The Basics

Of
Organized Crime
For
Law Enforcement
By Randy Gonzalez
 Table of Contents

Chapter 1: Introduction – The Meaning of Organized Crime – Page 1

Chapter 2: Organized Crime Development and Growth – Page 8

Chapter 3: Organized Crime Structure and Operations – Page 15

Chapter 4: Structural and Operational Aspects – Page 22

Chapter 5: Activities and Practices – Page 29

Chapter 6: The Changing Nature of Organized Crime – Page 36

Chapter 7: Non-Traditional Organized Crime

Asian And Other Crime Groups – Page 43

Chapter 8: Asian and Other Crime Groups Continued – Page 50

Chapter 9: Changing Nature of Organized Crime – Page 57

Chapter 10: The Business Threat of Organized Crime – Page 64

Chapter 11: Activities Associated with Organized Crime – Page 71

Chapter 12: Organized Crime, Public Corruption and RICO – Page 78

Chapter 13:Patrol Investigative Vigilance to Organized Crime and

Terrorism –Page 85
 1

Chapter 1: Introduction – The Meaning of Organized Crime:

Defining “organized crime” in the United States has always been both
controversial and confusing in regard to an exact definition. Many alleged
experts in the field of criminology, from academic theorist to real-world
practitioner, have not always agreed on the precise terminology. Yet, here
we will attempt to keep things as simple as possible. We have heard of such
terms as La Cosa Nostra, Mafia, the Syndicate, the Mob, the Combination,
the Commission, the Family and so forth. Yet, these words typically refer to
something we call “traditional organized crime” in a historical sense.
Today, criminal justice is faced by at least three types of “organized crime”.
These may include:

1. Small Scale Organized Crime – not affiliated with “traditional

organized crime” families of the historical variety, but remain as
organized criminal groups.
2. Traditional Organized Crime – related to historical processes and
linkages that reflect early immigration into the U.S.;
3. Non-traditional Organized Crime – reflected in newer shifts and
movements within the criminal element that do not fit the “traditional
organized crime” framework;

The words mentioned earlier are usually associated with the traditional
organizations associated with the “original” organized criminal phenomena
occurring in the United States a hundred plus years ago. More simply, the
term “Mafia” reflects the common assumptions regarding organized crime in
an historical context. Over time, these traditional groups altered their
approach to criminal activity along economic lines in order to protect and
preserve their operational capabilities. They more or less conformed to the
basic principles of “supply and demand” to maximize their material gain.
This organizational emphasis, supply and demand, economic criminal
opportunity, homogenous ethnic composition, and so on, relates primarily to
the traditional conception of organized crime. In addition, the various kinds
of illicit activities, hierarchical structure, power concentration, enforcement,
history and affiliations, set the “Mafia” apart from the newly emerging
groups of non-traditional organized crime. For practical purposes, the
following definition is offered only as a working definition for present
consideration.
 2

Defining Organized Crime

The words “organized crime” can be thought of as a
series of mutually beneficial relationships between
professional criminals, politicians or associated
influential persons, and clientele. In terms of
clientele, in a service provision sense, it caters to the
demands of those who desire the illegal services
provided. Organized crime creates and endeavors to
sustain a “deviant opportunity subculture”. The goals
are similar to that of legitimate businesses, in that it
seeks to maximize profit and power. Key issues are
related to power and control of “business operations”
that maximize material gain.
In creating and promoting the deviant opportunity
subculture, through both legitimate and illegitimate
avenues, politicians and persons of influence,
organized crime seeks to manipulate the supply and
demand spheres of influence. From various vice
activity forms of behavior, organized crime endeavors
to cultivate a core of illegal activities that will ensure
a constant supply of material gain resources.

Fundamental to the operations of organized crime is the ability to function

outside the lawful and legitimate frameworks of normal society. Such
activities seek to avoid control by the government and allied regulatory
agencies. So called “professional criminals”, as opposed to early learners
(unorganized, unskilled amateurs), have chosen a life-style of criminal
behavior as an occupational endeavor. Such persons, within the context of
organized crime, associate together in an effort to neutralize duly constituted
authority, in order to perpetuate their ongoing criminal activity. Intricate
conspiratorial actions, carried out over a period of time, seek to undermine
legitimate business operations in order to increase profit and power. Some
basic characteristics of traditional organized crime include the following.
 3

Traditional Notions About Organized Crime

1. A series of interconnected mutually beneficial relationships to

further criminal activities so that money and power can be
maximized to every extent possible. Material gain is the
primary goal of the operations.
2. Consists of an enforced hierarchical structure, in which efforts
are directed toward conspiratorial activities of an ongoing
nature. Involves the coordination of an organizational
structure and associated personnel. Utilizes effective means of
controlling and disciplining its members.
3. Involved in a number of profit making operations, from basic
illegal “business” activities such as gambling, prostitution,
adult entertainment, to more complex activities such as money
laundering and computer crimes.
4. Various levels of the threat of violence to actual violence are
employed in order to ensure objectives are obtained.
5. Organized crime is not to be confused with terrorist activities,
for which the goal of action is primarily political in nature.
However, the types of crimes committed, organizational
structure and tactics against others may be similar in nature.
6. Serious effort is directed toward organizational maintenance,
cash flow, personnel discipline and ongoing “business”
operations.
7. It seeks to be immune from the reaches of legitimate lawful
authority.
8. Various activities generally include: gambling, loan sharking,
drugs, prostitution, various forms of adult oriented
entrainment, extortion, bribery, embezzlement, fraud, fencing
activities, union operations, auto theft, cargo theft, credit card
crimes, vending machines, trash collection and waste disposal,
other smuggling activities, etc.
9. Key aspects: structure, profit continuity, monopoly, relative
immunity, power and control.
 4

