AS A CONSEQUENCE OF THE INVESTIGATION, TWO MAJOR FENCING OPERATIONS WERE VIRTUALLY CRIPPLED AND A NUMBER OF FENCES AND THIEVES WERE ARRESTED. THE AREA'S LARGEST FENCE PLEADED GUILTY AND WAS SENTENCED TO PRISON. THESE SUCCESSES GREW OUT OF AN EFFECTIVE PENETRATION OF THE FENCING UNDERWORLD AND EXTENSIVE UNDERCOVER OPERATIONS DURING A 3-YEAR PERIOD. ADDITIONALLY, THE FENCING INVESTIGATION RESULTED IN THE RECOVERY OF APPROXIMATELY $2 MILLION IN STOLEN PROPERTY. THIS REPORT PRINCIPALLY DESCRIBES AND SUMMARIZES UNDERCOVER PERSONNEL'S INTERACTIONS WITH INDIVIDUALS INVOLVED IN THE ILLEGAL BUYING AND SELLING OF STOLEN PROPERTY. ALSO, IT IS RECOMMENDED THAT THE CRIMINAL CODE BE AMENDED TO ALLOW A PARTY INJURED BY VIOLATORS OF THE FENCING STATUTE TO INSTITUTE A CIVIL ACTION AND RECOVER THREEFOLD THE AMOUNT OF ACTUAL DAMAGES SUSTAINED, AS WELL AS PUNITIVE DAMAGE WHERE APPROPRIATE. ADDITIONALLY, LEGISLATION IS PROPOSED WHICH WOULD PROVIDE SANCTIONS AGAINST FENCES WHO HAVE ELUDED PROSECUTION UNDER CRIMINAL STATUTES BECAUSE OF DUE PROCESS REQUIREMENTS. IN AN EFFORT TO ABORT FENCING ON THE BASIS OF TAX EVASION PRACTICES, IT IS RECOMMENDED THAT MOST VIOLATIONS OF REVENUE LAWS BE MADE FELONIES, WITH AT LEAST 3-YEAR STATUTORY LIMITATION FOR PROSECUTION. APPENDED MATERIALS INCLUDE A DESCRIPTION OF THE DOUBLE BOOKKEEPING PRACTICES COMMON TO FENCES, COPIES OF RECOMMENDED AMENDMENTS TO THE CRIMINAL CODE, AND LISTS OF WITNESSES WHO TESTIFIED BEFORE THE COMMISSION AND OF BUSINESSES THAT ASSISTED IN THE INVESTIGATION. (RCB)