National District Attorneys Association

ECONOMIC CRIME PROJECT
1900 L Street, N.W., Suite 601, Washington, D.C. 20036

CENTER
(202) 785-1225

The Economic Crime Project is funded by a grant
from the Law Enforcement Assistance Administration. This
document, which was prepared under the auspices of our
project, does not necessarily reflect the views of the
Law Enforcement Assistance Administration, U. S. Depart-
ment of Justice.

A PROJECT OF THE NATIONAL DISTRICT ATTORNEYS ASSOCIATION

FOREWORD

This special issue of the National District Attorneys Association Economic Crime Project Newsletter contains what we regard to be a significant contribution to law enforcement literature on economic crime Hornbook.

Economic Crime: A Prosecutor's

The hornbook has been prepared by the Economic Crime Project Center's special consultant, Mr. Charles A. Miller. Mr. Miller is the former Director, Office of Criminal Investigation, U. S. Postal Inspection Service.

The contents of this document will be incorporated in the Economic Crime Project's eventual manual on economic crime. We will, therefore, welcome your comments and suggestions in regard to the scope and content of the following hornbook.

No misrepresentations made, we were advised it

was legal .

Mere business failure, not a scheme to defraud. 41-44

Product or service worth what was paid, no one

was defrauded, refunds made

44-46

Not responsible for deceptive acts and mis-

representation of salesmen and agents

Not responsible for agreements not included in

signed contract (Parol rule). .

ECONOMIC CRIME:

A PROSECUTOR'S HORNBOOK

Combatting Fraud Through Effective
Investigation and Prosecution

BACKGROUND

Society attempts to curb fraudulent schemes and practices that criminally cheat and exploit its members, through two general means. Foremost is a before-the-fact effort to educate, inform, and caution the consumer and businessman alike to the presence of deceit and misrepresentation in the commercial environment under which we are urged to buy, or coaxed to invest, or asked to contribute. Government at all levels, the media, educational institutions and innumerable private and community consumer oriented groups and organizations are joined increasingly in this effort.

The second principal means by which society combats fraud and the process which this paper will address flows from law enforcement's statutory responsibility to investigate and prosecute those who violate fraud laws, thereby hopefully persuading such transgressors to desist from spoilative practices in the future. The details of the scheme and the fact of the prosecution itself when brought to public attention produce a beneficial fallout quite apart from the prosecution of the promoter of the moment. Public