IRS Criminal Investigation ~ OREGON
FINANCIAL CRIMES TASK FORCE
MEMORANDUM OF UNDERSTANDING
PURPOSE
This Memorandum of Understanding (MOU) is executed in order to memorialize the
agreement and set forth the terms and conditions between the Internal Revenue
Service, Criminal Investigation (IRS-CI) and the Tigard Police Department (hereinafter
known as "the Department"), which have agreed to combine investigative efforts with
the following agencies/departments in the Seattle Field Office (hereinafter know as "the
Field Office"),
Internal Revenue Service, Criminal Investigation
Clackamas County Sheriff's Office (where the task force is housed)
Douglas County Sheriff's Office
Multnomah County Sheriffs Office
Oregon Department of Justice
Portland Police Bureau
AUTHORITY
The Secretary has authority to investigate money laundering operations under 18
U.S.C. Sections 981, 1956(e) and 1957(e). The Secretary has delegated that authority
to the Commissioner of IRS where the underlying conduct is subject to investigation
under the Internal Revenue Code, or the Bank Secrecy Act, as amended, 31 U.S.0
Section 5311- 5332. Treasury Directive (T.D.) 15-42: "Delegation of Authority to
Commissioner to Investigate Violations of 18 USC 1956 and 1957". The Secretary has
also delegated to the Commissioner of IRS the authority to investigate possible criminal
violations of 31 Code of Federal Regulations (CFR) Part 103. Treasury Directive (T.D.)
15-41 (Dec. 1, 1992).
MISSION OF THE TASK FORCE
The mission of the Task Force will be to develop and assist with criminal investigations
and asset forfeitures of illegal activities within the Field Office. The emphasis of the
Task Force is to pursue investigations on individuals and organizations that will result in
criminal prosecutions and large asset forfeitures in investigations arising out of the
analysis of Suspicious Activity Reports (SARs) filed by financial institutions pursuant to
Title 31 of the United States Code. The Task Force will work in coordination with the
United States Attorney's Office(s) within the Field Office to determine the types of
activities that merit investigation and are allied to the investigation and prosecution
strategy.
PERSONNEL
1) During the period of the assignment, the representatives remain under the
supervision of their respective departments. However, the day-to-day
supervision of employees shall rest with the Task Force Supervisory Special
Agent (SSA).
2) IRS-CI, will assign one SSA and one or more Special Agents as needed by the
Task Force. IRS-CI will be responsible for the management, supervision and
coordination of all investigative and operational activities. The United States
Attorney will also designate a point of contact for consultation regarding the
selection of targets for investigation, and for obtaining legal assistance in such
investigations, including but not limited to grand jury subpoenas, tax disclosure
orders, ex parte orders (other than tax), search and seizure warrants and any
motions or pleadings required by the Civil Asset Forfeiture Reform Act (CAFRA).
3) Task Force personnel shall adhere to all Department of Treasury and IRS-CI
policies and procedures. Where Treasury and/or IRS-CI policies are in conflict
with the policies and procedures of the member's department, the Department
may request in writing to the Task Force SSA that its employee follow the
policies and procedures of the Department. If the Task Force SSA does not
assent to the request, the Special Agent in Charge (SAC) and Chief Law
Enforcement Officer of the respective department will resolve the matter. Failure
to adhere to established policies and procedures may be grounds for immediate
removal of the officers from the Task Force.
4) Personnel assigned to the Task Force shall be designated as full or part time in
accordance with an agreement with their respective departments. It is
understood that personnel assigned to the Task Force may continue to have
duties (training, administrative duties, etc.) that are linked to their respective
departments.
5) It is agreed that the Task Force SSA will contact the immediate supervisor (or
other department designee) of any personnel assigned whose performance or
conduct is questioned. The matter will be addressed in coordination with the
department supervisor/designee.
6) During the period of assignment, each department representative will report to
his/her department for personnel administrative matters. Each department shall
be responsible for pay, overtime, annual leave, performance evaluations,
insurance coverage and other benefits of its employees. Upon the establishment
of a State and Local Overtime (SLOT) Agreement, departments will be
reimbursed for overtime and related travel, as well as, lease expenses for
vehicles for full time task force officers from the Treasury Forfeiture Fund, upon
submission of Department of Treasury Form 9972, Request for Reimbursement
of Joint Operation Expenses. This form, with necessary documentation, will be
submitted monthly to the IRS-CI Task Force Coordinator.
7) Task force operations shall be conducted as joint operations with all participating
agencies/departments acting as partners in the endeavor.
8) The Task Force SSA shall be a member of IRS-Cl. The SSA shall be
responsible for the day-to-day administration of the Task Force and with the input
of the participating agencies/departments, shall establish the direction and any
internal policy for the Task Force.
