textfiles/law/crimeftr.014

                U.S. Customs, Auto Mechanics' Reward laws,
                Coast Guard, IRS, and Military Reward laws,

In addition to generous rewards for helping to bust drug dealers, Crime-
Fighters can get a substantial share (25%) of the forfeiture of cars,
boats, planes, houses and business empires of convicted lawbreakers via
customs laws.
                               Customs Laws

Customs enforces many laws concerning goods coming into or going out of the
United States. The U.S. Coast Guard enables Customs to intercept and board
marine vessels. In recent years the Coast Guard has played an increasing
role in law enforcement against smugglers of contraband of all kinds.
Lately, the emphasis is on drug smuggling from South American countries.

If you live on the coast or along the Mexican border, look for drug smugg-
ling, illegal aliens, importation or exportation of illegal merchandise of
all kinds, including, but not limited to, endangered species, trademark
infringement of merchandise (counterfeit jeans, watches, computer hardware
and software, for example), liquor and tobacco violations and the export of
war materials.

To encourage citizens to participate in law enforcement, one Customs law
pays a generous reward of 25% of fines and forfeitures collected up to a
maximum of $250,000.

"19 USCS 1619 Award of compensation to informers.

(a) In general. If-
(1) Any person who is not an officer of the United States-

(A) detects and seizes any vessel, vehicle, merchandise, or baggage subject
to seizure and forfeiture under the customs laws or the navigation laws and
who reports the same to a customs officer, or

(B) furnishes to a United States attorney, to the Secretary of the
Treasury, or any customs officer original information concerning-

(i) any fraud upon the customs revenue, or
(ii) any violation of the customs laws or the navigation laws which is
being, or has been, perpetrated or contemplated by any other person; and

(2) such detection and seizure or such information leads to a recovery of-

(A) any duties withheld, or (B) any fine, penalty, or forfeiture of
property incurred; the Secretary may award and pay such person an amount
that does not exceed 25% of the net amount so recovered.

(b) Forfeited property not sold. If-
(1) Any vessel, vehicle, aircraft, merchandise or baggage is forfeited to
the United States and is thereafter, in lieu of sale-
(A) destroyed under customs or navigation laws, or
(B) delivered to any governmental agency for official use, and

(2) any person would be eligible to receive an award under subsection (a)
but for the lack of sale of such forfeited property, the Secretary may
award and pay such person an amount that does not exceed 25% of the
appraised value of such forfeited property.

(c) Dollar limitation.
The amount awarded and paid to any person under this section may not exceed
$250,000 for any case.

(d) Source of payment.
Unless otherwise provided by law, any amount paid under this section shall
be paid out of appropriations available for the collection of customs
revenue.

(e) Recovery of bail bond. For purposes of this section, an amount
recovered under a bailbond shall be deemed a recovery of a fine incurred."

                                * * * * * *

Customs' reward law has a specific dollar amount limit of up to $250,000.
However, under (2) above, it pays up to 25% of the appraised value of items
that can't be sold -- such as drugs and machineguns, etc. If there is no
large cash amounts or vehicles forfeited, only drugs and weapons from dope
runners, this may be better than RICO laws. If time permits, negotiate
first with Customs, but don't provide full disclosure until you have a
decent reward offer in writing. If no deal is made, try the FBI next.

If the anticipated reward and fines and forfeitures might exceed Customs'
$250,000 limit, contact the FBI instead. Use RICO and other laws for
prosecution to get 50% of fines and forfeitures plus appropriate rewards.

In the book "Cocaine Wars" there is a picture of $5.4 million that was
seized by the U.S. Customs Service from a private Jet in Fort Lauderdale,
Florida. The cash, all neatly bundled in "bricks", looks like bales of hay.
Customs would pay the maximum reward of $250,000. However, if you assert
your right to prosecute the case yourself under RICO, if it is your case,
you have control. The FBI or DEA will want to take over the prosecution
from you, to get official credit for it. If they did, they'd also receive
half of the forfeitures. Knowing that, you should negotiate with the FBI or
DEA for a larger share of the fines, forfeitures and rewards for a total of
about 50% -- or $2.7 million of the confiscated money.

