0 (Rev. 11-11-75) To By MARGARET GENTRY. WASHINGTON (AP) — An FBI section chief is awaiting Sentencing after becoming the first bureau official in history to plead guilty to a criminal charge of corruption. John P. Dunphy entered the guilty plea Friday as part of an agreement with Justice Depart- ment prosecutors involved in a broad probe of alleged financial corruption and other abuses of power within the FBI. Dunphy was fired from the bureau Thursday. Department spokesman Rob- ert Havel declined to discuss other terms of the plea bar- gain. Normally, plea bargain- ing involves an agreement by the defendant to testify against others involved in wrongdoing in exc.ange for being charged with a lesser crime. Dunphy, who was paid $37,800 a year by the bureau, confessed to stealing about $100 worth of lumber and other materials frpm the FBI. The specific charge was converting govern- ment property to his own use. He faces up to one year in pris- on and a $1,000 fine. Havel said Dunphy is be- Heved to be the first bureau o*- ficial in FBI history to be con- ‘yicted of a criminal charge stemming from his job. t A 28-year FBI veteran, Dun- phy for the past several years has been chief of the exhibits section, which builds displays for the public tour of the FBI building. The unit also con- structs scale models cof crime scenes and builds other dis- plays for use in court trials. An FBI spokesman said Dun- phy’s ‘resignation was request- ed Thursday and accepted as a pesult-ef2n internal FBI inves- tigation. " e ; ‘fhe Dunphy case marked the Eest-etimmial charge tu-ermerge from the financial corruption probe that began last spring, and there were signs that the other major department inves- tigation of FBI misconduct also was moving toward criminal charges. It was disclosed Friday that the department has granted im- munity from prosecution to ssome FBI agents who haye agreed to testify against ctl- leagues involved in burglaries. Assistant Atty. Gen. J. Sten- - ‘ey. Pottinger, through a spokes: man, said he is ‘tin the process of authorizing immunity foi" some agents.” Department sources have eonfirmed that the probe directly involves at least 30 agents or officials and in- directly involves dozens more. FBI Director Clarence M. Kelley has said many agents and officials fear they may be indicted or disciplined as a re- sult of the probe. Department officials have tentatively decided to seek in- dictments against some FBI men for violating the civil rights of American citizens by breaking into their homes or of- fices, sources say. The FBi acknowledged last year that agents committed hundreds of so-called ‘bag jobs” against political militants during the 1960s. Kelley said a year ago the practice ended in 1966, but he was forced to cor- rect the statement after dis- covering that burglaries contin- ued at ieast through April 1973. Kelley has said others in the FBI lied to him about the ex- tent of the burglaries but he hasnt 4 yet discovered who ‘de! 4 (indicate page, name of newspaper, city and state.) PAGE SEVEN ___SUNDAY NEWS —_-BOGALUSA, LA. Date: 8- 15- 76 Edition: Author: he GENTRY Editor: . ; Title: FIRST FBI ‘\| OFFICIAL PLEADS OF “| CORRUPTION | Character: / ce or Classification: N.O. {_| Being Investigated Submitting Office:
riu-sou uvev. bi-li-io} (Mount Clipping in Space Below) — | Mr. Kelley on the Spot —_ To say that FBI director Clar- _ ence M. Kelley stumbled into an embarrassing situation this week would be putting it mildly. Revela- ‘tion that his agency has been con- ducting domestic burglaries as re- cently as a month ago places Mr. Kelley on the proverbial “‘spot.” Last year the FEI chief declared . publicly there had been no FBI bur- glaries since 1969. Acting quickly to close the credibility chasm created this week. Mr. Kelley asserted that the erroneous statement was the re- sult of deception by other FBI offi- cials. The anger that Mr. Kelley must surely have felt at being duped is overshadowed by the realization that the chain of command at the FB still needs overhauling. Clearly, Mr. Kelley needs to har- a ness his underlings so that believ- ability in our law enforcement agency can be restored. As a step in the proper direction, Mr. Kelley