The opening statement by the subcommittee chairman cites the poor performance of the Defense Procurement Fraud Unit since its establishment in 1982, and another subcommittee member comments on the lenient sentences received by those convicted of white-collar crimes. Testimony by Joseph Sherick, Defense Department Inspector General, reviews the achievements and problems in investigating defense procurement fraud and suggests ways to improve such investigations, notably through increased resources and better training of investigators. Robert Segal, a former agent in the Contract Fraud Division of the Defense Department's Inspector General's Office, testifies on the inability of the Procurement Fraud Unit of the Defense and Justice Departments to impact defense procurement fraud, followed by testimony from representatives of the Justice Department regarding its performance in the prosecution of defense procurement fraud cases. Subcommittee member questioning focuses on the low number of cases prosecuted, the failure to target individuals within corporations for criminal prosecution, and the lenient sentences given in such cases. Supplementary material and printed statements.