OIG Audit Alleges DEA Ignored Oversight, Misunderstood Digital Currency, Didn’t Actually “Follow the Money,” and Overstated Accomplishments
A recent audit conducted by the Department of Justice (“DOJ”)’s Office of Inspector General (the “OIG”) revealed that the Drug Enforcement Agency (“DEA”) acted outside the scope of its authority while transacting tens of millions of dollars involving illicit activity during undercover operations from fiscal years 2015 to 2017.
The focus of the audit was a specific type of undercover operation known as Attorney General Exempted Operations (AGEOs). AGEOs are particularly risky because they are income-generating operations, designed to infiltrate and dismantle drug trafficking and money laundering organizations. Because of the sensitive nature of these investigations and the amount of money at stake, AGEOs are meant to be heavily supervised by the Attorney General (AG), other lawyers within DOJ and Congress.
The 72-page, partly redacted audit clearly found that the DEA repeatedly ignored its reporting policies, neglected its internal controls, and flagrantly violated the statutes governing AGEOs. This audit an important reminder that law enforcement agencies, even when pursuing the laudable goal of investing criminals through the often highly successful tool of undercover investigations, are still subject to legal limitations and standards, because agencies themselves are susceptible to fraud and abuse. This audit shows the importance of oversight and accountability, and reveals how bad actors sometimes can exist on both sides of an investigation. Finally, the audit also suggests that the DEA often failed to pursue investigative leads and did not examine whether businesses and other third parties knowingly laundered the illicit money being transacted through AGEOs: once the target of the AGEO was “in the bag,” spin-off money laundering investigations did not occur.
Continue Reading DEA Accused of Ongoing Missteps in Undercover Operations