IN THE STOLEN PROPERTY DISTRIBUTION SYSTEM, THE THIEF MOVES THE CONTRABAND FROM THE VICTIM TO THE FENCE WITH GREAT SPEED AND EFFICIENCY, AND THE FENCE PAYS FOR THE GOODS IN CASH OR OTHER GOODS, THEN WHOLESALES THE CONTRABAND TO OTHER FENCES OR STORES OR DISPOSES OF THE STOLEN PROPERTY TO AN AGENT WHO RESELLS THE GOODS TO THE PUBLIC. THE LEAA ANTIFENCING PROGRAM INVOLVES THE WORK OF LAW ENFORCEMENT OFFICERS FROM FEDERAL AGENCIES OR FROM STATE OR LOCAL POLICE DEPARTMENTS, WHO POSE AS FENCES AND ESTABLISHING COVER BUSINESSES FROM WHICH THEY CONDUCT STOLEN PROPERTY AND CONTRABAND TRANSACTIONS WITH THIEVES, FENCES, AND OTHER CRIMINALS ASSOCIATED WITH THE ORGANIZED HANDLING AND DISPOSAL OF THE PROPERTY. TRANSACTIONS ARE VIDEOTAPED, PROVIDING PROSECUTORS WITH THE BEST EVIDENCE POSSIBLE AND RESULTING IN A HIGH RATE OF GUILTY PLEAS. OVER 60 ANTIFENCING OPERATIONS HAVE BEEN CONDUCTED SINCE 1974 AND THE UNIFORM CRIME REPORTS OFFER EVIDENCE THAT COMMUNITIES IN WHICH OPERATIONS HAVE BEEN CONDUCTED, EXPERIENCED A REDUCTION IN PROPERTY OFFENSES DURING 1977. THE ANTIFENCING PROJECTS ARE DIRECTED AT IDENTIFYING AND INCRIMINATING CAREER THIEVES AND FENCES, AND A PROFILE OF CRIMINALS ARRESTED DURING A 6-MONTH OPERATION PERIOD INDICATES THAT THE THIEVES AND FENCES BEING APPREHENDED ARE SOMEWHAT OLDER THAN THE USUAL ARRESTEES. THESE ARRESTS USUALLY CLEAR MORE OFFENSES THAN ARRESTS STEMMING FROM STANDARD POLICE PROCEDURES. LEAA PROVIDES FUNDS FOR SETTING UP AND CONDUCTING OPERATIONS, PAYING FOR PROSECUTIONS, AND MAINTAINING INVESTIGATIVE AND INFORMAT EXPENSES. TEN ANTI-FENCING PROJECTS ARE DESCRIBED. (DAG)