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Overview:

Part of the US Department of the Treasury, the Financial Crimes Enforcement Network (FinCEN) was established with the aim of sharing financial information in order to prevent money-laundering and terrorist financing. In its current form, FinCEN primarily analyzes information accumulated from the Bank Secrecy Act (BSA) in combination with other government and public information, and compiles it into databases made accessible to 165 federal, state and local agencies. FinCEN is a member of the international Financial Action Task force and shares information with the 106 other Financial Intelligence Units (FIUs) that form The Egmont Group. It is the only federal agency devoted solely to gathering, analyzing and disseminating information from law enforcement, intelligence and public databases. Although most Americans know nothing about FinCEN, its work is key to major criminal investigations and, in some cases, high profile busts of public officials, such as former New York Governor Eliot Spitzer.

 
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History:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under the powers granted by the Bank Secrecy Act of 1970 (BSA), the Treasury Secretary in 1990 established the Financial Crimes Enforcement Network (FinCEN) to meet the growing needs for centralized analysis of financial information in the battle against money-laundering.
 
In a further expansion of its powers, the BSA was updated in 1992 to require financial institutions (including money service businesses, insurers, money exchangers, casinos and precious metals dealers) to file Suspicious Activity Reports (SARs) when their clients engage in behavior defined as suspicious by FinCEN. 
 
In contrast to the Right to Financial Privacy (RFPA) established in 1978, information submitted through SARs does not need to be approved by the subject of inquiry, nor is the subject informed of the SAR submission. This has led to complaints of invasion of privacy. Other complaints have been raised that the current informational structure in use at FinCEN, which allows all participatory agencies to freely upload data and download entire databases, violates the law requiring law enforcement agencies to acquire warrants before sharing information. Alternatively, other groups are arguing for further integration on the grounds that crimes and terrorism can be prevented by effective information sharing.

 

History of Anti-Money Laundering Laws

 

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What it Does:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part of the Treasury Department’s new Office of Terrorism and Financial Intelligence, the Financial Crimes Enforcement Network (FinCEN) helps law enforcement agencies combat money laundering and terrorist financing. FinCEN primarily analyzes information accumulated from the Bank Secrecy Act (BSA) in combination with other government and public information and compiles it into databases made accessible to 165 federal, state and local agencies.
FinCEN is a member of the international Financial Action Task force and shares information with the 106 other Financial Intelligence Units (FIUs) that form The Egmont Group. It is the only federal agency devoted solely to gathering, analyzing and disseminating information from law enforcement, intelligence and public databases.
Hundreds of thousands of financial institutions are subject to Bank Secrecy Act reporting and recordkeeping requirements. These include depository institutions (e.g., banks, credit unions and thrifts); brokers or dealers in securities; money services businesses (e.g., money transmitters; issuers, redeemers and sellers of money orders and travelers' checks; check cashers and currency exchangers); casinos and card clubs; and dealers in precious metals, stones, or jewels.
 
FinCEN assisted with a case against a naturalized US citizen who pled guilty for sending more than $4 million to Iran through intermediaries in Hong Kong and the Middle East. Between 2001 and 2002, the defendant violated the International Emergency Economic Powers Act (IEEPA) (PDF), which forbids the transfer of funds to Iran. His broker refused to transfer the funds after inquiring about the unusual activity and filed a Suspicious Activity Report (SAR), which eventually led to a trial and conviction. After he could no longer use his broker, the defendant fell back on the ancient Hawala banking system, in which members of the system transfer funds to other members in various cities relying solely on the honor system to make and settle debts. FinCEN’s extensive database and cooperation with international regulatory and intelligence communities were an essential element in building the case.  
 
FinCEN also proved instrumental in uncovering a complex bank fraud scheme. In 2002 an individual forged a number of documents that supported his claim to be an owner of a bank and affiliated with a large multinational financial institution. After putting $750,000 into the alleged bank, investors began taking a closer look. In response to the inquiries, the multinational financial institution supposedly associated with the fraudulent bank filed an SAR, notifying the FBI both of his scheme to defraud investors and attempt to steal a bank’s identity. While awaiting sentencing, the defendant stole his mother’s identity and used her credit card to purchase a sports car valued at more than $30,000 for an exotic dancer. In light of all of this activity, the judge sentenced him to five years in prison and ordered him to pay $88,000 in restitution to his various victims. 
 
In line with its primary function of interacting with various government agencies to share financial information in money-laundering cases, FinCEN tightly regulates the laws regarding reporting procedures. In September 2007, in coordination with the Office of the Comptroller of Currency (OCC), FinCEN fined Union Bank of San Francisco $10 million for failing to implement adequate counter money laundering measures. 
 
In another federal trial, prosecutors introduced evidence provided by FinCEN that showed the defendant defrauded Medicare of millions of dollars through a program that provides medical equipment to patients. Testimony was presented supporting the allegation that the defendant was guilty of healthcare fraud as well as multiple counts of structuring currency transactions and money laundering. Over the course of several years, the defendant and co-defendants submitted millions of dollars worth of false and fraudulent claims to Medicare on behalf of Medicare recipients, resulting in their actual receipt of more than $2 million from the Medicare program. The defendant bribed physicians, who were charged as co-defendants in the federal indictment, to verify that Medicare beneficiaries needed the medical equipment. The physicians have admitted that at least half of those claims were fraudulent. The jury found the defendant guilty of more than a dozen counts of structuring currency transactions to evade the federal reporting requirements. Upon conviction, the judge sentenced the defendant to more than five years in federal prison without parole. The court also ordered the defendant to pay restitution and to forfeit to the government hundreds of thousands of dollars.
 
 
Related offices:

Office of Terrorist Financing and Financial Crime

 

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Where Does the Money Go:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

According to USAspending.gov, the federal government’s clearinghouse for federal contract information, the Financial Crimes Enforcement Network spent $1.9 billion this decade to acquire goods and services from businesses. More than 1,400 contractors were hired by FinCEN to provide ADP and telecommunications services ($453 million), maintenance and repair related to aircraft components and accessories ($255 million), facility operation and maintenance services ($152 million), management support services ($122 million) and hazard-detecting instruments and apparatus ($89 million).
 