is’ launching a major review of policies involving informers — informers who commit the crimes, including burglaries, to gather information. and sell it to the FBI. The FBI cur- rently spends about $3.5 million-on informer operations. To avoid further awkward mo- ments in the public spotlight, Mr. Kelley has said that from now on he will not make “categorical, sweep-, ing statements” about what may be happening at the FBI or not. Appar- ently he feels that some deceptive practices may continue for the time, being. The bureau director’s first order of business should be directed 2t making sure the head is aware cf ;; what the tail i is doing. vd (Indicate page, name of newspaper, city and state.) —_— SECTION ONE PAGE TEN TIMES~P ICAYUNE NEW ORLEANS, LA. Date: 8-17-76 Edition MORNING Author: Editor: ED TUNSTALL Title: MR. KELLEY ON THE SPOT Character: ca } f or bo. : a PB ao Classification: Submitting Office: No O» ‘(__] Being Investigated ack tN neo ceeccan meen “Ene ee Ae Se
FD-350 (Rev. 11-11-75) ing in Space Below) __ (Mount Cli e Federal Bureau of Investigation ha jam some lumps lately. The ce is accused of making illegal entries, of burglaries. There also have been charges that some recreational funds were misused for parties and the like. The burglaries, of course, occurred during investigations and were not made to obtain loot for the FBI agents. Whether the entries were justified is yet to be seen, but anyway, FBI Director Clarence Kelley has clamped down. It is to be assumed that funds such as ‘ose set aside for recreation will be al fudiciously used in the future. _| Director Kelley said in a recent p erence: “Regrettably, the good that the quility in our nation, has been ovei- ked or forgotten amid the. criti headlines of today.” Well, those who are critical of the FBT: ie “RBI fas accomplished, its contribution “were probably prompted. to do.sod because the FBI had been far above criticism for so long. It’s the old story of the cabbage and the rose. Nobody thinks much about seeing a cabbage in the gutter, but -no« body likes to see a-rose there and. when one is found there, people talk about Griticism of the FBI, as there has been|\of. ny public bodies, then nobody would ave thought — much about the rec tit. If there had been ia constant a ee (Indicate page, name of newspaper, city and state.) -__. SECTION A PAGE FOUR SHREVEPORT ____ JOURNAL ____ SHREVEPORT, LA. Date: 8-23- 76 Edition: Author: Editor: §, TINER Title: SUPPORT FOR FBI Character: o hi ae or oe Classification: Submitting Office: N.O. [__] Being Investigated tae Gh Coke SEARCHED. INDEXED. saeco oreo al AUG2 71976 - NEW ORLEANS | FBI—
The .FBI_is one of the best run_of-any ‘federal agency and is one of the best law en- forcement agencies in the world. It came in- to being in the turbulent 1920s when most of. the gangsters about whom we see movies to- day were alive and active. Crime fighting methods developed by the F'BI and the train-. ing it gave to its own agents and to state and local lawmen did much to stem the ad- vance of organized crime. Of course or- ganized crime still exists. It has become more sophisticated as technology has im- proved in all lines. But where would we be _ without the expertise of the FBI? We believe that the current charges against the FBI involve only a small percen- tage of the many, many fine agents and it may come out that the indiscretions were merely bad judgment. At any rate, Director Kelley appears to have the situation in hand. The FBI is a bulwark against crime and it] does its job well. We hope that ihe Céngress and the people will continue to give the agency the support it deserves. 4 2 Us Se ah “ee
