Corrected entry: Most of the events of Saw IV take place during the same time as Saw III. They all involve the Jigsaw Killer. The police see the Jigsaw Killer as the source of the crimes in both movies. In Saw IV there is a completely different set of detectives working on the case as Saw III, despite being the same crimes.
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Correction: At no point are the police even shown to be investigating the main story of Saw III because they do not know it is going on. They only know that "another doctor went missing from the hospital," which does not automatically tell them she was abducted by Jigsaw. The events of Saw IV are being investigated by the FBI due to their suspicion that Rigg might be involved and because a 911 call led them to the trap that occurred in Rigg's apartment.
Phaneron ★