[House Report 108-414]
[From the U.S. Government Publishing Office]



                                                 Union Calendar No. 237
108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-414

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EVERYTHING SECRET DEGENERATES: THE FBI's USE OF MURDERERS AS INFORMANTS

                                _______
                                

February 3, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Tom Davis of Virginia, from the Committee on Government Reform 
                        submitted the following

                              THIRD REPORT

    On November 20, 2003, the Committee on Government Reform 
approved and adopted a report entitled, ``Everything Secret 
Degenerates: The FBI's Use of Murderers as Informants.'' The 
chairman was directed to transmit a copy to the Speaker of the 
House.
    [Selected exhibits 351 through 981 follow:]
    
    

 MINORITY VIEWS OF HON. HENRY A. WAXMAN, HON. TOM LANTOS, HON. MAJOR R. 
 OWENS, HON. BERNARD SANDERS, HON. ELIJAH E. CUMMINGS, HON. DENNIS J. 
KUCINICH, HON. DIANE E. WATSON, HON. STEPHEN F. LYNCH, AND HON. ELEANOR 
                             HOLMES NORTON

    With the reservations set forth below, the minority concurs 
with the report's findings of serious misconduct by agents of 
the Federal Bureau of Investigation. The report concludes, 
among other things, that FBI agents tolerated or encouraged 
false testimony in a Massachusetts death penalty prosecution, 
protected informants and cooperating witnesses known to have 
committed murders and other violent crimes, and hindered state 
law enforcement investigations of organized crime. The report 
also justifiably criticizes the Bush Administration's Justice 
Department for actions such as the unwarranted assertion of 
executive privilege that made it difficult for the Committee to 
conduct its investigation.

   A. THE COMMITTEE'S REPORT CONTRIBUTES TO A GROWING RECORD OF FBI 
                       MISCONDUCT IN NEW ENGLAND

    This report adds to a vast public record of FBI misconduct 
in New England. Evidence of this wrongdoing first surfaced in 
1995 as part of a federal racketeering prosecution against 
Francis P. Salemme and others. One of the defendants in that 
criminal case, Stephen J. Flemmi, filed pretrial motions 
disclosing that he and alleged organized crime leader James 
Bulger had been long-time FBI informants and alleging that the 
FBI had promised them protection from prosecution in exchange 
for their continued assistance.
    Mr. Flemmi's pretrial motions led to a year of highly 
publicized evidentiary hearings in 1998 before United States 
District Judge Mark L. Wolf. Judge Wolf later issued a 661-page 
opinion concluding that FBI agents had engaged in serious 
criminal misconduct.\1\ He found that Boston FBI agents 
protected organized crime figures who committed murders and 
other violent crimes; leaked information that resulted in the 
murders of witnesses cooperating with law enforcement agencies; 
intimidated citizens from pursuing criminal complaints; warned 
suspected criminals of investigations and electronic 
surveillance, impeding the efforts of other law enforcement 
agencies; warned suspected criminals of impending indictments, 
enabling them to flee; placed false information in the file of 
an informant to divert attention from possible crimes; 
solicited and accepted illegal gifts from informants; and lied 
under oath.
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    \1\ United States v. Salemme, 91 F.Supp.2d 141 (D. Mass. 1999).
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    In January 1999, Attorney General Janet Reno established 
the Justice Task Force (JTF) to investigate the interaction of 
organized crime informants with current and former FBI 
employees from 1960 through 1991. In December 1999, JTF 
obtained racketeering indictments against James Bulger, Mr. 
Flemmi, and former FBI Special Agent John Connolly. In May 
2002, Special Agent Connolly was convicted of racketeering and 
obstruction of justice charges and later sentenced to ten years 
imprisonment. In October 2003, Mr. Flemmi pleaded guilty to 
racketeering charges involving ten murders. As part of a plea 
agreement, he implicated another FBI agent, H. Paul Rico, in 
the murder of Oklahoma businessman Roger Wheeler. Mr. Rico is 
currently facing state murder and murder conspiracy charges in 
Oklahoma.

