PRIOR TO THE INCEPTION OF THE FRAUD UNIT UNDER A GRANT FROM LEAA, FRAUD INVESTIGATIONS WERE GIVEN LOW PRIORITY BY THE IOWA BUREAU OF CRIMINAL INVESTIGATION. WITH THE ESTABLISHMENT OF THE FRAUD UNIT IN JANUARY OF 1975, SIX SPECIAL AGENTS WERE ASSIGNED FULL-TIME TO THE INVESTIGATION OF FRAUDS THROUGHOUT THE STATE. THEY WORK IN COOPERATION WITH THE SECRET SERVICE, SHERIFFS' OFFICES, COUNTY ATTORNEYS, AND THE ATTORNEY GENERAL OF IOWA. A COMPARISON OF FRAUD INVESTIGATION FIGURES FOR THE QUARTER APRIL 1, 1976 - JUNE 30, 1976 AND THE 5-YEAR PERIOD PRIOR TO THE ESTABLISHMENT OF THE FRAUD UNIT, SHOWS THAT 119 FRAUD INVESTIGATIONS WERE CONDUCTED DURING THE ENTIRE 5 YEARS BEFORE THE INCEPTION OF THE FRAUD UNIT WHILE, IN THE FINAL QUARTER OF THE FRAUD 18-MONTH PERIOD OF THE FRAUD UNIT'S EXISTENCE. BAR GRAPHS CONDUCTED. THERE WERE 50 FRAUD ARRESTS IN THE 5-YEAR PERIOD PRECEDING THE FRAUD UNIT, AND 55 ARRESTS IN THE 18-MONTH PERIOD OF THE FRAUD UNIT'S EXISTENCE. BAR GRAPHS ARE INCLUDED TO SHOW THE NUMBER OF FRAUD CASES INVESTIGATED, NUMBER OF ARRESTS MADE, AND NUMBER OF CONVICTIONS IN FRAUD CASES FROM 1970 THROUGH THE FIRST 6 MONTHS OF 1976. AGENTS' DAILY ACTIVITIES ARE BROKEN DOWN ON A PERCENTAGE BASIS FOR THE YEAR 1975 AND THE FIRST 6 MONTHS OF 1976. IN ADDITION, TRAINING ACTIVITIES ARE REPORTED, ALONG WITH THE NUMBER OF REQUESTS FOR INVESTIGATIONS RECEIVED FROM VARIOUS AGENCIES AUTHORIZED TO REQUEST THE INVESTIGATIONS. RECOMMENDATIONS BY THE ASSISTANT DIRECTOR IN CHARGE OF THE FRAUD INVESTIGATIVE UNIT ARE ALSO INCLUDED. RECOMMENDATIONS OFFERED BY A CONSULTING FIRM EVALUATING THE PROGRAM IN 1975 ARE LISTED AND THE NATURE OF THE IMPLEMENTATION IS NOTED. SEVERAL NEWSPAPER ARTICLES IN IOWA ON THE FRAUD UNIT ARE PROVIDED. (RCB)