Transcript
Page 1: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

CriminalInvestigation

Swanson • Chamelin • Territo

eighth edition

FOURTEEN

Larceny Offenses

Page 2: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OBJECTIVES

• Explain the four categories of credit card fraud • Be familiar with check fraud schemes and

organizations • Understand the process of cellular phone

cloning • Describe the classifications of shoplifters and the

patterns of professional shoplifting groups • Explain the most common types of confidence

games • Identify several forms of mail fraud • Outline various techniques to launder money • Describe identity theft • Discuss the looting of archeological sites

14-1

Page 3: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

LARCENY

• The legal definition of larceny contains five essential elements: – taking and – carrying away – personal property – of another – with the intent to deprive permanently

14-2

Page 4: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

INVESTIGATIVE PROCEDURE

• For theft to occur, two elements must be present: opportunity and desire– Investigative procedure depends on the facts of each

case– Thus, the theft of an item from a home-possibly by a

guest-would be handled differently from business thefts by employees

14-3

Page 5: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

CREDIT CARD FRAUD

• Types of Credit Card Fraud– Stolen cards. Credit cards can be stolen in a variety of

ways, such as muggings, purse snatchings, and office and health club thefts.

– Counterfeit credit cards. Counterfeit cards vary in quality from those made on embossing machines stolen for companies that produce cards to those of obviously poor quality.

– Shave-and-paste schemes. Account number are shaved off one or more legitimate credit cards and replaced by new numbers.

– Fraudulent application. Individuals apply to several credit card companies, hoping that one or more will issue them credit cards.

14-4

Page 6: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

CHECK FRAUD ORGANIZATIONS

• The major groups. The principal ethnic groups involved in illegal check fraud schemes include Nigerians, Asians (particular Vietnamese), Russians, Armenians, and Mexicans.

• The players. Despite the lack of a rigid hierarchy, members typically fall into one or several roles.– Leaders. Leaders of an organization generally have

an extensive criminal history and possess above-average intelligence.

14-5(a)

Page 7: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

CHECK FRAUD ORGANIZATIONS (cont'd)

– Check procurers. Check procurers obtain authentic checks, usually by stealing them while employed within a financial information on legitimate individuals.

– Check passers. Check passers actually negotiate stolen and counterfeit checks through the banking system and collect the proceeds to distribute to the group.

14-5(b)

Page 8: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

TYPES OF CHECK FRAUD SCHEMES

• There are a variety of check fraud schemes perpetrated throughout the country.

• Large-scale counterfeiting. The most notorious groups engaged in large-scale counterfeiting operations are the Vietnamese triads operating out of Orange County, California.

• Identity assumption. Seen in various metropolitan areas, identity assumption schemes often involve Nigerian and Vietnamese criminal organizations.

• Payroll-check fraud. A variation of the identity assumption scheme involves placing group members within payroll-check processing companies.

14-6

Page 9: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

CLONING BOX

• Cloning is the unauthorized and illegal programming of cellular phones with access codes of legitimate customers– It allows criminals to obtain

cheap, mobile communications

– The are not traceable through traditional law enforcement methods

14-7

(Courtesy Police Magazine)

Page 10: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

PATTERNS OF PROFESSIONAL SHOPLIFTING GROUPS

• The groups usually operate in teams of two to six people. Some patterns include:– Use of a booster bag designed to defeat electronic

sensory security devices– Use the U.S. mail and UPS to ship stolen clothing to

specific locations for resale

14-8(a)

Page 11: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

PATTERNS OF PROFESSIONAL SHOPLIFTING GROUPS (cont'd)

• Sell stolen clothing “on the street” or to countries in South America

• Use false identification when arrested• Use local motels as base of operations prior to

re-sale

14-8(b)

Page 12: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

SHOPLIFTING

• Shoplifters can be classified into two groups: – commercial shoplifters, or “boosters,” who steal

merchandise for resale and – pilferers who take merchandise for private use

• Reducing Shoplifting Losses– The retailing industry is increasingly taking steps to

reduce shoplifting losses, with techniques running from the simple to the sophisticated