The top 10 contractors of FinCEN are:
 
IBM                                                                  $381,988,480
L-3 Communications Holdings                             $264,353,854
Lockheed Martin                                                $110,367,664
QINETIQ North America Operations                      $93,686,595
URS Corporation                                                 $80,784,748
SAIC, Inc.                                                           $79,519,482
Apptis Inc                                                           $59,134,560
American Science and Engineering, Inc.                $36,390,000
Unisys Corporation                                              $26,261,000
Bart & Associates, Inc                                         $26,176,720
 
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Controversies:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FinCEN Records Help Bring Down New York Governor
When Gov. Elliot Spitzer (D-NY) fell from power as a result of a prostitution scandal, it was banking records maintained by the Financial Crimes Enforcement Network that may have helped in the investigation. Under the Bank Secrecy Act, financial institutions are required to report suspicious activity through special reports filed with FinCEN, which collects the information in a database accessible by law enforcement agencies including the IRS, FBI, DEA and various state regulatory agencies. It is believed that the investigation into Spitzer began as a result of a routine inquiry by a Long Island office of the Internal Revenue Service.
 
Officials say the suspicious activity in Spitzer’s case was a money-laundering technique known as “structuring,” which can be detected from reviewing forms filed by banks for all customer transactions totaling $10,000 or more. According to the FBI, Spitzer chose to pay for services in cash rather than wire transfer. Assuming that Spitzer was withdrawing large sums of money from his account to pay for his “escort services,” his bank’s system would have flagged the activity as possible structuring.
 
For someone who served as his state’s attorney general before becoming governor and was quite familiar with money laundering schemes, Spitzer’s behavior was shocking to experts. “It’s almost unfathomable,” said David Caruso, chief executive of the anti-laundering consulting firm Dominion Advisory Group. “He showed almost no level of sophistication whatsoever.”
The Hot Trail to Cold Cash (by Megan Barnett, Portfolio.com)
 
 
FinCEN as ‘Big Brother’
As concerns about fraud and terrorist financing grow, an increasing number of suspicious deposits, withdrawals and money transfers are being reported by banks and others to the federal government. Banks and credit unions as well as currency dealers and stores that cash checks reported a record 17.6 million transactions to the Financial Crimes Enforcement Network in 2006.
 
“I don’t think Americans understand that their financial transactions are being reported and routinely examined,” said Barry Steinhardt of the American Civil Liberties Union. “The government has access to untold volumes of records and can draw all sorts of conclusions about us, and many are going to be wrong.”
 
The FinCEN’s database now contains records of more than 100 million financial transactions going back to at least 1996. The number of suspicious activity reports soared from 413,000 in 2003 to 1 million in 2006. Federal law requires the reports to remain secret. They are written by officers at financial institutions who specialize in detecting suspicious activity, such as a series of large transactions.
Feds might be studying your finances (by Thomas Frank, USA Today)
 
Counterfeit FinCEN Seals Used in Nigerian Money Scam
The ongoing problem of financial schemes originating in African countries has gone so far as to use counterfeit seals of the Financial Crimes Enforcement Network. Consumers have reported receiving letters, purportedly from the director or deputy director of FinCEN, telling of an automatic stop order that has been placed on a large sum of money being transferred to them. Intended victims are told that a “Clean Report on Fund” is required to obtain the funds being held. These letters, brandishing the FinCEN seal, instruct the potential victims to pay an “agent broker” a fee to obtain a “Clean Report on Funds” so that the funds will be cleared and not confiscated by the “United States Treasury International Monetary Fund Policy.”
 
FinCEN has urged consumers to report such fraudulent letters to their state, local and or federal law enforcement agency. The agency says it is working closely with law enforcement agencies to identify the source of the letters and disrupt the scams.

FinCEN Issues a Warning Notice Against Fraudulent Stop Order Scams

(FinCEN press release)

 

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Debate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Is Borrower Fraud a Major Factor in Massive Foreclosures?
 
Yes
In December 2007, the Wall Street Journal (WSJ) published a Page One article that argued that fraud was a big contributor to the mortgage crisis. It cited examples such as a phone technician earning only $105,000 a year, with assets of only $35,000, who managed to buy a palm-tree-lined mansion with a nearly $2 million mortgage from Bear Stearns. The technician had lied on his loan application, claiming he and his wife were top officers of a marketing company earning $50,000 a month. Officials at Bear Stearns never bothered to confirm this. Later, the legendary financial institution posted the first quarterly loss in its 84-year history, writing down $1.9 billion of mortgage assets, because of bad loans.
 
The article went to claim that fraud “goes a long way toward explaining why mortgage defaults and foreclosures are rocking financial institutions, Wall Street and the economy.” It cited statistics from the FBI showing that the share its white-collar agents and analysts devoted to prosecuting mortgage fraud has risen to 28%, up from 7% in 2003. Suspicious Activity Reports, which are filed by lenders with the Financial Crimes Enforcement Network, shot up nearly 700% between 2000 and 2006. Furthermore, the story said that losses from fraud could total a record $4.5 billion in 2006 alone, a 100% increase from the previous year. The FBI said its active mortgage-fraud cases had increased to 1,210 in 2007 from 436 in 2003. In some regions, fraud may account for half of all foreclosures.
Fraud Seen as a Driver In Wave of Foreclosures (by Michael Corkery, Wall Street Journal)
 
No
The Columbia Journalism Review (CJR) took umbrage with the WSJ story in that it tried to let lenders off the hook for the mortgage crisis by showing how much fraud was being committed by white-collar criminals. As the CJR remarked, “If the premise of this [Wall Street Journal] story is true, we need to seriously rethink the mortgage dilemma and tighten safeguards to protect lenders, Wall Street securities dealers and institutional investors against hordes of unscrupulous borrowers. And yet, the Federal Reserve has neglected to do anything of the kind in proposing new lending rules. Instead, these deal entirely with unscrupulous lending practices.
The writer, Dean Starkman, wrote, “But, of course, the premise of the story is not true. I don’t know anyone who thinks that. Even Bear Stearns, an alleged victim in the story, if you can believe it, isn’t saying that. And even if you think it is true, there is a journalistic problem here: The assertion is unsupported. The evidence cited in the story does not make, or come close to making, the case for the idea that borrower fraud is an important driver of the mortgage crisis. To see that, frankly, does not even require a particularly close reading.

