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The Dragnet: How a Fraud Suspect Exposed a Secret Surveillance Device

The FBI, the IRS and the U.S. Postal Service were all after the mastermind.

Cam Floyd / The Verge

On May 6, 2008, a package containing $68,000 in cash arrived at a FedEx store in Palo Alto, Calif. The bills had been washed in lantern fuel, as per instruction, then double-vacuum-sealed and placed inside the cavity of a stuffed animal, which was then gift-wrapped. The store had been chosen carefully: It was open all night and located just 500 feet from a Caltrain station. The package was general delivery, to be picked up at the store by a man named Patrick Stout.

The money was being closely watched. The package had been prepared by a criminal informant, working in cooperation with a joint task force of agents from the FBI, IRS, and U.S. Postal Service, who were investigating a tax fraud scheme. The informant had been arrested and flipped months earlier, betrayed by yet another informant. Now they were after the mastermind.

Read the rest of this post on the original site »

This article originally appeared on Recode.net.

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