Amazon's Aberrant Union with Federal Law Enforcement and Prosecutors
In 2020, Amazon announced the Counterfeit Crimes Unit, a body comprised of Department of Justice (DOJ) alumni tasked with detecting counterfeit activity. Recent records indicate Amazon employs at least 21 former federal prosecutors and 49 former Federal Bureau of Investigation (FBI) employees.
The unit, created in response to pressure from Congress, is bifurcated into two divisions: digital platform supervision and case pushers to former colleagues, according to a POLITICO investigation. Amazon's actions reflect its efforts to address counterfeit and fraudulent practices amid accusations that the company remains cavalier regarding crime reduction. Running parallel to this, is an apparatus that ensures federal officials handle Amazon's issues quickly despite the resource constraints. Through this approach, Amazon has allegedly built strong ties with law enforcement as Congress and federal agencies increasingly scrutinize its business practices and platform's fraudulence.
"This is not the best way for Amazon to deal with these issues. Amazon’s platform has become a crime scene riddled with dangerous, defective, and counterfeit products. While Amazon cooperates with the government in some cases, in others, we have seen it relist its own supply of counterfeit products multiple times even after agreeing to stop," stated Rep. Jan Schakowsky (D-IL).
J. Kelly Strader, a law professor and expert on corporate compliance in white-collar crime, stated Amazon's approach indicates a strategy aimed at more than preventing crime, but an attempt to foster public trust and appear cooperative with authorities. As for Amazon, it argues that it is taking forceful action against criminal activity by referring them to law enforcement.
“Like any responsible company, when we become aware of activity that is potentially illegal, we refer it to law enforcement to further investigate,” stated Amazon spokesperson Jodi Seth, “We take our responsibility seriously to protect our customers and selling partners from fraud and abuse. We are proud of the industry-leading investments we’ve made in technology and human expertise to prevent criminal activity and deter bad actors.”
Likewise, the DOJ has asserted it does not favor any company over another when deciding what to investigate. An analysis of public records, however, reveals that the federal government has indicted 20 people for Amazon-related crimes in the past year and a half, with 15 more individuals currently under federal investigation. In most cases, Amazon either tipped off law enforcement or cooperated closely with investigations. In comparison, the DOJ announced three indictments involving Walmart crimes and two involving FedEx crimes in the same period.
“The Justice Department’s long-standing practice is to encourage tips of criminal wrongdoing from all sources, to not favor one company over another, to follow the facts and evidence where they lead, and to bring criminal prosecutions only in accordance with the Principles of Federal Prosecution,” provided Dena Iverson, Deputy Director Office of Public Affairs at the DOJ.
Meanwhile, Amazon recently hired Matthew Alcoke as the Senior Manager for Physical Security at Amazon Web Services. Alcoke, the now former Deputy Assistant Director of the Counterterrorism Division at the FBI's D.C. field office and Intelligence Branch principal, was the senior FBI official in charge during the January 6 insurrection.