FD-350 (Rev. 11-11-75) (Mount Clipping in Space Below) OK’ d Break- Ins; at d Do It Again’ _ WASHINGTON (AP)! ~.A former. ~ high- -ranking FBI official confirmed Sun-- “day that he approved, two FBI-break-ins in 1972 but insisted that “I think this is “justified and ’'d-do it again. tomorrow.” ** _ W. Mark:Felt, former’ associate direc- “tor of the-bureau, said. he ordered: FBI ~~agents.to burglarize the Weather Under= ground. in ‘New. -York and’ the een ‘Liberation: Organization in Dallas .‘ the basis'of what I knew and what I felt: (acting FBI-director L. Patriek Gray) wanted metodo.” . |. ‘Interviewed on the CBS News program “Face the Nation,” Felt: ‘acknowledged - ’ that the break-in against the Weather a Underground, a domestic organizalion, . “was not-sanctioned by law but contended '. it was “extra-legal,” not “illegal.” oh He added that if he is indicted for his:, - moleinaihe ‘break-in his‘ defense S national: security « of the country: The Justice ‘Department is “considering possible criminal charges arising’ from FBI: burglaries committed against’ dornestic political groups during the past. five years. Felt apparently would not be _ liable for prosecution arising from the | PLO break-in since it was not directed . * “against U.S. citizens. — ‘ , . Felt defended the break-i -in against the Weather Underground, ‘saying that: organization has claimed responsibility for “hundreds of bombings,” including. explosions in the Pentagon and US. Capitol. He displayed a Weather Under- ‘ground publication entitled Osawatome which he said. was printed in Cuba. and. - smuggled into’ this country through New. Orleans?) ¢* : Asked if he: ‘expected to. be indicted; Fa al think | they | have to havea (Indicate page, name of newspaper, city and state.) -——SEC 3 PAGE 16 ——TIMES PICAYUNE ——NEW ORLEANS, LA. Date: RditioR~ 30-76 Author: Editor: Title: 2D TUNSTALL EX- FBI OFFICIAL OK'D BREAK-INS Charat&’D DO IT AGAIN" or , : ra . J 4 ‘ Classification: (7 (- f § 5 2. Submitting Office: N.O. [_] Being Investigated ote AR Ua: ay SEARCHED. _.INDEXED |SERIALIZED__Critep_O SEP 11976 FBI— NEW ORLEANS,
FD-350 (Rev. 11-11-75) (Mount Clipping in Space Below) ‘Kelley : WASHINGTON (AP) — FBI Director ‘Clarence M. Kelley said Thursday he . -does not remember if he requested au- -thorization for a break-in by bureau ‘agents while he was in charge of the “FEPs Birmingham, Ala., field office in ;. the late-1054s. i Aspokesman for Kelley said the direc- z tor could neither confirm nor deny a ') Washington Star report. that he had : “asked FBI headquarters in Washington E ‘to approve a break-in more than 16 i “years ago. He quoted Kelley as saying: “Tf I did have a recollection, T would j i Shave no hesitancy in admitting it.” [ > The Star reported Thursday that a for- f -mer top official of the FBI said Kelley | “requested approval for a break-in some- i <ctim i atl ime between December of 1957 al “Can’t. Remember’ Tf He Requested Break-in November of 1960 while head of the Bir- mingham FBI office. The former official, who was not named by the Star, said he could not re- call the reason given for the request. Break-ins were among the investiga- tive techniques used by the FBI during ~ its controversial counterintelligence pro- gram, Cointelpro — an effort to harass, discredit and disrupt organizations that were considered threats to the nation. Agents wishing to break into an office or _ home had to first gain approval from Washington headquarters. The Cointel- pro program began in 1956 and ended in 1971. —s The assertion that Kelley asked for — break-in authorization is the first that al- esédly links him with such practices. ’ Kelley earlier this year publicly apolo- gized for past FBI misdeeds but did not list the past actions he considered wrong. He also declined to say if he had ever participated in any of the activities he was criticizing, saying “I’m not saying Clarence Kelley engaged in such activi- ties or-did not engage in these activi- ties.” Kelley’s spokesman said Thursday that field agents assumed break-ins were proper technique during the period they were being used. because the authoriza- tion came from J. Edgar Hoover, then head of the bureau. He said agents as- sumed Hoover acted at the direction of the attorney general or the President. ‘The Senate Intelligence Committee concluded in its réport on the FBI that there was no indication that any attor- aey general ever was informed by Hoov- er or other FBI personnel of the break- . CI) Being, Investigated. aaa (Indicate page, name of newspaper, city and state.) ——-SEC. 1 PAGE 10 ——TIMES PICAYUNE ——NEW ORLEANS, LA. Date: Editi.” -27-76 Author: Editor; Tite, ED TUNSTALL KELLEY "CAN'T REMEMBER IF HE Charal RQUESTED BREAK- Classification: Submitting Office: N.O.
