Law

The United States has now reached an incarceration rate of 1 in every 99.1 adults, the highest rate in the world. We’re spending an enormous amount of money to train people to be hardened criminals by throwing people convicted of nonviolent drug-related crimes into prisons with real criminals. Finland, by contrast, has one of the lowest incarceration rates in the world, which has been in place for over 30 years. There is no correlation between crime rates and incarceration rates. In my opinion, we should decriminalize drug use, get rid of mandatory minimums, and adopt a model much closer to Finland’s, where only violent offenders are imprisoned. Those who cause other kinds of harm to others should be required to make restitution to their victims. ...

On Friday, I attended the New Mexico InfraGard Member Alliance’s “$-Gard 2008” conference in Albuquerque. It was an excellent one-day conference that should be used as a model by other chapters. The conference was open to the public, and featured an informative and entertaining two-hour seminar on fraud and white collar crimes by Frank Abagnale, author of the autobiographical Catch Me If You Can and anti-fraud books The Art of the Steal and Stealing Your Identity. (Another version of Abagnale’s talk can be viewed as an online webinar courtesy of City National Bank.) Abagnale argued that fraud has become much easier today than it was when he was a criminal forger, with numerous examples, and also offered some simple and relatively inexpensive ways for businesses and individuals to protect themselves. For example, he recommended the use of microcut shredders, and observed that his own business keeps shredders near every printer, and no documents get thrown away, everything gets shredded. He recommended the use of a credit monitoring service like Privacy Guard, and that if you write checks, you use a black uniball 207 gel pen, which is resistant to check-washing chemicals. For businesses that accept cash, he recommended training employees in some of the security features of U.S. currency rather than relying on pH testing pens, which are essentially worthless at detecting counterfeit money. By recognizing where bills use optical variable ink, for example, you can easily test for its presence in the time it takes you to accept bills from a customer and transfer them into a cash register. He also recommended that businesses use bank Positive Pay services to avoid having business checks altered. ...

Arizona Republican Rep. Rick Renzi has finally been indicted, on 35 counts that include extortion, embezzlement, and money laundering. The investigation has been conducted by the FBI (working on priority #4, “combat public corruption at all levels”), the IRS, the U.S. Attorney’s office, and the Department of Justice’s Office of Public Integrity.

Gary D. Barnett, president of a financial services firm in Montana, has written an article about InfraGard for The Future of Freedom Foundation, apparently inspired by the Progressive article. Thankfully, he avoids the bogus “shoot to kill” claims, but he introduces some erroneous statements of his own. It’s apparent that he didn’t bother speaking to anyone in InfraGard or doing much research before writing his article, which is another attempt to spread fear, uncertainty, and doubt about the program. Barnett first goes wrong when he writes: ...