ADMINISTRATIVE ISSUES
9) Computer equipment and Travel:
a. All computer and related equipment assigned to the Task Force personnel
will be used for official purposes only, and remains the property of the
Task Force.
b. All Task Force Officers will adhere to his/her local agency policy while
traveling armed. Task Force Officers when traveling by air will not utilize
the IRS issued Unique Federal Agency Number (UFAN).
10) The IRS-CI Task Force Coordinator will be responsible for the oversight and
administration of all equitable sharing distributions.
11) The Task Force will be located within the Clackamas County Sheriffs Office at
9101 SE Sunnybrook Blvd, Clackamas, OR 97015. IRS-CI will provide all
necessary secretarial, clerical, automation and technical support (regarding IRS-
CI issued equipment) for the Task Force.
12) In no event will the member departments charge IRS-CI for administration or
implementation of this memorandum of understanding.
13) All members of the Task Force agree not to knowingly act unilaterally on any
matter affecting the task force without first coordinating with the IRS-CI SSA.
STATE AND LOCAL LAW ENFORCEMENT DETAIL TO IRS-CI
14) Personnel from state and local law enforcement departments assigned full or
part time to the Task Force shall be detailed, per 5 USC §3374(a)(2), as IRS-CI
Task Force Officers.
15) No action will be taken by any task force officer, utilizing their authority, under 26
USC § 7608(b) (1) and (2), without approval of the IRS-CI SSA.
INVESTIGATIVE MATTERS
16)IRS-CI will provide the necessary funds for the investigative expenses, and for
the purchase of evidence and information that relates to investigations and
intelligence gathering (unless the cost is considered a grand jury expense).
17) The Task Force investigative procedures will conform to the requirements for
Federal prosecutions. All prosecutions shall be initially referred to the United
States Attorney's Office(s) within the Field Office. The United States Attorney's
Office may then recommend referral for state charges. In the event that
prosecution does not lie with that office, or there is a conflict as to the proper
venue or jurisdiction, any dispute shall be resolved by agreement of all parties
having an interest in the investigation.
18) Access to and use of task force records will be in accordance with Federal Law
and Department of Treasury and IRS-CI regulations and policy, including but not
limited to the Freedom of Information and Privacy Acts.
19) The IRS is responsible for tax administration and the investigation of criminal
violations of the Internal Revenue Code, (Title 26, United States Code). Internal
Revenue code, Section 6103, restricts the disclosure of tax or tax return
information except as provided by Section 6103. Reports recommending the
prosecution of persons for criminal tax violations are subject to review by IRS
Criminal Tax Counsel. Prosecution reports must also be referred to the
Department of Justice (Tax Divisions) for their review and approval prior to
prosecution.
INFORMANTS
20)AII confidential and cooperating witnesses exclusively developed through the
Task Force will be opened as IRS-CI informants, sources, assets or cooperating
witnesses, and handled in accordance with IRS-CI guidelines, policy and
procedures.
21) IRS-Cl, as permitted by Federal law, agrees to pay reasonable and necessary
informant expenses incurred by the Task Force. IRS-CI must approve all
informant related expenses before they are incurred.
FORFEITURE
22) Assets seized in connection with the Task Force will be forfeited under Federal
and/or State laws. The Agreement between the IRS-CI and the Department,
which have agreed to combine investigative efforts with the above named
agencies/departments within the Field Office, for Equitable Sharing from Asset
Seizure and Forfeiture, will be determined by agreement of all parties having an
interest in the forfeiture.
23)AII sharing will be within the discretionary authority of the Department of
Treasury, as provided by 31 U.S.C. § 9703 (a)(1)(G) and (h), 18 U.S.C.
981(e)(2), and the Secretary of the Treasury's Guidelines for Equitable Sharing.
24) Any release of information to the media or through a press conference
concerning task force investigations will be agreed to and coordinated jointly by
the participating task force agencies/departments. No release may be made by
any agency/department without the prior approval of the other task force
agencies/departments. Generally, the United States Attorney's Office will be the
lead concerning press releases pertaining to any arrest, convictions or seizure
developed by the Task Force.
25) All task force related travel will require the approval of the agency employing the
individual. All individuals will be responsible for securing his/her own
agency/department approval for all travel.
26) For international travel, the IRS will obtain country clearances for all task force
members. For domestic travel, each agency/department member will be
responsible for appropriate notifications within their own agency/department.
27) Upon approval of a SLOT Agreement, reimbursement for investigation related
and training travel will be requested from the Treasury Asset Forfeiture Fund.
Each participating agency/department will submit required documentation to IRS-
Cl coordinator monthly for travel reimbursement.
