitions of terrorism found in U S law statutes and regulations See CRS Report RS21021 “Terrorism” and Related Terms in Statute and Regulation Selected Language Sept 26 2001 by Elizabeth Martin 3 See “FBI Arrests British Man in Alleged Missile Plot ” New York Times Aug 12 2003 As early as May of last year the FBI was alerting law enforcement to be on the lookout for potential terrorist activities involving shoulder-fired missiles See “FBI Warns of Shoulder-Fired Missile Threat ” May 31 2002 at http www cnn com In Nov 2002 in Mombasa Kenya a chartered Israeli passenger plane was targeted with a man portable air defense MANPAD system The rocket missed its target See Thom Shanker “Terror in Africa Security Concerns Ideal Terror Weapons – Portable Deadly Plentiful Missiles ” New York Times Nov 29 2002 p A32 The indictment of Hemant Lakhani can be found at http news findlaw com cnn docs terrorism uslakhani81103cmp pdf 4 See A Review of the FBI’s Performance in Deterring Detecting and Investigating the Espionage Activities of Robert Philip Hanssen Department of Justice Office of the Inspector General Report Aug 14 2003 The unclassified executive summary of this report can be found at http www usdoj gov oig special 03-08 final pdf 5 See the “Foreign Intelligence Collection Improvement Act of 2003 ” S 410 See also CRS Report RL 31920 Domestic Intelligence in the United Kingdom The Applicability of the MI-5 Model to the United States May 19 2003 by Todd Masse S 1520 the “9-11 Memorial Intelligence Reform Act ” proposes that the Attorney General Director of National Intelligence a proposed position and the Secretary of Homeland Security provide a report to Congress which among other factors assesses the advisability of establishing a new domestic intelligence agency and the experiences of other democratic nations in conducting domestic intelligence programs and activities Similar recommendations were made in the Joint Inquiry Into Intelligence Community Activities Before and After the Terrorist Attacks of September 11 2001 a report of the U S Senate Select Committee on continued CRS-3 The FBI’s investigative jurisdiction has grown significantly over time and it is governed by multiple congressional statutes 6 As this jurisdiction expanded so too did the organization’s budget and employees From 1940 until FY2003 the FBI’s total numbers of employees increased from roughly 2 400 to about 26 000 as its budget increased from $9 million to more than $4 billion 7 Figures 1 and 2 below depict the extent to which the FBI budget and numbers of employees increased over time Figure 1 FBI Appropriations FY1940-2004 5 000 $ Million 4 000 3 000 2 000 1 000 0 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 Current $ • Cons tant 03 $ Fiscal Year 2004 is a requested amount 5 continued Intelligence and the U S House Permanent Select Committee on Intelligence Dec 2002 6 For general information on FBI jurisdiction see U S Code Title 18 Crimes and Criminal Procedure §3052 U S Code Title 28 Judiciary and Judicial Procedure §533 and Title 28 Code of Federal Regulations §0 85 7 The FBI’s request for FY2004 is $4 639 569 00 See FBI Budget Submission Estimates for Fiscal Year 2004 CRS-4 Figure 2 Total Number of FBI Positions FY1940-2004 30 000 - 25 000 - 20 000 - 15 000 - 10 000 5 000 n I I I I I I I I I I 19 40 19 50 19 60 19 70 19 80 19 90 20 00 20 01 20 02 20 03 20 04 0 Source Annual appropriations and Athan G Theoharis et al FBI A Comprehensive Reference Guide Gross Domestic Product Deflators for current FY2003 1 00 dollar adjustments were derived from Budget of the U S Government Fiscal Year 2004 Historical Tables Office of Management and Budget Fiscal Year 2004 is a requested amount What follows in this section is a functional and chronological summary of the major elements in the historical development of the FBI Domestic Security and Counterintelligence Since its inception in 1908 8 the Bureau’s domestic security and counterintelligence missions have expanded and contracted to meet internal and external exigencies At times maintaining a proper balance between national security and preserving constitutional rights – particularly those guaranteed under the First Fourth and Fifth Amendments freedom of speech and assembly protection against unreasonable search and seizure and due process – has been a difficult proposition for the FBI in particular and for the federal government as a whole Toward the end of the First World War civil unrest and a series of bombings prompted the Department of Justice and its Bureau of Investigation BI to monitor and arrest persons suspected of being anarchists Bolsheviks socialists or of other radical political beliefs under the 1917 Espionage Act and the 1918 Immigration Act The Bureau participated in round ups of draft dodgers “slackers” as well In the 8 Attorney General Charles J Bonaparte established the Bureau of Investigation in 1908 when the Department of Justice hired 10 investigators who had previously worked as U S Secret Service agents Bonaparte was prompted to hire the investigators because a rider in an appropriations bill prohibited Justice from borrowing Secret Service agents from Treasury for investigations See S Rept 94-755 Supplementary Detailed Staff Reports of Intelligence Activities and the Rights of Americans Book III Final Report of the Select Committee to Study Governmental Operations with Respect to Intelligence Activities U S Senate Washington Apr 23 1976 989 p Hereafter cited as the Church Committee Report CRS-5 1920s roundups of non-citizens suspected of subversion known as “Palmer raids” named after former Attorney General Alexander Mitchell Palmer 1919-1921 enjoyed public approval in the popular press but later proved controversial with revelations of civil rights violations and wrongful deportations As a Justice Department Attorney J Edgar Hoover headed the Department’s General Intelligence Division and played an integral role in these roundups and deportations 9 As the tide of public opinion turned against the federal government’s anti-Red tactics Hoover successfully distanced himself from these policies Incoming Attorney General Harlan Fiske Stone appointed Hoover acting and then permanent Bureau Director in 1924 Hoover approached his new job with zeal and is largely credited with remaking the Bureau by among other factors standardizing some facets of BI operations and basing appointments and promotions on merit rather than political connections Moreover Hoover promoted the Bureau’s public image by pursuing high-profile “public enemies” – depression era bank robbers and gangsters In 1933 the Bureau of Investigation was renamed the Division of Investigation In 1935 it was renamed the Federal Bureau of Investigation FBI In 1936 President Franklin Delano Roosevelt charged the FBI with investigating subversive activities as political unrest in Europe spilled over into America 10 Such operations were aimed at not only fascist organizations like the pro-Nazi German – American Bund but at the Communist Party USA and other leftist organizations as well 11 The end of the Second World War did not bring about a reduction in FBI domestic security investigations Instead they increased as U S -Soviet tensions mounted with revelations that U S atom bomb secrets were betrayed to the Soviets and allegations that high-ranking U S officials may have been communist agents 12 As a result wartime domestic security operations were carried 9 Numerous books have been written about Director Hoover A select few include Richard Gid Powers Secrecy and Power The Life of J Edgar Hoover 1987 and Curt Gentry J Edgar Hoover The Man and the Streets 1991 10 Among other legal authorities the FBI’s jurisdiction to conduct such investigations was included in appropriations act language that allowed the Secretary of State to request such investigations Then Secretary of State Cordell Hull consented See Church Committee Report 11 In addition President Roosevelt accepted a proposal from Director Hoover to station FBI agents in Latin America as intelligence operatives as part of the FBI’s Special Intelligence Service in 1939 About 360 FBI agents were stationed in Latin America during the Second World War as intelligence operatives Such postings however exacerbated the growing rivalry between Hoover and William J Donovan the founder of the wartime Office of Strategic Services OSS – the forerunner of the Central Intelligence Agency The FBI pulled out of Latin America at the end of the war and foreign intelligence and espionage matters were ultimately given to the Central Intelligence Agency when that agency was established in 1947 See Athan G Theoharis with Tony G Poveda Susan Rosenfeld and Richard Powers The FBI A Comprehensive Reference Guide 2000 12 For an historical perspective on this era see Ellen Schrecker The Age of McCarthyism A Brief History with Documents 1994 Walter Goodman The Committee The Extraordinary Career of the House Committee on Un-American Activities 1968 and continued CRS-6 over into peacetime The FBI investigated “atomic spies” Ethel and Julius Rosenberg and the trial subsequently took place in 1950-1951 The trial resulted in the execution of both Julius and Ethel for committing espionage against the United States on behalf of the Soviet Union Director Hoover opposed the execution of Ethel Rosenberg warning that the public would be averse to taking the life of a woman and a mother 13 From 1956 through 1971 the FBI conducted an intensive and largely successful domestic security operation to neutralize among other groups the Communist Party USA Since the Party was viewed by many to be under direction of Soviet agents the FBI considered such investigations to fall under the rubric of the Bureau’s counterintelligence program hence COINTELPRO During COINTELPRO the FBI used wire taps listening devices break ins and other means of covert surveillance – investigative techniques considered legitimate for “national security” purposes Other techniques were more questionable among those used against civil rights leaders including Dr Martin Luther King Jr – the leader of the Southern Christian Leadership Conference The FBI also monitored a wide range of antiVietnam war activists As the line between dissent and sedition blurred the American public was alarmed by allegations that the FBI was violating the constitutional rights of citizens Former FBI Director Hoover died on May 2 1972 on the eve of the Watergate scandal The Watergate hearings along with the COINTELPRO revelations focused attention on FBI abuses of power Following two acting directors Clarence Kelley a former FBI Agent and Kansas City Missouri police chief was appointed FBI Director 1973-1978 A career law enforcement professional Kelly is credited with restoring public faith in the FBI by instilling greater discipline in its ranks and providing enhanced operational oversight Following Watergate the Senate Select Committee to Study Government Operations and the House Select Committee on Intelligence known respectively as the Church and Pike Committees for their Chairs – Senator Frank Church and Representative Otis Pike – held a series of hearings examining the operations of U S intelligence agencies including FBI domestic security and counterintelligence investigations 14 At the time of the hearings 1976 Attorney General Levi promulgated new domestic security guidelines which established parameters within which it would be permissible for the FBI to conduct investigations into the “ use of force or violence in violation of federal law to overthrow the government or interfere with the activities of a foreign governments within the United States to substantially impair the federal government in order to influence its policies or to deprive others of their civil rights ”15 Watergate and other intelligence community 12 continued Howard Zinn A People’s History of the World 1492 to Present 2003 13 Richard Gid Powers Secrecy and Power The Life of J Edgar Hoover p 304 14 For Church Committee findings regarding the FBI see the Church Committee Report 15 U S Congress FBI Domestic Security Guidelines Oversight Hearings Before the continued CRS-7 abuses led to increased congressional oversight through the establishment of House and Senate Select Committees on Intelligence and development of executive guidelines and legislation for electronic surveillance 16 Notwithstanding the abuses of the 1960s the FBI had many successes in countering espionage activities conducted by U S citizens on behalf of the Soviet Union Some of the higher profile Soviet espionage cases during this decade involved William Kampiles a CIA employee Christopher Boyce an employee of defense contractor TRW Inc and Edwin G Moore II a retired CIA employee 17 During the 1980s foreign intelligence agencies still aggressively engaged in espionage against the United States despite the fact that much of their support in the guise of Communist and Socialist movements in the United States had been greatly diminished In 1985 known as the “Year of the Spy ” U S officials uncovered several spies – most of whom were motivated by greed rather than ideology In the 1990s both the FBI and the CIA again found themselves penetrated by employees working on behalf of the Soviet Union and the successor Russian Federation Aldrich Ames CIA and Robert Hanssen FBI both of whom worked at one point in Soviet counterintelligence committed espionage and did substantial damage to U S national security Their activities even led to the death of agents working on behalf of the U S Government against the Soviet Union and Russia In the late1990s the FBI was criticized for its handling of the Los Alamos National Laboratory LANL investigation a case involving Wen Ho Lee a cleared employee of LANL’s sensitive “X” Division After an embarrassing government case in which 58 of 59 counts18 of an indictment alleging espionage and inappropriate treatment of classified information were dropped Wen Ho Lee pled guilty to one count of unlawfully collecting and storing classified information related to national defense for which he was sentenced to time already served during pretrial detention and released Organized Crime In the late 1920s and 1930s the United States economy went from boom to bust as a period of relative wealth gave way to the great depression As the depression took hold and joblessness soared to 25% lawlessness that had begun in the era of Prohibition swept across the country Gangsters notorious for bank robbing kidnaping and other illegal activities became the FBI’s primary focus As mentioned above because the FBI did not have broad jurisdiction to combat organized crime at the time it effectively and efficiently used those 15 continued Subcommittee on Civil and Constitutional Rights of the Committee on the Judiciary House of Representatives 98th Congress April 27 1983 p 60 16 The two primary legal authorities governing electronic surveillance are Title III of the 1968 Omnibus Crime Control and Safe Streets Act 18 USC §2510 et seq for criminal authorities and the Foreign Intelligence Surveillance Act 50 USC §1801 et seq for foreign intelligence authorities 17 For a summary of espionage cases see CRS Report 93-531 Individuals Arrested on Charges of Espionage Against the United States Government 1966-1993 Revised May 27 1993 by Suzanne Cavanagh available from the authors of this report 18 The indictment can be located at http www fbi gov pressrel pressrel99 indictmenta pdf CRS-8 statutes that were available to it such as the Federal Kidnaping Act passed by Congress in response to the famous Lindbergh kidnaping case in 1932 and the National Motor Vehicle Theft Act which made it a federal crime to transport a stolen car across state lines to combat gangsterism In what some consider the heyday for the FBI the organization successfully neutralized the activities of such infamous criminals as Bonnie and Clyde John Dillinger Charles Arthur “Pretty Boy” Floyd and George “Machine Gun” Kelly during this turbulent era 19 During the late 1950s and 1960s the FBI conducted a series of high profile investigations to combat organized crime For many years Director Hoover discounted the existence of organized crime – national criminal syndicates and avoided narcotics investigations 20 Congressional hearings however confirmed the existence of the Mafia and other organized crime syndicates In the 1960s at the direction of Attorney General Robert Kennedy the FBI investigated Jimmy Hoffa and the Teamsters for alleged mob ties In 1970 Congress passed the Racketeer-Influenced