                        * * * * * *

If you live near the Mexican Border, you'll probably hear or read about
large narcotics busts every week. Recently, I heard on the Yuma, Arizona TV
news that Customs found a Mexican national trying to smuggle through the
San Luis, Mexico, border $6 million worth of cocaine! In this case, there
was no cash and fines and lawsuits wouldn't be practical against a Mexican
national. Customs law would be better than RICO because the $6 million of
drugs generate a reward under Customs' law but not under RICO. Customs'
might pay you the maximum reward of $250,000.

Sometimes, along with the contraband, agents often seize large amounts of
cash and expensive vehicles. When smugglers manage to slip past the border,
check points just North of the border stop and search suspected vehicles
and catch a few more. But, the shocking part is, that's only the tip of the
iceberg! Authorities catch only 10%; 90% get through!

Drug running is a multi-billion dollar a year business on the border. It's
also a multi-million dollar business potential for CrimeFighters!

A conviction is required in order to levy fines and forfeitures under this
law. However, 18 USCS 3059 and 21 USCS 886 pay rewards for the arrest of
felons and drug-related activity. Apply for those too.

                      Drug-Related Citizen's Arrests

Always try to obtain assistance from law enforcement agents to make an
arrest. Remember, rewards are paid for "information leading to the arrest"
-- not for making the arrest. When there is no lawman handy and no time to
find one or call and wait for them, and the arrest must be made "right
then" or you'll lose the opportunity for a $25,000 to $100,000 reward, then
you might seriously consider a citizen's arrest. In this case, if you stick
your neck out and risk physical harm to yourself, the rewards are usually
increased in direct proportion to your risk. But, you can't spend the
generous rewards if you're dead!

Fifty years ago smugglers were relatively harmless when compared to today's
drug and alien smugglers. The new breed of smugglers would rather shoot
someone trying to make an arrest than run from them. And, they also firmly
believe in the old saying that "dead men don't talk." Not having a firearm
with you when making an arrest is foolish. And, if you don't have a permit
to carry a concealed weapon but carry one anyway, it could lead to your
arrest for firearm violations. Don't carry concealed weapons unless you
have a permit or are authorized by a case agent!

                                * * * * * *

The following is a cram course in how to detect narcotics smugglers, taken
from a U.S. Customs' Brochure:

                            "Y O U... CAN HELP!

Report drug smuggling to U.S. Customs

1-800-BE-ALERT or 1-800-232-5378

UNITED STATES CUSTOMS SMUGGLING AWARENESS PROGRAM

The smuggling of illegal and dangerous drugs into the United States is a
serious criminal problem which threatens the well-being, health and safety
of the citizens of the United States. The Customs Service and your local
police authorities are devoting more time, energy, and resources than ever
before in an effort to combat this great menace to the safety and welfare
of your families and society.

The purpose of the Drug Smuggling Awareness Program is to establish and
implement a successful smuggling awareness effort along the southwestern
border of the United Sates. It will provide you, the local citizens, an
easy method and opportunity to provide information about the suspected
smuggling activities to Customs and allow you to remain anonymous.

Many citizens see suspicious activity which they believe to be drug
smuggling but they are not sure and they don't know what to do or whom to
call. This pamphlet will cite examples of suspicious activity to be on the
lookout for and step by step instructions on how to anonymously report it
to U.S. Customs.
                               CASH REWARDS

Customs will pay cash rewards ranging from $250 to $2,500 for anonymous
information, or up to $250,000 for a documented confidential source, for
information leading to the arrest and conviction of drug smugglers. The
size of the reward will depend on the circumstances of the case and
results.

FOR MORE INFORMATION CALL 1-800-BE ALERT - 24 HOURS A DAY

                                * * * * * *

HOW TO DETECT A SMUGGLER

United States Customs would like you to be on the lookout for potential
drug smugglers. A number of characteristics have been found to be common
among smuggling operations. Among them, and worthy of arousing suspicion,
are the following examples:

SUSPICIOUS ACTIVITY IN CLOSE PROXIMITY TO THE BORDER OR BORDER CHECK POINTS

* Persons exhibiting a lifestyle which is inconsistent with their claimed
occupation.

