A STOREFRONT LOCATION ON THE LOWER EAST SIDE WHICH AFFORDED MAXIMUM PROTECTION FOR UNDERCOVER AGENTS AND SITUATED IN A HIGH PROPERTY-CRIME AREA WAS CHOSEN. PREPARATION OF THE LOCATION INVOLVED CONSTRUCTION OF A HIGH WALL-TO-WALL COUNTER, REINFORCED WITH STEEL PLATES, WHICH KEPT POTENTIAL CUSTOMERS AT A DISTANCE WHILE ALSO AFFORDING PROTECTION. A TWO-WAY MIRROR ALLOWED BACKUP MEN TO OBSERVE OPERATIONS, AND A BULLETIN BOARD WAS EQUIPPED WITH A GUNPORT. CAMERA EQUIPMENT WAS LOCATED BEHIND AN INSULATED DOOR TO PERMIT FILMING OF TRANSACTIONS. FALSE IDENTITIES WERE ESTABLISHED FOR THE UNDERCOVER AGENTS, AND FINALLY MARINO TRUCKING, THE FRONT FOR THE FENCING OPERATION WAS BORN. DURING THE INITIAL WEEKS, THE DECOY FENCES WORKED AT ESTABLISHING A RAPPORT WITH POTENTIAL CUSTOMERS IN THE AREA. THE FIRST PURCHASE OF STOLEN PROPERTY WAS A TELEVISION SET, WHICH WAS TRACED TO A BURGLARY IN THE NEIGHBORHOOD THE PREVIOUS NIGHT. ADDITIONAL TRANSACTIONS SOON FOLLOWED, AND THE AGENTS SOON LEARNED HOW TO PRICE THE GOODS BEING OFFERED; WHICH IS 10 TO 15 PERCENT OF FACE VALUE. GOODS SOON BEGAN TO POUR IN, EVERYTHING FROM AFRICAN ART TO WELFARE CHECKS AND STOLEN CARS. GOODS WERE STORED IN THE OLD POLICE HEADQUARTERS. CUSTOMERS WERE FOLLOWED TO ESTABLISH POSITIVE IDENTIFICATION AND ADDRESSES, RECORDINGS AND PICTURES WERE STUDIED AND FILES WERE BUILT UP ON EVERY CUSTOMER. FRIENDSHIPS BETWEEN DECOYS AND CUSTOMERS OFTEN PROVIDED INFORMATION USEFUL IN OTHER POLICE ACTIVITIES. AFTER 4 MONTHS, BUSINESS THRIVED AND AIRTIGHT CASES WERE BUILT AGAINST THE CUSTOMERS, MOST OF WHOM WERE REGULARS. WHEN THE STOREFRONT OPERATION WAS CLOSED, OVER 130 SUSPECTS WERE PICKED UP. FOR ABOUT $12,000, APPROXIMATELY 1/2 MILLION DOLLARS WORTH OF STOLEN GOODS WERE RECOVERED. ABOUT 85 PERCENT OF THESE GOODS WERE EVENTUALLY RETURNED TO THE OWNERS. ALL SUSPECTS PLEADED GUILTY. AN ADDITIONAL, LESS TANGIBLE BENEFIT OF THE OPERATION WAS THE SUSPICION ENGENDERED AMONG THIEVES AND FENCES. (JAP)