During the 19th century, the United States experienced a large-scale

immigration movement particularly from European countries. As a result, a
certain percentage of this population group chose a life of crime as opposed
to making an effort to assimilate into legitimate societal endeavors. The
criminal element no doubt would have been criminals no matter where they
went, either in their home country or their newly adopted country. Simply
stated, people become criminals because that is the lifestyle they choose.
Most people are not criminals, and choose to become law-abiding citizens.
And, those who choose to become criminals typically prey on their own
neighborhoods. With Italian immigrants, for example, in the 19th century,
emerging organized crime groups of Italian heritage began immediately
preying on fellow Italians. In these formative years, an example of extortion
activity developed in what became known as the “black hand”. As an
extension of organized crime, the so-called “black hand” operation involved
sending a letter to a target, which depicted an imprint of a “black hand”.
Extortion has always been a key activity of organized crime operations.
Such efforts today extend into the takeover of legitimate businesses in
modern society. From lotteries and other forms of gambling, prostitution
and loan sharking, organized crime has tried to permeate every level of our
society.
Organized crime is not new in the history of the human race. During the 13th
century, for instance, legend has it that today’s traditional organized crime
began to develop in its formative stages. It appears that Palermo, Sicily is
the birthplace of the Italian (Sicilian) version of today’s traditional organized
crime. The story is told that violent clashes occurred between members of
the Sicilian population and their French rulers. As a result, a slogan
emerged in the form of: “Morte alla Francia Italia anela!”, or “Death to the
French is Italy’s cry!”. From this, legend suggests that the name “Mafia”
stems from creating initials out of the so called “death slogan”. Reid points
out:

Italy’s ultimate political unification, in the nineteenth century,

isolated the nearby island of Sicily, and, having played out its role
as savior to the people, the Mafia turned about face. Discarding its
ideal of fighting oppression, it began to mount an unceasing reign
of terror that, over the years, has been exported to many places
around the world. Extortion, arson, and murder perpetrated on all
classes became the trinity of terror that ruled Sicily. (1)
 5

It is suggested by some that during the growth and expansion of the Mafia in
Sicily, it absorbed an organization known as the Camorra. This was a
criminal organization that developed in Seville in 1417. It was transported
to Sicily by the ruling powers at the time. The Camorra started out as a
criminal organization and assisted those in power by providing a range of
services. Among these, assassinations were included. The ruling power
tolerated the Camorra, and it infiltrated various levels of the local
government including the military. When the government attempted to fight
back against the Camorra, those arrested became an active influential part of
the prison system. Beginning in 1907, many of the Camorra fled to the
United States. After feuding with elements of the American Mafia, the two
groups finally forged an alliance around 1920. The Mafia began to evolve
as a “society” made up of other “secret societies”. From these beginnings,
comes the concept of “Omerta”, or the so-called code of silence (umirta –
literally means humility). It represents a characteristic members were
ideally supposed to exhibit. It suggested such things as: quality, manliness,
and above all, silence. Yet, the most important thing it stands for is the
ability not to talk about business activities. Success or failure came to rest
on how much someone talked, especially to outsiders and law enforcement
officials. In the end, the most important concept that emerges today is that of
profit for the organization. It is the single most important objective. (2)
 6

According to many researchers on the topic of “organized crime”, a good

understanding of it can only be achieved by analyzing the historical
differences in the several types, and its structural development. And, it is not
so simple, many times, to define exactly the scope and extent of what
organized crime constitutes. This may be especially true when comparing
organized crime to other forms of organized criminal activity. Albini, for
example, points out: (3)

Among the various criteria considered in an effort to differentiate

organized crime from other forms of criminal activity have been
the following: the existence and degree of organization; the degree
of specialization and training of the criminal participants; the
ultimate goal of the criminal association as direct monetary profit
orientation (versus profit in the sense of gain or retention of social
or political position); whether victimization is accomplished by use
of fraud versus force, intimidation, and fear; and finally the time
span within which the criminal enterprise is perpetuated.

It is not always easy to fully define contemporary organized criminal activity

purely within these parameters. In the United States today, there are many
types of “professional” criminal activities that are outside what we would
typically define as “organized crime” or the “Mafia”. Some researchers
have tried to distinguish among the types of organized crime by use of the
following terms: (4)

Organized gang: organized criminality that focuses on bank

robberies, murder, hijacking, auto theft, and related street crimes
which are committed by gangs who organize to carry out such
activities on a large scale;
Racketeering: a transition occurs when intimidation and force
become standard operating procedures in order to extort benefits from
legitimate and illegitimate businesses;
Syndicated crime: this sometimes refers to organized gang activity
that becomes a process of providing goods and services to those who
are willing participants in obtaining the goods and services, and will
pay for such activities;
 7

There emerges in most discussions and investigations concerning

organized crime a distinction in terms of organization. Organized
crime tends to be more “business-like” in its operations. It is more
than two or more people getting together to commit a crime, or even a
series of crimes. Instead, it is an ongoing relationship within a
structured environment. Key aspects evolve as individuals mutually
associate in order to have a continuing enterprise of activity to ensure
profit and power. These elements tend to include the following
concepts: (5)

q The organization maintains control over the interaction, the

activities, as well as the nature and direction of the goals and
objectives.
q Subsequently, there is division of labor, assignments of duties,
communication among the levels of the structure and a
hierarchy of power.
q Various groups associated with the organization are overseen
by a control center. There is a center of leadership that
coordinates and directs activities, operations and functions of
the organization.
q There are mechanisms for recruitment and selection of
personnel to fill the ranks of the organization. In addition,
within the context of “personnel management”, there is also a
means by which discipline is carried out within the
organizational structure.
 8

Chapter 2: Organized Crime Development and Growth:

From the exodus of other countries, to the United States at the beginning of
the 20th century, members of their own neighborhoods quickly victimized
early immigrants. The extortion of various benefits remains today a
significant aspect of organized crime activities. As opportunities for
development and growth of the organization became more prevalent, various
gambling operations and prostitution services expanded. Organized crime
became a source of loans to those who could not afford to borrow money
from legitimate sources. Naturally, the interest rates that were charged were
high enough to keep the borrower in debt for a long period of time. With the
subsequent passage of the 18th Amendment to the U.S. Constitution, the
prohibition of intoxicating beverages became a target of opportunity. This
Act prohibited the manufacture, sale and delivery of intoxicating beverages.
The action by Congress became effective in 1917. At the beginning of 1919,
the required number of states had approved the action by Congress, which
was known as the Volstead Act. From that point, the “liquor industry”
became an object of “warfare”, competition and rivalry among various
ethnic organized crime operations. Alliances were formed to ensure control
and distribution of illegal liquor, and otherwise maintain power and
economic enrichment for various organizations.