* Passenger acting on behalf of someone who has paid cash for airfare being
used for "business."

* International carrier employees who never take time off or who insist on
always working the same shift (which may coincide with particular flights).
Includes freight forwarders, ground crews, baggage and cargo handlers.

* Person who consistently purchase very small quantities of gas for a
vehicle (this vehicle could have a modified gas tank used to transport
contraband.

* Persons depositing unusually large amounts of cash.

* A person who buys insurance for a vehicle he does not own.

* One requesting a specific hotel room having a view of the Customs lanes.

* Paying cash for a rental vehicle.

* Purchasing large quantities of masking (or similar) tape, plastic bags,
etc., which could be used to cover windows of planes or other conveyances.

* Suspicious vehicles visiting or frequenting a residence at all hours of
the day and night.

* Persons doing an excessive amount of travelling in and out of the United
States when they have no visible means of support.

* Persons doing business strictly on a cash basis involving no receipts.

* Persons claiming to have modifications or special compartments in their
vehicles.

* Private aircraft owners making frequent trips out of the country for
recreational purposes or for no apparent reason.

* Business/body shops offering to install or service secret compartments or
modifications to vehicles.

* Persons receiving large amounts of mail from outside the United States
(especially from narcotic source countries, such as Columbia, Thailand,
India, Peru, Brazil, and Pakistan).

* Persons operating currency exchange businesses from their personal
residences or personal vehicles.

                       AMONG AIRCRAFT AND AIRFIELDS:

* Passenger seats missing from aircraft.

* Aircraft windows covered by curtains or temporarily taped over.

* Numerous boxes, duffel bags, plastic bags, or other containers inside the
aircraft.

* Aircraft flying or landing after dark without lights.

* Trucks, campers, or vans waiting at or near area suitable to aircraft
landings; often equipped with radios for use in communications with an
aircraft.

* Landing at provisional runways in a desolate area lit by vehicle
headlights, signal fires, or lanterns.

* Refueling from 55 gallon drums or from the back of pickup trucks.

* Paint chipped, muddy wheels, dirty or dusty aircraft, beat-up propellers
or other evidence of operating from dirt strips.

* Strong or unusual odors, such as perfume, emanating from the aircraft.
These are used to cover the scent of marijuana.

*  Aircraft with new paint, added doors, extra fuel tanks, and false or
altered registration numbers.

* Pilot or passengers reluctant to leave the aircraft unattended during
ground servicing.

* Pilot or passengers displaying large amounts of cash and/or making cash
payments for fuel and services.

                        AT A MARINA OR ON THE WATER

* Boats purchased with large cash payments.

* Immediate demands for electronics equipment or repairs without regard to
cost.

* Loading or unloading activity dockside at unusual hours.

* The purchase of heavy duty trailers which have a load capacity which far
exceeds the weight of the boat.

* Boats specifically designed as sport fishers where there is an absence of
any type of fishing gear.

* The purchase of more than one trailer for the same boat.

* Boats changed in internal configuration, i.e., raised deck, no access to
bilges, fuel tanks added or modified, construction of concealed
compartments, or modified bulkheads.

* Boats with false water line.

* Improper or false registration.

* Boats riding very low in the water.

* Boats which are encountered at night running without lights.

* Observing the transfer of cargo from one boat to another at sea.

* Communications between a boat and a shore vehicle by unusual means, i.e.,
lights, flags, etc.

                       TO REPORT SUSPICIOUS ACTIVITY

CALL 1-800-BE-ALERT - 24 HOURS A DAY

You need only to follow these few steps to report suspicious activity to
U.S. Customs. By reporting these activities you will not only remain
anonymous, but also perform a great service to preserve and protect your
community.

* BE ALERT: In your observations, note the date, time and location of
activity and write this information down. Take extra care to note any
registration numbers of vehicles or distinctive features of the suspects.

* BE ACCURATE: Call U.S. Customs toll-free at 1-800-BE-ALERT. Tell the
officer that you have information about narcotics smuggling activities. Ask
for your special caller identification number. You will be given a code
number to protect your identity. After you receive your caller number give
an accurate account of your information to the Customs officer.