LIABILITY
28) Unless specifically addressed by the terms of this MOU, the parties agree to be
responsible for the negligent or wrongful acts or omissions of their respective
employees. Legal representation by the U.S. is determined by the Department of
Justice (DOJ) on a case-by-case basis. The IRS cannot guarantee the U.S. will
provide legal representation to any Federal or State law enforcement officer or
employee.
29)For the limited purpose of defending claims, arising out of TASK FORCE activity,
state officers who have been specifically detailed, and who are acting within the
course and scope of their official duties and assignments, pursuant to this MOU,
may be considered an "employee" of the U.S. government, as defined in 28
U.S.C., Section 2671.
30) Liability for any negligent or willful acts of TASK FORCE members, undertaken
outside the terms of this MOU will be the sole responsibility of the respective
employee and agency/department involved.
31) Liability for violations of Federal constitutional law rests with the individual
Federal agent or officer pursuant to Bivens v. Six Unknown Named Agents of the
Federal Bureau of Narcotics, 403 U.S. 388 (1971) or pursuant to 42 U.S.C.,
Section 1983 for state officers or cross-detailed federal officers.
32) Task force officers may request representation by the U.S. Department of
Justice for civil suits against them in their individual capacities for actions taken
within the scope of employment. 28 C.F.R., Sections 50.15, 50.16.
33) If a task force officer is found to be liable for a constitutional tort, he/she may
request indemnification from Department of Justice to satisfy an adverse
judgment rendered against the employee in his/her individual capacity. 28
C.F.R., Section 50.15(c)(4).
DURATION
34)The term of this MOU shall be for a period of two years from the date signed.
Upon termination of the Task Force, or withdrawal by a department, all
equipment and IRS-CI credentials will be returned to IRS-Cl.
35) The provisions of the LIABILITY section will continue until all potential liabilities
have lapsed.
OTHER PROVISIONS
36)To the extent, there is any conflict between Federal law and the law of The State
of Oregon, Federal law controls. While state law may be used to aid in the
interpretation of provisions of the MOU, which are not specifically covered by
Federal law, it cannot be used to the extent it is inconsistent with any Federal
law.
37) The terms of this Agreement are not intended to alter, amend, or rescind any
current agreement or provision of Federal law now in effect. Any provision of this
MOU, which conflicts with Federal law, will be null and void.
38) This MOU does not confer any rights or benefits on any third party.
39)This Agreement may be amended at any time by mutual written consent of all
Parties.
40) Should any provision of this MOU be construed or deemed invalid or
unenforceable, by reason of the operation of any law or be reason of the
interpretation placed thereon by any court, this MOU shall be construed as not
containing such provision, but only as to such jurisdictions where such law or
interpretation is operative. The invalidity of such provision shall not affect the
validity of any remaining provision hereof and all other provisions hereof which
are otherwise lawful and valid shall remain in full force or effect.
41)The undersigned agree that their agency/department will participate in the
Financial Crimes Task Force, and agrees that their agency/department will abide
by the policies set forth herein this agreement.
MODIFICATIONS
42)This memorandum of understanding may not be modified, except by addendum
with written consent of all involved agencies/departments. Modifications to this
MOU shall have no force and effect unless such modifications are reduced to
writing in an addendum and signed by an authorized representative of each
participating agency/department.
Printed Name:k z n Ovrpate: 9 - 2 - j Q--
Title: CJ S, tfC 9C,\I
Agency/Department: Tigard Police Department
Printed Name: Teri Alexander Date:
Title: Special Agent in Charge
Field Office: Seattle
Agency/Department: Internal Revenue Service, Criminal Investigation
DEPARTMENT OF THE TREASURY
LOCAL, COUNTY, AND STATE LAW ENFORCEMENT AGENCY
REIMBURSEMENT REQUEST FOR OVERTIME COSTS AND AUTHORIZED EXPENSES
ATTACHMENT TO AGREEMENT
TO: ® IRS ❑ ICE ❑ CBP ❑ USSS
NAME OF AGENCY: Tigard Police Department DATE OF REQUEST: 09/04/2014
ADDRESS: 13125 SW Hall Blvd OCDETF CASE: ❑ YES ® NO
Tigard, OR 97223 OCDETF CASE#:
TAX IDENTIFICATION#: 93-0503940 TEOAF TRACKING#:
CONTACT PERSON: 'Fem 1rndieke- L'*A Shaw-
TITLE: Business Manager TELEPHONE: 503-718-2554
ADDITIONAL INFORMATION ON OFFICER(S)
BADGE DATE OF LAST
NAMES OF OFFICERS TITLE(S)/RANK OR ID# FIREARMS QUAL
James McDonald Sergeant 40957 5W2bi�t