Unsupported and Untrue

(by Dean Starkman, Columbia Journalism Review)

 

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Former Directors:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Robert W. Werner (March 2006-December 2006)
William J. Fox (2003-2006)
James F. Sloan (1999-2003)
Stanley E. Morris (1994-1998)
Brian M. Bruh (1990-1993)

 

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See all 22 comments

Comments

J 7 years ago
I have received an email from an "attorney" named Loretta Lynch. They want me to pay via Itunes card. and I can't talk to them on the phone as they have to many cases...smh
Mary 8 years ago
I received an email about the same thing. There was also an attachment with a seal on it. Phone # to call was 202-241-2741. Also, there was a gmail address.
Greg warren 8 years ago
I received an email from nations debt recovery USA. The email also said he was with the financial crimes enforcement network. The email had poor grammar so I suspect it is a scam. It also came from a gmail address. Can I forward the email to you or are you aware of it?
OLGA SUAREZ 8 years ago
tHIS WAS JUST SENT TO ME. THESE PEOPLE HAVE BEEN THREATENING AND HARASSING ME AND I HAVE NEVER DONE BUSINESS WITH THEM. THEY HAVE REFUSED TO PROVIDE WRITTEN EVIDENCE AND THEY CONSTANTLY CALL, THREATEN, EMAIL AND HARASS. CAN ANYTHING BE DONE LEGALLY? Arrest warrant ID: - FCEN 85652461 which will be out on Wednesday 3 PM. Attention This is the last and final chance for you. This Legal Proceedings issued on your Docket Number EVR-38924 with one of the Cash Advance Inc. companies in order to notify you that after making several calls to you on your phone number we were not able to get hold of you. So the account department of Cash Advance has decided to mark this case as a flat refusal and have decided to press legal charges against you. CASE NO: DA-ID-078025 Amount Outstanding $833.63 We have already sent you this warning/notification about legal proceedings on March 8, 2015 but you failed to respond on time. Now if you failed to respond in next 4 HOURS, we will register this case in court. Consider this as a final warning. We will be emailing/faxing this issue to your current employer to make sure they take strict action against you. Your salary/wages will be garnished. Do revert back if you want to get rid of these legal consequences and make a payment arrangement today or else we would be proceeding legally against you. We apologize that this notification will also be sent to your current employer. The opportunity to take care of this voluntary is quickly coming to an end. You are going to lose the option to resolve this before it goes to the next step which is a Lawsuit against you. So you must take an immediate action. You can Email back to get the payment mode too. We will be forced to proceed legally against you and once it is processed the creditor has entire rights to inform your employer and your references regarding this issue and the lawsuit will be the next step which will be amounting to $6300.00 and will be totally levied upon you and that would be excluding your attorney charges. If you can take care of this out of court then we will release the clearance certificate from the court and we will make sure that no one contacts you in future. Please let us know what your intention is by today itself so we can hold the case or else we will submit the paperwork to your local county sheriff department and you will be served by court summons at your door step. Note : This notice is provided to you on behalf of Cash Advance Inc. and its parent company , and their respective family of companies including Cash Advance, its parent company, Cash America International, Inc., and all of their respective subsidiaries and affiliates, (hereafter collectively referred to as the “Cash Advance Related Companies,” “we,” “our,” or “us”). The Cash Advance Related Companies include, but are not limited to: Cash Advance, Cash America International, Inc., and all of their respective subsidiaries and affiliates, including those that operate under the trade names Cash Advance, 100 Day Loan, Net loan USA, Fax free Cash, Payday one, Sonic Cash, Money tree, Egg loans, Check cash Loan, Quick Payday, Personal Cash Advance, Rapid Cash, Sonic Payday, Speedy Cash, My Cash Now, National Payday, Paycheck Today, Payday OK, Cash Central Loans, Cash Net 500,Cash Net USA, Allied Cash, Super Pawn, Check into Cash, Check Smart, Ez Money Cash America Net, Cash America, Cash America Pawn, Cash land, Super Pawn, Cash America Payday Advance, or any company-owned Mr. Payroll locations. “You” or “Your” means you as a participant in or as a user of the products and/or services offered by a Cash Advance Related Company. WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED PAYMENTS, OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT. TERMS & CONDITIONS YOU AGREED. By electronically signing this Loan Agreement by clicking the "I AGREE" button below, you are confirming that you have agreed to the terms and conditions of the Consent and that you have downloaded or printed a copy of this Consent for your records. Note: To make the payment you need to contact our email address taiwooyeduntandebtcollector@outlook.com Office JENNIFER SHASKY CALVERY Financial Crime Enforcement Network, 300 South Spring Street, Los Angeles, CA 90013-1230
Roseanna 8 years ago
These bottom-feeding morons have been sending out these threats as early as April 2004! Each new email comes from a different email respondent but the message and dollar amounts rarely change! Instead of getting mad or seeking revenge, STOP RESPONDING to their harassment and extortion schemes and file a formal complaint with the myriad of online resources available...! They will continue with their idle threats and try a new tactic, but they may stop if their messages fall on "deaf" ears!
Lana 8 years ago
Again this morning I received another email from Taiwo Oyeduntan <taiwooyeduntandebtcollector@outlook.com) Stating FINAL NOTIFICATION CASE NO:DA-ID-078025 @ 8:30AM. ARREST WARRANT ID-FCEN 85652461. Who ever these people are they need to be arrested them self. STOP STOP STOP SENDING ME THIS. Is there not some way someone can stop this please?????????????????????
Lana 8 years ago
I also received an email today 9/23/15 from financial crime enforcement network from Jennifer Shasky Calvery, stating I owe money to cash advance America and that an arrest warrant is being issued. To send payment to this contact address michaelhary1@outlook.com Hopefully someone will catch these pieces of crap and give them what they deserve a nice long vacation in the federal pen Someone needs to stop these people. Please, no one needs this.
Judy Engdahl 8 years ago
I also received an email yesterday from financial crime enforcement network from Julie Stark stating I owe money to cash advance America and that an arrest warrant is being issued. Hopefully someone will catch these pieces of crap and give them what they deserve a nice long vacation in the federal pen
linda smith 8 years ago
I too received a very disturbing email today eventhough it has SCAM written all over it none the less very very disturbing.... what can be done about this mess????
Evette 8 years ago
I was sent an e-mail similar to the ones above.I found it to be very threating due to the following an Arrest Warrant ID number -NRS 3316889,Docket number EVR-38924.In the amount of 1376.91.Sent from the office of Neon Riley by Aaron Carson.Case number A-12-6714237-C.I'm presently at home recovering from surgery and I don't need the added stress it was from your agency.