and Corrupt Organizations RICO Act P L 91-452 giving the FBI and other federal law enforcement agencies new statutory laws by which they could prosecute professional criminals RICO enlarged the range of civil and criminal penalties which may result from commission of federal and state crimes 21 In 1978 President Jimmy Carter appointed Judge William H Webster as FBI Director Judge Webster successfully employed the RICO provisions to combat New York City’s entrenched mob families In the “Pizza Connection” case the Gambino family was prosecuted successfully In another operation the FBI investigated and supported the successful prosecution of the Raymond Patriarca Jr family in New England The FBI also initiated undercover operations during which they used middlemen to lure public figures into taking bribes These investigations known as ABSCAM were controversial even though they eventually led to the successful prosecution of one Senator and six Members of the House of Representatives among others Domestic Extremism During the 1980s and the 1990s the FBI and other federal law enforcement agencies encountered an assorted array of groups opposed to the federal government and mainstream American society These groups ranged from the militia movement to white supremacists inspired by the racial doctrines of the Nazis and the Ku Klux Klan Among others they included the Posse Comitatus the Aryan Nations the Silent Brotherhood the Order and the Christian Identity Movement As white supremacists some of these groups anticipated a race war in the United States as portrayed in William Pierce’s novel The Turner Diaries Yet 19 For a summary of various high profile cases see www fbi gov libref historic famcases famcases htm 20 It is reputed that J Edgar Hoover shunned drug investigations because he feared the corrupting effects that narcotics like alcohol during Prohibition might have on FBI Special Agents In part this led to the formation of the Drug Enforcement Agency as a separate agency for drug control within the Department of Justice Drug control did not become a priority for the FBI until 1987 See Ronald Kessler The FBI 1993 21 See CRS Report RS 20376 RICO An Abridged Sketch updated May 6 2002 by Charles Doyle CRS-9 another group the Branch Davidians anticipated the apocalypse though they were not white supremacists The FBI adopted special tactics designed to overcome these groups with overwhelming force but minimum violence so that there would be little injury and loss of life 22 In two cases however violence escalated dramatically leading to the sieges at Ruby Ridge Idaho and the Branch Davidian compound near Waco Texas 23 Some critics assert that the Ruby Ridge and Waco sieges fueled anti-government sentiment that led to the Oklahoma City and Atlanta Centennial Park bombings For various reasons the FBI was criticized for its handling of each of these cases In 1996 however the FBI and other federal law enforcement services were able to defuse successfully another potential domestic extremist group – The Montana Freeman – without any loss of life Through patient negotiation and gradual increases in pressure to include cutting power provided to the Freeman compound in Montana the FBI and other law enforcement services brought the crisis to an end Counterterrorism In the late 1980s and 1990s the United States increasingly became the target of Islamic radicals and terrorists In February 26 1993 a bomb was detonated in the basement parking garage of the World Trade Center The FBI-led investigation revealed a conspiracy centered around a small group of Islamic radicals who were followers of a Muslim extremist the blind Egyptian cleric Sheikh Omar Abdel Rahman 24 Ramzi Yousef considered to have been the mastermind of the bombing escaped but in a major success for the FBI and its Intelligence Community partners he was captured in Pakistan in 1995 Following the World Trade Center bombing in 1993 President Clinton appointed Louis Freeh as FBI Director A former judge and FBI Special Agent Director Freeh enjoyed working cases and was personally engaged in the investigations of the Oklahoma City and Atlanta Centennial Park bombings He also increased the number of FBI Special Agents deployed abroad at foreign legations to cope with the growing globalization of crime and to enforce U S extraterritoriality laws 25 Director Freeh’s tenure saw a marked increase in the number of terrorist attacks overseas on U S interests by Islamic radicals Most if not all of these attacks have been linked to al-Qaeda The Base a radical Islamic terrorist network 22 Danny O Coulson and Elaine Shannon No Heroes Inside the FBI’s Secret CounterTerror Force New York 1999 p 595 23 Other federal law enforcement agencies were involved in both incidents For assessments of Ruby Ridge see The Department of Justice Ruby Ridge Report at http web3 foxinternet net djf ruby001 htm#tab The Report to the Deputy Attorney General on the Events at Waco Texas can be located at http www usdoj gov 05publications waco wacothree html See also hearings before the Subcommittee on Terrorism Technology and Government Information Committee on the Judiciary U S Senate Oct 19 1995 24 In 1994 Rahman and several followers were convicted for a conspiracy to blow up the Brooklyn Bridge and Lincoln and Holland tunnels in New York City 25 Extraterritoriality is defined as U S laws which provide federal jurisdiction over some crimes committed outside the United States See CRS Report 94-166-A Extraterritorial Application of American Criminal Law updated Sept 2 2002 by Charles Doyle See also CRS Report RL 31557 Terrorism and Extraterritorial Jurisdiction in Criminal Cases Recent Developments Sept 2 2002 by Charles Doyle CRS-10 founded by Osama Bin Laden a Saudi national and former heir to a multi-million dollar fortune and construction company As early as 1993 Bin Laden issued fatwahs26 against U S troops in Somalia and Saudi Arabia The FBI opened an investigation into his activities in October 1995 27 On February 23 1998 Bin Laden and his lieutenant Ayman Al Zawahiri issued a fatwah declaring that it was “the duty of all Muslims to kill Americans – including civilians – anywhere in the world where they could be found ”28 President George W Bush nominated Robert Mueller III as FBI Director and he was sworn in on September 4 2001 On September 11 2001 Bin Laden’s followers carried out the largest terrorist attack against the United States in its history Compounding this crisis an unknown person or persons delivered anthrax to several locations in the United States including the Senate and House office buildings through the U S mail Director Mueller a former U S Attorney in San Francisco California and U S Marine Corps officer redeployed FBI Special Agents to more effectively counter terrorism and foreign espionage In addition Director Mueller has sought to strengthen the FBI’s capacity to counter cyber-based attacks and other high-technology crime against the United States and has worked to revamp the FBI’s information technology infrastructure and security programs FBI Organization and Culture How an entity organizes to implement its mission is critical to the organization’s ultimate success At the most general level the FBI has three organizational elements – its headquarters field components and Legal Attache offices FBI Headquarters establishes organizational direction and priorities while overseeing and managing the field’s implementation of priorities through investigations and operations With respect to its national security responsibilities FBI Headquarters is working to centralize and integrate accountability and authority More important than simple organizational flow charts however are the relationships and communication between entities and hierarchical levels within an organization The culture and ethos of an organization also speaks to its inherent focus and missionbased flexibility What follows is an assessment of these issues with respect to the FBI Organization and Jurisdiction Since its creation in 1908 like many other organizations of similar longevity the FBI has been through numerous restructuring initiatives As outlined above these organizational changes coupled with increased federal criminal jurisdiction reflected an increase in real or perceived criminal and 26 A fatwah is a legal statement in Islam issued by a mufti religious leader or a religious lawyer on a specific issue 27 John Miller Michael Stone and Chris Mitchell The Cell Inside the 9 11 Plot and Why the FBI and CIA Failed To Stop It New York Hyperion 2002 p 148 28 This fatwah can be located at http www ict org il articles fatwah htm See also U S Department of Justice Federal Bureau of Investigation Congressional Statement before the Senate Committee on Foreign Relations Subcommittee on International Operations and Terrorism Al-Qaeda International by J T Caruso Acting Director Counterterrorism Division FBI Washington Dec 18 2001 p 3 CRS-11 national security threats to the United States The FBI’s jurisdiction and responsibilities are guided by a broad range of statutes and regulations that have developed since its inception Although prior Congresses have discussed the development of a legislative charter for the FBI no such single authoritative document outlining FBI jurisdiction and responsibilities exists 29 Figure 3 below reflects the current structure of the FBI 29 The FBI Charter Act of 1979 was developed in the wake of revelations in the 1960s and early 1970s that the FBI and other U S intelligence agencies were investigating U S citizen activity deemed then to be “subversive ” Subsequent investigation found many of the government’s activities during this tumultuous period of U S history were indeed illegal For a summary of the FBI Charter Act see “FBI Charter Act of 1979 S 1612 ” Hearings before the House Committee on the Judiciary 96th Congress Aug Sept Oct 1979 Although the FBI Charter Act was referred to the Judiciary Committee and hearings were held it was not reported out of the Committee For a summary of historical abuses committed by U S law enforcement and intelligence agencies see the Church Committee Report CRS-12 Figure 3 FBI Headquarters Organizational Chart Director I SAC Advisory Committee I I Deputy Director _j Inspection Division ----j Office of Public Affairs 7 I I I Chief of Staff I Office of Congressional Affairs ---j Office of the Ombudsman I ----j Office of General Counsel I Office of Equal Employment Opportunity ----j Chief Information Officer Office of Professional Responsibility I I I I I I Executive Assistant Director for Law Enforcement Services Executive Assistant Executive Assistant Director for Director for Counter-Terrorism Intelligence Counter-Intelligence I I I I I Office of Intelligence CounterTerrorism Division CounterIntelligence Division Cyber Division Executive Assistant Director for Administration I Office of Criminal Law Investigation Enforcement Division Coordination Office of Strategic Planning Office of International Operations f- I I Records Management Division Administrative Services Division Critical Incident Response Group I Training Division Laboratory Division I I I Criminal Justice Information Services Division Investigative Technologies Division I I I Security Division Finance Division i Information Resources Division Source Federal Bureau of Investigation Current as of July 1 2003 CRS-13 As Figure 3 illustrates the FBI currently has four main directorates under which all of its activities are organized Each of the 56 field offices is engaged in investigative and operational activities that support the programs around which FBI Headquarters is organized One recent major organizational and managerial change is the conversion of the Executive Assistant Director EAD for Criminal Investigations into an EAD for Intelligence 30 Responsibility and program management for both the Criminal Investigative Programs and the Cyber Program will be assumed by the the FBI Deputy Director This issue is somewhat contentious from a managerial and functional perspective 31 Functionally at a time when there is a general perception among some in law enforcement that the national security mission is drawing resources from the FBI’s traditional criminal mission the organization dissolved an EAD for Criminal Investigations One of the four existing directorates is investigative and operational Counterterrorism and Counterintelligence with the other three Law Enforcement Services Administration and Intelligence focusing on information sharing with state and local law enforcement organizational support activities and intelligence infrastructure development respectively Responsibility for criminal and cyber investigations the FBI’s other investigative operational role is now directed from the Deputy Director’s office as indicated above The FBI an organization in the midst of a reorganization aimed at improving its ability to detect deter and prevent another terrorist attack has 14 divisions as illustrated in Figure 3 above Nationwide the FBI conducts its investigations and operations through 56 Field Offices and over 400 “resident agencies ” smaller offices geographically dispersed around the country which report to one of the larger 56 field offices 32 With the exception of the largest field offices in Washington D C New 30 See testimony of FBI Director Robert S Mueller III on the FBI reorganization before the House Appropriations Committee Subcommittee on the Departments of Commerce Justice and State the Judiciary and Related Agencies June 18 2003 The FBI has recently appointed an Executive Assistant Director for Intelligence This position is responsible for the FBI’s Office of Intelligence the primary mission of which is to establish a formal intelligence program within the FBI’s national security and criminal programs Substantial reorganizations require congressional approval particularly if there are proposed changes in how previously authorized and or appropriated resources are allocated 31 There are different viewpoints on this initiative From a management perspective it could be argued that the agency’s second official is in essence its chief operating officer COO responsible for the daily operations of the FBI The existence of a COO allows the Director the time to engage and inform national level policymakers and congressional oversight committees and to develop broad strategy for the organization Some may argue that burdening a COO with specific programmatic responsibilities may force the executive to focus undue time and emphasis on those programs to the potential detriment of the broader organizational mission However it could also be argued that notwithstanding the dissolution of the EAD for Criminal Investigations the FBI has indeed increased its focus on these matters by elevating them to the Deputy Director’s level 32 See Appendix I for a list of the 56 field offices by city location See also testimony of FBI Director Robert S Mueller III on the FBI reorganization before the House Appropriations Committee Subcommittee on the Departments of Commerce Justice and State the Judiciary and Related Agencies June 18 2003 As part of its ongoing reorganization the continued CRS-14 York and Los Angeles which are led by Assistant Directors-In-Charge ADICs each of the 56 field offices is led by a Special Agent-In-Charge SAC Offices led by ADICs generally have program-oriented SACs who report to the ADICs ADICs and SACs report directly to the FBI Director and periodic generally quarterly meetings are held during which all SACs and ADICs join with the Director to discuss ongoing activities and FBI strategies FBI Leadership The FBI is led by a Director who is appointed by the President with the advice and consent of the U S Senate The Director is appointed for a single 10-year term The 10-year appointment was passed by Congress in 1968 to take effect after the tenure of the sixth FBI Director J Edgar Hoover who led the agency for nearly 48 years 1924-1972 The 10-year term was approved in an effort to balance the independence necessary for an investigative agency with protection against the accumulation of excessive power by one agency or individual Historically no FBI director following Hoover See Appendix II for a chronological list has served the full 10-year term The median tenure for an FBI Director is six years including the anomalous nearly 48-year Hoover tenure and excluding six acting directors Culture The FBI has a rich culture that is dominated by the interests of law enforcement and has developed over