Organized crime was able to provide goods and services to a significant

percentage of a willing public. Those members of the public who wanted
forms of escapism, in order to deal with difficult times and situations, found
organized crime willing and able to deliver sex, drugs, intoxicating
beverages, money and gambling. By the mid-1930’s, organized crime had
become very powerful and influential throughout various levels of American
Society. Politicians and persons of influence were sought out for their
support and involvement in perpetuating the ongoing provision of the
various “goods and services”. Gambling, associated adult entertainment,
and other sources assisted in the development and growth of a powerful
American “underworld”. During the Great Depression, the “underworld’
was able to maintain perhaps the largest accumulation of cash and assets at
that time. In contrast today, organized crime is a multi-trillion dollar
multinational conglomeration of business activities, both legal and illegal.
“Loan-sharking”, the practice of loaning money at excessive interest rates,
became an opportunity to make more money.
 9

Organized crime seeks protection for interference

from law enforcement authorities. It is an ongoing
criminal enterprise that operates like a regular
business entity. It brings together the client public
with the goods and services the client public
desires. Organized crime provides the basis for a
deviant opportunity subculture. It expands its
ventures into legitimate as well as illegitimate
business endeavors. Control and money flow are
essential.

Goods and services provided by organized crime range

from loan-sharking to drugs, and everything in between.
It is the realm of pseudo-dreams and escapism and
includes an assortment of vice oriented crimes.

The client public desires certain

types of activities to meet personal
needs for gratification of one sort
or another. Such deviant behavior
seeks out the source for such goods
and services. Those so inclined
locate those who are able to
provide such goods and services.
This could range from corporate
infiltration and takeover, to the
realm of adult entertainment,
gambling and drugs.
 10

General Historical Development

1830’s – Organized criminal activity reported in Chicago, providing

goods and services related to: prostitution, gambling, counterfeiting,
and other illicit services. There is evidence that operations were
protected from law enforcement through local corruption of public
officials, and lack of a formalized police function.
1850’s – Early beginnings of an organized police operation in the
Chicago area. Organized crime efforts continued to develop, along
with the corruption of the local police force.
1860’s – During the Civil War period, gambling establishments
continued to develop, along with the growth of house of prostitution.
By this time, organized crime had made its appearance in urban
America, and gained a foothold through the use of corruption and
violence. At the same time, other cities, such as New York, San
Francisco, New Orleans, Cincinnati, Kansas City, St. Louis,
Milwaukee, and others, experienced similar developments related to a
“criminal underworld”.
1880’s – This period records the emergence of large gambling
operations, particularly in Chicago. Bookmaking syndicates and
racetracks were controlled by organized crime elements, not only in
Chicago, but also in Northern Illinois and Indiana.
1900’s – By the turn of the century, 15 Tongs (criminal organizations
that operated in Chinese-American communities) were reported
operating in San Francisco. They provided primarily such services as
prostitution, drugs and gambling. The so-called “Black Hand” gangs
emerged during this time. Their method of operation was primarily
extortion by use of a threatening letter within the Italian-American
neighborhoods. Cities such as Chicago, Pittsburgh, Detroit and New
York has early reports of “Black Hand” activity.
1920’s – With the advent of the Volstead Act in 1920, various criminal
organizations began to cooperate in the provision of illegal liquor. The
supply sometimes came from British merchant operation, as well as
from various Canadian sources. (6)
 11

1920’s – This era saw a close relationship between political machines

and criminal underworld elements. They provided services to various
political organizations, paid off police officers and politicians, and
increased their overall influence and power within the communities of
a number of U.S. cities. Various leaders and followers within the
growing criminal organizations represented Irish, Polish, Italian and
Sicilian-Americans. During Prohibition, organized crime elements
were able to accumulate large sums of money. This cash flow was
invested in other illicit activities that led to the further growth and
expansion of organized crime operations.
1930’s to 1950’s – This period saw further growth and development of
existing organized crime operations, as well as the emergence of new
organizations. In 1950, U.S. Senator Estes Kefauver (Kefauver Senate
Hearings on Interstate Commerce in Organized Crime) began his
famous investigation into U.S. organized crime activities. From the
committee’s efforts, information suggested there was a working
relationship between various organized crime elements across state
boundary lines, as well as the existence of something known as the
“Mafia”. In addition, it was further reported that corruption existed
between criminal organizations, law enforcement and elected officials.
This sub-culture of organized crime and corruption has existed since
about the middle 1800’s to the present day.
1960’s – Other investigative efforts targeted organized crime
operations. In 1963, the Senate conducted investigations through the
Senate Investigating Committee, under the chairmanship of Senator
John McClellan. The famous testimony of Joseph Valachi was heard.
From his testimony another term emerges. Valachi referred to the
discussion of organized crime as “Cosa Nostra”. The term has often
been misunderstood in the context it was used. It is not used to refer to
an organization. It is a term which means “our affair”, or “our
concern”, and sometimes “our situation”. The translation of what
Valachi said came to mean “our thing” or “our family”. Following the
hearings, the term began to be used to refer to a criminal organization.
(7)
 12

From the twenties through the sixties, various elements within the
complexity of U.S. organized crime, made efforts to consolidate and
strengthen power and control over various illicit goods and services. Large
amounts of liquid assets, made such operations difficult to deal with from a
law enforcement perspective. Money and resources were put to work to
make more money and increase resources. Business infiltration became
another form of power and control. The infiltration of businesses gave way
to the takeover of union interests. In 1986, the Federal Safe Streets Act
sought to further define the nature of organized crime in the U.S. (8)

1. Organized crime is a type of conspiratorial crime, sometimes

involving the hierarchical coordination of a number of persons in
the planning and execution of illegal acts, or in the pursuit of a
legitimate objective by unlawful means. Organized crime
involves continuous commitment by key members, although
some individuals with specialized skills may participate only
briefly in the ongoing conspiracies.
 13

