SECTION 107. SECURITY INFORMANTS AND CONFIDENTIAL SOURCES. LO7L mo (4) Number of statements submitted ( Combine total number of oral and written statements submitted and show only total number. (5) Stability and reliability Check positive box if informant is considerea stable and reliable. If not or if there are any personal weaknesses, domestic difficulties, indications of untrustworthiness or unreliability, or any other similar problems presented by. informant, check negative box and explain under "Miscellaneous." (6) Indoctrination against disclosure ; If informant has been indoctrinated against disclosure, check positive box, (7) Percentage of information verified Show percentage of information furnished by informant which has. : been verified through other sources. . (8) All necessary action taken on information furnished - Tf all action has been taken, check positive box. If not, check negative box and explain under "Miscellaneous." . ° (9) Summary of information furnished : This summary should be concise, highlighting more pertinent information furnished by informant. Do not attempt to summarize all information furnished by informant. {10) Miscellaneous Furnish any change in informant's residence and employment[by [ secure teletype (etter), Isteps being taken to advance informant, and any other pertinent information which should be brought +o Bureau's attention, Include statement that source has been advised that all payments of money made to him for services rendered must be declared as income on his tax return and has . agreed to do so, c. When payment to informant has been authorized for definits period of . time, advise Bureau at least two weeks in advance of expiration of period as to whether services of informant are to be continued. . Every six months submit FD-401 to Bureau requesting continuation of payments. Follow instructions set forth in item 3b, above. e. Submit letters requesting authority to continue (increase, decrease) payments to an informant in duplicate except that copy should con- sist only of first page of letter. When payments are approved, - Single-page copy will be stamped "Approved" at Bureau and returned. Ig recommendation is not approved, field will be advised by separate communication. £. When payments are authorized by Bureau, it is personal responsibility of each SAC definitely to assure that full value is being received. &. Discontinuance of payments If at any time it appears information being produced by informant is not commensurate with payments made to him, immediately discontinue payments or adjust accordingly and promptly advise Bureau. . h. If any extraordinary expenses are anticipated for which approval has : not been given, obtain specific Bureau authority. 4. Six-month evaluation of informants not paid on Bureau authority If informant is not being paid on Bureau authorization, FD-401 must be transmitted to Bureau every six months after date of designation con- teining same information set out in item 3b, above, except those items concerning payments. Recommendation of SAC regarding continuance’ of informant should also be set forth UACB. In espionage and foreign - nationality cases, comment is necessary regarding only applicable items. 5. Receipts When payments are made either on SAC authority or prior Bureau approval, obtain receipts in every instance in which it is possible to do so. [ff receipt cannot be obtained for particular payment, set forth complete circumstances on blue slip at time reimbursement is claimed. Ce eR laa Se a a ee pee ne ot EA conn Qs 15 : . : -1 3-73 MW 35072 Doold:32869529 Page 1736 3-13
207K-L 10. il. i. | SECTION 107. SECURITY INFORMANTS AND CONFIDENTIAL SOURCES. Use of informant by Department ~ fLiling correspondence re - From time to time, Department expresses interest in using particular informant for testifying when he becomes available as witness. Place ~ copies of all correspondence of this type in informantts file. Occasionally such correspondence may be voluminous and apply to more than one informant. In those cases, summarize information concerning each informant and place summary in appropriate file. Form FD-238 Form FD-238 (printed on pink paper) is used in security informant and potential security informant files in nature of table of contents or index to show where in file particular data can be found. This form is to be kept as top document in informant file and is not to be serialized. If particular section of form is not applicable, note such thoreon. Bulky material submitted by informant Where informant or source submits bulky material-other than statement and same pertains to specific investigative matter, bulky material may be filed in investigative case file, together with copy of form FD-306 or channelizing memorandum, File original form FD-306 or channelizing - memorandum in subfile of informant or source and note thereon file and serial number where bulky material is Located. L. PAYMENTS TO INFORMANTS No gifts to informants a@. Gifts should not be given to informants, b. Relationship between Agents and informants shall be maintained on businesslike basis, co. Investigative employees must not approach, directly or indirectly, representatives of companies, private industries, or iLhsurance companies and request assistance regarding payments of money, gifts, or products of such companies to informants. SAC authority a. When deemed ‘necessary and expedient to expend money to develop in-- dividual as informant to obtain information concerning security < matters which is not otherwise obtainable or to advance expense money to obtain such information, SAC may approve payments up to $400 and totaling not more than $400 on @ c.o.d, basis regardless of number of payments. This applies only to individuals who have never been regularly paid for services or expenses on Bureau authorization. b. Individual who is paid on SAC authority should not be described in correspondence as informant or source who is being paid on & "regular basis" or on "Bureau authorization." ec. Blue slip reclaiming payments authorized by SAC must clearly and accurately explain circumstances and summarize information obtained so Bureau will be in position to pass intelligently on such matters. ad. Prior Bureau authority must be obtained to make any additional payment to individual who has received payments totaling $400. Once -individual has bean paid $400 and it appears he will furnish information on regular basis, recommendation should be made to Bureau to pay him on "regular basis. e, All newly developed security informants are to be paid under SAC ‘authority for the first six months unless unusual circumstances exist. If additional funds under SAC authority are necessary during this period, submit request accompanied by detailed justification of past expenditures, Payments on &@ regular basis ~ Bureau authority 2. To pay anyone on a regular basis, obtain specific Bureau authorization. b. In requesting this authorization, use form FD-401: (1) Membership . List current membership and position held in any subversive- group. (If position identifies informant, submit separately by secure teletype (nitel).] (2) Amount paid for services and expenses List by the month or week.- Initial justification Letter should set forth amount, if any, ever paid under SAC authority. (3) Number of activities and persons on whom coverage is provided List number and type of meetings attended and other activities and number of persons on whom informant furnishes coverage and their importance, : os 14 3~13-73 NW 55072 Doocld: 32989529 Page i739