Leave a comment

Founded: 1990
Annual Budget: $34 million
Employees: 300
Official Website: https://www.fincen.gov/
Financial Crimes Enforcement Network
El-Hindi, Jamal
Acting Director

In June 2016, Jamal El-Hindi began serving as acting director of the Financial Crimes Enforcement Network. Located in the U.S. Department of Treasury, FinCEN collects and analyzes data about financial transactions in order to enforce laws against domestic and international money laundering, terrorist financing, and other financial crimes.

 

Born March 27, 1963, in Syracuse, New York, Jamal Laurence El-Hindi was the fourth of five children of Ahmad, a Palestine-born engineer, and Elizabeth El-Hindi. His father was a Muslim and his mother a Catholic. Ahmad El-Hindi started his own company, Filtertech, and later founded the Ahmad and Elizabeth El-Hindi Foundation and funded the El-Hindi Center for Dialogue.

 

Jamal grew up as “a regular American kid,” in the small town of Fabius, New York, just south of Syracuse. He earned a B.A. in Journalism at the University of North Carolina-Chapel Hill in 1985, a Diploma in International Relations at The London School of Economics in 1986, and two graduate degrees at the University of Michigan: a JD in 1990 and an M.A. in Modern Middle Eastern and North African Studies in 1994. He has published at least two articles on International Law issues related to Palestine. 

 

El-Hindi was an associate at the Washington, DC law firm Patton, Boggs & Blow from October 1991 to November 2000. He practiced international law, focusing on cases relating to sanctions, export controls, foreign corrupt practices, foreign sovereign immunities, status of forces agreements, international trade and banking litigation.

 

Leaving private practice, El-Hindi began his Treasury Department career in December 2000 as legal counsel to the Office of Foreign Assets Control (OFAC), which administers and enforces economic sanctions imposed by the federal government. In June 2005 El-Hindi was promoted to associate director for Program Policy and Implementation, where he oversaw OFAC’s Compliance Outreach, Licensing, and Policy Divisions.

 

El-Hindi moved to FinCEN in June 2006, serving as associate director of the Regulatory Policy & Programs Division until 2013, and of the re-organized Policy Division from 2013 to 2015. He became acting deputy director in January 2015, before being promoted to deputy director of FinCEN in May 2015, where he was responsible for directing the Policy, Enforcement, Intelligence, Liaison, Management and Technology Divisions before he became acting director.

 

El-Hindi is a past president of The Washington Foreign Law Society and currently serves on its advisory board.

 

Jamal El-Hindi is married to Jean (Sullivan) El-Hindi, with whom he resides in Vienna, Virginia. The couple has a daughter, Elizabeth, and a son, Jamal.

-Matt Bewig

 

To Learn More:

Jamal El-Hindi Named New FinCEN Deputy Director (FinCEN)

Jamal El-Hindi Talks to his Son about his Ancestors and his Childhood (StoryCorps.me) (audio)

The West Bank Aquifer and Conventions Regarding Laws of Belligerent Occupation (by Jamal El-Hindi, Michigan Journal of International Law, 1990) (paywall)

Compensation as Part of Equitable Utilization in the Israeli-Palestinian Water Context (by Jamal L. El-Hindi, Arab Studies Quarterly, 2000) 

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Freis, James
Previous Director
James H. Freis, Jr. has served as director of FinCEN since March 2007, when he was appointed by Treasury Secretary Henry Paulson. Freis received his bachelor’s degree from Georgetown University in 1992 and his JD from Harvard, graduating with honors at both institutions. 
 
After receiving his degree, Freis worked in the legal department of the Federal Reserve Bank of New York and spent a year in Germany working for the Federal Banking Supervisory Authority. Expanding on his international experience, Freis moved to Basel, Switzerland, where he worked as senior legal counsel at the Bank for International Settlements. 
 
Upon moving back to the states, Freis worked for the Treasury Department as Deputy Assistant General Counsel for Enforcement and Intelligence, providing legal counsel to the Office of Terrorism and Financial Intelligence, which included working with FinCEN, the Office of Foreign Assets Control and the Treasury Executive Office for Asset Forfeiture. 
 
Freis is the third director of FinCEN in two years, following the departure of both of his predecessors to the private sector. Lacking consistent leadership, FinCEN has yet to deal with 12 pending proposals, including extending SAR reporting to real estate professionals and hedge funds. Perhaps the most important pending issue is the choice of a new data management system and its effective administration. FinCEN has pulled the plug on its new BSA direct program, which it has already sunk $14 million into, and reverted to its old system. The old system is housed and operated by the IRS, and was declared obsolete three years ago by FinCEN as it undertook the BSA direct program. In response to this problem, a new chief information officer was hired in July 2007.
 