F'D-350 (Rev. 11-11-75) \ \ a Mount Clipping in Space Below) NEW YORK _ Reading about ff -g vernment’s burglary squads, ong i _dismayed at how wastefully they. were used. ‘Here is a government billions dnd billions: of dollars in debt. Its assets,. however, include somé:of the nation’s most skillful burglars, highly: advanced. equipment for breaking and entering, and the will'to put both to work. - Logically, we-might expect the federal burglars to come out the window with truckloads of swag to: invigorate a debili- . tated.treasury. But we’re not dealing in logic: We're: dealing i in government, And 89,-all we get is some microfilm sn pped at the scene of the.job by the CIA boys and the minutes of; the last:meetin oF thé Downtown Trotzky Athletic Clul Ravolution Societ}-tilched bythe FBI © hat.a thin return on the-tax dollar. AY right, maybe snapshots and minutes are valuable to the security police, conduct these operations for nationg! se- ‘curity. Still, the treasury needs mgney, too, just as desperately as the need documents, and-it is galling to re- flect. that these light- -footed. payrollers, having broken in.to steal papers, are too delicate: to pause on their way out and pick jup. some cash, a.few stones, a TV set, or at least a. typewriter, for ‘the, treasury. This is “probably because federal. bur-: \ glary executives have-failed to point out ' ‘that cash.and other negotiables are even’ ~. r ‘form: Burglary. The government j Should: repeal the present tax law for two | more. vital to national security than: snapshots. It is all very well to know , what hellishness is being hatched in dark ; rooms, but as-eyery defense. contractor ' . knows, the government has to. put:up money if anything is to be done.about it. . Do not. misunderstand. This is yo, squeamish complaint about the ugly necessities. of national: ‘security. To t fcontrary, it is-a tough, hard-nosed ple -we ought to do it right, and nothing con- “tributes‘more to: national Security than plenty of\money. °~. ° }for good, old fashioned horse sense. If we. 4 are. going to burgle for national security, .: thré tens, if elected,-to bring. us. tax red ’ forrg in a year. or two: Worse, Congress. is. now, writing.a tax bill which threatens io. bring it about immediately. This ver- sion, they will say, will reform the ‘orrors created the last time Congress wave us tax reform. The. words. “tax réform” send “chills down the spine of. ,every sentient Ameri- can because each new reform deepens the nightmare of income tax. law. Just when you have got a purchase on this md@nster, Congress reforms it and every: body has to start all over again. It has nd: beqome a complexity to confoun#l a Dickens: lawyer, a maze to make King | Minos’s. ievrint look like a playpen. the conscientious citizen would sa to devote. every waking hour to its stud$ if wanted to make.a reasonably close guess at what he owes his government ‘each April. ed Even then, he: would probably be | wrong. Last year a test of Internal ‘Reve- nue’s. workers — the people who help the desperate fill out their forms — showed. that the majority even of these “experts” _ didn’t know what the law meant. So now, nless supernatural’ providence inter- pnes, it is all going to be changed again. AE Should like to ‘propose ‘a’ sensible ‘or.three’years and ‘séé' What its existing # burglary" teams can ring in by way OF ‘revenue. : There | is no persuasive argument: against this elegantly simple reform. Consider: by telling underworked federal’ bur}: ars already ‘on the: payroll to raise w ieir productivity. ‘ 4. It wouldi increase government efficient (Indicate page, name of newspaper, city and state.) ——SECTION A PAGE FIFTEEN STATES- ITEM NEW ORLEANS, LA. Date: 9-9-76 Edition:! INAL Author: RUSSELL BAKER Editor: WALTER G. COWAN Title: GOVERNMENT BURGLARY SHOWS WASTEFULNESS Character: Submitting Office: N.O. {__] Being Investigated SERRCNED. WRCHED nee =— SERIALIZED. Sami FILED. Ce : FIN EW ORLEANS