14-8

Page 13: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

RECOVERED STOLEN PROPERTY

• Shoplifting groups use local motels or a base of operation to:– inventory– store and– package merchandise

14-9

(Courtesy Detective Joseph Morrash, Alexandria, Virginia, Police Department)

Page 14: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

CONFIDENCE GAMES

• The Pigeon Drop– This swindle is operated by two people who switch

money envelopes on an unsuspecting victim.• The Bank Examiner Scheme

– The bank examiner scheme is one of the more sophisticated con games and requires knowledge of the target bank. The con artist poses as a bank examiner to swindle a bank customer.

• Inheritance Scam– In this scam, the victim's phone rings and, on the

other end, a sweet-sounding person says, “You may be the recipient of a huge inheritance”

14-10(a)

Page 15: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

CONFIDENCE GAMES (cont'd)

• Three-Card Monte– This scam is similar to the traditional shell game. The

con artist uses “marked cards” to cheat a victim.• C.O.D. Scam

– The suspects usually pose as delivery employees. After writing a phony mailing label, the suspect goes next door and asks the neighbor to accept a perishable package for the absent neighbor and to pay cash for COD charges.

14-10(b)

Page 16: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

EXAMPLES OF MAIL FRAUD

• Free Vacation Scam– When a postcard or letter is received in the mail and/or an

unexpected phone call comes from an unknown company promising a complimentary vacation in an exotic spot, someone is probably trying to make the recipient the victim of the free vacation scam.

• 900 Telephone Number Schemes– There are swindlers who lure people to call a 900 number

without giving anything in return for their money. Such a call may even result in charges on a phone bill of $30 or more.

• Advance Fee Loan Schemes– The advance fee swindler claims to be able to obtain a loan for a

prospective borrower with ease from a legitimate lending institution, such as a bank or a savings and loan association. However, the swindler has no ability to secure a loan.

14-11(b)

Page 17: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

EXAMPLES OF MAIL FRAUD (cont'd)

• Work-at-Home Schemes– Advertised opportunities to earn money by doing work

at home are frequently nothing more than fraudulent schemes and, at best, rarely result in any meaningful earnings.

• Home Improvement and Home Repair Frauds– A favorite trick of dishonest home repair firms is to

mail a brochure offering to do an expensive job for an unusually low price. Once the contract is signed, the homeowner learns why the price was so low. The firm never delivers the service which was paid for in advance.

14-11(c)

Page 18: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

WHITE COLLAR CRIME

• Defined as a crime committed by a person of respectability and high social status in the course of his or her occupation

14-12

Page 19: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

PYRAMID SALES SCHEME

• This is a marketing program by which people buy the right to sell others the right to sell specific products

• The promoters select the product. These may include:– household items– cosmetics– safety devices

14-13(a)

Page 20: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

PYRAMID SALES SCHEME (cont'd)

• The promoters sell large inventories to distributors with the added incentive of permitting the distributor to sell new distributorships

• The real profit earned primarily by recruiters developing new recruits who develop more recruits

• There is little or no concern given to direct sale of the products or services to the public

• Ultimately consumer distribution becomes a sham and acts as a cloak of respectability

14-13(b)

Page 21: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

MONEY LAUNDERING

• Before spending or otherwise using any funds obtained from illegal sources, criminals must give the money an aura of legality. This conversion is known as laundering.– The Laundering of Money by Organized Crime.

Organized crime is an estimated $100 billion-a-year untaxed business operated by groups ranging from motorcycle gangs, to Asian drug triads, to the Italian Mafia.

– Domestic Laundries. Businesses such as restaurants, bars, and massage parlors, which take in a high proportion of cash, tend to be more desirable as laundries than businesses that receive most of their income as checks or other traceable instruments.