Gripping the Oar Means Risking the Shirt (Letter to the Editor regarding the trading of jerseys by rowing crews, by James Freis, New York Times)
 
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Bookmark and Share
Overview:

Part of the US Department of the Treasury, the Financial Crimes Enforcement Network (FinCEN) was established with the aim of sharing financial information in order to prevent money-laundering and terrorist financing. In its current form, FinCEN primarily analyzes information accumulated from the Bank Secrecy Act (BSA) in combination with other government and public information, and compiles it into databases made accessible to 165 federal, state and local agencies. FinCEN is a member of the international Financial Action Task force and shares information with the 106 other Financial Intelligence Units (FIUs) that form The Egmont Group. It is the only federal agency devoted solely to gathering, analyzing and disseminating information from law enforcement, intelligence and public databases. Although most Americans know nothing about FinCEN, its work is key to major criminal investigations and, in some cases, high profile busts of public officials, such as former New York Governor Eliot Spitzer.

 
more
History:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under the powers granted by the Bank Secrecy Act of 1970 (BSA), the Treasury Secretary in 1990 established the Financial Crimes Enforcement Network (FinCEN) to meet the growing needs for centralized analysis of financial information in the battle against money-laundering.
 
In a further expansion of its powers, the BSA was updated in 1992 to require financial institutions (including money service businesses, insurers, money exchangers, casinos and precious metals dealers) to file Suspicious Activity Reports (SARs) when their clients engage in behavior defined as suspicious by FinCEN. 
 
In contrast to the Right to Financial Privacy (RFPA) established in 1978, information submitted through SARs does not need to be approved by the subject of inquiry, nor is the subject informed of the SAR submission. This has led to complaints of invasion of privacy. Other complaints have been raised that the current informational structure in use at FinCEN, which allows all participatory agencies to freely upload data and download entire databases, violates the law requiring law enforcement agencies to acquire warrants before sharing information. Alternatively, other groups are arguing for further integration on the grounds that crimes and terrorism can be prevented by effective information sharing.

 

History of Anti-Money Laundering Laws

 

more
What it Does:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part of the Treasury Department’s new Office of Terrorism and Financial Intelligence, the Financial Crimes Enforcement Network (FinCEN) helps law enforcement agencies combat money laundering and terrorist financing. FinCEN primarily analyzes information accumulated from the Bank Secrecy Act (BSA) in combination with other government and public information and compiles it into databases made accessible to 165 federal, state and local agencies.
FinCEN is a member of the international Financial Action Task force and shares information with the 106 other Financial Intelligence Units (FIUs) that form The Egmont Group. It is the only federal agency devoted solely to gathering, analyzing and disseminating information from law enforcement, intelligence and public databases.
Hundreds of thousands of financial institutions are subject to Bank Secrecy Act reporting and recordkeeping requirements. These include depository institutions (e.g., banks, credit unions and thrifts); brokers or dealers in securities; money services businesses (e.g., money transmitters; issuers, redeemers and sellers of money orders and travelers' checks; check cashers and currency exchangers); casinos and card clubs; and dealers in precious metals, stones, or jewels.
 
FinCEN assisted with a case against a naturalized US citizen who pled guilty for sending more than $4 million to Iran through intermediaries in Hong Kong and the Middle East. Between 2001 and 2002, the defendant violated the International Emergency Economic Powers Act (IEEPA) (PDF), which forbids the transfer of funds to Iran. His broker refused to transfer the funds after inquiring about the unusual activity and filed a Suspicious Activity Report (SAR), which eventually led to a trial and conviction. After he could no longer use his broker, the defendant fell back on the ancient Hawala banking system, in which members of the system transfer funds to other members in various cities relying solely on the honor system to make and settle debts. FinCEN’s extensive database and cooperation with international regulatory and intelligence communities were an essential element in building the case.  
 
FinCEN also proved instrumental in uncovering a complex bank fraud scheme. In 2002 an individual forged a number of documents that supported his claim to be an owner of a bank and affiliated with a large multinational financial institution. After putting $750,000 into the alleged bank, investors began taking a closer look. In response to the inquiries, the multinational financial institution supposedly associated with the fraudulent bank filed an SAR, notifying the FBI both of his scheme to defraud investors and attempt to steal a bank’s identity. While awaiting sentencing, the defendant stole his mother’s identity and used her credit card to purchase a sports car valued at more than $30,000 for an exotic dancer. In light of all of this activity, the judge sentenced him to five years in prison and ordered him to pay $88,000 in restitution to his various victims. 
 
In line with its primary function of interacting with various government agencies to share financial information in money-laundering cases, FinCEN tightly regulates the laws regarding reporting procedures. In September 2007, in coordination with the Office of the Comptroller of Currency (OCC), FinCEN fined Union Bank of San Francisco $10 million for failing to implement adequate counter money laundering measures. 
 
In another federal trial, prosecutors introduced evidence provided by FinCEN that showed the defendant defrauded Medicare of millions of dollars through a program that provides medical equipment to patients. Testimony was presented supporting the allegation that the defendant was guilty of healthcare fraud as well as multiple counts of structuring currency transactions and money laundering. Over the course of several years, the defendant and co-defendants submitted millions of dollars worth of false and fraudulent claims to Medicare on behalf of Medicare recipients, resulting in their actual receipt of more than $2 million from the Medicare program. The defendant bribed physicians, who were charged as co-defendants in the federal indictment, to verify that Medicare beneficiaries needed the medical equipment. The physicians have admitted that at least half of those claims were fraudulent. The jury found the defendant guilty of more than a dozen counts of structuring currency transactions to evade the federal reporting requirements. Upon conviction, the judge sentenced the defendant to more than five years in federal prison without parole. The court also ordered the defendant to pay restitution and to forfeit to the government hundreds of thousands of dollars.
 
 
Related offices:

Office of Terrorist Financing and Financial Crime

 

more
Where Does the Money Go:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

According to USAspending.gov, the federal government’s clearinghouse for federal contract information, the Financial Crimes Enforcement Network spent $1.9 billion this decade to acquire goods and services from businesses. More than 1,400 contractors were hired by FinCEN to provide ADP and telecommunications services ($453 million), maintenance and repair related to aircraft components and accessories ($255 million), facility operation and maintenance services ($152 million), management support services ($122 million) and hazard-detecting instruments and apparatus ($89 million).
 