many years “Fidelity Bravery and Integrity” are integrated in much of the training FBI employees receive It is the preeminent national and arguably international law enforcement entity No other U S -based organization has the same national and international law enforcement reach power and influence Critics have argued however that notwithstanding or perhaps because of this reactive law enforcement culture the FBI may not be well-equipped for the preventative counterterrorism mission which is now its number one priority 33 The FBI and its supporters recognize the need for substantial change that builds on existing strengths but substantially redirects FBI activities from a reactive posture to crimes already committed toward a proactive posture with a clear focus on preventing terrorist attacks on U S interests Some have observed that the outcome of the ongoing reorganization activities at the FBI hinge largely on the extent to which this cultural shift can be made and on the establishment of an effective and efficient intelligence program 34 32 continued FBI is reconsidering its field office structure to determine if it reflects the Nation’s criminal and national security priorities According to Director Mueller changes such as the shifting of population and crime patterns are factors causing this reassessment of field structure 33 See the Advisory Panel to Assess Domestic Response Capabilities for Terrorism Involving Weapons of Mass Destruction the “Gilmore” Commission and Protecting America’s Freedom in the Information Age a report of the Markle Foundation Task Force See also William E Odom Fixing Intelligence for More Secure America Yale University Press 2003 and Senator John Edwards “Iraq Terrorism and U S Global Leadership ” speech before the Center for Strategic and International Studies Oct 7 2002 See also Robert Bryant et al “America Needs More Spies ” The Economist July 10 2003 34 The FBI has been a statutory member of the U S Intelligence Community since 1947 with the passage of the National Security Act of 1947 50 U S Code §401 as amended Some continued CRS-15 The culture of intelligence driven organizations differs from those of pure law enforcement organizations 35 While foreign intelligence36 organizations are interested in long-term infiltration active and passive monitoring and deterrence the law enforcement bias is to arrest and prosecute The primary goal of a foreign intelligence organization is to 1 determine what intelligence should be collected to advance national interests 2 systematically collect that raw intelligence 3 apply analytical tools to the raw information in the development of informed judgements and 4 to share that finished intelligence with national level policymakers and other officials with a demonstrated need to know “Tradecraft” or the how where and why intelligence gathering takes place is of utmost importance 37 Recruitment of sources and penetration of groups operating in United States is highly valued 38 There are fewer legal restrictions on overseas U S Intelligence Community agency operations By contrast the primary goal of a pure law enforcement agency is to respond to criminal activities and to deter future crimes In general this goal is achieved by rigorous investigation of criminal activities and close cooperation with prosecution Discrete cases are the driving factor in a law enforcement organization while broader trends and relationships among social variables such as political economic and military factors drive intelligence organizations When law 34 continued would argue however that historically its criminal responsibilities eclipsed its intelligence mission 35 For a brief assessment of the cultural differences between intelligence and law enforcement see Siobhan Gorman “FBI CIA Remain Worlds Apart ” Government Executive Aug 1 2003 See also CRS Report RL30252 Intelligence and Law Enforcement Countering Transnational Threats to the U S updated Dec 3 2001 by Richard A Best Jr See also Mark Riebling Wedge The Secret War Between the FBI and the CIA Knopf 1994 36 Foreign Intelligence is defined as information relating to the capabilities intentions or activities of foreign governments or elements thereof foreign organizations or foreign persons See the National Security Act of 1947 50 U S Code Chapter 15 §401a Gathering of foreign intelligence within the United States is governed by among other sources the classified U S Department of Justice’s Foreign Counterintelligence Manual and for electronic surveillance the Foreign Intelligence Surveillance Act of 1978 50 U S Code §1861 as amended Gathering of foreign intelligence within the United States is governed by among other sources the classified U S Department of Justice Foreign Counterintelligence Manual and for electronic surveillance physical searches pen registers and trap and trace devices and access to “business records ” including any tangible things to obtain foreign intelligence information not concerning a U S person or to protect against international terrorism or clandestine intelligence activities the Foreign Intelligence Surveillance Act of 1978 50 U S Code §1801 et seq as amended 37 For a brief discussion of how foreign intelligence tradecraft differs from Homeland Security tradecraft see Bruce Berkowitz “A Fresh Start Against Terror ” New York Times Aug 4 2003 p A17 38 Some have argued a sound metric for assessing performance of an intelligence driven organization is the number of trusted penetrations the agency has recruited In general foreign intelligence organizations tend to perform better than pure law enforcement agencies in human asset recruitment S 1520 the “9-11 Memorial Intelligence Reform Act ” proposes the FBI enhance its efforts to penetrate terrorist organizations operating in the United States through “all available means” of collection CRS-16 enforcement entities operate within the United States civil liberties and the rights of U S citizens are of paramount concern As a result the domestic environment and any intelligence gathering which takes place in the United States is governed by a complex range of investigative guidelines and statutes and constitutional limits As a hybrid law enforcement and intelligence organization the FBI collects criminal intelligence in support of its law enforcement mission and foreign intelligence in support of its national security mission As such it has a set of unique advantages familiarity with treating terrorism as both a crime and potential threat to U S national security awareness of the need to protect civil liberties and challenges largely cultural as it attempts to change the balance between these two missions The FBI’s membership in the U S Intelligence Community makes it responsible for collecting analyzing exploiting and disseminating foreign intelligence Its primary national security mission areas have been and remain counterterrorism and counterintelligence As a result of this focus and its prominent law enforcement mission the FBI has not historically been a substantial producer of foreign intelligence Moreover because of its unique domestic law enforcement and intelligence mission the organization was for the most part the primary consumer of its own raw and finished intelligence Informing national policymakers about pressing national security matters when action may not be immediately necessary has historically not been a high FBI priority Rather the primary impetus for gathering intelligence was to support a case However according to Director Mueller the FBI is now moving from thinking about “intelligence as a case ” to finding the “intelligence in the case ”39 While some argue that intelligence is the more effective discipline in countering terrorists who operate clandestinely all elements of national power intelligence law enforcement military diplomatic economic have a role to play in combating terrorism An important element of an organization’s culture is not only the ethos of the entity itself but how its employees define themselves and interact with internal and external stakeholders As mentioned above the FBI employs a broad range of professionals that fall into two basic categories Special Agents and professional support Generally two professional support staff support each Agent 40 Agents are sworn law enforcement officers who carry a badge and weapon and are authorized to make arrests for many federal crimes including recently added authority to make arrests based on immigration violations 41 While the FBI continues to recruit lawyers and accountants as Agents it has diversified its recruitments to include linguists chemists and biologists and international affairs experts among others New 39 See “Combating Terrorism ” a Statement of Robert S Mueller III before the U S Senate Committee on the Judiciary July 23 2003 40 See P L 108-7 Consolidated Appropriations Resolution 2003 The FBI has approximately 26 000 total employees out of which about 12 000 are Agents 41 This authority was recently provided to the FBI when in Feb 2003 Attorney General John Ashcroft signed an order extending this power to the FBI This power had heretofore been reserved for Immigration and Naturalization Service Agents some U S Customs Service officials and a small amount of Southern Florida law enforcement officers See Dan Eggen “Rules on Detention Widened FBI Marshals Can Hold Foreigners ” Washington Post Mar 20 2003 p A11 CRS-17 Agents are required to pass 16 weeks of academic and practical training at the FBI Academy located at the Quantico Marine Base in Quantico Virginia Programspecific training follows the 16 week program and continues throughout an Agent’s career Professional support personnel cover myriad functions ranging from financial and human resources support to physical surveillance foreign language and intelligence analytical support All-source intelligence analysts work closely with Agents to provide tactical analytical support to ongoing national security and criminal cases They also provide strategic level analyses such as criminal terrorism or foreign intelligence patterns of activity and or trend analyses and programmatic analyses to FBI executives and U S Intelligence Community policymakers Training for professional support varies depending on the position In the wake of September 11 2001 the FBI has substantially increased training for new and existing intelligence analysts at the FBI to include an invigorated College of Analytical Studies an FBI program which leverages some Central Intelligence Agency CIA analytical training methodologies 42 International Presence and Role Internationally in the last decade the FBI has significantly expanded its presence to 45 Legal Attache LEGAT offices 43 Legal Attaches are located within the U S Embassy overseas and report to the U S Ambassador 44 Legats are integrated into the U S Embassy and serve the primary role of developing and nurturing reciprocal relationships with foreign law enforcement and security services in the mutual interest of investigating international crime and terrorism Legats gather information through overt liaison but are not engaged in clandestine intelligence collection FBI officials project that by the end of 2003 there will be approximately 133 Special Agents and 83 support personnel stationed overseas in support of the international mission 45 Legats played a prominent role in coordinating with overseas law enforcement and security services during the investigation into the terrorist attacks of September 11 2001 FBI case name PENTTBOMB 46 Legats are also responsible for facilitating the placement of 42 See Robert S Mueller III FBI Director testimony before the U S Senate Committee on the Judiciary “The War Against Terrorism Working Together to Protect America ” Mar 4 2003 43 See Appendix III for an international map of the FBI’s Legal Attaches There are 45 overseas Legal Attache offices and one domestic Legal Attache liaison office Miami Florida 44 The FBI has a Memorandum of Understanding MOU with the U S State Department regarding the placement of Legats in U S Embassies See John S Pistole testimony before the U S Senate Committee on Foreign Relations “Diplomacy and the War Against Terrorism ” Mar 18 2003 45 See testimony of Roderick L Beverly Special Agent-in-Charge FBI Office of International Operations before the House Judiciary Subcommittee on Immigration Border Security and Claims May 13 2003 46 The nomenclature of the PENTTBOMB case is as follows “PENT” for Pentagon and “TT” for twin towers CRS-18 foreign law enforcement officers into annual FBI National Academy classes 47 Through this program foreign law enforcement officers are trained in a broad range of criminal procedures with the attendant benefit of building a cadre of international contacts the FBI leverages to mutual advantage in international criminal and related investigations Current Major Investigative Programs Robert S Mueller III became Director of the FBI on September 4 2001 only one week prior to the infamous terrorist attacks of September 11 Up until that point the FBI had national security responsibilities including counterterrorism in Tier I of its 1998-2003 Strategic Plan’s Investigative Priorities Tier I combined national security responsibilities with other issues such as deterring criminal conspiracy 48 therefore the clarity and focus of FBI priorities arguably remained nebulous Nor was it generally perceived within the FBI that working national security accounts counterterrorism and counterintelligence was a career-enhancing endeavor The events of September 11 only made more stark the need to develop a definitive and clarified list of new priorities for the FBI Moreover the recent Robert Hanssen espionage case49 and the espionage investigation at Los Alamos National Laboratory also contributed to a perceived need for reprioritization particularly of national security-related issues at the FBI As a result on May 29 2002 the FBI Director announced the following 10 priorities Protect the United States from terrorist attack Protect the United States against foreign intelligence operations and espionage Protect the United States against cyber-based attacks and high-technology crimes Combat public corruption at all levels Protect civil rights Combat transnational and national criminal organizations and enterprises Combat major white-collar crime 47 Since its inception in 1935 over 2 000 foreign law enforcement officers from over 140 countries have participated in the National Academy For additional information on the National Academy see http www fbi gov hq td academy na na htm The FBI National Academy should not be confused with the FBI Academy established in 1920s which has as its primary purpose the training of new FBI Special Agents In 1972 the FBI opened a facility to train new Special Agents on the United States Marine Corps Base at Quantico Virginia 48 See Thomas J Pickard former Acting Director and Deputy Director FBI testimony before the House Committee on the Judiciary Subcommittee on Crime “Re-authorization of the FBI ” May 3 2001 49 Robert Hanssen was an FBI Special Agent who had substantial expertise in counterintelligence matters and had access to some of the most highly classified intelligence in the U S government Mr Hanssen betrayed the trust put in him by the U S government by committing espionage on behalf of the former Soviet Union and then Russia For more information on this case see the U S Department of Justice’s indictment at http www fas org irp ops ci hanssen_indict html CRS-19 Combat significant violent crime Support federal state local and international partners Upgrade technology to successfully perform the FBI’s mission As this prioritized list makes clear while the FBI continues to dedicate a majority of its time and resources to combating crime its national security mission has been dramatically elevated in stature and importance within the organization 50 What follows then is a brief description of the top four FBI investigative programs Counterterrorism Counterintelligence Criminal and Cybercrime including public corruption and Security FBI Counterterrorism Program 51 At the most generic level there are two types of terrorism that the FBI and other U S governmental agencies seek to counter – domestic terrorism and international terrorism The domestic terrorist threat can be categorized as coming from extremists on polar opposites of the political spectrum That is there are domestic groups that do not believe in the legitimacy of the U S government including its laws currency and