Union Calendar No. 237

108TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 108–414

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:]

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(3514)

1 United States v. Salemme, 91 F.Supp.2d 141 (D. Mass. 1999).

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.

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

3515

2The minority did not participate in the February 21, 2003, interview with Anthony

Stathopoulos, on which this section is based. 3The 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). 4The 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). 5The 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). 6The minority did not participate in the interview with Bob Long, former Sergeant, Massachusetts State Police (Apr. 17, 2001). 7The 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). 8The 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

Continued

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

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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). 9The 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).

hearing testimony, Committee records, or public documents, though

many also include citations to unilateral majority interviews.9

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.

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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.

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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.

Æ