The top 10 contractors of FinCEN are:
 
IBM                                                                  $381,988,480
L-3 Communications Holdings                             $264,353,854
Lockheed Martin                                                $110,367,664
QINETIQ North America Operations                      $93,686,595
URS Corporation                                                 $80,784,748
SAIC, Inc.                                                           $79,519,482
Apptis Inc                                                           $59,134,560
American Science and Engineering, Inc.                $36,390,000
Unisys Corporation                                              $26,261,000
Bart & Associates, Inc                                         $26,176,720
 
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Controversies:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FinCEN Records Help Bring Down New York Governor
When Gov. Elliot Spitzer (D-NY) fell from power as a result of a prostitution scandal, it was banking records maintained by the Financial Crimes Enforcement Network that may have helped in the investigation. Under the Bank Secrecy Act, financial institutions are required to report suspicious activity through special reports filed with FinCEN, which collects the information in a database accessible by law enforcement agencies including the IRS, FBI, DEA and various state regulatory agencies. It is believed that the investigation into Spitzer began as a result of a routine inquiry by a Long Island office of the Internal Revenue Service.
 
Officials say the suspicious activity in Spitzer’s case was a money-laundering technique known as “structuring,” which can be detected from reviewing forms filed by banks for all customer transactions totaling $10,000 or more. According to the FBI, Spitzer chose to pay for services in cash rather than wire transfer. Assuming that Spitzer was withdrawing large sums of money from his account to pay for his “escort services,” his bank’s system would have flagged the activity as possible structuring.
 
For someone who served as his state’s attorney general before becoming governor and was quite familiar with money laundering schemes, Spitzer’s behavior was shocking to experts. “It’s almost unfathomable,” said David Caruso, chief executive of the anti-laundering consulting firm Dominion Advisory Group. “He showed almost no level of sophistication whatsoever.”
The Hot Trail to Cold Cash (by Megan Barnett, Portfolio.com)
 
 
FinCEN as ‘Big Brother’
As concerns about fraud and terrorist financing grow, an increasing number of suspicious deposits, withdrawals and money transfers are being reported by banks and others to the federal government. Banks and credit unions as well as currency dealers and stores that cash checks reported a record 17.6 million transactions to the Financial Crimes Enforcement Network in 2006.
 
“I don’t think Americans understand that their financial transactions are being reported and routinely examined,” said Barry Steinhardt of the American Civil Liberties Union. “The government has access to untold volumes of records and can draw all sorts of conclusions about us, and many are going to be wrong.”
 
The FinCEN’s database now contains records of more than 100 million financial transactions going back to at least 1996. The number of suspicious activity reports soared from 413,000 in 2003 to 1 million in 2006. Federal law requires the reports to remain secret. They are written by officers at financial institutions who specialize in detecting suspicious activity, such as a series of large transactions.
Feds might be studying your finances (by Thomas Frank, USA Today)
 
Counterfeit FinCEN Seals Used in Nigerian Money Scam
The ongoing problem of financial schemes originating in African countries has gone so far as to use counterfeit seals of the Financial Crimes Enforcement Network. Consumers have reported receiving letters, purportedly from the director or deputy director of FinCEN, telling of an automatic stop order that has been placed on a large sum of money being transferred to them. Intended victims are told that a “Clean Report on Fund” is required to obtain the funds being held. These letters, brandishing the FinCEN seal, instruct the potential victims to pay an “agent broker” a fee to obtain a “Clean Report on Funds” so that the funds will be cleared and not confiscated by the “United States Treasury International Monetary Fund Policy.”
 
FinCEN has urged consumers to report such fraudulent letters to their state, local and or federal law enforcement agency. The agency says it is working closely with law enforcement agencies to identify the source of the letters and disrupt the scams.

FinCEN Issues a Warning Notice Against Fraudulent Stop Order Scams

(FinCEN press release)

 

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Debate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Is Borrower Fraud a Major Factor in Massive Foreclosures?
 
Yes
In December 2007, the Wall Street Journal (WSJ) published a Page One article that argued that fraud was a big contributor to the mortgage crisis. It cited examples such as a phone technician earning only $105,000 a year, with assets of only $35,000, who managed to buy a palm-tree-lined mansion with a nearly $2 million mortgage from Bear Stearns. The technician had lied on his loan application, claiming he and his wife were top officers of a marketing company earning $50,000 a month. Officials at Bear Stearns never bothered to confirm this. Later, the legendary financial institution posted the first quarterly loss in its 84-year history, writing down $1.9 billion of mortgage assets, because of bad loans.
 
The article went to claim that fraud “goes a long way toward explaining why mortgage defaults and foreclosures are rocking financial institutions, Wall Street and the economy.” It cited statistics from the FBI showing that the share its white-collar agents and analysts devoted to prosecuting mortgage fraud has risen to 28%, up from 7% in 2003. Suspicious Activity Reports, which are filed by lenders with the Financial Crimes Enforcement Network, shot up nearly 700% between 2000 and 2006. Furthermore, the story said that losses from fraud could total a record $4.5 billion in 2006 alone, a 100% increase from the previous year. The FBI said its active mortgage-fraud cases had increased to 1,210 in 2007 from 436 in 2003. In some regions, fraud may account for half of all foreclosures.
Fraud Seen as a Driver In Wave of Foreclosures (by Michael Corkery, Wall Street Journal)
 
No
The Columbia Journalism Review (CJR) took umbrage with the WSJ story in that it tried to let lenders off the hook for the mortgage crisis by showing how much fraud was being committed by white-collar criminals. As the CJR remarked, “If the premise of this [Wall Street Journal] story is true, we need to seriously rethink the mortgage dilemma and tighten safeguards to protect lenders, Wall Street securities dealers and institutional investors against hordes of unscrupulous borrowers. And yet, the Federal Reserve has neglected to do anything of the kind in proposing new lending rules. Instead, these deal entirely with unscrupulous lending practices.
The writer, Dean Starkman, wrote, “But, of course, the premise of the story is not true. I don’t know anyone who thinks that. Even Bear Stearns, an alleged victim in the story, if you can believe it, isn’t saying that. And even if you think it is true, there is a journalistic problem here: The assertion is unsupported. The evidence cited in the story does not make, or come close to making, the case for the idea that borrower fraud is an important driver of the mortgage crisis. To see that, frankly, does not even require a particularly close reading.