sovereignty and others that are motivated by hatred of certain ethnic groups generally referred to as “right wing” extremists while others are primarily oriented toward violent activities to advance preferred social causes such as liberation of the earth or animals from perceived exploitation generally referred to as “left wing” extremists International terrorists and terrorist groups are generally categorized as State Sponsors of Terrorism or Foreign Terrorist Organizations 52 In FY2002 the FBI worked 12 512 50 According to the General Accounting Office GAO from FY2002 to FY2003 the FBI increased the allocation of FBI positions in the counterterrorism counterintelligence and cyber areas from 26% to 36% See FBI Reorganization Progress Made in Efforts to Transform but Major Challenges Continue Statement of David M Walker Comptroller General of the United States before the Subcommittee on Commerce Justice State and the Judiciary Committee on Appropriations June 18 2003 Although the FBI’s number one and two priorities are national security oriented it does not necessarily follow that these two priorities should consume a majority of FBI resources The quality of the human resources targeting of these resources against greatest threats and close collaboration between these resources and other Intelligence Community assets as well as state and local law enforcement partners may be better indicators of success in this area than raw financial data 51 The FBI treats terrorism as both a federal crime and as a national security issue Not all terrorism is a grave threat to national security but all terrorism or activity in support of terrorism is criminal This reflects the reality of the issue that is some prima facie criminal activities such as fraud and other illegal fund-raising techniques are engaged in domestically by those supporting terrorist activities at home or abroad The fact that the proceeds of these illegal activities may be used for violent or coercive activities directed against U S citizens to achieve a desired political outcome makes the activity inimical to U S values and interests Terrorism has the capacity to undermine national public and private institutions and values and negatively affect national quality of life As such multiple tools of statecraft including law enforcement intelligence diplomacy and military force are used to counter terrorism 52 Two other “lists” have been created by the U S government as counterterrorism tools – the Terrorism Exclusion List TEL which has immigration consequences for any aliens continued CRS-20 counterterrorism investigations 53 An abbreviated version of the history of the FBI’s Counterterrorism Program is illustrative The Wake Up Call The FBI’s organization for countering terrorism has shifted over time as the relative importance of terrorism as a national security and criminal issue has changed There have been three major periods in the development of the existing Counterterrorism Program The first period occurred in the early-tomid 1980s During this period the FBI’s counterterrorism program employed fewer than 500 people 54 In the aftermath of the 1983 bombings of the U S Embassy April – 63 dead 17 of whom were Americans and then the U S Marine Corps October – 241 Marine personnel dead barracks in Beirut Lebanon the FBI established a Terrorism Section within its Criminal Investigative Division Although the FBI has long had the authority to investigate federal crimes not assigned to other U S law enforcement entities the passage of the Hostage Taking Act of 1984 and the Omnibus Crime Bill of 1986 granted it the explicit authority for extraterritorial investigation of terrorist attacks against U S interests and citizens overseas 55 U S Vulnerability The second major period includes the early-to-mid 1990s During this period the United States not only was attacked overseas but perhaps more importantly there were successful and significant terrorist attacks within the United States The two most prominent attacks during this period involved the bombing of the World Trade Center in February 1993 an incident of international terrorism in which six Americans died and the April 1995 domestic terrorism attack on the Alfred P Murrah office building in Oklahoma City Oklahoma 168 52 continued “ who provide material assistance to or solicit it for designated organizations ” Executive Order 13224 Terrorist Financing allows the U S government “ to block designees’ assets in any financial institution in the United States or held by any U S person ” See U S Department of State Patterns of Global Terrorism 2002 The second set of lists is what is referred to as “Watch Lists ” These lists of which there are approximately 12 were established and are implemented by various executive agencies with intelligence counterterrorism and law enforcement responsibilities See GAO Report 03-322 Information Technology Terrorist Watch Lists Should be Consolidated to Promote Better Integration and Sharing Apr 2003 S 1520 the “9-11 Memorial Intelligence Reform Act ” proposes the establishment of a National Terrorist Watchlist Center which would has as its primary function the coordination and integration of all terrorist watchlists On Sept 16 2003 the Department of Justice announced the creation of the Terrorist Screening Center “ a multi-agency center anchored by the Departments of Justice Homeland Security and State and the Intelligence Community and administered by the FBI ” to “consolidate terrorist watchlists and provide 24 7 operational support for thousands of federal screeners across the country and around the world ” See Department of Justice News Release Sept 16 2003 53 See FY2004 FBI Budget Submission pp 2-6 54 By contrast in early 2003 the FBI dedicated approximately 3 000 field Agents to counterterrorism See Walker June 18 2003 See also Robert M Blitzer “Domestic Intelligence Challenges in the 21st Century ” prepared for the Lexington Institute’s February 2003 conference Progress Towards Homeland Security An Interim Report Card 55 Extraterritorial jurisdiction for acts of terrorism transcending national boundaries is granted to the Attorney General pursuant to Title 18 U S Code Chapter 113B §2332b CRS-21 Americans perished In part as a response in 1996 the FBI established with the support of the Congress its own Counterterrorism Center and devoted additional international terrorism and domestic terrorism experts to combating terrorism It was also during this period that the FBI transferred responsibility for terrorism from its Criminal Investigative Division to its National Security Division Catalyst for a War of Indeterminate Duration The third period is the late 1990s to 2001 It was during this period that loosely affiliated terrorist organizations became more active and attacks became more deadly and asymmetrical The August 1998 bombings of U S embassies in Kenya and Tanzania 224 killed 12 of whom were American are largely attributed in part to an increasingly aggressive al-Qaeda In 1999 to provide enhanced focus on counterterrorism the FBI transferred its counterterrorism program from the National Security Division to a newly established Counterterrorism Division In October 2000 the USS Cole was attacked 17 servicemen dead by al-Qaeda operatives as it was in the Yemen’s Aden Harbor for refueling 56 Then on September 11 2001 acts of violence directed against the United States were carried out with near simultaneous attacks an al-Qaeda hallmark on the Pentagon the World Trade Center and a third target that was averted with a scuttling of the hijacked United Flight 93 in rural Pennsylvania As a result of the events of September 11 2001 approximately 3 000 dead the majority of whom were American many changes have taken place and continue to be implemented to shift the FBI from a reactive to a proactive posture On May 22 2002 FBI Director Mueller outlined a reorganization initiative at the FBI A primary theme of this reorganization is program centralization and the establishment of a national intelligence program which rebalances the relationship between FBI Headquarters and field offices S 1520 a bill to amend the National Security Act of 1947 short title “the 9-11 Memorial Intelligence Reform Act” proposes that the FBI take a number of actions to enhance its counterterrorism capabilities including clearly designating priorities for national terrorism and enforcement of adherence by FBI field offices to such priorities establishing and maintaining a counterterrorism career track and formal training programs for Special Agents and Analysts and improving its ability to penetrate terrorist organizations operating in the United States Some of these changes are in process In addition to those changes already outlined above other major elements of this reorganization are as follows FBI Headquarters Organizational Changes The Director established a new EAD for Counterterrorism and Counterintelligence among three other EADs Subsequently the FBI Director has established an EAD for Intelligence whose primary function will be to establish and implement a formal and systematic Intelligence Program throughout the FBI The extent to which this initiative will be successful is largely dependent on whether the FBI’s strong law enforcement culture accepts and adopts this new approach to intelligence 56 See CRS Report RS 20721 Terrorist Attack on the USS Cole Background and Issues for Congress updated Jan 30 2001 by Ronald O’Rourke and Raphael Perl CRS-22 Analytical Enhancements In order to immediately meet the surge in demand for real-time tactical and strategic counterterrorism analysis the FBI requested and received 25 analysts on temporary detail from the CIA According to the FBI since September 11 2001 it has increased the number of its Intelligence Operations Specialists from 65 to 345 and increased the number of Intelligence Research Specialists from 41 to 130 57 To meet the sustained long-term need for counterterrorism analysis for FY2004 the FBI has requested 214 additional counterterrorism analysts a number that would quadruple the pre-September 11 number of counterterrorism analysts 58 These analysts will be part of the newly formed Analysis Branch of the FBI’s Counterterrorism Division Perhaps most importantly analysis of foreign threat intelligence gathered overseas and in the United States on terrorism will be integrated in the newly established Terrorist Threat Integration Center TTIC which reports to the Director of Central Intelligence in his capacity as the leader of the U S Intelligence Community 59 The Director of the TTIC is a CIA employee detailed to the TTIC while the Deputy Director is an FBI employee detailed to the TTIC 60 57 Until just recently the FBI has had two categories of professional support employees who engage in analysis While Intelligence Research Specialists are all-source intelligence analysts who engage in a full range of tactical strategic and programmatic analysis Intelligence Operations Specialists are more tactically oriented and provide direct case and operational support The FBI is currently in the process of merging these two categories of employees into one - intelligence analysts The newly created Reports Officers generally do not engage in traditional all source analysis their focus is reviewing raw information in a timely manner and understanding to whom internally and externally that information must be disseminated 58 See Statement by FBI Director Robert Mueller regarding the Joint Intelligence Committee Report into the Terrorist Attack of September 11 2001 U S Department of Justice FBI Press Release July 24 2003 59 Currently the Director of Central Intelligence serves as both the leader of the Central Intelligence Agency and as Director of the broader U S Intelligence Community The pending 9 11 Intelligence Memorial Reform Act S 1520 would create a Director of National Intelligence and that individual would be precluded from simultaneous service as the Director of the CIA and Director of National Intelligence Some have argued this proposal would undermine the DCI’s power base See Robert M Gates “How Not to Reform Intelligence ” Wall Street Journal Sept 3 2003 Finally while the TTIC reports to the Director of Central Intelligence as leader of the U S Intelligence Community the organization has been categorized as a “joint venture” of U S Intelligence Community participants 60 While there is widespread agreement on the need to have more integrated foreign and domestic counterterrorism analytical effort some observers are skeptical of the placement of an intelligence analytical “fusion” center within the U S Intelligence Community Some believe placement of such a center within the U S Intelligence Community will undermine intelligence sharing with state and local law enforcement Moreover according to the Homeland Security Act P L 107-296 an Undersecretary of Information Analysis and Infrastructure Protection IAIP was to be established within the newly created Department to inter alia 1 assess the nature and scope of the terrorist threat to the Homeland 2 understand threats in light of actual and potential vulnerabilities of the Homeland and 3 continued CRS-23 Investigative Enhancements With respect to field Agents dedicated to the FBI’s three highest priorities counterterrorism counterintelligence and cybercrime the FBI has increased this number from approximately 2 376 Agents in FY02 to 3 308 Agents in FY03 a 39% increase in 1 year 61 Intelligence squads including supporting Reports Officers also have been established at FBI field offices to ensure that this important function is given appropriate attention Re-engineering Projects The FBI Director has about 40 ongoing or completed re-engineering projects designed to improve the focus information technology 62 and business practices at the organization Six projects have been completed eight additional projects are in the final stages of completion and work continues on the remainder 63 Counterterrorism and counterintelligence share the same basic discipline that is efforts in both areas are supported by clandestine intelligence activity and may or may not be state sponsored FBI Counterintelligence Program The FBI’s Counterintelligence 64 Program developed largely as a response to real or perceived threats to U S national 60 continued integrate relevant information analyses and vulnerability assessments to identify priorities for protective measures IAIP is a member of the TTIC and the U S Intelligence Community For additional information on TTIC see CRS Report RS 21283 Homeland Security Intelligence Support updated June 23 2003 by Richard A Best Jr See also Joint Hearing on the Terrorist Threat Integration Center House Select Committee on Homeland Security and the House Judiciary Committee July 22 2003 61 See General Accounting Office GAO FBI Reorganization Progress Made in Efforts to Transform but Major Challenges Continue testimony of David Walker before the House Committee on Appropriations Subcommittee on Commerce Justice State and the Judiciary June 18 2003 62 The Trilogy project is the FBI’s overarching initiative to improve its antiquated information technology infrastructure Broadly speaking the goals are to improve information connectivity between and among national and international FBI entities the U S Intelligence Community and where appropriate state and local law enforcement agencies Another important element of this program is to re-engineer FBI information systems so that information can be readily captured and retrieved for timely analytical exploitation For additional information see Federal Bureau of Investigation’s Management of Information Technology Investments Report No 03-09 Dec 2002 U S Department of Justice Office of the Inspector General 63 For a list of these projects see Dick Thornburgh Chairman National Academy of Public Administration Panel of FBI Reorganization testimony before the House Subcommittee on Commerce Justice and State the Judiciary and Related Agencies Committee on Appropriations June 18 2003 64 Counterintelligence is defined as information gathered and activities conducted to protect against espionage other intelligence activities sabotage or assassinations conducted for or on behalf of foreign powers organizations or persons or international terrorist activities but not including personnel physical document or communications security programs See Executive Order 12333 United States Intelligence Activities Dec 4 1981 See also continued CRS-24 security as a result of the clandestine foreign