Although I’ve gone for the last several years with extremely few illegal prerecord telemarketing calls, I’ve received three to my cell phone in the last three weeks, all scams. (I wonder how many of these people were working in the mortgage business until recently?) Two of them came from faked caller IDs that look like UK telephone numbers (starting with +44), but which appear to actually be from Florida, a popular location for all kinds of scammers. The first call, on January 30, came from 44-207-490-6113and was selling auto warranties, no doubt at far above market prices, and was phrased in such a way as to attempt to deceive the recipient into thinking they needed to renew an existing warranty that is expiring. When I got to a human operator and asked to be put on their do-not-call list, the woman hung up on me. I need to learn to be more subtle in my questioning to get more information from these con artists. The second call, on February 12, gave caller ID of 866-526-9732, and said that I had won a no-catch, all-expenses-paid vacation for two, and asked me for my name and number so that I could be called and told where to pick it up. Unfortunately, it hung up on me while I was trying to provide a fake name and real phone number, so that I could identify the caller and sue them. The third call, today, gave caller ID of 44-207-414-4370 and was offering a credit card deal to “reduce my interest rate.” Again the wording expressed urgency about a limited-time offer and made it sound like it was with regard to a card I already hold. This time, I asked the human operator (after waiting quite some time to get one) what company he’s with. I had to ask three times–he kept repeating his script about “any Mastercard or Visa,” and I kept saying “no, what company are YOU with.” Finally, he said “United Debt Aid,” which is no doubt a fake name. I asked him to put me on their do-not-call list and again was hung up on as I was telling him he was working for a bunch of criminals. I didn’t get a chance to ask for a written do-not-call policy from any of these three, but I’m sure they don’t have them since they’re violating the law in several ways already. Prerecord calls with advertising to cell phones are flat out illegal, just as prerecord calls with advertising to residential phones is illegal (without an existing business relationship, according to the FCC, which has incorrectly added an exception not present in the actual statute). So is falsifying caller ID information, so is failing to identify the business calling or on whose behalf the call is being made. So is failing to put me on their do-not-call list, and so is failing to send a written do-not-call policy upon request. If anybody happens to come across more information that might identify who is behind these calls, let me know–I’d love to sue them. UPDATE (February 25, 2008): I got another auto warranty one today, Caller ID said 442074791697 and it began “Your auto warranty has expired” and claimed they had been trying unsuccessfully to contact me via mail–two lies in the first two sentences. I pressed 1 to talk to a live operator, who immediately asked me for the year and make of my car. I asked what company is providing the warranty, and he hung up on me. Apparently any questioning at all is reason for these scammers to proceed to the next call recipient. UPDATE (March 27, 2008): I received two more of these in quick succession–one on March 17 (auto warranty call from 505-217-2684) and one on March 19 (credit card rate reduction call from 305-654-1842). ConsumerAffairs.com has a story about ripoff auto warranties sold by companies in St. Louis. Verizon Wireless has filed a law suit against John Does to go after these auto warranty calls. UPDATE (April 7, 2008): Another auto warranty one, from 305-672-6663. I believe that at least some of these calls are coming from businesses run by former associates of Fax.com, a defunct broadcast fax and prerecord telemarketing business that received a $5,379,000 fine from the FCC in 2002 which was never collected, and was successfully sued by the D.C. law firm of Covington & Burling for $2.3 million in 2003, which I believe was also never collected. The legal system is not good at dealing with these sorts of criminals, because it’s all being left to civil enforcement, when these are the kind of people who need to be thrown in jail. UPDATE (April 10, 2008): Another from “Heather at account services,” caller ID 561-482-7092, for credit card rate reduction. The human being I spoke with confirmed that she’s in Boca Raton, FL–on a previous call the company was identified as “United Debt Aid” in Boca Raton. UPDATE (August 11, 2008): There’s a wealth of information about these calls and who’s behind them at the Stopping Heather Forums. ...

As reported in Wired’s blog: Wikileaks, the whistleblower site that recently leaked documents related to prisons in Iraq and Guantanamo Bay, was taken offline last week by its U.S. host after posting documents that implicate a Cayman Islands bank in money laundering and tax evasion activities. In a pretty extraordinary ex-parte move, the Julius Baer Bank and Trust got Dynadot, the U.S. hosting company and domain registrar for Wikileaks, to agree not only to take down the Wikileaks site but also to “lock the wikileaks.org domain name to prevent transfer of the domain name to a different domain registrar.” A judge in the U.S. District Court for Northern California signed off on the stipulation between the two parties last week without giving Wikileaks a chance to address the issue in court. ...

Mark Fiore helps teach kids about the importance of warrantless wiretapping. (Hat tip to Bob Hagen.)

The FBI has issued an official response to Rothschild’s Progressive article (PDF), which says, in part: In short, the article’s claims are patently false. For the record, the FBI has not deputized InfraGard, its members, businesses, or anything else in the program. The title, however catchy, is a complete fabrication. Moreover, InfraGard members have no extraordinary powers and have no greater right to “shoot to kill” than other civilians. The FBI encourages InfraGard members – and all Americans – to report crime and suspected terrorist activity to the appropriate authorities.The FBI response also states that Rothschild has “refused even to identify when or where the claimed ‘small meeting’ occurred in which issues of martial law were discussed,” and promises to follow up with further clarifying details if they get that information. I’ve updated my own response to Rothschild to include the above information.

The latest issue of Rolling Stone has an excellent article by Guy Lawson, “The Fear Factory," about how joint terrorism task forces across the U.S. are engaging in wild goose chases and exaggerating the terrorist threat to justify their existence. A companion article, Tim Dickinson’s “Truth or Terrorism? The Real Story Behind Five Years of High Alerts," reports on the real stories behind repeated terror scares that have been used to elevate the DHS advisory system over the last five years.

The Center for Public Integrity has released details of a report from the Centers for Disease Control and Prevention that has been blocked from publication for more than seven months. The report, titled Public Health Implications of Hazardous Substances in the Twenty-Six U.S. Great Lakes Areas of Concern, was supposed to be released in July 2007. The Center for Public Integrity has obtained the study, which warns that more than nine million people who live in the more than two dozen “areas of concern”—including such major metropolitan areas as Chicago, Cleveland, Detroit, and Milwaukee—may face elevated health risks from being exposed to dioxin, PCBs, pesticides, lead, mercury, or six other hazardous pollutants. ...