Unsupported and Untrue

(by Dean Starkman, Columbia Journalism Review)

 

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Former Directors:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Robert W. Werner (March 2006-December 2006)
William J. Fox (2003-2006)
James F. Sloan (1999-2003)
Stanley E. Morris (1994-1998)
Brian M. Bruh (1990-1993)

 

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See all 22 comments

Comments

J 7 years ago
I have received an email from an "attorney" named Loretta Lynch. They want me to pay via Itunes card. and I can't talk to them on the phone as they have to many cases...smh
Mary 8 years ago
I received an email about the same thing. There was also an attachment with a seal on it. Phone # to call was 202-241-2741. Also, there was a gmail address.
Greg warren 8 years ago
I received an email from nations debt recovery USA. The email also said he was with the financial crimes enforcement network. The email had poor grammar so I suspect it is a scam. It also came from a gmail address. Can I forward the email to you or are you aware of it?
OLGA SUAREZ 8 years ago
tHIS WAS JUST SENT TO ME. THESE PEOPLE HAVE BEEN THREATENING AND HARASSING ME AND I HAVE NEVER DONE BUSINESS WITH THEM. THEY HAVE REFUSED TO PROVIDE WRITTEN EVIDENCE AND THEY CONSTANTLY CALL, THREATEN, EMAIL AND HARASS. CAN ANYTHING BE DONE LEGALLY? Arrest warrant ID: - FCEN 85652461 which will be out on Wednesday 3 PM. Attention This is the last and final chance for you. This Legal Proceedings issued on your Docket Number EVR-38924 with one of the Cash Advance Inc. companies in order to notify you that after making several calls to you on your phone number we were not able to get hold of you. So the account department of Cash Advance has decided to mark this case as a flat refusal and have decided to press legal charges against you. CASE NO: DA-ID-078025 Amount Outstanding $833.63 We have already sent you this warning/notification about legal proceedings on March 8, 2015 but you failed to respond on time. Now if you failed to respond in next 4 HOURS, we will register this case in court. Consider this as a final warning. We will be emailing/faxing this issue to your current employer to make sure they take strict action against you. Your salary/wages will be garnished. Do revert back if you want to get rid of these legal consequences and make a payment arrangement today or else we would be proceeding legally against you. We apologize that this notification will also be sent to your current employer. The opportunity to take care of this voluntary is quickly coming to an end. You are going to lose the option to resolve this before it goes to the next step which is a Lawsuit against you. So you must take an immediate action. You can Email back to get the payment mode too. We will be forced to proceed legally against you and once it is processed the creditor has entire rights to inform your employer and your references regarding this issue and the lawsuit will be the next step which will be amounting to $6300.00 and will be totally levied upon you and that would be excluding your attorney charges. If you can take care of this out of court then we will release the clearance certificate from the court and we will make sure that no one contacts you in future. Please let us know what your intention is by today itself so we can hold the case or else we will submit the paperwork to your local county sheriff department and you will be served by court summons at your door step. Note : This notice is provided to you on behalf of Cash Advance Inc. and its parent company , and their respective family of companies including Cash Advance, its parent company, Cash America International, Inc., and all of their respective subsidiaries and affiliates, (hereafter collectively referred to as the “Cash Advance Related Companies,” “we,” “our,” or “us”). The Cash Advance Related Companies include, but are not limited to: Cash Advance, Cash America International, Inc., and all of their respective subsidiaries and affiliates, including those that operate under the trade names Cash Advance, 100 Day Loan, Net loan USA, Fax free Cash, Payday one, Sonic Cash, Money tree, Egg loans, Check cash Loan, Quick Payday, Personal Cash Advance, Rapid Cash, Sonic Payday, Speedy Cash, My Cash Now, National Payday, Paycheck Today, Payday OK, Cash Central Loans, Cash Net 500,Cash Net USA, Allied Cash, Super Pawn, Check into Cash, Check Smart, Ez Money Cash America Net, Cash America, Cash America Pawn, Cash land, Super Pawn, Cash America Payday Advance, or any company-owned Mr. Payroll locations. “You” or “Your” means you as a participant in or as a user of the products and/or services offered by a Cash Advance Related Company. WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED PAYMENTS, OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT. TERMS & CONDITIONS YOU AGREED. By electronically signing this Loan Agreement by clicking the "I AGREE" button below, you are confirming that you have agreed to the terms and conditions of the Consent and that you have downloaded or printed a copy of this Consent for your records. Note: To make the payment you need to contact our email address taiwooyeduntandebtcollector@outlook.com Office JENNIFER SHASKY CALVERY Financial Crime Enforcement Network, 300 South Spring Street, Los Angeles, CA 90013-1230
Roseanna 8 years ago
These bottom-feeding morons have been sending out these threats as early as April 2004! Each new email comes from a different email respondent but the message and dollar amounts rarely change! Instead of getting mad or seeking revenge, STOP RESPONDING to their harassment and extortion schemes and file a formal complaint with the myriad of online resources available...! They will continue with their idle threats and try a new tactic, but they may stop if their messages fall on "deaf" ears!
Lana 8 years ago
Again this morning I received another email from Taiwo Oyeduntan <taiwooyeduntandebtcollector@outlook.com) Stating FINAL NOTIFICATION CASE NO:DA-ID-078025 @ 8:30AM. ARREST WARRANT ID-FCEN 85652461. Who ever these people are they need to be arrested them self. STOP STOP STOP SENDING ME THIS. Is there not some way someone can stop this please?????????????????????
Lana 8 years ago
I also received an email today 9/23/15 from financial crime enforcement network from Jennifer Shasky Calvery, stating I owe money to cash advance America and that an arrest warrant is being issued. To send payment to this contact address michaelhary1@outlook.com Hopefully someone will catch these pieces of crap and give them what they deserve a nice long vacation in the federal pen Someone needs to stop these people. Please, no one needs this.
Judy Engdahl 8 years ago
I also received an email yesterday from financial crime enforcement network from Julie Stark stating I owe money to cash advance America and that an arrest warrant is being issued. Hopefully someone will catch these pieces of crap and give them what they deserve a nice long vacation in the federal pen
linda smith 8 years ago
I too received a very disturbing email today eventhough it has SCAM written all over it none the less very very disturbing.... what can be done about this mess????
Evette 8 years ago
I was sent an e-mail similar to the ones above.I found it to be very threating due to the following an Arrest Warrant ID number -NRS 3316889,Docket number EVR-38924.In the amount of 1376.91.Sent from the office of Neon Riley by Aaron Carson.Case number A-12-6714237-C.I'm presently at home recovering from surgery and I don't need the added stress it was from your agency.