intelligence activities directed against the United States The goal of counterintelligence is to neutralize deter detect and prevent where possible foreign intelligence activity directed against U S interests Notwithstanding the end of the Cold War counterintelligence remains a vital U S national security function as nation states and sub-national actors continue to act in their own parochial self interest 65 Moreover as the world’s dominant economic and military power the United States remains a target for foreign intelligence activity from a broad range of countries Although espionage66 cases are the very public face of counterintelligence the majority of counterintelligence cases never reach prosecution History The FBI’s history illustrates that during times of national crisis its domestic intelligence activities have occasionally circumvented constitutional norms On balance however enhanced Attorney General Guidelines covering a broad range of issues such as legal predicates for initiating counterintelligence investigations the establishment of congressional intelligence committees as well as the passage of statutes governing electronic surveillance 67 have strengthened the legal regulatory and oversight environment in which the FBI must operate Imbalances Between Dissent and Subversion As alluded to above historically the FBI and other intelligence agencies have been engaged in intelligence activities directed against individuals based solely on their exercising First Amendment constitutional rights 68 The “Palmer Raids” took place in 19191921 as the FBI’s “Radical Division” later renamed the General Intelligence Division sought to round up “anarchist” and “revolutionary” aliens It was alleged that these individuals some of whom belonged to the Communist Party of America were actively engaged in supporting the violent overthrow of the U S government In fact although many of the individuals subject to the raids may have had political beliefs that were inconsistent with those of contemporary governing authorities subsequent investigation revealed that many of the so-called radicals were U S 64 continued National Security Act of 1947 50 U S Code Chapter 15 §401a 65 See David Szady Assistant FBI Director Counterintelligence Division “Changes the FBI is Making to the Counterintelligence Program ” statement before the Senate Judiciary Committee Apr 9 2002 66 In general there are two categories of espionage – that which involves the unlawful transfer of classified national defense information to an unauthorized third party see 18 U S Code Chapter 37 §§793 794 and 798 and that which involves theft of commercial trade secret information which is categorized as “economic espionage ” Economic espionage was codified in 1996 see 18 U S Code Chapter 90 §1831 67 The landmark statute in this case is the Foreign Intelligence Surveillance Act of 1978 as amended by P L 107-56 which stipulates that a court order must be granted prior to collecting electronic surveillance for foreign intelligence purposes 68 See Tony Poveda Lawlessness and Reform The FBI in Transition Brooks Cole Publishing 1990 CRS-25 citizens who were not actively engaged in any Communist activity to overthrow the U S government 69 Throughout the Cold War as the FBI fought an intense counterintelligence battle against the hostile intelligence activities of the Soviet Union and its client states the FBI occasionally would become involved in domestic intelligence activities inappropriately and in contravention of the basic tenets of an open democracy Some of these activities included COINTELPRO During the 1956-1971 era the FBI developed and implemented its infamous Counterintelligence program or COINTELPRO Through this program the FBI investigated those involved in vaguely defined “subversive” activities including U S citizens engaged in legitimate political discourse and advocacy such as civil rights leader Martin Luther King Jr 70 In March 1971 antiwar activists broke into the FBI field office in Media Pennsylvania and stole about 1 000 classified documents that chronicled the FBI’s surreptitious surveillance of anti-Vietnam War activists These documents were incrementally leaked to the press CISPES In the early 1980s the FBI investigated the domestic activities of a group know as the Committee in Solidarity with the People of El Salvador CISPES a group engaged in fund-raising activity in the United States with remittance payments to El Salvador The purpose of the initial investigation was to determine if CISPES had violated the Foreign Agent Registration Act 71 Subsequently in 1983 the FBI opened a broader investigation to determine if the organization was engaged in international terrorist activity Although a congressional investigation concluded that the FBI’s investigation did not reflect “significant FBI political or ideological bias ” its activities “resulted in the investigation of domestic political activities protected by the First Amendment that should not have come under governmental scrutiny ”72 Library Awareness Program In late 1980s the New York Office of the FBI Counterintelligence Program initiated what became known as the Library Awareness Program Through this program FBI Agents visited certain libraries within the New York area to make librarians aware that Intelligence Officers of the former Soviet Union may attempt to spot assess and recruit librarians and or students as intelligence agents of the Soviet Union This FBI initiative was predicated on prior Soviet hostile intelligence activity which demonstrated that known intelligence officers sought to fulfill Soviet intelligence collection requirements regarding U S high technology before it became classified or restricted by tasking librarians or students at technical 69 See Edwin Hoyt Palmer The Palmer Raids 1919-1921 An Attempt to Suppress Dissent Seabury Press 1969 70 For further information on the history of COINTELPRO see Church Committee Report 71 The Foreign Agent Registration Act requires that persons acting as foreign agents as defined by the Act register with the U S Department of Justice for among other reasons transparency see 22 U S Code §611 72 See “The FBI and CISPES ” a report of the Select Committee on Intelligence U S S Prt 101-46 July 1989 CRS-26 libraries Some civil libertarians and other library groups believed that even though this program was not national in scope it risked undermining the democratic ideal of openness particularly because it might impinge on the sharing of open unclassified information 73 These FBI activities and those of other intelligence agencies in the Watergate era a time characterized by general mistrust of the government led to increased oversight of the FBI The Pendulum Swings Back Oversight and Regulation In the wake of these and other scandals both the executive and legislative branches of government took action to protect the constitutional rights of U S citizens Former Attorney General Edward Hirsch Levi 1975-1977 issued “Domestic Security Investigations” Guidelines also known as the “Levi” Guidelines which clarified FBI authorities in this area Nearly six years later in 1983 these Guidelines were updated and incorporated into the Attorney General Guidelines on “General Crimes Racketeering Enterprises and Domestic Security Terrorism Investigations ”74 In the mid-1970s the Congress established two permanent select committees to conduct oversight of U S intelligence activities Later in 1978 the Congress passed the Foreign Intelligence Surveillance Act FISA P L 95-511 to establish legal standards and criteria for electronic surveillance of foreign intelligence activities in the United States 75 Executive Order 12333 United States Intelligence Activities signed in 1981 also prevents members of the U S Intelligence Community from conducting inter alia electronic surveillance in the United States unless expressly 73 The USA PATRIOT ACT P L 107-56 §215 amended the Foreign Intelligence Surveillance Act of 1978 50 U S Code §1861 to allow the Director of the FBI or a designee to make an application for an order requiring the production of “ any tangible things including books records papers documents and other items ” for an authorized international terrorism or counterintelligence investigation This remains contentious today and there are at least three bills pending in the108th Congress S 1158 S 1507 and H R 1157 which would either exempt bookstores and libraries from orders requiring the production of any tangible things for certain foreign intelligence investigations or amend the standards for such orders Recently the American Civil Liberties Union ACLU and six Muslim groups sued the U S government arguing that these elements of the PATRIOT Act are unconstitutional on the grounds that they violate the privacy due process and free speech rights of Americans See Eric Lichblau “Suit Challenges Constitutionality of Powers in Antiterrorism Law ” New York Times July 31 2003 74 See “FBI Domestic Security Guidelines ” Oversight hearings before the Subcommittee on Civil and Constitutional Rights House Committee on the Judiciary House Representatives Apr 27 1983 The 1976 and 1983 versions of the domestic security guidelines were subsequently updated and modified by both Attorneys General Richard Thornburgh 1989 and Janet Reno 1994 75 Some elements of FISA were recently amended in the USA PATRIOT Act P L 107-56 in the Intelligence Authorization Act for FY2002 P L 107-108 and in the Homeland Security Act of 202 P L 107-296 See CRS Report RL30465 The Foreign Intelligence Surveillance Act An Overview of the Statutory Framework and Recent Judicial Decisions updated Mar 31 2003 by Elizabeth Bazan See also CRS Report RL 31200 Terrorism Section by Section Analysis of the USA PATRIOT Act updated Dec 10 2001 by Charles Doyle CRS-27 authorized by the Attorney General and subject to probable cause legal standards 76 It was within this newly regulated environment that the FBI’s Counterintelligence program would have some of its highest profile successes – investigations and prosecutions of espionage Year of the Spy In comparison to the early 1950s when the only executions for the crime of espionage took place in the United States the period of the late 1960s through the mid-1970s can be aptly characterized as relatively quiescent from a counterespionage perspective During the 1966-1975 period there were five arrests for espionage and related charges It was not until the late 1970s that the Justice Department under former Attorney General Griffin Bell 1977-1979 assumed a more aggressive posture against espionage As implemented by Judge William Webster FBI Director from 1978 to1987 the FBI’s Counterintelligence program was invigorated As counterintelligence cases can be relatively slow in pace due to their intelligence nature and relatively high legal thresholds for successful conviction the FBI’s aggressive investigation bore significant fruit in the mid -1980s In 1985 alone the FBI arrested 11 individuals for espionage and the year was dubbed the “Year of the Spy ” The John Walker espionage ring alone accounted for the indictment of four individuals who were either convicted of or pleaded guilty to charges of espionage John Walker was a U S Navy warrant officer with a top secret clearance and access to cryptography codes a position which allowed him access to some of the most important national security secrets the nation had He committed espionage on behalf of the Soviet Union from the late 1960s until he was arrested Other espionage arrests in 1985 included Larry Wu-Tai Chin a CIA employee on behalf of the People’s Republic of China Jonathan Pollard an intelligence analyst with the Naval Investigative Service on behalf of Israel and Ronald Pelton a former National Security Agency communications specialist on behalf of the Soviet Union 77 Post Cold War Counterintelligence When the former Soviet Union dissolved in 1991 the FBI like many agencies in the federal bureaucracy that were targeted staffed and trained to contain the Soviet threat had to reassess its approach and priorities for counterintelligence The Department of Justice led an effort to reassess the new international environment and target its counterintelligence resources accordingly The bipolar world had dissolved with the passing of the Soviet Union and was replaced with a multipolar world The new world was far less certain and far more complex than the well tested boundaries of international behavior that had evolved since 1945 The end result of the Department of Justice FBI counterintelligence review was a concept known as the National Security Threat List NSTL 78 Flexible enough to incorporate a broader array of “non-traditional” threats that is those foreign powers that did not traditionally target 76 See Executive Order 12333 §§2 4 and 2 5 77 See CRS Report 93-531 Individuals Arrested on Charges of Espionage Against the United States Government 1966-1993 Revised May 27 1993 by Suzanne Cavanagh available from the authors of this report For a compilation of espionage cases through 1999 see http www dss mil training espionage 78 See Pat Watson “The FBI’s Changing Mission in the 1990s ” Consortium for the Study of Intelligence Mar 24 1992 CRS-28 the United States with their foreign intelligence resources the NSTL is composed of two elements 1 a classified list of countries whose demonstrated level of activity directed against the United States warrants special attention and monitoring and 2 an unclassified “Issues List ” which provides the predicate for opening an investigation on any foreign power engaged in activity outlined by the eight issues 79 Some of the higher profile cases during this era include Aldrich Hazen Ames Aldrich Ames was a CIA Directorate of Operations Officer who worked on intelligence matters relating to the Soviet Union In his later career he had responsibilities related to Soviet counterintelligence which afforded him access to the identities of some of the Soviet sources who had been recruited and operated by U S intelligence agencies From 1985 to 1994 Ames committed espionage on behalf of the Soviet Union and then Russia He was arrested in 1994 and was convicted of one count of espionage under 18 U S Code §794 c Los Alamos National Laboratory LANL LANL is one of the world’s preeminent nuclear weapons design and testing facilities In the late 1990s DOE intelligence and counterintelligence officials alleged that highly classified documents concerning the design of the W-88 nuclear warhead may have been made available to China 80 Wen Ho Lee was a naturalized U S citizen of Taiwanese origin who worked at LANL’s Applied Physics or “X” Division which has expertise involving all aspects of nuclear weapons physics and a lead role in assessing the safety and reliability of the nuclear stockpile Based on a DOE Administrative Inquiry and subsequent FBI full foreign counterintelligence investigation in December 1999 Lee was indicted on 59 counts of violating the Atomic Energy Act and committing espionage 42 U S Code §2276 and 18 U S Code §§793 c and 793 e respectively Based on FBI testimony to a federal judge that Lee posed a flight risk he was arrested and placed in solitary confinement for 9 months The case became contentious and public as it was alleged by Lee’s defense attorneys that racial profiling played a role in his indictment Moreover investigative agencies never located tapes onto which the indictment alleged that Lee downloaded classified information and removed it from Los Alamos National Laboratory In the end he pled guilty to one count of unlawfully collecting and keeping classified information relating to the national defense and was sentenced to time served during his pretrial detention The remaining 58 of 59 counts were dropped 79 These issues are Terrorism Espionage Proliferation Economic Espionage Targeting the National Information Infrastructure Targeting the U S Government Perception Management and Foreign Intelligence Activities See http www fas org irp ops ci ansir htm 80 See U S Congress House Select Committee on U S National Security and Military Commercial Concerns with the People’s Republic of China the “Cox” report which can be accessed through http hillsource house gov CoxReport cont gncont html For a critical review of the handling of this case see The Attorney General’s Review Team on the Handling of the Los Alamos National Laboratory Investigation “Bellows” report May 2000 Much of this report is classified but a redacted version can be viewed at http www usdoj gov ag readingroom