Mueller's Prepared Testimony, July 26, 2007 3:47 p.m.
Robert S. Mueller, III, Director, Federal Bureau of
Statement Before the House Judiciary Committee
The Wall Street Journal
Friday, July 26, 2007
Good afternoon Chairman Conyers, Representative Smith, and
members of the Committee. I am pleased to be here today.
When I was sworn-in as the sixth Director of the FBI nearly six
years ago, I was keenly aware of the need to address a number of
management and administrative challenges facing the Bureau.
However, the terrorist attacks of September 11, 2001, coupled
with the emerging terrorist and criminal threats brought on by
globalization and advances in technology, required far more
changes than we anticipated.
Indeed, we in the FBI have undergone unprecedented
transformation in recent years. Today, the FBI is a stronger
organization, combining greater intelligence and national
security capabilities with a longstanding commitment to
protecting the American people from both crime and terrorism,
while upholding the Constitution and protecting civil liberties.
Today, I want to give you a brief sense of the FBI's current
priorities, the changes we have made to meet our mission, and
some of the challenges we are facing.
Changes in Structure and in the Way We Do Business
After the September 11 attacks on America, the FBI's priorities
shifted dramatically. Our top priority became the prevention of
another terrorist attack. Today, our top three
priorities—counterterrorism, counterintelligence, and cyber
security—are national security-related.
To that end, we have made a number of changes in the Bureau,
both in structure and in the way we do business.
We stood up the National Security Branch, which oversees our
counterterrorism, counterintelligence, and intelligence
operations. We consolidated our chemical, biological,
radiological, and nuclear threat resources into the Weapons of
Mass Destruction Directorate.
We have doubled the number of intelligence analysts on board,
from 1,023 in September 2001 to more than 2,100 today. We have
tripled the number of linguists. We set up Field Intelligence
Groups, or FIGS, in each of our 56 field offices. These FIGS
combine the expertise of agents, analysts, translators, and
surveillance specialists. We integrated our intelligence program
with other agencies under the Director of National Intelligence,
with appropriate protections for privacy and civil liberties.
We have tripled the number of Joint Terrorism Task Forces (JTTFs)
across the country, from 33 to more than 100. These task forces
combine the resources of the FBI, the intelligence community,
the military, and state and local police officers. These JTTFs
have been essential in breaking up terrorist plots across the
country, from Portland, Oregon; Lackawanna, New York; Torrance,
California; and Chicago, to the recent Fort Dix and JFK Airport
In short, we have improved our national security capabilities
across the board. Today, intelligence is woven throughout every
program and every operation. Much of our progress has been the
result of expertise gained over the past 99 years of our
existence, in the criminal arena with organized crime, and in
counterintelligence, through the development of sources and
expertise in interview and surveillance techniques. Our
experience has allowed us to build enhanced capabilities on an
already strong foundation.
The FBI's Criminal Programs
To meet our national security mission, the FBI had to shift
personnel and resources, but this has not affected our
commitment to our significant criminal responsibilities. While
Americans justifiably worry about terrorism, crime also touches
the lives of millions of people. Today in the FBI, we have
roughly a 50/50 split in resources between national security and
criminal programs. To make the best use of these resources, we
will continue to focus on those areas where we bring something
unique to the table and to target those criminal threats against
which we will have the most substantial and lasting impact.
In recent years, we have moved away from traditional drug cases
and smaller white-collar crimes that can be handled by other law
enforcement agencies, but we have dedicated more agents and more
resources to public corruption, violent crime, civil rights,
transnational organized crime, corporate fraud, and crimes
against children. We remain ready and willing to help keep our
Public Corruption is among the agency's top priorities and is
the No. 1 priority of the Criminal Investigative Division.
Public corruption strikes at the heart of government. It erodes
public confidence, and undermines the strength of our democracy.
Investigating public corruption is an FBI commitment as old as
the Bureau itself. Indeed, it is a mission for which the FBI is
singularly situated; we have the skills necessary to conduct
undercover operations and the ability to perform electronic
Today, there are 640 special agents dedicated to more than 2,400
pending investigations. The number of pending cases has
increased by 49 percent since 2001. The number of agents working
such cases has increased by 42 percent.
The Department of Justice's conviction rate is high, as is the
overall number of corruption convictions. In the past two years
alone, the Department has convicted over 1,500 federal, state,
and local officials. The Department also has recovered more than
$69 million in fines and more than $356 million in restitution.
The Public Corruption Program also targets governmental fraud
and corrupt practices. For example, the International Contract
Corruption Initiative addresses the systemic, long-term
multi-billion dollar contract corruption and procurement fraud
crime problem in the Middle East, principally in Iraq, Kuwait,
The Hurricane Fraud Initiative addresses contract and
procurement fraud in the Gulf Coast region of the United States
in the aftermath of hurricanes Katrina and Rita. The Campaign
Finance and Ballot Fraud Initiative addresses campaign finance
violations, with a particular emphasis on the upcoming 2008
primaries and national elections.
Major White Collar Crime
The FBI routinely investigates large-scale financial crimes,
including corporate, securities, commodities, mortgage and
health care fraud. In recent years, the FBI has investigated
company after company, including Enron, Enterasys, Comverse,
HealthSouth, WorldCom, and Qwest, among many others. These names
have been in the headlines for the past several years. Thousands
of employees lost their jobs and their life savings; thousands
of stockholders were defrauded. We have successfully
investigated and helped put away many of the persons responsible
for these crimes.
The number of agents investigating corporate and other
securities, commodities, and investment fraud cases has
increased 47 percent, from 177 in 2001 to more than 250 today.
Today, we have more than 1,700 pending corporate, securities,
commodities and investment fraud cases, which is an increase of
37 percent since 2001.
In 2006, the FBI investigated 490 corporate fraud cases,
resulting in 176 informations and indictments, 133 convictions,
$14 million in fines, and $62 million in seized assets.
Significantly, the FBI has also secured $1.2 billion in court
ordered restitution for the victims of these crimes.
We are also a member of the Corporate Fraud Task Force. FBI
special agents work closely with investigators from the
Securities and Exchange Commission, the IRS, the U.S. Postal
Inspection Service, the Commodity Futures Trading Commission,
and Treasury's Financial Crimes Enforcement Network, among
others. Together, we target sophisticated, multi-layered fraud
cases that injure the marketplace and threaten our economy.
Since its inception, the Department has obtained 1,236 corporate
fraud convictions, including the convictions of 214 chief
executive officers and presidents, and 53 chief financial
Health care fraud significantly impacts the lives of all
Americans. The National Health Care Anti-Fraud Association
conservatively estimates that 3 percent to 5 percent of total
health care expenses are fraudulent. The major issues are
constantly changing and those involved in health care fraud are
continually probing health care benefits programs for areas of
Constant communication between the health care benefits
programs, law enforcement agencies, state agencies and the
public is the most effective means to respond to these changes.
The FBI is an integral element of the joint Department of
Justice and Department of Health and Human Services Health Care
Fraud and Abuse Program and is actively involved in 32 Health
Care Fraud Task Forces, as well as numerous working groups and
During 2006, investigations resulted in 599 indictments; 534
convictions and pre-trial diversions; $373 million in
restitutions; and $1.6 billion in recoveries.