2. The primary activity of organized crime is the pursuit of

economic gain. Certain members within the organization
may also pursue power, control and status as personal
objectives.
3. Discipline within the organization is typically of a sure,
swift and certain nature. And, in the pursuit of economic
gain, organized crime is not limited to illegal activities.
4. It fosters its activities based on a network of relationships
that bring together, in the “illicit market place”, a client
public and various goods and services demanded by the
client public.
5. Given the relationship between the public, politicians and
the provision of desired goods and services, organized
crime represents the results of contradictions within
society.
6. Organized crime is a criminal conspiracy of persons who
desire to commit ongoing criminal enterprises for the
purposes of economic gain.
 14

Until about the time of Prohibition, organized crime figures were pretty well
contained to their neighborhoods by virtue of the power of local politicians.
They stayed in the dark realm of the “underworld”. Gangsters paid
politicians and the police for protection, and, as a result, played a
subordinate role to the political forces. The organized crime figure, for the
most part, remained in the shadows. Yet, with the advent of Prohibition, an
air of legitimacy settled over the world of the organized crime organization.
The gangster moved out into the world. They were a source of a product the
public wanted and could not get anywhere else. Every socio-economic level
of society was represented in the patronage of gangster owned
establishments. Organized crime elements became a focal point for
entertaining the public with a variety of products. The public was spending
millions of dollars a day for liquor. The “industry” grew in terms of billions
in annual profits to organized crime operations. A kind of role reversal
began to transcend the relationship between organized crime, politicians and
the police. Money meant power. And, the gangster became powerful by
virtue of the cash flow from illegal liquor. Prohibition was a period of
violence, gang rivalry and bitter intense competition. Yet, toward the end of
Prohibition, efforts were made to develop alliances and cooperate over the
distribution of good and services. The focus of “goods and services”
became liquor, gambling, money, drugs and sex.
By the early 1930’s, and Post-Prohibition, these services had continued to
amass enormous amounts of money and power. The income from gambling
and other sources of revenue continued to build the financial power base of
the various organized crime elements. From loan sharking to corporate
infiltration and business takeovers, the upward spiral of profits continued.
During Prohibition, gangsters controlled much of the trucking industry
throughout the country. Large fleets of trucks transported illegal liquor from
coast to coast. In the Post-Prohibition years, trucking operations turned
toward the hauling of all kinds of merchandise. Trucking was still
controlled by elements of organized crime. As a result, unionization efforts
in the trucking industry led to deals being made. From these efforts,
organized crime moved into positions of influence and control of labor union
operations. The growth of organized crime in the United States is a result of
cooperative efforts between gangsters, elements of government, politicians
and the public. Large segments of the American public desire the goods and
services provided by organized crime. Organized crime could not exist
without the complicity of a willing American public.
 15

Chapter 3: Organized Crime Structure and Operations:

Following the end of World War II, organized crime in the United States
became very powerful. Not only was there cooperation among organized
crime groups, but also growing public support for the ‘goods and services’.
Inter-connectedness nationwide was made possible by advances in
transportation and communications. Industrial growth provided better ways
to travel and more efficient ways to communicate. The strength of organize
crime had grown both in terms of money and alliances. Leaders of
organized crime ‘families’ were influential to the point they were solicited to
assist the government with war effort. There are a number of instances in
which prominent gangster assist the government in cooperative endeavors
against Allied enemies. For example, protection of shipping interests at
home, and helping the Allies in Italy, are among the efforts attributed to the
working association of the government and organized crime leaders. When
the war ended, adult entertainment grew in huge proportions. Las Vegas
became the hub of a focal point for adult entertainment with casinos, hotels,
food and beverage services, entertainment, prostitution, and so forth. Las
Vegas could be viewed as a mechanism by which organized crime could
move into an atmosphere of ‘legitimate business’ operations. And, in spite
of the state taxation, extremely large amounts of profit were made in the
gambling operations alone. The significant cash flow continues to this day.
Tourists spend billions of dollars yearly in the casinos.
During the early 1950’s, the U.S. Senate Special Sub-Committee, headed by
Senator Kefauver, toured the United States to investigate organized crime.
The primary focus of the investigation was to assess the degree to which
organized crime was involved in interstate commerce. Hundreds of
witnesses provided testimony to the Sub-Committee over nearly a two-year
period. A persistent theme emerged, consistent with the history and
development of organized crime. This included: the provision of illegal
services to the public, political corruption, bribery of law enforcement
officials, and strict enforcement of organized crime discipline. These
hearings were made public by virtue of the growth of the television industry.
The televised availability of the investigation put the issue of organized
crime within public view. The extent to which the public now had exposure
to the nature of such things, gave better insight into the broad scope of
criminal behavior.
 16

The public was now, more than ever before, more informed about the
organization and influence of organized crime activity. In addition, as a
result of the investigation, a number of prominent mobsters were prosecuted
and subsequently went to prison.

In 1957 the discovery of the meeting in Apalachin, New York, of at

least 75 criminal cartel leaders from every section of the Nation
aroused national interest again. This interest was further stimulated
by disclosures in the hearings of Senator McClellan’s Select Senate
Committee investigating organized crime’s infiltration of labor and
business. A concerted Federal enforcement response developed in
the 1950’s, and special, institutionalized efforts on the local level
have been growing slowly since that time.
Following the Kefauver hearings, the Department of Justice
commenced a concerted drive against the leading racket figures
identified in the hearings. Federal prosecutors throughout the
Nation were encouraged to initiate investigations and prosecutions
of such persons. As a result, a number of high level organized
crime participants were convicted of Federal law violations. (9)