- It would be in the national security. - It ‘would be psyctiotogicaily satisfying | to the great majority of taxpayers, who already believe they are being robbed by the government but can‘never, find ‘any fingerprints. , It would save billions of work hours by relieving taxpayers of the obligation to master the law in order to guess: ~what they ought to hand over. It.would free thousands and thousands of lawyers from the drudgery of tax ‘court. duties and: give them time.:te re- store simple justice to the penniless and | downtrodden, ‘It would eliminate the injustice of loopholes and cheating by exposing thé secret: vaults and mattresses of the un- scrupulous to the same.peril as the tele- vision sets of the working stiffs. Would it be criminal? Most certainly. would be a grave mistake to legalize it. This would:lead to a new bureaucra- Gy, a swelling list of new amendments to | e law, specifying persons. who could. -not be burgled and privileged sanctu-" ‘ aries whose boodle is forbidden to the government’s ‘second-story men ~~ -in short, to a new tax code. Would Americans tolerate a-govern- - ment‘so deep in crime? Well, they have made the Mafia.a best selling, box office smash: They have lived happily with. bootleggers and bookmakers until gov- ernments moved into these rackets and ran up the cosis, skimmed the take and made it impossible to get a. drink most places at 4 o’clock in the morning. With a government ‘bursting for its evenue, every American would have an’ ded opportunity denied under the ‘present tax law. You would have the; right; if. you caught the tax collector, toF flatten him with a poker.
OFFICE OF THE DIRECTOR y Aegis’ Nee - UNITED STATES DEPARTMENT OF JUSTICE FEDERAL BUREAU OF INVESTIGATION WASHINGTON, D.C. 20535 STATEMENT OF CLARENCE M. KELLEY DIRECTOR FEDERAL BUREAU OF INVESTIGATION BEFORE THE SENATE SELECT COMMITTEE ON INTELLIGENCE SEPTEMBER 22, 1976 go & # 3 2p we CE-293]-4° 2 eA at ee a Ee! c Pilgd Akbuso» Ot
Today marks my first appearance before the Senate Select Committee on Intelligence. I want to assure you that I sincerely welcome the opportunity to work with you. I believe that we can and must develop a clear base of understanding between the Executive and Legislative Branches on the proper role of the FBI in the discharge of its complex national security responsibilities. As the Supreme Court so aptly observed in its Keith Decision in 1972, "Unless Government safeguards its own capacity to function and to preserve the security of its people, society itself could become so disordered that all rights and liberties would be endangered," Yet the maintenance of national security is a hollow victory unless it can be achieved with the least possible intrusion into the rights and privacy of our citizens. Balancing these imperatives will require the greatest study and serious thought. Together, I feel we can reach a meaningful understanding which will best serve our country. Since I became Director in 1973, there has been a continuous examination of all major aspects of the FBI's operations. One such study, initiated in 1974, established that a quality, rather than a caseload quantity, approach in the assignment of our manpower and other resources would produce better results.