* FOLLOW THROUGH: Call Customs again at 1-800-BE-ALERT 10 days after your
initial contact. Identify yourself by your assigned code. At this time you
can learn if any action resulted from your information, and if so, you can
arrange for payment of your cash award.

                        YOU CAN MAKE A DIFFERENCE!

YOUR PARTICIPATION IN THIS VITAL PROGRAM CAN BE A BIG FIRST STEP IN HELPING
SECURE OUR NATION'S SOUTHWEST BORDER."

(End of Customs' brochure)
                                * * * * * *

                        Auto Mechanics Reward Laws

Title 15 -- Commerce and Trade -- has a special law related to automotive
vehicles -- among others. If you like cars, are a mechanic, or hang around
with auto mechanics, you probably know that setting back odometers is
against the law.

This practice is so widespread 20/20 (the TV program), presented a full
documentary and expose of an auto wholesaler in Houston, Texas. It told how
he makes about $50,000 a month in purchasing cars at auctions, paying a
freelance "mile buster" mechanic $50 to set back odometers in good-looking
cars with abnormally high mileage. Setting back the odometer in each car
cost him $50 but increases the car's value by about $2,000. The wholesaler
then sells the car to an unsuspecting used car dealer.

Unsuspecting purchasers, who look at mileage as an indicator of wear and
remaining value, are swindled. That's fraudulent practice and specifically
covered in Title 15 USCS 1982 et seq.

The first section of USCS 1988 details registration requirements and
procedures, which are lengthy and are not too interesting to CrimeFighters.
However, registration of vehicles sold must (by law) disclose the mileage
at the time of sale. A record is made at each transaction and dealers keep
a mileage record of servicing when the car is under warranty. That leaves
an audit trail to verify mileage -- or to find a 50,000 to 100,000 mile
discrepancy!

There are many people besides dealers who buy and sell used cars. These
people often place classified ads buying or selling one or two vehicles at
a time. They sometimes buy clunkers, fix them up, and re-sell them as
"private sales", without a license or paying sales or income tax. They are
also quite likely to set back odometers too, if they can. And, sometimes,
they buy parts from stolen cars to fix up their wrecked cars. Look for
these people too -- in classified ads.

The odometer law doesn't have a reward clause, but rewards are covered
under USCS 3059. They are available and negotiable up to $25,000. Since the
fines are paid by the car dealer and not the government, a CrimeFighter
should be able to negotiate 50% of the fine to keep it in line with other
rewards. And, as the fines can reach $100,000, the reward could reach
$50,000 per used-car lot. It's a safe bet that in large cities or
population centers there may be one or more mile-busters at work and
hundreds of car odometers set back. Each mechanic you nail might pay you
$1,000. If there's one in your town, the mile buster mechanic will most
likely be working a few other used-car lots too. Use your lawsuit via
interrogatories, plus your prosecutor's authority, to encourage mechanics
to provide information and sign sworn statements against dealers.

                               How to Do it

Go auto shopping at used car lots. Look for advertised "creampuffs" or "low
mileage" cars, and if the insides of these vehicles look brand new, it
could indicate complete refurbishing that means the seats and floor mats
were so worn they had to be replaced. Read the mileage and license plate
numbers of dozens of these cars. Use a computer to check the official
records at the State Department of Motor Vehicles (DMV) for recent owners,
dates of transfer and mileage. If you find a lot of mileage difference,
you've spotted the work of a mileage buster.

Check out the rest of the cars on that lot. If you find a few more, you
could get $1,000 for each rollback you find. When you have sufficient
evidence (actually the evidence is on the discrepancy between DMV records
and service records at dealerships) contact an FBI case agent. Make a
preliminary disclosure and negotiate for a reward of 50% of the fines and
forfeitures of the business, plus a reward for each mile-buster under USCS
3059. Or, if negotiating a suitable reward seems difficult, prosecute the
case yourself under RICO. Use plea bargaining as leverage to be paid an
out-of-court settlement of your personal lawsuit -- to get paid a suitable
amount for your investigation and related expenses.

Tip: Often, when an odometer is rolled back, a number or two of the mileage
shown on the speedometer may be out of alignment. If they are, it might
indicate a rollback by an amateur mechanic.