14-14(a)

Page 22: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

MONEY LAUNDERING (cont'd)

– Foreign Laundries. Much of the money invested by organized crime in legitimate businesses in the United States is first routed through secret numbered bank accounts in countries such as Liechtenstein.

– Use of the Internet to Launder Money. One method of money laundering through the Internet is to establish a company offering services payable through the Internet.

– Internet Gambling. It seems that Internet gambling might be an ideal web-based “service” to serve as a cover for a money laundering scheme through the net.

14-14(b)

Page 23: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

NUDE BAR: A FOCUS ON MONEY LAUNDERING

• Money laundering by organized crime often uses cash-oriented business such as:– restaurants– bars– adult entertainment venues

14-15

© Joel Gordon

Page 24: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

LAUNDERING OF MONEY FROM ILLICIT SOURCES

• Organized crime has many sources of illegal funds that must be intermingled with legitimate business’ monies

• This process known as money laundering makes it difficult for investigators to trace the illegal funds

14-16

Page 25: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

RACKETEERING RECORDS ANALYSIS UNIT (RRAU)

• This is part of the FBI Laboratory in Washington, DC. which can establish the necessary links between criminal and money laundering by examining records kept by criminals

14-17

Page 26: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

IDENTITY THEFT

• Common ways thieves gather other person's identifying information include: – Dumpster Diving. Individuals or businesses that fails

to dispose properly of personal identification information, by shredding or mutilating, are susceptible to a "dumpster diver."

– This is essentially an individual who retrieves discarded material looking for anything of value.

– Mail Theft. Mail theft presents another way criminals obtain personal identification information.

14-18(a)

Page 27: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

IDENTITY THEFT (cont'd)

– Internal Access. Internal access refers to an individual obtaining personal information illegally from a computer connected to a credit reporting bureau or to an employee accessing a company's database that contains personal identification information.

– Computerized Information and the Internet. With so much personal information obtainable in the networked world, thieves can access information easily.

14-18(b)

Page 28: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

RECOMMENDATIONS AND STRATEGIES FOR PREVENTING IDENTITY THEFT

• Local police can take the following steps to help citizens protect against identity theft:– Patrol residential areas on trash collection days and

during the tax season– Enforce trespass laws with regard to residential and

industrial dump sites– Advise citizens to shred documents and drop off mail

in a locked mailbox

14-19(a)

Page 29: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

RECOMMENDATIONS AND STRATEGIES FOR PREVENTING IDENTITY THEFT (cont'd)

– Remind people to be cautious using automated teller machines

– Disseminate information to the public on how to mitigate and prevent computer, credit, and cellular telephone fraud

– Suggest restrictions to businesses to reduce internal access fraud

– Educate officers about the various methods used to commit identity theft and the resulting types of fraud

14-19(b)

Page 30: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

THE LOOTING OF ARCHAEOLOGICAL SITES

• Archaeological looting is defined as the illegal, unscientific removal of archaeological resources. It occurs on public and private lands.

• Legal Considerations– Federal Provisions. Federal preservation laws date

from the late nineteenth century. – State Laws. As of mid-1990, none of the states had a

unified law comprising all statutes protecting archaeological resources. Instead, states tend to categorize laws related to archaeological resources under a variety of headings.

14-20(a)

Page 31: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

THE LOOTING OF ARCHAEOLOGICAL SITES (cont'd)

• Conducting Enforcement Investigations– Different laws apply when the violation occurs on

federal land as opposed to state land– There are relatively few laws applicable to private

lands as opposed to the more heavily protected public lands

14-20(b)

Page 32: Chapter 14 Powerpoint Presentation

McGraw-Hill © 2003, The McGraw-Hill Companies, Inc. All rights reserved.

LOOTED GRAVE

• Archaeological locations of public and tribal land, has increased due to:– the widespread fascination with our past– the high dollar value associated with artifacts

14-21(Courtesy National Park Service)