A number of convictions of organized crime leaders had an impact on the

operations to some extent. The sudden preoccupation by the public and the
government, led some organized crime leaders to change their manner by
which they operated. In the early 1960’s, some organized crime figures felt
the need to downplay some illegal services. Operations like the illicit drug
trade were cut back in order to avoid the high risks of prosecution and
subsequent incarceration. The diminishing role of narcotics for major
organized crime groups, allowed the opportunity for other minority groups
to move in and otherwise provide such services. Since the core of the drug
trade was the inner city environment, other groups were quick to see the
profit potential. Traditional organized crime groups wanted to avoid warfare
with the groups moving in on drug operations, because this would call too
much attention to their operations. Some leaders did not want undue
government attention, as a result of any turf battles that might erupt.
 17

Instead of warfare, major leaders of organized crime groups proposed a

more ‘common sense’ approach. Partnerships were developed, with blacks,
Cubans and other ethnic groups. As such, organized crime has developed
into a complex structure of working relationships on a global scale. It is an
“international society” operating within the infrastructure of mainstreams
legitimate societies. As complicated as any large corporate business
operation, organized crime “employs” thousands of workers throughout the
United States and around the world. The entity of organized crime has
operated over many years, in an effort to infiltrate legitimate business
operations for moneymaking purposes. It is a series of conspiratorial
activities design to gain control of various business interests, and, at the
same time, maximize its power and influence.
The foundation upon which organized crime is constructed is the provision
of vice activities. These include: adult entertainment, eroticism of one sort
or another, gambling, loan sharking, drugs, prostitution, and so forth. And,
it is deeply involved in legitimate business operations as well as labor
unions. As cover from law enforcement, organized crime strives to use the
legitimate business to carry illegal operations of type or another. The other
activities include such things as tax evasion, extortion, money laundering,
and related behavior. In support of these activities, organized often strives
to corrupt local officials, including the police.

Robert F. Kennedy, when he was Attorney General, illustrated its power

simply and vividly. He testified before a Senate subcommittee in 1963
that the physical protection of witnesses who had cooperated with the
Federal Government in organized crime cases often required that those
witnesses change their appearances, change their names, or even leave
the country. When the government of a powerful country is unable to
protect its friends from its enemies by means less extreme than
obliterating their identities, surely it is being seriously challenged, if not
threatened.
(10)
 18

Two essential ingredients remain at the heart of organized crime operations,

and are important to its organizational structure. These include money and
power. With regard to these two aspects, they are affected by several key
ingredients:

Organization and Structure

Leadership and Management
Membership Guidelines and Acceptance
Ethics and Morality unique to its operations and functions
Accepted Rules of Conduct
Internal laws, rules and procedures
External Agreements and Partnerships
Enforcement and Discipline policies
Adapting and Changing to Meet Goals and Objectives

Traditional organized crime is composed of groups sometimes known as

“families”. Families can range in membership from two dozen in
membership to several hundred, depending on the city and the location.
Families participate in the full range of illegal activities that would be
commonly engaged in, given the location of operation. Most large cities
have traditionally had one organized crime family controlling most
operations. New York, by comparison, has had five traditional organized
crime families. The whole structure of the organization, and the nature of its
operations are geared to maximize profit continuity. The family is structure
to ensure ongoing business activities. Everyone is expendable, including
leaders, as the business operations must continue. Even if personnel change,
the organization continues and someone else moves up in the organizational
structure. At the top of the family organization is the leader who is
historically referred to as the “boss”. The main goal of the leader, or the
boss, is to ensure profit. The boss must also make sure that the money
continues in an orderly manner. This means there must be order and there
must be discipline. A boss has absolute authority to deal with his family in
matters affecting the family. To support the boss, there is usually an
“underboss”, which serves directly under the boss. He serves as a kind of
“vice president” of the corporate structure. The underboss acts on behalf of
the boss, and otherwise assists in the flow of information throughout the
organizational structure. When the boss is absent for some reason, the
underboss acts in his place.
 19

Structural and operational aspects of organized crime, in the scheme of the

present era, have come more into the public notice as result of informants.
Since the 1950’s a number of individuals, representing organized crime
operations, have testified to various governmental bodies as to the nature
and structure of such criminal activity. Such information has given clues to
the expansion of organized crime from the east coast to the west coast. It
has also revealed the ongoing typical trademark of activities. Bribery,
extortion, corruption, intimidation, assault, murder, business takeovers and
so on, continue to be basic operational ventures of organized criminal
activity. If there is money to be made, a public demand for services, and
politicians to be bribed, then organized crime will be involved. Not only is
organized crime a national confederacy of gangsters, it is also an
international conspiracy of criminal activity. Relational directorates exist all
over the globe. The individual criminal organizations, sometimes called
“families”, exist in the form of a power structure that includes various sub-
units and associated support groups. Their criminal activities include both
legitimate and illegal operations. Such activities and investment strategies
may or may not be completely controlled by the larger “parent
organization”. There does not appear to be a well-defined system of
“promotions” to foster upward mobility in a distinct manner. Climbing the
so-called “corporate ladder” takes on a different perspective within the
structure of an organized crime “family”.
Competition for executive level positions may be handled in significantly
different ways, in comparison to the legitimate corporate world. Such
organizational mobility in an organized crime family operates under
different rules, criteria and application. The prospects and consequences of
such a process, as well as subsequent results, are often quite frightening to
say the least. The assassination of a crime leader, or “boss”, and eventual
replacement by an “underboss”, may change the course and direction of a
particular “family”. Or, the result may be completely different. A lower
level subordinate may move to take control and go immediately to the top
position, completely bypassing the “underboss”. These are predominantly
power struggle relationships of a very intense nature. Movement upward is
sometimes subverted by the lower levels of the organization. Those at the
second level of command, the caporegime (captains), sometimes are
replaced or stepped over by lower level “soldiers”. This may come as result
of cold decisive action on the part of the lower ranks. Management shifts
are not necessarily the result of rational or logical management decisions.
 20

In consideration of traditional organized crime, the commonly accepted

distinguishing factor is its “organizational structure”, in conjunction with the
relationships that are developed. It is of course possible that any crime or
criminal activity can be conceived of as an “organized crime”. However, in
terms of the history aspects of what we commonly think of, in terms of
traditional organized crime, focus must be given to the nature of the
organization and the association of the participants.

