Undercover Operation Review Checklist

TREASURY INSPECTOR GENERAL

FOR TAX ADMINISTRATION

DATE: April 1, 2015

Exhibit (400)-180.7

Undercover Operation Review Checklist

Case Name/Operation Name:

Case Number:

I. Requirements for New Undercover (UC) Proposals and Extensions:

Does the Identification of Targets section identify specific targets, background of targets and reason for targeting?

Are the facts in the proposal documented in Forms 2028-M and/or ROIs?

Are anticipated results provided?

What is the potential for success beyond the initial target?

Are there realistic goals that must be met to successfully conclude the operation?

What are the goals for the next 6 months?

How will the goals be met?

Is there an anticipated closing date?

Does the Reason for Activity section provide enough detail to ensure protection of the UC agent and the proprietary, if there is one?

How can the operation continue without being compromised?

Has the operation been compromised in any way?

Have there been delays in prosecution or arrest posing a threat to security?

What is the nature and frequency of UC activities?

How long has the operation been active?

Does the UC Mission section provide information on the importance of the alleged violator?

Is a summary of resources devoted to the operation provided?

What is the investment of time compared to the significance of the targets/priorities?

How is the operation related to investigative goals?

Does the Budget section provide the anticipated expenditures for the next 6 months?

Is the budget plan realistic and are the MS Excel spreadsheets for UC operations utilized?

Do the expenses appear reasonable and necessary for the type of operation and for the type of proprietary involved in the operation?

Is adequate justification for the expenses provided?

Has the case agent been trained to use the MS Excel spreadsheets for UC operations?

Are other agencies involved in the operation?

If other agencies are involved in the operation, is their role and degree of involvement adequately explained?

Has the operation gone through the other agency review process? If so what was the result?

Is it clear who the lead agency is?

Is there an MOU regarding this operation? If so, are there any operational issues related to the MOU?

Which agency will present the case for prosecution?

Are TIGTA violations being considered for prosecution?

What are the arrangements for payment of expenses?

Is a High Intensity Drug Trafficking Area (HIDTA) or Organized Crime Drug Enforcement Task Force (OCDETF) proposal attached?

Are the confidential sources (CSs) listed in the Confidential Sources section and the following provided?

·  CS number

·  Is the CS a defendant or possible defendant?

·  Role of CS in operation

·  Reliability of CS

·  Motivation of CS

·  CS controller

·  List of any payments made to the CS by any agency for the prior year

·  Total amount paid to the CS for this operation

·  Other income paid to the CS from this operation

Is a letter from the U. S. Attorney’s Office attached?

Is an agent going to be working undercover in this operation?

Who is the proposed undercover agent (UCA)?

Has the proposed UCA successfully completed TIGTA’s or another agency’s UC training course?

If the agent has not been to the cadre training, the following needs to be asked:

Why is this particular SA required for this operation? Is there no other SA available? Does the SA have special skills required for this operation?

What is the background of the SA? (Identify prior UC experience, prior police experience, etc.)

Has written approval for use of a non-cadre member been submitted to the appropriate AIGI? (For approval of a non-cadre member to be granted, the SA and his/her SAC must make a commitment to send the SA to the next UC school).

In the past three years, how much UC work has the SA done?

Is a proprietor involved? If so the following must be answered:

·  If there is to be a storefront, what will be the front company and what type of business will be conducted? How exactly will the UC operation work?

·  How will the storefront handle walk-in customers?

·  What backstopping will be used for the storefront, and the UCA?

Is there a separation of duties between the UCA, the case agent and the contact agent? There must be a separate individual for each task.

If foreign travel is anticipated, has the Secretary of State office been contacted and the proper country clearances being anticipated/obtained?

Does the operation have sensitive circumstances now or sensitive circumstances anticipated in the next six months?

II. If the UC Operation Has Been Resubmitted for an Extension:

Are prior results provided in the Undercover Operations Status Report, Forms 2028-M, and any ROI generated as a result of the UC operation that should be reviewed?

Is a brief description of the original operational goals provided? Has the progress of the operation been consistent with the intent of the original proposal? If the operation has deviated from the original proposal, how and by how much (review original proposal)? Was an expansion of the original proposal requested?

Do the ROIs, Undercover Operations Status Reports and Forms 2028-M support the operation and indicate continued progress toward the stated goals of the operation?

Can the accomplishments reported in the operational proposal be verified through PARIS or Fact Sheets?

Review financial reports submitted to ascertain if the operation has stayed within the budget, and expenses necessary and reasonable. For example, are vehicles being rented, if so, how many and does the operation warrant the number and type of vehicles rented?

Are imprest funds properly accounted for and documented according to the TIGTA Operations Manual?

III. Sensitive Circumstances Requiring Review of ORC with DOJ participation.

·  Elected or appointed official or candidate;

·  Public official at federal, state, or local level;

·  Foreign official or activities of a foreign government;

·  Religious organization;

·  Political organization;

·  News media;

·  Engaging in activity having a significant effect on or constituting a significant intrusion into the legitimate operation of a federal, state, or local governmental entity;

·  Establishing, acquiring, or using a proprietary such as a sole proprietorship, partnership, corporation, or other business entity operated on a commercial basis, which is owned, controlled, or operated wholly or in part on behalf of TIGTA, and whose relationship with TIGTA is concealed from third parties;

·  Providing goods or services essential for a crime, but generally unavailable to a subject of the investigation except from the government;

·  Activity that is proscribed by Federal, State, or local law as a felony or that is otherwise a serious crime EXCEPT:

·  Purchase of stolen or contraband goods

·  Delivery or sale of stolen property whose ownership can not be determined

·  Controlled delivery of drugs or other contraband which will not enter commerce

·  Payments of bribes which do not contain sensitive circumstances

·  False representations to third parties to conceal identity or true ownership of the proprietary (this exemption does not include any statement under oath or the penalties of perjury)

·  Risk of arrest of the UC;

·  UC will supply falsely sworn testimony or false documentation in legal or administrative proceeding;

·  Attendance at a meeting or participation in communications between any individual and his/her lawyer;

·  Risk of third party communication to a UC who is acting as an attorney, physician, clergyman, or member of the news media;

·  A request to an attorney, physician, member or the clergy, or other person for information that would ordinarily be privileged or to a member of the news media concerning an individual with whom the news person is known to have a professional or confidential relationship;

·  Significant risk of violence or physical injury to individuals;

·  Significant risk of financial loss to individuals;

·  Activities which could result in significant claims against the US arising in tort, contract, or for compensation for the “taking” of property;

·  Untrue representations by UC concerning the activities or involvement of any third person without that individual’s knowledge or consent;

If the proposal does not meet any of the above sensitive circumstances, the operation may still be sensitive by TIGTA definitions, see below, and must be reviewed by the TIGTA Operations Review Committee (ORC) and approved by the DIGI.

IV. Sensitive Circumstances Not Requiring DOJ Attorney Participation on ORC but Requiring Evaluation by Remaining Members of the ORC

The UC operation will require leasing, renting (more than 30 day increments or more than a 30 day deposit), or contracting of space, property, supplies, equipment, or facilities, outside normal government procedures.

The operation will extend beyond the end of the fiscal year.

A UC operation in which implementation is contingent upon or requires an indemnification agreement.

The UC operation is anticipated to involve expenditures of over $20,000.

If the activities being performed by a CS are such that they would be sensitive and require ORC approval if performed by an agent.

Operations Manual 1 Chapter 400