                               Odometer Law

15 USCS 1984. Change of mileage indicated on odometer prohibited.

No person shall disconnect, reset, or alter or cause to be disconnected,
reset, or altered, the odometer of any motor vehicle with intent to change
the number of miles indicated thereon.

15 USCS 1986. Conspiracy to violate odometer requirements.

No person shall conspire with any other person to violate section 1983,
1984, 1985, 1987, or 1988 of this title.

15 USCS 1990b. Civil Penalty

(a) Maximum amounts,

Any person who commits any act or causes to be done any act that violates
any provision of this subchapter or omits to do any act or causes to be
omitted any act that is required by any such provision shall be subject to
a civil penalty not to exceed $2,000 for each violation. A violation of any
such provision shall, for purposes of this section, constitute a separate
violation with respect to each motor vehicle or device involved, except
that the maximum civil penalty shall not exceed $100,000 for any related
series of violations.

15 USCS 1990c Criminal Penalties

(a) maximum amounts

Any person who knowingly and willfully commits any act or causes to be done
any act that violates any provision of this subchapter or knowingly and
willfully omits to do any act or causes to be omitted any act that is
required by any such provision shall be fined not more than $50,000 or
imprisoned not more than three years or both.

                                * * * * * *

Comment: "any person", mentioned above, also means any company, used car
lot, or automobile dealership. While the mechanic is nailed for rolling
back odometers, the last paragraph nails the people or firm that pays him.

The same TV show (20/20) highlighted another automotive-related law,
about counterfeit automotive parts, which are usually substandard in
quality and are falsely labeled as a well-known brand. That's misleading,
or a fraud (and cheats the honest manufacturer as well). In some cases,
it's also a violation of copyright or patent laws. If you're a mechanic,
maybe you know about such parts and know where to locate the distributor or
manufacturer. If so, get the information you need, and evidence (parts
falsely marked) with receipts of purchase from the store, and blow the
whistle on them. Contact an FBI agent to negotiate a reward.

Incidentally, there are many business-related law violations to be on the
lookout for: counterfeit money, art, auto parts, jeans, watches, cosmetics,
etc. Copyright and trademark violations are illegal, and rewards available.
(Software pirates are the latest.) Look for bait-and-switch advertising
(false advertising) and fraud, cons, scams, chain letters, pyramid schemes,
etc. Anything that seems to be to good to be true, probably isn't.
Investigate -- but don't get stung on a con.

By the way, the CrimeFighter Catalog has a few good books that tell you
all about cons, frauds, swindles, and scam operators. When you know all
about it, try conning a con, (the ultimate con) and make a bust.

If it's a felony violation, Title 18, Section 3059 qualifies you for a
reward. If it's operated as a regular business (like a "chop shop" selling
used parts from stolen automobiles), it also comes under RICO.

(There are many garage mechanics who swindle car owners in various ways.
Cons, frauds and false advertising are mentioned in the next chapter.)

                                * * * * * *

                        IRS - Internal Revenue Laws

26 USCS 7623  Reward for information concerning violations of internal
revenue laws.

"The Secretary, under regulations prescribed by the Secretary, is
authorized to pay such sums, not exceeding in the aggregate the sum
appropriated therefore, as he may deem necessary for detecting and bringing
to trial and punishment persons guilty of violating the internal revenue
laws, or conniving at the same, in cases where such expenses are not
otherwise provided for by law."

                                * * * * * *

Comments: The wording in this law doesn't seem impressive but it carries a
strong potential for CrimeFighters. The unspecified reward is at the sole
discretion of the Secretary, but it's usually 10% of the amount recovered
in back taxes but could also include fines, interest due, and forfeitures.
Remember, it's negotiable! (Always try for 50%)

Ten percent seems skimpy when compared to the majority of laws that offer
50%, but 10% of a large tax bill owed can be substantial. One case (Faul vs
Commissioner, 1959, CA9, 263 F2D645) paid the informer $68,837.96.