Key Components

Structure – hierarchical (i.e. boss, consigliere, underboss,

caporegimas, soldiers, etc.);

Profit Continuity – predatory and service orientation, both criminal

and legitimate business operations, removal of any members in the
organization does not create a significant loss to the operations;

Power and Control – resources, assets and areas of operation are

rarely shared, efforts directed toward monopolizing territories;

Relative Immunity – the organization makes efforts to insulate itself

from scrutiny by the government; the top echelon is protected to
every extent possible; potential witnesses are intimidated; actions
taken to corrupt public officials whenever possible;

Levels within the organization are geared to the maximization of profit. If

personnel changes occur, the organization, like other businesses, continues
in operation. Everyone is potentially expendable. The loss of any member
is expected not to have a significant impact on operations. The “boss”, at
the top of the organization, naturally runs the organizations with absolute
authority. The “boss” tends to be concerned mainly with maintaining a
sense of order, and ensuring profit continuity. “Bosses” are assisted by the
“underboss”, which attempts to ensure the flow of information from top to
bottom. The “underboss” makes sure the “boss” is kept informed.
 21

Staff support to the “boss”, at the top of the “family” organization, is the
“consigliere”. This person is responsible for being an advisor to the “boss”.
This position carries considerable influence and power within the
organization, and is on the same level as the “underboss”. Sometimes,
someone who is a retired senior member of the “family” fills this job. The
“boss” executes complete authority of the “family”, unless directed
differently by an associated council or advisory group of “families”.
Subordinate members of the organization, below the “underboss”, are called
the “caporegime”. They form a layer of “management” between the
“underboss” and lower level subordinates. Direct lines of communication
and interaction between the “boss” and the “underboss” are buffered by the
“caporegime”. This provides protection and otherwise insulates the top level
from governmental scrutiny. The “caporegime” supervise the various
operations of the “family”. Under the “caporegime” are any number of
personnel supporting the organizational activities. This functional level of
the organization can be seen as that of a supervisor or department manager
so to speak. Lower level members, working under the “caporegime” are
sometimes referred to as “soldati”, “button men”, or simply “soldiers”. A
soldier may own or operate a particular business activity, such as a vending
machine company. He pays a portion of all profits to the organization for
the privilege of being able to run the business. They may be involved in
more than one operation. And, two or more soldiers, including upper-level
members, may work together in one or more business activities. (11)

Boss Consigliere
(Advisor)

Underboss

Caporegime fill the next level below the underboss. The

“supervisors” oversee the next level of the hierarchy, which includes
the “soldiers”.
 22

Chapter 4: Structural and Operational Aspects:

The Consigliere
Boss

Under
Boss
The
Assistant
Director

The Caporegime
Lieutenants of the organization who
answer to the Under Boss. Oversee the
soldiers.

Soldiers
The membership of this group answers to the “Lieutenants” of
the organization. This group carries out the line functions of
the “family”.

Operating under the direction of the soldiers, or “button men”, are the workers
who are not directly members of the “family”. These personnel carry out the
day-to-day activities of the organization. They do the work and are not
protected from law enforcement or other governmental entities.
 23

“Soldier”

The “button” men execute line functions. They

supervise the large work force of non-family
members who do the rank and file tasks of
“family” activities. Traditional organized crime
operations follow a course of action that pursues
the corruption of society for personal gain. And,
necessary to its success is the element of discipline
within the ranks. Enforcement of discipline is
important to profit continuity as well as
organizational functioning. The functions of
discipline and corruption may fall to certain
persons within the organization. These may
positions may be described as:

The “enforcer” – one who carries out the task of

ensuring organizational discipline, by means of
both psychological and physical coercion.

The “corruptor” – one who has the job of

developing a relationship with the political
processes external to the “family”. This involves
the corruption of elected officials, law
enforcement and other related community
interests.

Corruption is essential to business operations. It

is part of the goals of the “family” to continue its
profit continuity. Such relationships are developed
so that the “family”, and particularly the upper
hierarchy, ensures a buffer from governmental
interference with operations.
 24

Organized crime can be viewed as a calculated and determined process by

which money and power are aggressively accumulated. Its structural and
operational aspects are geared to growth and influence over selected
environments. Power and control are essential ingredients in the overall
operations. The primary purpose for which it exists is to amass significant
economic gain by delivering illicit goods and services to a demanding
public. The historical process of organized crime advancement has shown
its ability to adapt to changing environments. By adapting and overcoming
obstacles, it has become more diversified and capable of carrying out its
functions. Organizational restructuring appears to be an ongoing process in
order to ensure survival in a changing global economy.

As in any organization, authority in organized crime may derive either

from rank based on incumbency in a high position, or from expertise
based on possession of technical knowledge and skill. Traditionally,
organized crime groups, like totalitarian governments, have maintained
discipline through the unthinking acceptance of orders by underlings
who have respected the rank of their superiors. (12)

Transition from street crimes to

legitimate businesses illustrates
changes in operations.
Early 20th Century crime
activities included bootlegging,
gambling, and prostitution.

Contemporary activities show the blending of criminal activities with

legitimate business goods and services. The need for technical
knowledge and special skills has increased. Legitimate industry
services may include: food products, real estate, restaurants, waste
management, produce, clothing manufacture, night clubs, shipping and
transportation, investments, unions, vending services, internet services,
and other related activities.
 25

In any organization, management decisions are contingent upon the ability to

obtain good advice, counsel, recommendations, research and planning. All
of which could be called “information gathering”, or, developing “strategic”
and “tactical” intelligence. Information and information systems are
important to the decision-making process. In the same fashion, organized
crime strives to develop information and implement planning strategies in
order to survive in a competitive marketplace. Part of this transition, over
the decades, has fostered a closer relationship with what is deemed normal
business operations. To gain power and acceptance, organized criminal
activities had to move from street crimes to legitimate forms of commerce
and industry. Dealing with complex issues of management, finance, banking
and business functions, has led to delegation of some authority within
“family” structures. As a result decision-making becomes more
decentralized, and initiation of individual action becomes more prevalent.
Success or failure of such actions continues to rest upon technical and
tactical skills. Competition within the organization can be intense between
skilled members and non-skilled members of the “corporate structure”. In
the long run, rank and authority could be challenged and conflict becomes
critical due to organizational shifts and alignments.

