NEWS RELEASE
September 10, 1996

Governor Awards $330,000 Drug Enforcement Grant
to Attorney General's Office to Target Organized Crime

Governor John Engler today awarded funds for the creation of a newly created task force within the State's Attorney General's Office. The task force will supplement ongoing efforts of state and local law enforcement agencies to investigate a variety of organized drug crimes. The special unit will focus resources directly on the financial aspects of such crimes to strip drug dealers of illicit gain, and to use the forfeited proceeds and assets to expand and enhance drug enforcement efforts throughout the state.

"The world's most powerful drug traffickers are the premier organized crime figures of the 1990's. These individuals exert their influence by extortion, loan sharking, gambling, and money laundering. By funding the Financial Crimes/Money Laundering Task Force in Michigan we are taking a bold step in the right direction to wrestle from them ill-gained profit and to rid our communities of their poison," Engler said.

Foreign drug syndicates are headquartered in Columbia and Mexico, and their leaders control the vast majority of drug trafficking with the United States. Recently, a Colombian national aided by traffickers in Mexico arranged for shipment of cocaine and heroin to Detroit, from Los Angeles. Fifteen defendants have been arrested in Detroit as a result of an investigation by federal, state and local law enforcement agencies working together.

"We want to seize the profits of those who are bringing drugs and violence into our communities, especially those importing the new drug of choice, heroin. Drug Enforcement Agency (DEA) officials say the purity level of heroin found in Detroit is as high as 90%. Drug dealers are giving away free samples to users as a way to expand their customer base. This cannot go on," said Engler.

Nearly $10.8 million in cash and assets amassed by drug traffickers was forfeited and put back into the fight against drugs through the use of state and federal forfeiture laws during 1995.

Michigan law enforcement officials received $15.7 million dollars this year under the federal Byrne Memorial Formula Grant Program. Funds are awarded based on a statewide needs assessment through public hearings conducted prior to completion of Michigan's application to the Bureau of Justice Assistance for funding. Michigan funded eight purpose areas including Drug Abuse Resistance Education, Multi jurisdictional Task Forces, Community Policing Strategies, Career Criminal Prosecution, Zero Tolerance Offender Treatment.

The Michigan Department of Attorney General, Criminal Division, Financial Crimes/ Money Laundering Task Force will operate on a statewide basis. The team's primary mission will be to investigate and prosecute sophisticated financial crimes and to provide much needed assistance to local law enforcement agencies pursuing such crimes. The task force, consisting of specially trained investigators and prosecutors, will serve as an adjunct to the state's multi- jurisdictional teams, identifying and pursuing illegal proceeds and prosecuting the financial benefactors of such activities.

Local prosecuting attorneys and local or regional investigative agencies, already overburdened with street crime, cannot devote the resources necessary to pursue corrupt organizations or complex financial crimes. Neither the level of expertise required nor the resources to develop them is currently available at the state level.

"Federal agencies are not available on a consistent basis due to their work load. This task force would fill a void existing in state and local efforts to fight sophisticated financial crimes and money laundering," added Engler.

The Financial Crimes/ Money Laundering Task Force will be a five person team, consisting of one Assistant Attorney General team leader, one Department of Treasury forensic auditor, one Computer Analyst Position, one Criminal Investigator and one legal secretary. The team will use the Michigan Money Laundering Statute, the Michigan racketeering (RICO) law and the new prosecutors Investigative Subpoena Statute in their aggressive pursuit of sophisticated financial crimes and money laundering violations.

The task force will cooperate with local officials on the investigations and will share equitably with such agencies in assets forfeited as a result of investigative activities.

FOR IMMEDIATE RELEASE CONTACT:Cecilia Tombelli - (517) 373-4700