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Founded: 1990
Annual Budget: $34 million
Employees: 300
Official Website: https://www.fincen.gov/
Financial Crimes Enforcement Network
El-Hindi, Jamal
Acting Director

In June 2016, Jamal El-Hindi began serving as acting director of the Financial Crimes Enforcement Network. Located in the U.S. Department of Treasury, FinCEN collects and analyzes data about financial transactions in order to enforce laws against domestic and international money laundering, terrorist financing, and other financial crimes.

 

Born March 27, 1963, in Syracuse, New York, Jamal Laurence El-Hindi was the fourth of five children of Ahmad, a Palestine-born engineer, and Elizabeth El-Hindi. His father was a Muslim and his mother a Catholic. Ahmad El-Hindi started his own company, Filtertech, and later founded the Ahmad and Elizabeth El-Hindi Foundation and funded the El-Hindi Center for Dialogue.

 

Jamal grew up as “a regular American kid,” in the small town of Fabius, New York, just south of Syracuse. He earned a B.A. in Journalism at the University of North Carolina-Chapel Hill in 1985, a Diploma in International Relations at The London School of Economics in 1986, and two graduate degrees at the University of Michigan: a JD in 1990 and an M.A. in Modern Middle Eastern and North African Studies in 1994. He has published at least two articles on International Law issues related to Palestine. 

 

El-Hindi was an associate at the Washington, DC law firm Patton, Boggs & Blow from October 1991 to November 2000. He practiced international law, focusing on cases relating to sanctions, export controls, foreign corrupt practices, foreign sovereign immunities, status of forces agreements, international trade and banking litigation.

 

Leaving private practice, El-Hindi began his Treasury Department career in December 2000 as legal counsel to the Office of Foreign Assets Control (OFAC), which administers and enforces economic sanctions imposed by the federal government. In June 2005 El-Hindi was promoted to associate director for Program Policy and Implementation, where he oversaw OFAC’s Compliance Outreach, Licensing, and Policy Divisions.

 

El-Hindi moved to FinCEN in June 2006, serving as associate director of the Regulatory Policy & Programs Division until 2013, and of the re-organized Policy Division from 2013 to 2015. He became acting deputy director in January 2015, before being promoted to deputy director of FinCEN in May 2015, where he was responsible for directing the Policy, Enforcement, Intelligence, Liaison, Management and Technology Divisions before he became acting director.

 

El-Hindi is a past president of The Washington Foreign Law Society and currently serves on its advisory board.

 

Jamal El-Hindi is married to Jean (Sullivan) El-Hindi, with whom he resides in Vienna, Virginia. The couple has a daughter, Elizabeth, and a son, Jamal.

-Matt Bewig

 

To Learn More:

Jamal El-Hindi Named New FinCEN Deputy Director (FinCEN)

Jamal El-Hindi Talks to his Son about his Ancestors and his Childhood (StoryCorps.me) (audio)

The West Bank Aquifer and Conventions Regarding Laws of Belligerent Occupation (by Jamal El-Hindi, Michigan Journal of International Law, 1990) (paywall)

Compensation as Part of Equitable Utilization in the Israeli-Palestinian Water Context (by Jamal L. El-Hindi, Arab Studies Quarterly, 2000) 

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Freis, James
Previous Director
James H. Freis, Jr. has served as director of FinCEN since March 2007, when he was appointed by Treasury Secretary Henry Paulson. Freis received his bachelor’s degree from Georgetown University in 1992 and his JD from Harvard, graduating with honors at both institutions. 
 
After receiving his degree, Freis worked in the legal department of the Federal Reserve Bank of New York and spent a year in Germany working for the Federal Banking Supervisory Authority. Expanding on his international experience, Freis moved to Basel, Switzerland, where he worked as senior legal counsel at the Bank for International Settlements. 
 
Upon moving back to the states, Freis worked for the Treasury Department as Deputy Assistant General Counsel for Enforcement and Intelligence, providing legal counsel to the Office of Terrorism and Financial Intelligence, which included working with FinCEN, the Office of Foreign Assets Control and the Treasury Executive Office for Asset Forfeiture. 
 
Freis is the third director of FinCEN in two years, following the departure of both of his predecessors to the private sector. Lacking consistent leadership, FinCEN has yet to deal with 12 pending proposals, including extending SAR reporting to real estate professionals and hedge funds. Perhaps the most important pending issue is the choice of a new data management system and its effective administration. FinCEN has pulled the plug on its new BSA direct program, which it has already sunk $14 million into, and reverted to its old system. The old system is housed and operated by the IRS, and was declared obsolete three years ago by FinCEN as it undertook the BSA direct program. In response to this problem, a new chief information officer was hired in July 2007.
 
Gripping the Oar Means Risking the Shirt (Letter to the Editor regarding the trading of jerseys by rowing crews, by James Freis, New York Times)
 
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