bellows htm CRS-29 Robert Hanssen As mentioned above former FBI Agent Robert Hanssen was convicted of committing espionage on behalf of the former Soviet Union and then Russia in the late 1980s and then again in the late 1990s Like Aldrich Ames Hanssen’s insider access through his FBI position allowed him to be a valuable Russian agent Tipped off that the FBI had a “mole” in its ranks by a U S Intelligence Community-controlled double agent Hanssen’s espionage career was halted in February 2001 He is now serving a life sentence without parole the result of a plea bargain with the U S Department of Justice In early 2003 the FBI’s Counterintelligence program developed a Strategic Plan outlining the FBI’s perception of top foreign intelligence threats and therefore its top counterintelligence priorities According to Director Mueller these threats and resultant counterintelligence priorities include 1 the potential for an agent of a hostile group to enhance its capability to produce or use a weapon of mass destruction 2 the potential for a foreign agent to penetrate the U S Intelligence Community for espionage purposes 3 targeting of government supported research and development and 4 compromise of U S Critical National Assets 81 Other important recent changes in the Counterintelligence program include the establishment of a Counterespionage Section to manage classic national defense information and economic espionage cases and a centralization of the program with FBI Headquarters taking a more direct role in setting priorities and allowing FBI field offices some degree of autonomy in how they implement these national priorities FBI Criminal Enterprises White Collar Cyber and Other Federal Crimes The FBI’s major criminal responsibilities include investigating organized criminal enterprises white collar crime public corruption civil rights violations and a host of other crimes that often fall within the jurisdiction of state and local law enforcement but are either committed across state borders or are so complex in nature that federal involvement is appropriate Such crimes include kidnaping extortion bank robberies child exploitation and pornography and international child abduction In FY2002 out of a $5 1 billion budget and 28 277 funded positions 82 the FBI obligated over half of its funding and positions to combat criminal enterprises and other federal crimes 83 81 See Robert S Mueller III “FBI’s Fiscal Year 2004 Budget ” testimony before the House Appropriations Committee Subcommittee on the Departments of Commerce Justice and State the Judiciary and Related Agencies Mar 27 2003 A Critical National Asset is defined as those “ persons information assets activity research and development technology infrastructure economic or security interests whose compromise would do damage to the survival of the United States ” 82 The number of “funded positions” an agency has does not always correlate directly to the number of on board employees an agency has as hiring and attrition are fluid and ongoing processes 83 U S Department of Justice 2004 Congressional Authorization and Budget Submission Volume II Federal Bureau of Investigation Washington Feb 2003 pp 1-7 and pp 1-9 CRS-30 Organized Criminal Enterprises The FBI defines “organized criminal enterprises” as continuing and self-perpetuating criminal conspiracies by groups that are hierarchical in structure and employ the use and threat of violence to maintain their power base Through investigation and prosecution the FBI’s Organized Crime program seeks to disrupt the largest criminal enterprises In FY2002 the FBI worked nearly 4 087 organized crime cases of which 956 ended in a conviction or a pre-trial diversion 84 It is noteworthy that as part of every major crime law Congress passed the FBI received enhanced capacity to combat organized crime Specifically two laws passed by Congress gave the Department of Justice and the FBI the tools to more effectively combat organized crime In 1968 Congress passed the Omnibus Crime Control and Safe Streets Act of 1968 P L 90-351 Title III of this Act defined for the first time parameters within which federal law enforcement could engage in electronic surveillance during criminal investigations 85 In 1970 Congress passed the Racketeering-Influenced and Corrupt Organizations RICO Act P L 91-452 giving federal law enforcement new statutory laws by which they could prosecute professional criminals who are linked to a pattern of criminal activity 86 Crimes covered by RICO include but are not limited to sports bribery counterfeiting embezzlement of union funds mail fraud wire fraud money laundering obstruction of justice murder for hire drug trafficking prostitution sexual exploitation of children alien smuggling trafficking in counterfeit goods theft from interstate shipments and interstate transportation of stolen property State crimes covered by RICO include murder kidnaping gambling arson robbery bribery extortion and drug trafficking Factors that perpetuate organized crime include social and economic instability in the newly emerging post-Soviet nation states increased cross-border commerce the development of the Internet widespread use of electronic banking increased ease and frequency of international travel the continuing profitability of international drug trafficking and the possible proliferation of nuclear chemical and biological weapons of mass destruction According to the FBI the principal organized crime groups–that are not primarily involved in drug trafficking – include 1 La Cosa Nostra and other Italian organized crime groups 2 Russian and Eastern European crime groups and 3 East Asian crime groups While these groups are identified with ethnic groups their associates are often of other backgrounds Some observers note that increasingly these groups are specializing in order to carve out market niches For example the Russian mob is known to produce high quality forged 84 2004 FBI Budget Submission pp 2-11 Pre-trial diversions usually include cases where the U S Attorney decides to postpone prosecution depending upon the offender agreeing to testify or agreeing to accept certain probation-like conditions or both 85 For further information see CRS Report 98-327 Privacy An Abbreviated Outline of Federal Statutes Governing Wiretapping and Electronic Eavesdropping by Gina Stevens and Charles Doyle 86 For further information see CRS Report RS20376 RICO An Abridged Sketch by Charles Doyle CRS-31 documents They are also cooperating with one another to a greater degree than in the past 87 A brief summary of these groups and others follow La Cosa Nostra LCN emerged as a national criminal threat in the 1950s and 1960s These groups are involved in a wide variety of on-going criminal enterprises that include illegal gambling prostitution drug trafficking theft fraud extortion public corruption and the infiltration of labor unions Russian and Eastern European criminal enterprises emerged following the break-up of the Soviet Union in 1991 These groups are sophisticated and specialize in international money laundering bank fraud and forgery They conduct the bulk of their activities in the former Soviet Union but they are also highly mobile and have been active in the United States 88 East Asian criminal enterprises include the Chinese Triads and Japanese Yakuza They also includes smaller but often more violent gangs from Vietnam Laos Cambodia and Thailand Their criminal activities include narcotics trafficking financial crimes prostitution public corruption and alien smuggling Drug trafficking organizations There are several major Mexican Colombian Jamaican and Dominican drug trafficking organizations According to GAO since September 11 2001 about 40% of FBI Special Agent positions dedicated to drug enforcement have been shifted to either the national security or counterterrorism programs At the end of FY2002 the FBI had 1 379 agents positions allocated to drug cases by the second quarter of FY2003 it only had 823 agents working these matters 89 The number of newly opened drug cases is expected to drop sharply in FY2003 to just over 300 as compared to 944 cases in FY2002 1 413 in FY2001 and 1 825 in FY2000 90 In FY2002 the FBI worked 10 132 open drug cases of which nearly 3 906 ended in convictions or pre-trial diversions 91 Other Violent Gangs In recent decades law enforcement agencies have noted a rise in violent street gangs prison gangs and outlaw motorcycle gangs Los Angeles is the center of gang phenomenon but there has been significant migration of street gangs from larger to smaller urban areas Such street gangs would include the Bloods the Crips Folk Nation the People Nation the18th Street Gang and the Mara Salvatrucha Many of these street gangs are run by prison gangs as older gang members are incarcerated but continue to run gang operations from prison Outlaw 87 Jeffrey Robinson The Merger How Organized Crime is Taking Over Canada and the World 1999 88 For a description of gasoline bootlegging scams carried out by Russian organized crime groups see Robert I Friedman Red Mafiya How the Russian Mob Has Invaded America New York Mar 2000 266 p 89 U S General Accounting Office FBI Reorganization Progress Made in Efforts to Transform but Major Challenges Continue GAO-03-759T Washington June 18 2003 p 16 90 Ibid pp 18 91 2004 FBI Budget Submission pp 2-11 CRS-32 motorcycle gangs continue to pose a threat as well They include among others the Hells Angels the Bandidos the Pagans and the Warlocks Since motorcycle gangs often engage in interstate narcotics trafficking – particularly methamphetamine – and prostitution they have been the target of major FBI investigations In FY2002 the FBI worked 1 832 gang-related cases of which 956 ended in convictions or pre-trial diversions 92 White Collar Crime and Public Corruption White collar crime refers to non-violent fraudulent enterprises committed by persons while engaged in legitimate occupations Such crimes range from small-time embezzlements to corporate malfeasance and are committed in every major sector of the economy They include health care fraud public corruption financial institution fraud insurance fraud securities and commodities fraud telemarketing fraud bankruptcy fraud environmental crimes money laundering and intellectual property rights There is a widespread public perception moreover that high-level white collar and public corruption crimes go unpunished 93 Three areas of “white collar” crime present the greatest challenge to the FBI They include health care fraud public corruption and corporate and securities fraud In FY2002 the FBI worked 42 738 white collar crime cases of which 6 918 resulted in convictions or pre-trial diversions 94 Health Care Fraud In Calendar Year CY 2000 fraud in the burgeoning $1 3 trillion health care sector had become so lucrative that law enforcement agencies95 documented the migration of some crime groups from drug trafficking and other criminal enterprises to health care fraud Health care fraud involves making false claims to health care insurers including Medicare and Medicaid The Centers for Medicare and Medicaid Services CMS estimate that health care expenditures will exceed $2 trillion by CY2006 96 A recent audit of the Medicare fee-for-services program reported that out of $192 billion in claims paid in CY2001 over $12 billion in claims or 6% were paid in error without proper documentation or were fraudulent 97 The National Health Care Anti-Fraud Association estimates that at least 3% of health care outlays or $39 billion was lost to outright fraud in CY2000 98 92 Ibid pp 2-11 93 David Burnham “The FBI A Special Report ” The Nation Aug 11-18 1997 p 12 94 2004 FBI Budget Submission pp 2-10 2-11 95 The U S Department of Health and Human Services including its Office of Inspector General participates in combating healthcare fraud 96 Department of Health and Human Services Centers for Medicare Medicaid Services National Health Care Expenditures Projections Tables Table 1 click on http cms hhs gov statistics nhe projections-2001 t1 asp 97 Department of Health and Human Services Office of Inspector General Improper Fiscal Year 2001 Medicare Fee-For-Service Payments Report A-17-01-02002 Washington February 21 2002 click on http www oig hhs gov oas reports cms a0102002 pdf cited in National Health Care Anti-Fraud Association Health Care Fraud A Serious and Costly Reality for All Americans p 2 click on http www nhcaa org pdf all_about_hcf pdf 98 National Health Care Anti-Fraud Association Health Care Fraud p 2 click on continued CRS-33 Other estimates place the losses in the 10% range or $130 billion per year 99 Health care fraud includes the following scams billing for services never provided billing for higher reimbursed services than actually performed upcoding performing unnecessary services simply to generate billings misrepresenting treatments as medically necessary to obtain coverage and referring patients to ancillary providers in return for a kickback Congress included provisions to combat fraud in the Health Insurance Portability and Accountability Act of 1996 P L 104-191 HIPAA Beside making health care fraud a federal crime the Act established a dedicated funding stream which is used to fund FBI efforts to detect and investigate fraud in the Medicare and Medicaid programs Prior to the Act funding for health care fraud investigations were directly appropriated For 2003 the FBI anticipated that it would receive $114 million from HIPAA supporting 878 positions 507 agents 100 Public Corruption The FBI is responsible for investigating public corruption cases that involve federal state and local public servants entrusted with the safety and protection of the citizenry and public property In addition to independent inspectors general at federal agencies the FBI is perhaps the only agency that is positioned to investigate pervasive corruption and restore the public’s faith in public institutions Its role however in policing such corruption has been controversial When such investigations are ill conceived poorly managed or perceived as politically motivated they actually undermine the public’s faith in the federal government’s ability to effectively police the Nation Perhaps the most well known public corruption investigation was ABSCAM an undercover operation in which the FBI used middlemen to lure public figures into taking bribes While controversial ABSCAM led to the successful prosecution of one Senator and six Members of the House of Representatives among others More recently an FBI investigation resulted in the conviction of Congressman James A Traficant on multiple counts including bribery tax evasion and racketeering In FY2002 the FBI worked 2 344 public corruption cases of which 631 resulted in convictions or pre-trial diversions 101 Corporate Fraud and Securities In July 2002 the FBI established a corporate fraud task force and since that date 45 of 56 FBI field offices have participated in some part of task force operations As of February 2003 the FBI had opened more than 50 corporate fraud investigations Among others the FBI is currently investigating Enron WorldCom Tyco International Rite Aid Qwest Communications Peregrine Systems K-Mart ImClone Systems Global Crossing 98 continued http www nhcaa org pdf all_about_hcf pdf 99 Ibid p 2 100 2003 FBI Budget Submission pp 3-4 101 2004 FBI Budget Submission pp 2-10 CRS-34 Dynegy Duke Power and CMS Energy Corporation 102 Of these investigations 13 involve estimated losses to investors that exceed $100 million 103 In the wake of these corporate scandals Congress increased penalties for certain types of securitiesrelated fraud in the Sarbanes-Oxley Act P L 107-204 104 To address corporate crime the FBI has formulated a four-part plan First the FBI is working to increase liaisons with other agencies that work corporate and security fraud Such agencies would include the Securities and Exchange Commission the U S Postal Service State Attorney General offices and other state agencies Second the Bureau is increasing training for Agents and Analysts in the areas of corporate fraud securities fraud and money laundering Third the Bureau is establishing a corporate fraud “reserve team ”consisting of 304 agents and over 300 financial analysts with investigative expertise in the area of corporate and securities fraud This team will be available to be deployed as needed in the case of large and complex investigations on the scale of Enron or WorldCom Fourth the FBI intends to hire additional agents and analysts who can be dedicated