$43,000 embezzled out from under nose of FBI

July 16, 2012

Star-Telegram.com on July 16, 2012 released the following:

“Not everybody can be a paid snitch for the FBI. First, the case agent proposing to operate a confidential informant must complete an Initial Suitability Report and Recommendation addressing 17 different factors, such as the person’s motivation and truthfulness. To make sure the FBI is getting its money’s worth, it also tracks the “statistical accomplishments” of snitches – such things as the number of indictments, convictions and search warrants for which they get credit. Finally, when an FBI agent pays a snitch, another agent is supposed to go along to sign a receipt.

At least, that’s how you do it by the books.

So the FBI might have some explaining to do, after a special agent in Oklahoma managed to carry on an embezzlement scheme for four years, taking more than $43,000 from the agency’s confidential informant fund. On Friday, Special Agent Timothy Klotz pleaded guilty, the Justice Department reports. He worked in classified counterintelligence, the Oklahoman reports.

You might have seen this one coming, though. After all, 87 percent of the confidential informant files examined by the inspector general for the FBI failed to meet the agency’s guidelines, according to a 2005 report. Among the failures, information corroborating the extent to which the informant’s help would be relevant was missing from a number of files. And Congress was told in 2007 that there was potential for abuses in the program.

In Klotz’s case, he submitted 66 false confidential informant payment receipts on which he forged the signature of either FBI special agents or the Air Force Office of Special Investigations. The U.S. Attorney’s Office for North Texas handled the investigation after auditors discovered discrepancies. – Lois Norder”

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Douglas McNabb – McNabb Associates, P.C.’s
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To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


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