The Financial Crimes Task Force of Southwestern Pennsylvania.

Today's criminals are more mobile than ever before. Technology allows them to conduct their illicit activities on a global scale. In doing so, they cross multiple jurisdictions. Oftentimes, the law enforcement agencies on the trail of these criminal nomads find out, well into their investigations, that they unknowingly have targeted the same suspects.

To avoid the duplication of effort inherent in multijurisdictional investigations, as well as to share resources and information, many agencies have formed task forces. Whether ad hoc and temporary to serve a particular need or permanent to deal with an ongoing crime problem, task forces can help law enforcement solve complex cases that span multiple jurisdictions. The Financial Crimes Task Force of Southwestern Pennsylvania does exactly that.

BACKGROUND

Perhaps best known for its steel production, Pittsburgh saw its small-town flavor change with the opening of a new airport in 1992. Serving as the hub for a major airline, the Pittsburgh International Airport gave criminals easy access in and out of town. Before long, it seemed that every financial-crime gang between Los Angeles and Pittsburgh was using the airport as a transit point. The activities of these out-of-state groups combined with Pittsburgh's homegrown white-collar criminals spurred the creation of the Financial Crimes Task Force of Southwestern Pennsylvania. [1] Comprised of members from a number of federal and local agencies, [2] the task force investigates a variety of white-collar crimes and takes proactive steps to prevent financial fraud in the southwestern Pennsylvania area.

INVESTIGATIONS

The cases the task force investigates range in size, scope, and sophistication. While some involve one or two suspects who employ simple schemes, others involve groups of people who use advanced technology to commit their crimes. Some suspects remain local, while others extend their reach to other countries.

Debit Card Fraud

The convenience of debit cards has not been lost on criminals, and debit card fraud has become a growing trend in many U.S. cities. Individuals open bank accounts with fraudulent identification, then deposit counterfeit checks into the accounts. By crediting the accounts before actually verifying the existence of the funds, the banks give criminals immediate access to the money. In Pittsburgh, two Russian nationals from New York City perpetrated such a scheme. After opening fraudulent bank accounts, they deposited counterfeit corporate checks through the banks' automated teller machines (ATMs). Within a few days, they began withdrawing the money and were long gone before the banks realized what had happened. Fortunately, the task force caught the pair.

Another case involved a midlevel manager at a local bank who electronically accessed customers' checking and savings accounts to determine which had high balances. Next, he generated debit cards for these accounts, and via an ATM, he and a coconspirator siphoned out all of the victims' funds. The manager and his cohort have since been convicted in federal court.

Credit Card Fraud 

Easily obtainable credit cards tempt consumers and criminals alike. The latter use false identification to procure legitimate cards, or they simply steal other people's cards. The task force has thwarted the illicit activities of a number of credit card groups.

In one case, a California resident and his female accomplice obtained over $120,000 in fraudulent cash advances from financial institutions in the Pittsburgh metropolitan area, then left, abandoning their rental car at the airport. Task force investigators searched the vehicle and seized numerous documents, including the lease for the car. Although the man had used a stolen credit card as identification to obtain the rental car, a latent fingerprint found on the lease and entered into the Western Identification Network eventually identified him and his Los Angeles residence.

About a year later, as the man attempted to make a cash advance on a stolen credit card, an alert bank teller notified her manager. Although the man had left by the time task force members arrived, the teller identified him from his driver's license photo, which the task force had obtained. Surmising that the man eventually would return to Los Angeles, members of the task force, along with Allegheny County and Pennsylvania State Police officers stationed at the airport, monitored all outgoing direct flights from Pittsburgh to Los Angeles. Two days later, they arrested the man and a male partner as the two attempted to board a nonstop flight from Pittsburgh to Los Angeles. Officers recovered 40 credit cards, 34 counterfeit driver's licenses from various states, and $63,000 in cash.

Mail Theft

Mail theft investigations keep the task force busy. In one case, volumes of rifled mail began turning up along roadsides in two of Pennsylvania's rural counties. The mail was addressed to various residences within the counties. As a result of extensive surveillance, the task force developed several suspects. Obtaining a federal search warrant for one suspect's residence, investigators revealed substantial evidence of mail theft and credit card fraud. The next day, the task force obtained federal arrest warrants for the two main suspects. One subject was arrested after leaving a shopping area in a nearby township; the other fled to New York but eventually turned herself in to the task force. During their crime spree, the subjects had stolen over 2,000 pieces of mail in an effort to find checks, credit cards, and other financial documents. Faced with the evidence against them, they pled guilty in federal court.

Counterfeit Identification and Checks

White-collar criminals often use today's technology to further their schemes. In one case, an employee of a local business photocopied personal checks customers had written to make purchases. He then provided the copies to other group members, who produced counterfeit identification to correspond with the legitimate bank information obtained from the stolen checks. Members of the group then forged and cashed at local banks blank checks that they either had stolen from the mail, taken during burglaries, or purchased on the street. To date, nine individuals have been charged in state court under Pennsylvania's equivalent of the federal Racketeer Influenced and Corrupt Organizations Statute.

In a similar case, a group of people from New York City stole business checks, scanned them, then replaced them to avoid suspicion. They then were able to make new, fraudulent checks, which they used, along with counterfeit identification, to open bank accounts. They would deposit the counterfeit checks, then withdraw the funds before the banks discovered the fraud. The task force has charged 24 people in this scam, which so far has cost local banks more than half a million dollars.

International Investigations

The new airport in Pittsburgh opened the area to international fraud cases. An employee of an air cargo company observed two men mailing large stereo systems to Laredo, Texas. Thinking they might be shipping drugs, the employee watched the pair closely and noticed that they carried a stack of credit cards 2 inches thick and that their vehicle contained hundreds of pairs of brand-new athletic shoes. He recorded their license plate number and called the Allegheny County Police, who notified the task force.