Note: Internal Revenue laws aren't just for income tax. They also include
unpaid liquor tax (on moonshine made in illegal distilleries) and tobacco
tax (cigarettes sold without tax stamps). Lawbreakers also include almost
all criminals, prostitutes, and gamblers, who neglect to report their
illegal income and pay taxes on it!

All business, whether legal or illegal (dope dealing for example) are
subject to income taxes too!  That may seem ridiculous, but the IRS thereby
sets a catch-22 trap for criminals who may not be convicted of any crime,
but can be convicted for income tax evasion. (That's how they nailed Al
Capone!)  If you declare any income from illegal sources, you can expect to
be arrested for it. But if you don't declare it, the IRS can nab you!

Keep that in mind when you see any criminal activity. Chances are, the
crook hasn't paid any taxes on his illegal income and is guilty of tax
evasion by failing to file and report income - no matter how it's obtained.
Look for a successful drug dealer with an expensive car and valuable
jewelry. He probably hasn't paid any taxes for many years.

To qualify for a (negotiated) reward, the IRS will want something tangible
to go on, not just your hunch. (The crook may also have a legitimate
business and is actually paying taxes on sufficient income to support his
lavish lifestyle.) But if he pays no taxes at all, that may be enough for
the IRS to ask embarrassing questions. When they do an audit, they may
discover large sums of money has been invested, but the source of the money
might be traced to prior or continuing criminal enterprises or racketeering
-- that opens the door to RICO and maximum fines and forfeitures.

As always, use RICO whenever possible. Lay charges and initiate a civil
suit. When you have control of the case, you are the prosecutor and can
choose which laws you want to use. You can use more than one law if more
than one is applicable. Negotiate with the FBI for 50% of resultant fines
and forfeitures plus appropriate rewards.

                                * * * * * *

26 USCS 7214  Reward for information concerning offenses of government
officers and employees in connection with revenue law.

"(a) Unlawful acts of revenue officers or agents.

Any officer or employee of the United States acting in connection with any
revenue law of the United States -

(1) who is guilty of any extortion or willful oppression under color of
law; or

(2) who knowingly demands other or greater sums than are authorized by law,
or receives any fee, compensation or reward, except as by law prescribed,
for the performance of any duty; or

(3) who with intent to defeat the application of any provision of this
title fails to perform any of the duties of his office or employment; or

(4)who conspires or colludes with any other person to defraud the United
States; or

(5) who knowingly makes opportunity for any person to defraud the United
States; or

(6) who does or omits to do any act with intent to enable any other person
to defraud the United States; or

(7) who makes or signs any fraudulent entry in any book, or makes or signs
any fraudulent certificate, return, or statement; or

(8) who, having knowledge or information of the violation of any revenue
law by any person, or of fraud committed by any person against the United
States under any revenue law, fails to report, in writing, such knowledge
or information to the Secretary; or

(9) who demands, or accepts, or attempts to collect, directly or indirectly
as payment or gift, or otherwise, any sum of money or other thing of value
for the compromise, adjustment, or settlement of any charge or complaint
for any violation or alleged violation of law, except as expressly
authorized by law to do so; shall be dismissed from office or discharged
from employment and, upon conviction thereof, shall be fined not more than
$10,000, or imprisoned not more than 5 years, or both. The court may in its
discretion award out of the fine so imposed an amount, not in excess of
one-half thereof, for the use of the informer, if any, who shall be
ascertained by the judgment of the court. The court also shall render
judgment against the said officer or employee for the amount of damages
sustained in favor of the party injured, to be collected by execution."

(The key phrase is "one-half" or 50% of the fines and forfeitures.)

                                * * * * * *

              Miscellaneous Customs/Coast Guard (reward) laws

There a few miscellaneous (small) rewards paid by the Coast Guard and the
various branches of the Armed Forces. Most of these reward laws were made
during WWII, and the rewards (up to $500) are piddly by today's standards.
Instead of wasting disk space on them, I suggest you look for alternative
rewards from the FBI when it involves a felony.  Title 18: 3059 makes you
eligible to be the prosecutor. Initiate both criminal and civil suits.
Negotiate a plea bargain to settle your $1,000+ civil suit out of court.
Get paid by the lawbreaker when you can, instead of using piddly reward laws.

                            F9 for next Chapter