to the corporate fraud reserve team 105 Cybercrime Cyberspace has been described as the “nervous system” of our Nation’s critical infrastructures Cyberspace essentially consists of hundreds of thousands of computers networks and routers that are linked together in a massive telecommunications grid known as the Internet Enemies of the United States can conduct espionage and prepare for cyber strikes against the United States through the Internet 106 Criminals moreover have exploited computers and the Internet to engage in identity theft and other types of fraud Consequently cyber security has become a national priority and the Executive Branch has formulated a National Strategy to Secure Cyberspace 107 To reduce threats and vulnerabilities the National Strategy calls for enhancing law enforcement’s capabilities to prevent and prosecute cyberspace attacks The FBI has a prominent role to play in this area Following September 11th the reorganization of the FBI included the creation of Cyber Division as the Bureau prioritized cybercrime Within the Cyber Division the FBI established a Computer Investigation Threat Assessment Center CITAC to conduct and coordinate all investigations involving foreign terrorists or powers that threaten or attack the integrity of our Nation’s information systems While the newly created Department of Homeland Security is responsible for protecting the Nation’s 102 For further information see CRS Report RS21269 Accounting Problems Reported in Major Companies Since Enron by Mark Jickling 103 U S Department of Justice Federal Bureau of Investigation Corporate Fraud Hotline Press Release Washington Feb 5 2003 1 p http www fbi gov pressrel pressrel03 mueller022503 htm 104 For further information see CRS Report RL31554 Corporate Accountability SarbanesOxley Act of 2002 P L 107-204 by Michael V Seitzinger and Elizabeth B Bazan 105 FBI Budget Submission pp 5-12 106 For information on one international dimension of this issue see Ariana Eunjung Cha “Internet Dreams Turn to Crime Russian Start-Up Firm Targeted U S Companies ” a threepart series of articles in the Washington Post beginning May 18 2003 107 The White House The National Strategy to Secure Cyberspace Washington Feb 2003 60 p Available at http www whitehouse gov pcipb cyberspace_strategy pdf CRS-35 cyber infrastructure 108 the FBI’s Cyber Division is responsible for investigating federal crimes that have a cyber nexus 109 Cyber-related investigations could include violations of intellectual property rights including theft of trade and signal secrets software copyright infringements Internet and online credit debit card fraud Internet and online identity theft and fraud and online child pornography Since investigations handled by the Counterterrorism Counterintelligence and Criminal Investigations Divisions could also involve cyber-related elements the Cyber Division supports these divisions with technical assistance Besides conducting cybercrime investigations the Cyber Division is working to maintain the necessary public private alliances provide education and training and stay abreast of the emerging technologies In partnership with the National White Collar Crime Center NW3C the FBI also established the Internet Fraud Complaint Center IFCC in 1999 The IFCC is a collection point of valuable cybercrime intelligence Complaints include computer intrusions identity theft intellectual property rights violations economic espionage credit card fraud child pornography and online extortion In CY2002 the FBI received more than 75 000 fraud complaints Of these complaints more that 48 000 were referred to other law enforcement agencies for follow up – triple the referral rate in CY2001 A recent IFCC report estimated that cyber-related fraud from referred cases amounted to $54 million in losses in CY2001 as compared to $17 million in CY2000 The most frequently reported complaints involved Internet auction fraud 46% non-delivery of merchandise and non-payment 31% and credit debit card fraud 12% In FY2003 the FBI and the Office of Management and Budget is conducting a performance and analysis review test on the cybercrime program Performance measures for this program will be incorporated into the FY2005 budget submission Other Significant Crime Other crime areas of significant concern for the FBI include civil rights hate crimes crimes against children including abduction cases sexual exploitation and child pornography and Indian country law enforcement Civil Rights Hate Crimes The FBI is also responsible for investigating certain civil rights violations which for operational purposes are divided into four 108 The Homeland Security Act of 2002 P L 107-296 transferred the National Infrastructure Protection Center NIPC to the Department of Homeland Security NIPC was formed to detect deter assess and warn computer users as to cyber threats and to investigate and prosecute unlawful computer intrusions According to the DOJ FY2004 Budget Summary NIPC’s transfer to DHS’s Information Analysis and Infrastructure Protection Directorate included about $51 million and 307 positions 109 For further information see CRS Report RS20830 Cybercrime A Sketch of 18 U S C 1030 and Related Federal Criminal Laws by Charles Doyle CRS-36 categories hate crimes color of law police misconduct freedom of access to clinic entrances and involuntary servitude slavery 110 The Violent Crime Control and Law Enforcement Act P L 103-322 defines a “hate crime” as a crime in which the defendant intentionally selects a victim or in the case of property crime the property that is the object of the crime because of the actual or perceived race color religion national origin ethnicity gender disability or sexual orientation of any person §280003 In FY2002 the FBI worked 3 485 civil rights or hate crime cases of which 186 resulted in convictions or pre-trial diversions 111 Crimes Against Children The FBI launched the Innocent Images National Initiative IINI to lead multi-agency undercover operations to identify child pornographers and others that use the Internet to lure children into sexually abusive situations Under Director Louis Freeh as has been continued under Director Robert Mueller it became a matter of policy for the FBI to lend immediate assistance to state and local authorities in cases of child abduction – particularly those 12 years old or younger since it is extremely critical to resolve such cases within the first 24 hours In FY1996 the FBI pursued about 113 child pornography cases In FY2002 the Bureau worked 2 704 Innocent Images cases and 1 775 other child exploitation cases Of these cases 660 Innocent Images and 194 other child exploitation cases ended in convictions or pre-trial diversions 112 FBI Security Program As the Nation’s lead counterintelligence organization the FBI is an obvious target for foreign intelligence agencies and others seeking to compromise U S national security Efforts to assess the FBI security program were initiated in the Fall of 1999 These efforts were intensified following the arrest of Robert Hanssen in February 2001 and the September 11th attacks By April 2001 a FBI task force concluded that a single executive should be responsible for the FBI Security program At that time the security function was diffused and scattered in several Bureau divisions and no single Bureau executive was responsible for security In March 2001 Attorney General John Ashcroft established a Commission for the Review of FBI Security Programs Former FBI and CIA Director Judge William Webster headed the Commission In March 2002 Judge Webster’s Commission issued its findings Among other findings the Commission found that Robert Hanssen had exploited his access to the FBI’s Automated Case Support ACS system to breach most security fire walls and compiled highly sensitive information regarding FBI counterintelligence operations He later sold this information to the Soviets and then the Russians In addition Judge Webster testified that in the days immediately following September 11 the FBI 110 A “color of law” investigation involves instances when persons operating under the “color of law ” e g police officers willfully deprive or cause to be deprived any person of their rights privileges or immunities secured or protected by the Constitution or other U S laws 111 2004 FBI Budget Submission pp 2-11 112 Ibid pp 2-11 CRS-37 had dropped all ACS fire walls in the interest of sharing all relevant leads In so doing any FBI employee with access to the ACS could have accessed all the FBI foreign intelligence case files – an alarming vulnerability The Webster Commission’s Review of FBI Security Programs included recommendations regarding systems personnel and document security 113 In addition the Commission recommended that the FBI security programs should be integrated into a single office that reports to the Director Two measures S 1440 and its pending companion bill H R 2867 the “FBI Reform Act of 2003 would adopt some of the changes recommended in the Webster Commission including the establishment of a counterintelligence screening polygraph program 114 In response to the Webster Commission recommendations the FBI has enhanced computer audit procedures expanded the use of polygraphs and increased the frequency of employee reinvestigations for sensitive positions As part of the recent FBI reorganization a stand-alone Security Division has been established under the Executive Assistant Director for Administration This Division is currently headed by a CIA intelligence executive Observers note however that no security program can guarantee against a “trusted insider” who for whatever motivation might compromise the FBI or the Nation’s security Notwithstanding these limitations the Assistant Director for Security recently testified that the FBI is committed to changing its security culture to more quickly detect those who may compromise sensitive information 115 Pertinent Relationships Notwithstanding the 10-year appointment of the FBI Director the FBI does not operate in a vacuum In order to most effectively and efficiently implement its mission the FBI must have sound relationships with a broad range of national and international agencies and organizations The first of these is its parent organization the U S Department of Justice As one element of the Department of Justice at the policy level the FBI’s requested budget is set by the Department and approved by the Office of Management and Budget The Director of the FBI reports to the Attorney General While the Attorney General is a member of the president’s cabinet the FBI Director is not Therefore policymaking on matters concerning the FBI’s mission areas is developed by the Attorney General with substantial input from the Director At the operational level FBI Agents work closely with U S Attorneys to provide evidence and facts in support of potential prosecutions Investigative Relationships From a counterterrorism perspective the FBI also works closely with a broad range of national and international organizations including important relationships with other elements of the U S Intelligence 113 U S Department of Justice A Review of FBI Security Programs Washington Mar 2002 p 25 http www usdoj gov 05publications websterreport pdf 114 Other matters included in this proposed legislation include protection for FBI whistle blowers establishment of career paths for FBI security professionals and allowing the disciplinary suspension of FBI Senior Executive Service Members for 14 days or less 115 U S Department of Justice Federal Bureau of Investigation Testimony by Kenneth H Senser before the Senate Judiciary Committee on Review of the FBI Security Program and Its Transformation Washington July 18 2001 CRS-38 Community The FBI has substantial interaction with the CIA NSA and the Defense Intelligence Agency DIA Since the mid-1990s the FBI and CIA have exchanged senior level management as well as Agents and Analysts in both the Counterterrorist and Counterintelligence Centers housed at the CIA Certain entities within the FBI including the National Infrastructure Protection Center NIPC were transferred to the Department of Homeland Security DHS FBI Agents work closely with DHS immigration and customs professionals on matters pertaining to national security From a counterterrorism analytical perspective the FBI works closely with DHS among other agencies through participation in the aforementioned Terrorist Threat Integration Center Conceptually the FBI conducts all-source counterterrorism analysis while the DHSInformation Analysis and Infrastructure Protection Directorate’s analysis is designed to contribute to these threat assessments while building upon them to conduct internal infrastructure vulnerability assessments State and local law enforcement are another important FBI relationship in the War Against Terrorism and in complex criminal cases in which the FBI has jurisdiction While the FBI has a reputation for being reluctant to share information it is now working to integrate state and local law enforcement personnel into its 84 Joint Terrorism Task Forces JTTFs 116 Moreover it has established a separate office the Office of Law Enforcement Coordination to ensure a two-way flow of germane information to state and local law enforcement officials Counterterrorism threat and vulnerability assessment data are shared by FBI and DHS personnel with state and local law enforcement and private sector entities as appropriate Finally as mentioned above the FBI has many close international law enforcement and security service relationships developed through its Legal Attache program Congressional Oversight Relationships From a congressional perspective the FBI and its activities are subject to extensive oversight from a variety of committees and subcommittees In the last 5 years the FBI has provided official testimony to congressional committee hearings open to the public on over 100 occasions Unofficial briefings to Members of Congress and their staff as well as responses to congressional inquiries made directly to the FBI Director far surpass the numbers of official statements at congressional hearings These oversight committees include but are not limited to House and Senate Judiciary Committees 116 Joint Terrorism Task Forces are mechanisms used by the FBI to integrate federal state and local law enforcement efforts in the prevention of terrorism According to the FBI these task forces “ are important ‘force multipliers’ in the war on terror pooling multiagency expertise ” They are also the primary conduit through which intelligence sharing is coordinated State and local law enforcement officials are required to have a top secret security clearance to be a member of the JTTFs See testimony of Larry A Mefford FBI Executive Assistant Director for Counterterrorism and Counterintelligence before the Senate Judiciary Committee Subcommittee on Immigration and Border Security September 23 2003 For a state and local perspective on the effectiveness of JTTFs see Protecting Your Community From Terrorism Strategies for Local Law Enforcement - Volume 1 Local-Federal Partnerships Police Executive Research Forum supported by a Cooperative Agreement with the U S Justice Department’s Office of Community Oriented Policing Services at http policeforum mn-8 net default asp link CRS-39 Appropriations Armed Services Select Committees on Intelligence as well as House Governmental Reform Senate Governmental Affairs House Select Committee on Homeland Security House International Relations Committee and the Senate Foreign Relations Committees Given the FBI’s law enforcement and national security mission in general the committees with the greatest amount of interaction with the FBI tend to be the Judiciary and Intelligence Committees The FBI in Transition As domestic and international criminal and national security trends have changed and the FBI’s jurisdiction expanded over time the organization has been through multiple periods of transition One could argue however that the current period of transition is at least as portentous as those which the FBI has experienced before Some have argued that the FBI’s reactive law enforcement culture with its alleged predilection for information collection but not sharing may be so resistant to change that the organization may ultimately prove itself incapable of adapting to a preventative counterterrorism and intelligence mission 117 Others have argued that the FBI’s case orientation and culture is not in need of changing indeed the culture and ability to