Because the shoes had come from a nearby outlet mall, the task force asked the Pennsylvania State Police to watch for the suspects there. The hunch proved correct, and a short time later, the men arrived. They purchased large amounts of merchandise using credit cards issued under 10 different names. When state police officers and task force agents arrested them for the fraudulent use of counterfeit credit cards, the men had a number of counterfeit credit cards and counterfeit Mexican driver's licenses.

The following day, the task force obtained a federal search warrant for the subjects' vehicle. It contained more counterfeit credit cards and driver's licenses, a laminator, and a large volume of fraudulently obtained merchandise. Further investigation determined that the suspects had been shipping items from various locations throughout the United States after shopping at outlet malls using counterfeit credit cards. For almost a year, banks in Mexico had fallen prey to the subjects' scam, incurring losses in excess of $5 million. In the United States, the suspects had made purchases in Atlanta, Boston, Washington, DC, and other cities.

The task force also became involved in a credit card "skimming" case that reached as far as Hong Kong. Patrons of a popular Pittsburgh restaurant began receiving credit card statements that indicated they had made significant purchases in Japan. Task force investigators soon determined that the restaurant served as the source of the compromise. Working with Pittsburgh area banks and credit card companies, the task force identified two additional restaurants as locations for skimming activity.

Investigation determined that more than 100 fraudulent transactions had occurred in Tokyo, San Francisco, and San Jose after customers used their credit cards at Pittsburgh-area restaurants. The owner-manager of one of the restaurants and one employee from each of the other two restaurants used a magnetic strip reader to extract and store the information contained on the credit cards customers had used to pay for their meals. The employees then sent the reader on to San Francisco, where the information was downloaded and forwarded to Hong Kong, where the subjects produced counterfeit credit cards. Four subjects were indicted in Pittsburgh for their part in this scheme.

PROACTIVE STRATEGIES

Although investigations form the foundation of the task force's work, group members play active roles in preventing white-collar criminals from plying their trade. To that end, the task force regularly shares information with area business and law enforcement professionals.

The task force's semiannual "Financial Crimes Newsletter" provides information on the latest financial frauds to over 300 law enforcement agencies in the greater Pittsburgh area. The newsletter also identifies Pittsburgh's Most Wanted and recognizes the Task Force Honor Roll, area law enforcement personnel who have assisted the task force with cases.

Membership in the International Association of Financial Crime Investigators gives task force members access to a computer network of financial crimes and criminals, and the association's fax alert relays critical information on ongoing scams. Task force members also join local law enforcement officers and bank representatives to share information at the association's monthly meetings.

Additional information-sharing opportunities arise four times a year, when the U.S. Postal Inspection Service sponsors a national meeting of representatives from all major credit card companies. A task force member regularly attends these meetings.

EQUIPMENT AND SERVICES

On a daily basis, the task force receives numerous referrals from area police departments, banking establishments, credit card issuers, and fraud victims. To capture and track this influx of information, the task force designed and established a computerized database at its headquarters at the U.S. Postal Inspection Service's Pittsburgh office. Postal Inspection Service technicians input, on a daily basis, a steady flow of intelligence, including suspect information and known fraud addresses. The system includes a digital Mugshot file that can automatically match known suspects with their photographs.

At the task force's headquarters, each member has ample office space, which includes a laptop computer, voice mail, and dictation equipment. Postal Inspection Service technicians type all task force reports and correspondence to allow investigators the time to devote to their cases. The Postal Inspection Service also provides task force members with portable radios and raid shirts. Each member agency contributes vehicles and technical equipment. The Postal Inspection Service's and U.S. Secret Service's crime laboratories provide analysis of the evidence collected in each case.

TRAINING

Because of the high number of arrests the task force makes, all members receive warrant service training monthly, using the Postal Inspection Service's building-entry facility. An interactive firearms training system helps members maintain their firearms proficiency.

CONCLUSION

To face the challenges of the future, law enforcement agencies must cooperate and pool their resources. The Financial Crimes Task Force of Southwestern Pennsylvania consistently demonstrates the effective use of time, money, material, and human resources in a combined effort to attack the growing problem of financial crime. Intelligence from various law enforcement agencies and private financial institutions has streamlined the investigative process. The combined investigative skills of the task force members have yielded a number of creative approaches to the investigation of major conspiracies that impact large numbers of individuals and corporations, not only in southwestern Pennsylvania but also throughout the country.

While no single law enforcement agency has the resources or expertise to address the myriad financial crimes that occur every day in a large city, the collaborative effort that a task force provides can. The Financial Crimes Task Force of Southwestern Pennsylvania can serve as a model for other metropolitan areas as they strive to combat white-collar crime.

Mr. Newman, deputy chief postal inspector for the U.S. Postal Inspection Service in Washington, DC, initiated the task force.

Inspector Wisniewski, assigned to the Western Allegheny Divison of the U.S. Postal Inspection Service in Pittsburah. supervisses the task force

Endnotes

(1.) Originally dubbed the Pittsburgh Credit Card Fraud Task Force and later the Pittsburgh Financial Crimes Task Force, the task force's new name reflects the growth of financial crime in the southwestern Pennsylvania area.

(2.) The following agencies participate in the task force: the FBI, the U.S. Secret Service, the U.S. Postal Inspection Service, the U.S. Attorney's Office for the Western District of Pennsylvania, the Pennsylvania State Police, the Westmoreland County District Attorney's Office and its Detective Unit, the Allegheny County District Attorney's Office and its White-collar Crimes Unit, the Allegheny County Police, the City of Pittsburgh Police, and the City of Greensburg Police Department. All local, county, and state officers have been deputized as special deputy U.S. marshals.