Letter to the The Honorable Gary F. Locke, Secretary, U.S. Department of Commerce
Letter
Senator Chuck Grassley has asked the Commerce Secretary to ensure a full accounting and appropriate discipline for abusive spending of asset forfeiture funds collected by federal law enforcement officials at the National Oceanic and Atmospheric Administration.
Grassley's request is based on questionable purchases including a $300,000 luxury boat purportedly for undercover operations. The law enforcement office was unable to provide documentation that the boat had ever been used for an undercover operation when the Inspector General began inquiring, but indications are that it was used by executive staff for fishing trips. Other expenditures include the unauthorized purchase of 200 vehicles for a 172-person law enforcement office, and $580,000 in international travel, with only 17 percent of the travel directly related to law enforcement investigations.
"Nothing's being done to fully account for what happened, and no one's been held responsible for wrongdoing," Grassley said. "Turning a blind eye is license for more of the same and continued disregard for the public trust held by these public officials. In this case, it's at the direct expense of average Americans."
A report issued by the Inspector General for the Commerce Department found that as much as $96 million may have gone through this fund in the last five years. The amount of money could not be verified because the books were in such disarray. The fund also was unusual in that it wasn't created through the sale of assets seized as a result of their use in criminal enterprises. Rather, it consisted of money collected through administrative fines and penalties imposed with little oversight or judicial review.
In a letter to Commerce Secretary Gary F. Locke, Grassley said the nature of the fund "has led to allegations of questionable conduct on the part of enforcement officers who had an incentive to impose exorbitant penalties and fines on fisherman."
Grassley said that while an outside auditing firm has been brought in to determine the balance of the fund and audit the most recent fiscal year, that fails to account for what went on since 2005. "The public deserves to know, and the abuse needs to be stopped," Grassley said. "If heads don't roll, nothing's likely to change.
The Honorable Gary F. Locke
Secretary
U.S. Department of Commerce
1401 Constitution Ave., NW
Washington, DC 20230
Dear Secretary Locke:
I write to you today about a report issued by the Department of Commerce Office
of Inspector General (OIG) regarding the Asset Forfeiture Fund (AFF) which is
maintained at the National Oceanic and Atmospheric Administration's (NOAA) Office of
Law Enforcement (OLE).
In July 2010, the OIG issued an investigative report (Report) regarding NOAA's
administration and use of the AFF. The AFF had never been audited and the books were
in such disarray that an outside auditor was unable to discern the current balance, placing
it somewhere between $8.4 and $42 million. Preliminary estimates of the amount of
money passing through the fund over approximately five years range from $30 million to
$96 million.
It is my understanding that unlike a true asset forfeiture fund, the AFF was not
actually created through the sale of assets seized as a result their use in criminal
enterprises. Rather, the fund consisted of money collected through administrative fines
and penalties imposed with little oversight or judicial review. This has led to allegations
of questionable conduct on the part of enforcement officers who had an incentive to
impose exorbitant penalties and fines on fishermen.
According to the Report, the OLE leadership failed to establish proper controls on
the fund, which resulted in the following questionable expenditures:
- The purchase of a $300,000 luxury boat, purportedly to be used in undercover
operations. Although OLE was unable to provide documentation to the Inspector
General that the boat had ever been used for an undercover operation, it was in
fact used by the executive staff for fishing trips;
- The unauthorized purchase of 200 vehicles for the OLE, even though the office
only has 172 enforcement personnel;
- Approximately $580,000 charged to the AFF for international travel while only
17 percent of the travel was directly related to OLE investigations or proceedings;
and
- Hundreds of purchase cards, issued to nearly every OLE special agent and
enforcement officer with transactions charged to the AFF, many of which remain
unaccounted for throughout the United States.
Although an outside auditing firm has been engaged to determine the current
balance in the fund and to audit the most recent fiscal year, there is no full forensic audit
being conducted of the $30 million to $96 million that passed through the fund in the
period during which no audits were conducted. Accordingly, please provide written
answers to the following questions:
1) Given that the Office of Inspector General has already expended much of
its limited resources bringing these issues to light and may not have the
ability to conduct such an audit, what steps are you taking to assure
taxpayers that the rest of the $30 million to $96 million was spent
appropriately?
2) Will you seek a full forensic audit, to be paid for from the AFF? If not,
please explain why not.
3) How do you plan to hold accountable those who mismanaged the fund for
so long? Please provide a detailed status update on the cases of any
individuals who have been, or will be, proposed for discipline in
connection with this matter.
Thank you in advance for your prompt attention to this important matter. I would
appreciate receiving your response to the questions set forth in this letter by February 16,
2011. Should you have any questions regarding this matter, please do not hesitate to
contact Janet Drew or Brian Downey of my staff at (202) 224-5225. All documents
responsive to this request should be sent electronically in PDF format to
Brian_Downey@judiciary-rep.senate.gov.
Sincerely,
Charles E. Grassley
Ranking Member
Source