From a law enforcement perspective, it becomes increasingly important that

we understand organizational structure and aspects of organized crime
operations. The variety of relationships, both formal and informal, is
relevant to the investigative process. For example, it is important to know
who the key players are in the organization. And, information is needed to
understand how finances are handled, as well as how the money flows from
bottom to top of the structure. Basic questions concern: who is involved?
Who is connected? Who provides the technical expertise? Which officials
are being corrupted? What are the power relationships? What activities take
place? Where do things happen, when do things occur? How does the money
change hands? How secure is our investigative process? And, why are
activities and practices carried out in certain ways? Dealing with organized
crime operations is a complex mission for law enforcement. It is involves
the ongoing processes of intelligence gathering and investigative analysis.
Significant resources have to be allocated in order to effectively conduct
quality investigations. Interagency cooperation is necessary in order to share
information, build case files, develop intelligence, conduct surveillance and
carry out prosecutions.
 26

Since the turn of the century, and particularly during the 1920’s, law
enforcement has endeavored to deal with the growth, power and influence of
organized crime. American law enforcement remains challenged by the time
element, energetic effort, manpower allocations and government resources
required to conduct such investigations and prosecutorial actions. The
history and evolution of organized crime continues to confront law
enforcement endeavors in dealing with the far reaches of the vast organized
criminal conspiracy. For almost 100 years, traditional organized crime, as
represented by various “families” around the country, has remained the
dominant force in organized crime in the United States. Even though, in
modern times, other ethnic factions and “organized gangs” have emerged to
foster various criminal activities, traditional organized crime remains a
prominent aspect of American society. This traditional criminal conspiracy
is sometimes called “the Mafia”, or “La Cosa Nostra”, as well as many other
names. From an historical view, it is easier to refer to traditional organized
crime by such terms, in order to avoid becoming overly consumed with the
complexity of its global dimensions as well as the ramifications of its social,
economic and political influences.
Many names have been used to describe the nature, scope and structure of
organized crime, both in the United States and other parts of the world.
Some major sources of research have maintained the use of the word
“Mafia” to indicate an all-encompassing point of reference. Today, it is
suggested by some in the field of investigative research and analysis, the
organized crime, as we know it presently, is of “Italian-American” origin.
Hence, the terms “Mafia” and “La Cosa Nostra” remain the primary points
of reference when discussing traditional organized crime in the United
States. The so-called “families” are often considered to be dominant forces
in American society, and generally controlled by the historical references to
early immigration movements in urban settings. Organized crime in the
U.S. is sometimes viewed as having grown stronger and more powerful as a
result of the Prohibition era of the 1920’s. The force of this growth and
development of organized crime “families” has been characterized by
significant representation of persons of Italian heritage, particularly dating
back to earlier periods of Italy’s history. For nearly a century now, the
evolution of the traditional organized crime groups is considered significant
both domestically and internationally. From gambling to labor unions, and
everything imaginable in between, the nature and scope of traditional
organized crime remains a significant influence in American society.
 27

All of this of course, does not mean that other ethnic groups are not
represented in organized crime operations or associated activities. There is
much diversity within the rank of organized crime and it various endeavors.
Yet, according to some researchers, the La Cosa Nostra (LCN), or the Mafia,
continues to be a powerful criminal force in American society, in spite of
competition from other organized crime groups.

For nearly three quarters of a century, beginning during

the time of Prohibition and extending into the 1990’s,
the LCN was clearly the most prominent criminal
organization in the U.S. Indeed, it was synonymous
with organized crime. In recent years, the LCN has
been severely crippled by law enforcement, and over
the past decade has been challenged in a number of its
criminal markets by other organized crime groups.
However, with respect to those criteria that best define
the harm capacity of criminal organizations, it is still
pre-eminent. (13)

The Mafia today, as reflection of the historic aspects of traditional organized

crime in America, has demonstrated a unique capacity for growth and
expansion. It remains highly capable of adapting to changing situations and
conditions over time. Traditional organized crime continues to exercise its
ability to assert the following capabilities.

Powerful and prominent organized crime operation

Able to monopolize key criminal markets
Capable of expanding criminal markets and enterprises
Ensure profit flow and continuity
Uses violence to exercise control and discipline
Continues to corrupt the police and politicians
Exercises influence in the political system
Controls labor unions
 28

It has been suggested that traditional organized crime has been successful in
acting as a bridge between two different lifestyles. Organized crime has
been able to serve various interests between the legitimate levels of society,
as well as those of the criminal environment. In terms of structural and
operational aspects, traditional organized crime “families” tend to operate in
very similar ways. Generally speaking, the “families” that represent what
we tend to call the “Mafia”, utilize the same type of organizational structure.
This similarity, in terms of structure and operation, has been presented
previously. Membership tends to reflect an Italian ethnicity, especially in
terms of being a “made man”, and at the upper levels of the organization.
Although it should be kept in mind, the vast majority of Italian Americans
do not like the broad media portrayal of “Italian” equating to “Mafia”, or
organized crime in general. Most Americans of Italian decent do not view
organized crime with general social acceptance.