       B. RESERVATIONS CONCERNING UNILATERAL MAJORITY INTERVIEWS

    The Committee's investigation was largely nonpartisan, and 
this report reflects the involvement of minority and majority 
members of the Committee. Rep. John F. Tierney, Rep. Stephen F. 
Lynch, and minority members who are not on this Committee 
played a leading role throughout the process. Minority members 
gave necessary votes for grants of immunity and actively 
participated in every hearing and field hearing.
    Despite the consistent support of the investigation by 
minority members, the staff of the previous chairman conducted 
dozens of interviews without notice to the minority or an 
opportunity to participate. This practice was unnecessary and 
unfortunately prevents the minority from supporting significant 
portions of the final report.
    In particular, the following sections rely extensively on 
unilateral majority interviews, which the minority cannot 
verify as accurate: (1) section III(A)(4)(iv) entitled 
``Anthony Stathopoulos and the Deegan Murder Prosecution,'' \2\ 
(2) section III(A)(7)(ii) entitled ``Peter Limone,'' \3\ (3) 
section III(B)(2) entitled ``Nevada,'' \4\ (4) section 
III(B)(4) entitled ``Florida,'' \5\ (5) section III(B)(5) 
entitled ``Massachusetts,'' \6\ and (6) section III(B)(7) 
entitled ``Rhode Island.'' \7\ Section III(A)(8) entitled 
``Efforts to Protect Stephen Flemmi After the Deegan Murder 
Trial'' relies primarily on public records, but it also cites 
several interviews that the minority cannot verify as 
accurate.\8\ The remaining sections of the report are supported 
by hearing testimony, Committee records, or public documents, 
though many also include citations to unilateral majority 
interviews.\9\
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    \2\ The minority did not participate in the February 21, 2003, 
interview with Anthony Stathopoulos, on which this section is based.
    \3\ The minority did not participate in the following interviews on 
which this section is based: Interview with Richard Luccio, Member, 
Massachusetts Parole Board (Sept. 23, 2002); Interview with James W. 
Greenleaf, Special Agent in Charge, Boston FBI Field Office (Sept. 25, 
2002); Interview with Kevin Burke, Member, Massachusetts Parole Board 
(May 30, 2001); Interview with Brian Callery, former Chairman, 
Massachusetts Parole Board (June 26, 2001); Interview with Michael 
Albano, former Member, Massachusetts Parole Board (Sept. 23, 2002); 
Interview with Jack Curran, former Chairman, Massachusetts Parole Board 
(June 28, 2001).
    \4\ The minority did not participate in the following interviews on 
which this section is based: Interview with Robert Daddeico (Oct. 17-
18, 2001); Interview with Charles Lee, former Detective, Las Vegas 
Metropolitan Police Dept. (Apr. 4, 2002); Interview with David Hatch, 
Detective, Las Vegas Metro Police Dept., Cold Case Review, Homicide 
Section (Apr. 4, 2002).
    \5\ The minority did not participate in the following interviews on 
which this section is based: Telephone Interview with Shelton Merritt, 
former Detective, Metro Dade Police Dept. (Dec. 2, 2002); Telephone 
Interview with Lewis Wilson, former Special Agent, Florida Department 
of Law Enforcement (Dec. 2, 2002).
    \6\ The minority did not participate in the interview with Bob 
Long, former Sergeant, Massachusetts State Police (Apr. 17, 2001).
    \7\ The minority did not participate in the following interviews: 
Interview with Richard Israel, former Assistant Attorney General for 
Rhode Island (Sept. 26, 2001); Interview with David Leach, former 
Assistant Attorney General for Rhode Island (Sept. 25, 2001).
    \8\ The minority did not participate in the following interviews: 
Interview with Robert Daddeico (Oct. 17-18, 2001); Interview with 
Charles Lee, former Detective, Las Vegas Metropolitan Police Dept. 
(Apr. 4, 2002); Interview with Anthony Ciulla (Dec. 5, 2002); Interview 
with Bob Long, Sergeant, Massachusetts State Police (Apr. 17, 2001); 
Interview with Shelton Merritt, former Detective, Metro Dade Police 
Dept. (Dec. 2, 2001).
    \9\ The minority did not participate in the following interviews: 
Interview of Joseph Williams, former Supervisor of the Warrant & 
Investigation Unit, Massachusetts Parole Board June 29, 2001); 
Interview with Joseph Salvati (Mar. 27, 2001); Interview with Chester 
Paris, attorney for Joseph Salvati during the Deegan trial (Aug. 6, 
2002); Interview with Edward Harrington, former Attorney in Charge, 
Organized Crime & Racketeering Section, Boston U.S. Dep't of Justice 
Field Office (Dec. 20, 2001); Interview with Dan Rea, investigative 
reporter (May 1, 2001); Interview with Joseph Williams, former 
Supervisor of the Warrant & Investigation Unit, Massachusetts Parole 
Board (June 29, 2001); Interview of Victor Garo, Attorney for Joseph 
Salvati (Mar. 26, 2001); Interview with James A. Ring, Supervisory 
Special Agent, Boston FBI Field Office (Sept. 25, 2002); Interview with 
Chuck Hiner, former Special Agent in Charge, San Francisco FBI Field 
Office (Sept. 25, 2001); Interview with Doug Ahlstrom, former Special 
Agent, Santa Rosa FBI field Office (Aug. 28, 2001); Interview with Bill 
Baseman, former Special Agent, Santa Rosa FBI Field Office (Sept. 25, 
2001); Interview with James Southwood, former reporter, Boston Herald 
Traveler (Sept. 28, 2001); Interview with Tom Brown, former Detective 
Sergeant, Sonoma County Sheriff's Office (Aug. 30, 2001); Interview 
with Ron Fahey, former Chief Deputy District Attorney, Sonoma County 
(July 9, 2001); Interview of Marteen Miller, former Public Defender, 
Sonoma County (July 9, 2001); Interview of Bony Saludes, former 
reporter, Press Democrat (July 9, 2001); Interview of Ed Cameron, 
former Investigator, Sonoma County District Attorney's Office (July 10, 
2001); Interview of Gary Bricker, former U.S. Marshal (July 9, 2001); 
Interview of Judge Joseph P. Murphy, Jr. (Aug. 29, 2001); and Interview 
of John Partington, former U.S. Marshal (Sept. 24, 2001).
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                  C. NEED FOR ADDITIONAL INVESTIGATION