e plies ot ~ Sas Sake bala REASONS NEM 4 a , “. ph 55072 SECTION 107. SECURITY INFORMANTS AND CONFIDENTIAL SOURCES. ° LO7K INFORMANT FILES 1. Opening a. When active investigation is initiated regarding potential informant or confidential source who is not subject of security-type file,, open 134 file. b. If individual is subject of security case and after being interviewed appears to have potential as informant, open separate 134 file to follow informant development. In espionage and foreign nationality matters, existing file may be used if this is practical. c. Maintain individual files on all active informants as pending active - files. Monthly administrative report Include files on potential informants and informants in tabulations and calculations of delinquencies in monthly administrative report. Assignment and tickler cards Maintain assignment and tickler cards, ‘Dut do not show true namé of informant, [potential informant, panel source or confidential source ] on such cards. 2 Subfiles . a. Subfile is required on each informant who submits statements, written or oral, except in espionage or foreign nationality matters where subfile is necessary only in those instances involving possible prosecution. File in this subfile original of each statement, whether personally written by informant or furnished orally and reduced to writing by contacting Agent, Staple executed form FD-306 or channelizing memorandum containing all applicable items on form FD-306 to original of each such statement. b. Holes may be punched in original statements of informants for filing, but care must be taken to prevent obliteration of any portion of statements or notations thereon. Channe lization Include excerpts from informant's statement in reguler investigative case report when information of value is submitted. Form FD-306 may be used to disseminate this information to case file in lieu of channelizing memorandum if desired. If so, prepare copies of FD-306 as needed for . channelization and staple one copy to each copy of informant's state~- ment being channelized. Channelization should be noted on original FD-306 and all copies. , Channelizging memoranda - destruction of See Manuel of Rules and Regulations. Correspondence Correspondence in security informant and potential security informant matters should be strictly limited to administrative handling of informant. and should not contain information more properly furnished under sub~ stantive case caption. Maintenance of files a. Maintain all symbol number informant files, pending and closed, under lock and key under personal supervision of SAC, ASAC, field supervisor, or responsible employee designated by SAC. b. Subfiles containing written statements may be maintained in open files section, provided there is no disclosure of informant 's identity on statements. c. Maintain informant files so that all information furnished by in- formant will be immediately available when needed. ad. In addition, meintain these files so identities of cases in which an informant has furnished competent evidence can be obtained immediately by simply referring to file of informant and without extensive research. 13 6~14-71 Doeld: 32969529 Page i740
107L SECTION 107, SHCURITY INFORMANTS AND CONFIDENTIAL SOURCES. a. Receipts should be of such a nature that they will be self-sufficient sec that, if it becomes necessary to introduce receipts in evidence, they will not relate to other documents or files. b. Receipts should clearly show: L Date on which payment was made 2 Period for which made when informant is paid on period basis 3 Total amount paid broken down into separate amounts for services or expenses where pertinent {3 Name of Agent making payment 5 Signature of person receiving money « Receipts are not to be witnessed by another Agent. If necessary to make corrections on receipts, they must be initialed by informant and not by Agent. . e. When transmitting receipts and itemized statements of expenses %o Bureau, staple them directly to blue slip, leaving margin of one to one and one~half inches at top to avoid contact with Acco fastener punch. Place staples so that date or other data appearing on receipt will not be mutilated and all information on receipt can be easily read without detaching it from blue slip. 6- Income tax returns ; ae [Advise informants who receive compensation for their services to the Bureau that such compensation must be reported as income when filing a Federal income tax form, and, where appropriate, state and local tax forms. Informants must be periodically advised of the above and complete details of any reported problem an informant has encountered with the taxing authorities are to be expeditiously furnished the Bureau. | b. Bureau income should be set forth on Federal income tax return, form 1040, as income received from other sources for personal services rendered through a private enterprise or similar general term applicable to informant's position and station in life, ce. If informant is self-employed and files schedule C as self-employed individual, it may be possible to include his Bureau income with his self-employed income from other sources without revealing connection with Bureau. d. If informant cannot report payments received from Bureau for services without -jeopardizing -his security as informant, such payments will be subject to 20 per cent withholding tax. There are four categories of circumstances in which taxes will not be withheld, Taxes are not to be withheld from payments made (1) to other than security in- formants and sources, (2) for reimbursement of expenses, (3) under SAC .authority, or (4) to informants who have been able to report Bureau income on their Federal tax returns without jeopardizing their security or without challenge from Internal Revenue Service. Each office has detailed instructions and exhibits concerning procedure to be followed in handling and control of money withheld. °-@. When informant or former informant is initially considered as potential witness in Bureau case, determine whether he paid Federal and state taxes on income the received from Bureau for his services. If such taxes have not been paid, obtain all pertinent details anda promptly submit recommendations for handling situation. 7. ‘Stipulation re payments made to witnesses . ae In trials in which informants, former informants, or other persons who were paid sums of money are prospective witnesses, Bureau must furnish Department set of photostats of original receipts signed by prospective witnesses. Original receipts and set of photostats will be transmitted to field office in whose territory trial will take place. Office handling prosecution must determine from Govern~ ment attorney which individuals are to be used as witnesses, There~ | after office should furnish and/or cause other appropriate offices to furnish to Bureau following information: foe) 0——_- 16 10-15-73 NW 55072 Doclid: 32999529 Page 1741 NY