Originally, this quality approach was tried on an experimental basis in four of our 59 field divisions. It proved so successful that we implemented it field-wide in 1975. Today, the quality approach is being applied to all areas of jurisdiction, including those in the foreign intelligence and domestic security fields that are of prime interest to this Committee. In July, 1973, we had 21,414 domestic security cases. By March 31, 1976, before the Attorney General's guidelines took effect, we had--through application of the quality approach-~reduced this caseload to 4,868 investigative matters, a 78 percent reduction. As of September 20, 1976, this figure has been further reduced to 626. This includes investigations of 78 organizations and 548 individuals. This reduction has been made possible largely because we have discontinued investigations of rank and file members. We are confident that the FBI can meet its responsibilities by focusing our investigations on the activities of organ- izations and on individuals who are in a policy-making position in those organizations or who have engaged in activities which indicate they are likely to use force or violence in violation of Federal law. In effecting this reduction, we have kept these vital principles in mind:
First, there must he no sacrifice or compromise of the essential security needs of the United States. Second, there must be the least possible intrusion on the rights and privacy of our citizens, including their sacred right of legitimate dissent. Third, although domestic security cases differ in some respects from ordinary criminal investigations, these cases should be tied as closely as possible to actual or potential violations of Federal law. In furtherance of this objective, last month I transferred the supervision of all domestic security cases from our Intelligence Division to our General Investigative Division, which has responsibility over criminal matters. In an effort to insure uniform adherence to the guidelines and laws applicable to these and all other areas of our jurisdiction, I have combined the Office of Planning and Evaluation and the Inspection Division. In this new Division I have created a Professional Responsibility Section. It will report directly to me. I have also expanded the role of the Legal Counsel Division in reviewing all areas of FBI policies and operations. Legal Counsel will report directly to me and to the Associate Director.
The investigations transferred include those involving domestic organizations oriented toward violence and individuals affiliated with such groups, as well as civil unrest and demonstration matters and basic revolutionary groups dedicated to the overthrow of the Government. The General Investigative Division will also be responsible for several categories of criminal investigations formerly administered by the Intelligence Division. These are bombing matters, sabotage, passport and visa violations, and protection of foreign officials and official guests of the United States. The guidelines which the Attorney General issued last March set forth standards and procedures for domestic security investigations. But, the FBI regards these to be minimum standards. FBI Headquarters has imposed stringent criteria to insure we use our manpower resources in the most productive manner. There are a number of reasons why we have been able to bring about a major reduction in our domestic security caseload. The decade of the 1960's was marked by protests, often violent, on our Nation's streets and campuses.
We entered the 1970s still engaged in an undeclared conflict in Vietnam which was unpopular with some segments of our povulation. Not in recent history had this country been so divided over an issue, and this division was not limited to rhetoric but included demonstrations that often erupted into violence. There were deliberate criminal acts, including bombings and sabotage, by persons opposed to our involvement in Vietnam. The role of the FBI in this confrontation was clearly to thwart the efforts of those who resorted to violence as an expression of their opposition. With the cessation of the Vietnam War in early 1973, a major cause for divisiveness in this country was eliminated, and the potential for violence was lessened, but not eliminated. The FBI began closing thousands of investigations at that time as determinations were made that certain groups and individuals no longer were engaged in activities that were likely to involve violations of Federal law. The FBI met the unusual challenges of the 1960s and early 1970s. The Senate Select Committee has examined these and other problems in the intelligence field which led
to the creation of this Oversight Committee; and as the Committee is aware, the FBI fully cooperated in that review. You have my ahsolute assurance that your Committee will receive the same full cooperation in carrying out its responsibilities under Senate Resolution 400. One of the tasks confronting this Committee is the formulation of a legislative charter defining the FBI's jurisdiction in the domestic security and intelligence fields. This will be a most precise and demanding undertaking. As I remarked to Senator Church's Committee, the legislative charter must be sufficiently flexible that it does not stifle the FBI's effectiveness in combating the high incidence of crime and violence across the United States. The charter must clearly address the demonstrated problems of the past; yet, it must amoly recognize the fact that times change and so also do the nature and thrust of our criminal and subversive challenges. The fact that the Department of Justice has undertaken the formulation of operational guidelines governing this. area of our activities does not in any manner diminish the need for legislation. The responsibility for conferring jurisdiction resides with the Congress.