build complex cases that withstand legal and constitutional scrutiny is an unassailable asset in the War Against Terrorism 118 While the changes that the FBI has made thus far have generally been received positively by groups which have reviewed them 119 the extent to which the organization can reform itself to effectively and efficiently advance the preventative counterterrorism mission is an open question 120 In addition to the question of whether the FBI can succeed in making the 117 See Advisory Panel to Assess Domestic Response Capabilities for Terrorism Involving Weapons of Mass Destruction the “Gilmore” Commission and Protecting America’s Freedom in the Information Age a report of the Markle Foundation Task Force See also William E Odom Fixing Intelligence for More Secure America Yale University Press 2003 and Senator John Edwards “Iraq Terrorism and U S Global Leadership ” speech before the Center for Strategic and International Studies Oct 7 2002 118 See testimony of Nancy L Savage President Federal Bureau of Investigation Agents Association before the House Appropriations Committee Subcommittee on Commerce Justice and State the Judiciary and Related Agencies June 18 2003 119 See Dick Thornburgh Chairman National Academy of Public Administration Panel of FBI Reorganization testimony before the House Committee on Appropriations Subcommittee on Commerce Justice State and the Judiciary June 18 2003 120 In a recent article in The Economist six senior experts in intelligence and law enforcement including a recent former Deputy Director of the FBI who also previously served as Assistant Director for both the FBI’s Criminal Investigative and National Security Divisions stated that while FBI’s preliminary reorganization steps are “ welcome they are nonetheless very modest ” The article continues “The FBI should be regarded as having been granted a last chance to succeed before the counterterrorism and counterintelligence mission should be permanently removed and its jurisdiction given to a new domestic security service ” The authors state that the adoption of the British model of conducting domestic intelligence as implemented by the British Security Service MI-5 is not appropriate – “ not for now at least ” See Robert Bryant et al “America Needs More Spies ” in The Economist July 10 2003 See CRS Report RL 31920 Domestic Intelligence in the United Kingdom Applicability of the MI-5 Model to the United States May 19 2003 continued CRS-40 transformation from reactive to proactive bias in the national security realm there is the issue of the extent to which the FBI should balance its national security responsibilities with its traditional criminal pursuit mission As mentioned above there is some concern that the movement of investigative resources from the FBI’s traditional criminal mission to the counterterrorism and counterintelligence mission may undermine the agency’s ability to aggressively counter crime 121 Issues for Congress Is the FBI the appropriate agency to fight terrorism against U S interests Can an organization with a strong and proud law enforcement culture be retrained to engage in the more subtle discipline of gathering and exploiting foreign intelligence domestically where the end goal may not necessarily be prosecution but preemption as well as continued collection and exploitation Can the relatively autonomous relationships between FBI Headquarters and the 56 field offices be successfully rebalanced so centralized priorities established at HQ are vigorously and successfully implemented locally The ongoing reformation of the FBI presents multiple opportunities for oversight Are there some federal crimes for which the FBI has jurisdiction that should be devolved to state and local law enforcement If so should additional resources be provided to the federal state and local law enforcement agencies to support training If not does the FBI need additional criminal resources given that it may be unlikely that the reprogramming of resources from the criminal to the national security divisions of the FBI in the wake of September 11 will be reversed Given the expansive mosaic of FBI jurisdiction in criminal and national security realms would a legislative charter clarify and more centrally codify the organization’s roles responsibilities and jurisdiction If the FBI’s Counterterrorism Division which has operational responsibilities within the United States is eventually to be “co-located” with the existing TTIC what implications if any does this have for the potential of U S foreign intelligence organizations becoming involved in domestic intelligence activities precluded pursuant to Executive Order 12333 122 120 continued by Todd Masse See also Gregory F Treverton “Time to Spy in America ” Government Executive Sept 2003 121 See Gary Fields and John R Wilke “FBI’s New Focus Places Burden on Local Police ” Wall Street Journal June 30 2003 p A1 122 Executive Order 12333 and other guidelines and statutes prevent federal agencies authorized to conduct foreign intelligence overseas from operating in the United States However the FBI a member of the U S Intelligence Community is primarily charged with domestic intelligence operations If an entire operational division of the FBI is “colocated”with what is largely a foreign threat intelligence entity the TTIC it is not inconceivable that cooperation in foreign and domestic intelligence activities may exceed continued CRS-41 Appendix I FBI Field Offices By City Location A FBI Albany 200 McCarty Avenue Albany New York 12209 http albany fbi gov 518 465-7551 FBI Birmingham Room 1400 2121 8th Avenue N Birmingham Alabama 35203-2396 http birmingham fbi gov 205 326-6166 FBI Albuquerque Suite 300 415 Silver Avenue Southwest Albuquerque New Mexico 87102 http albuquerque fbi gov 505 224-2000 FBI Boston Suite 600 One Center Plaza Boston Massachusetts 02108 http boston fbi gov 617 742-5533 FBI Anchorage 101 East Sixth Avenue Anchorage Alaska 99501-2524 http anchorage fbi gov 907 258-5322 FBI Buffalo One FBI Plaza Buffalo New York 14202-2698 http buffalo fbi gov 716 856-7800 FBI Atlanta Suite 400 2635 Century Parkway Northeast Atlanta Georgia 30345-3112 http atlanta fbi gov 404 679-9000 C FBI Charlotte Suite 900 Wachovia Building 400 South Tyron Street Charlotte North Carolina 28285-0001 http charlotte fbi gov 704 377-9200 B FBI Baltimore 7142 Ambassador Road B a l t i m o r e M a r yl a n d 21244-2754 http baltimore fbi gov 410 265-8080 122 FBI Chicago Room 905 E M Dirksen Federal Office Building 219 South Dearborn Street Chicago Illinois 60604-1702 http chicago fbi gov 312 431-1333 FBI Cincinnati Room 9000 550 Main Street Cincinnati Ohio 45202-8501 http cincinnati fbi gov 513 421-4310 FBI Cleveland Federal Office Building 1501 Lakeside Avenue Cleveland Ohio 44114 http cleveland fbi gov 216 522-1400 FBI Columbia 151 Westpark Blvd Columbia South Carolina 29210-3857 http columbia fbi gov 803 551-4200 D FBI Dallas One Justice Way Dallas Texas 75220 http dallas fbi gov 972 559-5000 FBI Denver Federal Office Building Room 1823 1961 Stout St 18th Floor Denver Colorado 80294-1823 http denver fbi gov 303 629-7171 continued analysis and bleed into joint intelligence operations within the United States While these types of joint operations may well be warranted given the nature of the terrorist threat facing the Nation an explicit and statutory authorization of such joint operations would increase transparency and jurisdictional clarity as well as guard against potential abuses or excesses domestically CRS-42 FBI Detroit 26th Floor P V McNamara FOB 477 Michigan Avenue Detroit Michigan 48226 http detroit fbi gov 313 965-2323 FBI Jacksonville Suite 200 7820 Arlington Expressway J acks o n v i l l e F l o r i da 32211-7499 http jacksonville fbi gov 904 721-1211 E FBI El Paso 660 S Mesa Hills Drive El Paso Texas 79912-5533 http elpaso fbi gov 915 832-5000 K FBI Kansas City 1300 Summit Kansas City Missouri 64105-1362 http kansascity fbi gov 816 512-8200 H FBI Honolulu Room 4-230 Kalanianaole FOB 300 Ala Moana Boulevard Honolulu Hawaii 96850-0053 http honolulu fbi gov 808 566-4300 FBI Houston 2500 East TC Jester Houston Texas 77008-1300 http houston fbi gov 713 693-5000 I FBI Indianapolis Room 679 FOB 575 North Pennsylvania Street In d i a n a p o l i s Indi a n a 46204-1585 http indianapolis fbi gov 317 639-3301 J FBI Jackson Room 1553 FOB 100 West Capitol Street Jackson Mississippi 39269-1601 http jackson fbi gov 601 948-5000 FBI Knoxville Suite 600 John J Duncan FOB 710 Locust Street Knoxville Tennessee 37902-2537 http knoxville fbi gov 865 544-0751 L FBI Las Vegas John Lawrence Bailey Building 700 East Charleston Boulevard La s V e g a s N e v a d a 89104-1545 http lasvegas fbi gov 702 385-1281 FBI Little Rock Suite 200 Two Financial Centre 10825 Financial Centre Parkway Little Rock Arkansas 72211-3552 http littlerock fbi gov 501 221-9100 FBI Los Angeles Suite 1700 FOB 11000 Wilshire Boulevard Los Angeles California 90024-3672 http losangeles fbi gov 310 477-6565 FBI Louisville Room 500 600 Martin Luther King Jr Place Louisville Kentu cky 40202-2231 http louisville fbi gov 502 583-3941 M FBI Memphis Suite 3000 Eagle Crest Bldg 225 North Humphreys Blvd Memphis Tennessee 38120-2107 http memphis fbi gov 901 747-4300 FBI North Miami Beach 16320 Northwest Second Avenue North Miami Beach Florida 33169-6508 http miami fbi gov 305 944-9101 FBI Milwaukee Suite 600 330 East Kilbourn Avenue Milwaukee Wisconsin 53202-6627 http milwaukee fbi gov 414 276-4684 FBI Minneapolis Suite 1100 111 Washington Avenue South Minneapolis Minnesota 55401-2176 http minneapolis fbi gov 612 376-3200 CRS-43 FBI Mobile One St Louis Centre 1 St Louis Street 3rd Floor Mobile Alabama 36602-3930 http mobile fbi gov 334 438-3674 N FBI Newark 1 Gateway Center 22nd Floor Newark New J ersey 07102-9889 http newark fbi gov 973 792-3000 FBI New Haven 600 State Street New Haven Connecticut 06511-6505 203 777-6311 FBI New Orleans 2901 Leon C Simon Dr New Orleans Louisiana 70126 http neworleans fbi gov 504 816-3000 FBI New York 26 Federal Plaza 23rd Floor New York New York 10278-0004 http newyork fbi gov FBI Norfolk 150 Corporate Boulevard Norfolk Virginia 23502-4999 http norfolk fbi gov 757 455-0100 O FBI Oklahoma City 3301 West Memorial Drive Oklahoma City Oklahoma 73134 http oklahomacity fbi gov 405 290-7770 FBI FBI Omaha 10755 Burt Street Omaha Nebraska 68114-2000 http omaha fbi gov 402 493-8688 P FBI Philadelphia 8th Floor William J Green Jr FOB 600 Arch Street Philadelphia Pennsylvania 19106 http philadelphia fbi gov 215 418-4000 FBI Phoenix Suite 400 201 East Indianola Avenue Phoenix Arizona 85012-2080 http phoenix fbi gov 602 279-5511 FBI Pittsburgh 3311 East Carson St Pittsburgh PA 15203 http pittsburgh fbi gov 412 432-4000 FBI Portland Suite 400 Crown Plaza Building 1500 Southwest 1st Avenue Portland Oregon 97201-5828 http portland fbi gov 503 224-4181 R FBI Richmond 1970 E Parham Road Richmond Virginia 23228 http richmond fbi gov 804 261-1044 S FBI Sacramento 4500 Orange Grove Avenue Sacramento California 95841-4205 http sacramento fbi gov 916 481-9110 FBI St Louis 2222 Market Street S t Loui s Missouri 63103-2516 http stlouis fbi gov 314 231-4324 FBI Salt Lake City Suite 1200 257 Towers Bldg 257 East 200 South Salt Lake City Utah 84111-2048 http saltlakecity fbi gov 801 579-1400 FBI San Antonio Suite 200 U S Post Office Courthouse Bldg 615 East Houston Street San Antonio Tex as 78205-9998 http sanantonio fbi gov 210 225-6741 FBI San Diego Federal Office Building 9797 Aero Drive San Diego California 92123-1800 http sandiego fbi gov 858 565-1255 FBI San Francisco 450 Golden Gate Avenue 13th Floor San Francisco California 94102-9523 http sanfrancisco fbi gov 415 553-7400 CRS-44 FBI San Juan Room 526 U S Federal Bldg 150 Carlos Chardon Avenue Hato Rey San Juan Puerto Rico 00918-1716 http sanjuan fbi gov 787 754-6000 FBI Seattle 1110 Third Avenue Seattle Washington 98101-2904 http seattle fbi gov 206 622-0460 FBI Springfield Suite 400 400 West Monroe Street S p r i n gfield Illi n o i s 62704-1800 http springfield fbi gov 217 522-9675 T FBI Tampa Room 610 FOB 500 Zack Street Tampa Florida 33602-3917 http tampa fbi gov 813 273-4566 W FBI Washington Washington Metropolitan Field Office 601 4th Street N W Washington D C 20535-0002 http washingtondc fbi gov 202 278-2000 Source http www fbi gov contact fo fo htm CRS-45 Appendix II FBI Directors 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Robert S Mueller III 2001-present Thomas J Pickard Acting 2001 Louis J Freeh 1993-2001 Floyd I Clarke Acting 1993 William S Sessions 1987-1993 John Otto Acting 1987 William H Webster 1978-1987 Clarence M Kelley 1973-1978 William D Ruckelshaus Acting 1973 L Patrick Gray Acting 1972-1973 J Edgar Hoover 1924-1972 William J Burns 1921-1924 William J Flynn 1919-1921 William E Allen Acting 1919 Alexander Bruce Bielaski 1912-1919 Stanley Finch 1908 - 1912 Source www FBI gov libref directors directmain htm CRS-46 Appendix III FBI Legal Attache Offices FEDERAL BUREAU OF INVESTIGATION Legal Attache Offices - International Relations Unit I - 202 324-4691 International Rel ations Unit II - 202 324-4 7 17 Secure Facsimile Number 202 324-9254 Unsecure Facsimile Number 202 324- 1096 ANKARA TURKEY AA Armenia AzfMbaitan Georgia Tutkey MOSCOW RUSSIA MC NAIROBI KENYA NI Albania Cyprus Greece lebaoor Maceoo ja Syrie BERN SWITZERLAND BR - Kenya Tanzano8 Ugand a OTTAWA CANADA OT Canada B RUSSELS BELGI UM BL 8elglum Luxemboufg The Ne heft nds BUC HAREST ROMANIA B L PARIS FRANCE PA Atgena Benin Burkina Fil$0 Bwwldi c meroo Ce-ntt I Afrie an Republic Chad Oemoaatic Reout ic of Congo IYOfY Coest aka Cote d'Ivoire Mali - MorwK o Morooc o Njgef Republic ol Congo Rwanaa Senegal Togo TuntSia Western sahara BEIJING CHINA BZ BOGOTA COLUMBIA BG PRAGUE CZECH REPUBUC PA C AIRO EGYPT CZ Czech Republic Sk vakia D ibouti Egypt Ertitrea Ethiopia Somalia Sudan COPENHAGEN - RK ·- KIEV UKRAINE KV ROME ITALY RO MEXICO CITY MEXICO MX NFW nFI HI INOIA NI Bangladesh Bhutan India Maldives Nepal Sn Lanka Columboa EOJaOOf' Anguila Antigua Barbud a Barbadoe OofrWlic a Fronc tl Wei-I lodie s G Otla-d GuadebJpe Islands of SL Barthe6emy and French St Martin Martin Que Denmark Fri nd k etand Norway MH _ Mongoia People's Repubk of Ctwla BRASILIA BRAZIL Bl Moldova Romctnia -- Algha nistan Paklsl rt MANILA PHILIPPINES BANGKOK THAILAND BK Burma Cambodie Leos Thailand Voetnam France Gatlon Guonea Gl inea-e ssao i HONG KONG SAR CHINA HK HongKong Macau ISLAMABAO PAKISTAN IS AMMAN J ORDAN AM Joroan Uec htenstein SWitzefland BERLIN GERMANY BN ALMATY KAZAKHSTAN AY Kazakhstan t yrgyzsun Tajilostan• Tl#ltmenistan Uzbelusta'I Mont$ern11L N e Antian lsi md$ of Saba St Eustaillus ar1d Dutch St Maarten S L St t Nevt5 British West lndie $ St Lu aa St Vnoen1 and lhe Trinidad arid Tobogo PANAMA CITY PANAMA PC Pa RIYADH SAUDI ARABIA RY Bahrain KUW3it Oman 0 itar Saudi At boa Unit« Arab ErnioNet Yemen SANTIAGO CHILE SN BoliY a Chile Peru SANTO DOMI NGO DOMINICAN REPUBLIC ST Oominic8o Ropublie Italy Malta LAGOS NIGERIA LG N TALLINN ESTONIA RO Estonia Latvia Li1huanla Be arus LONDON ENGLAND LO CANBERRA AUSTRALIA CN Ul'lfted Ki 'lg k M England Soollaod W• es Nofthe i 1 RePl lbicof lretarid Channet Islands Jetwy -' MADRID SPAIN MO Andorra Cape Yerde Equatorial Gumea 1 SP-111'1 GO- V Austria So$tlia Croeba Herzegovina Huogar SloYenia Yugoslavian Republic Sefbla arid Montenegro WA RSAW PO LAND WR Au$tralia Cmslmils 1$1and Cook 1$1anc1$ FIi Freoch Pofyrlesla indudesAusttal 1$11 r'Mb Sota Bora Marquesas Moorea 5oc ety lstands Tahoti Kn iati includes Canton Carolne Flint Gilbert 151111nds MaJdeo f tloeno Starbuch Vo snok NBUI I New c ai donia Papua New Guinea New Zeilland Niue Pitcairn ls larid SObnon lsSands Tokelau Tonga TuvN I Vanuatu Wald and Futuna Islands Frend' Samoa FBI FOREIGN LIAISON OPERATIONS LLGAL ATTAC III PROGRA io l Aruba French Guiana Guyana Netherlilnds Antilles tslands of Bonaire arid Suriname Venezuela o wae o SINGAPORE SING APORE SG a s l Timor lndonM a Malaysia TEL AVIV ISRAEL TE TOKYO JAPAN 10 Japan T MIAMI LIAISON O FFIC E Bahamas Belize Bermuda Cayman Islands Costa Rica El Satvaoor - Guailetnala Hondl ns Jatnalca Nicclragua Turk$ and Caic o5 bland$ In support ofthe FOl's efforts 10 combat intema1ional crime and terrorism the FBI currently maintains 45 Legal Auache Offices o crseas responsible for establishing effective liaison with fon ig n law enforcement officials in over 207 countries and territories around the world The L1a1son Office in Miami Florida co ·ers designated areas ofCcmral America and 1hc Caribbean May1 200J