    During the course of the Committee's investigation, federal 
and state prosecutors requested that the Committee refrain from 
compelling the testimony of certain witnesses that would 
complicate pending criminal prosecutions. Out of deference to 
these prosecutors, and because important witnesses such as 
James Bulger remain fugitives, the Committee's fact finding 
focused mainly on the Deegan murder trial and other early 
events of the 1960s and 1970s.
    As the report acknowledges, many questions remain about the 
FBI's handling of confidential informants and cooperating 
witnesses after this time period, and the inquiry remains 
substantially incomplete. At the earliest opportunity, the 
Justice Department should make a public accounting of its 
investigation into the allegedly corrupt relationship between 
Mr. Connolly and James Bulger. Finally, the committees of 
jurisdiction should continue to review the FBI's human source 
program and ensure that appropriate systems are in place to 
prevent similar abuses in the future.


                                   Hon. Henry A. Waxman.
                                   Hon. Tom Lantos.
                                   Hon. Major R. Owens.
                                   Hon. Bernard Sanders.
                                   Hon. Elijah E. Cummings.
                                   Hon. Dennis J. Kucinich.
                                   Hon. Diane E. Watson.
                                   Hon. Stephen F. Lynch.
                                   Hon. Eleanor Holmes Norton.

  ADDITIONAL MINORITY VIEWS BY HON. JOHN F. TIERNEY, HON. STEPHEN F. 
        LYNCH, HON. ELIJAH E. CUMMINGS, AND HON. BERNARD SANDERS

    This Committee's work is not done concerning any 
determination of facts relevant to the Federal Bureau of 
Investigation's (FBI's) conduct toward informants' testimony. 
The Justice Department has withheld potentially significant 
information, and several potentially significant witnesses have 
not been fully interrogated due to the assertion of on-going 
investigations or prosecutions, or because they, at least at 
this time, are unwilling to testify.
    The Committee should, and we believe it has the obligation 
to, continue its work by pursuing as yet unavailable records 
and other information from the Department and by interviewing 
relevant witnesses once the Department's investigation and/or 
prosecutions are complete or if the circumstances occur that 
encourage heretofore unwilling witnesses to testify. We believe 
further important and helpful information could certainly be 
available, and it should be pursued.
    More thorough inquiry should have been made on behalf of 
the Committee about the relationship between the FBI, 
informants, and members of the informants' families and whether 
those relationships impacted FBI investigations outside the 
scope of Patriarca, Barboza, Flemmi, or ``Whitey'' Bulger's 
activities. The Committee should consider whether further and 
more in-depth investigation would tend to inform the goals of 
its subject hearings or would instead serve only to gather 
information, however indicative of improper activity, outside 
the scope of purpose for this particular inquiry.
    The Committee needs to conduct further efforts aimed at 
examining what, if any, Department and Bureau corrective 
actions have been undertaken since this scandal first came to 
light and the adequacy of same, as well as what actions must be 
taken legislatively, through regulation, by oversight activity, 
or some combination in order to prevent a continuation or 
recurrence of similar events in the future.
    Finally, this Committee would be well served, and would 
serve Congress well, if it conducted follow-up hearings on the 
disgraceful conduct of the Justice Department in its lack of 
forthrightness and cooperation. If Congress is to assert its 
role as a co-equal branch of the government, and fulfill its 
responsibilities of oversight, it must be able to obtain 
honest, responsive, and timely information from Executive 
departments and agencies, barring some privilege justifying any 
failure to appropriately respond to Congress' requests.
    The Committee's work should not be considered complete 
until the foregoing is accomplished.


                                   Hon. John F. Tierney
                                   Hon. Stephen F. Lynch.
                                   Hon. Elijah E. Cummings.
                                   Hon. Bernard Sanders.

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