Made members, sometimes called good fellows or wise guys, are all male
and all of Italian descent. The estimated made membership of the LCN is
1100 nationwide, with roughly eighty percent of the members operating in
the New York metropolitan area. There are five crime families that make up
the LCN in New York City: the Bonanno, the Colombo, the Genovese, the
Gambino, and the Lucchese families. There is also LCN operational activity
in Boston, Chicago, Philadelphia, and the Miami/South Florida area, but
much less so than in New York. (14)
 29

Chapter 5: Activities and Practices:

Most law-abiding citizens, including those of various ethnic backgrounds

and heritage, are not impressed with the activities and practices of organized
crime. But, the scope and nature of organized crime operations remains
fueled by certain segments of the public desiring the illicit goods and
services. It survives because it provides services some members of the
public want. Some politicians and police continue to be seduced and
corrupted by the “underworld”. And, often, the sanctions for such activity
are minimal at best.
Like most organizations, there are recruiting and training aspects associated
with organized crime “families”. For a person to become a “made” member
means that he must serve a kind of probationary period. He must meet the
“family’s” requirements and gain acceptance from other members. A
“made” member must live by the accepted code of the “family”. This
includes such things as: undergoing an initiation ceremony, accepting the
“honor” of membership, keeping the code of silence, ensuring secrecy of
“family” business, never “ratting” on another member, sharing profits and
not doing anything to incriminate other members. The penalty of death for
violating the accepted activities and practices is always a real possibility for
members of the “family”. This is particularly true, for example, when a
member fails to share an agreed portion of any profits. Violence can be sure
and swift, as other member seek to exact serious retribution. The message
sent is designed to affect the organization and other members. Use of
violence to impose discipline is not carried with the intention of affecting the
general public. It is used as means to enforce accepted activities and
practices within the organization itself.
Violence has always been a means of sending a message within the
organization. The Mafia has long had a reputation for the use of violence
against its membership, or those who would threaten its operations. Often,
the mere threat of violence has been sufficient to gain control of members or
infiltrate a legitimate business. Violence, from the infliction of severe injury
to execution, has become an acceptance business practice within the realm
of organized crime. It has been used effectively to ensure ongoing business
operations and protect “accepted policies and procedures”. It is the
“standard operating procedures” in organized crime for making a point or
sending a message to someone. Actions have included personal violence
and property destruction in a systematic effort to enforce power and control.
 30

Traditional organized crime often conjures in the mind of many the

potential for violence. The movie industry has capitalized on the use
of violence in films that portray organized crime operations. Violence,
as well as the threat of violence, has allowed organized crime to take
over both legitimate and illegal business operations. Competition has
often been discouraged through the use of violence or its subsequent
potential. Reputation and credibility has been enhanced through the
use of violence. Retribution and intimidation are also important
reasons for the use of violence.
In addition to power and control over business operations, violence has
been a major factor for internal discipline. Within the organization
itself, violence serves as reinforcement of rules, regulations and
accepted forms of conduct. It is at the core of power and control
within the “family”. Violence has taken the form of severe beatings,
bombing, arson, torture, and murder. Aside from its history of
application, violence often is not necessary. The mere threat of it is
many times sufficient to keep members in line. It is also sufficient to
keep others from meddling in the operations.
 31

Within the realm of organized crime things, like an “honor” and “respect”
take on a unique perspective. They have special connotations of a kind of
“pseudo-nobility” that demands attention and allegiance. To dishonor or to
show a lack of respect within the ranks of organized crime can invoke a kind
of retribution not experienced or practiced in normal every day society. If
respect is not given, it may be taken by the exercise of some violent act.
Within this sub-society of criminal behavior, the history of violence and
discipline takes on special meaning. And, although there is always a
willingness to use violence, the threat of it is often sufficient. As a result,
actual violence itself does not happen frequently. It is simply the potential
or the threat of violence that many times is enough to keep subordinates in
line. Given this power, organized crime can be seen as exercising it ability
to adapt to changing market forces. Often, it can be said that power
perceived is power received. As such, organized crime can make
adjustments in order to ensure its survival.

Skills: strong business sense, profit continuity, survival orientation,

entrepreneurial, opportunistic, adaptable, exploit market
opportunities, maintain stability, incremental strategy (a piece of a
business at a time over time), wide range of activities, gambling and
drugs big money makers, and so forth;
 32

Although some of these criminal activities have had

national effects, they have been carried out almost
exclusively by the five crime families in New York City,
since LCN penetration of the legitimate economy
elsewhere in the U.S. is minimal. The specialties of the
New York families include labor racketeering, various
kinds of business racketeering, bid rigging, business frauds,
and industry cartels. It is in these areas that the LCN
demonstrates its most aggressive and effective penetration
of the legitimate economy. Labor racketeering involves
organized crime control of labor unions. With this control,
gained by the threat and use of violence, vast sums of
money are siphoned from union pension funds, businesses
are extorted in return for labor peace and an absence of
strikes, and bribes are solicited for sweetheart contracts.
(15)

Other areas of interest include: clothing

manufacturing, construction, music industry,
waste collection and disposal, adult
entertainment, food establishments, trucking
companies, as well as other related business
operations.
 33

Bribery of public officials, criminal justice personnel, and those important to

the “family”, remains a potent ingredient for the continued existence of
organized crime. From police officers to politicians, payoffs are a
significant part of doing business in the atmosphere of organized crime.
These efforts are geared to place the target of a bribe into a relationship that
fosters an obligation. By corrupting the law enforcement and political
processes organized crime achieves one of it objectives. And, that is to
ensure that the ability to carry out illegal activities does not meet with
interference. Profit continuity is essential. Influencing those in power is a
necessary activity. The perpetuation of profit is ensured through the control
of business operations, both legal and illegal. Often the threat of violence
and the use of extortion tactics are two means by which control can be
asserted over various activities.

One of the best examples of an LCN cartel was their

monopoly of the waste hauling industry in New York City for
almost 50 years. La Costa Nostra used its control of local
unions to set up a cartel (Jacobs & Hortis, 1998). The cartel
monopolized the industry by threatening business disruption,
labor problems, and personal violence. As a result of its
monopoly control, the LCN forced participants and
consumers to pay inflated prices for waste hauling – a
practice known as a “mob tax”. Over the years this mob tax
cost the industry hundreds of millions of dollars. (16)
 34

In recent years, successful law enforcement investigations, coupled with

effective prosecutions, has had a major impact on traditional organized
crime. Such actions have forced major crime organizations to diversify and
move into other areas, such as white-collar crime, fraud and various
investment schemes. The covert use of various law enforcement tactics and
techniques has helped interdict in some of organized crimes activities.
These tactics have included:

q Aggressive patrol tactics

q Under cover operations
q Surveillance techniques – human and electronic
q Long term investigations
q Vigorous prosecutions
q Special Grand Juries
q Witness protection
q RICO (Racketeer-Influenced and Corrupt Organization Act) Statutes
q Regulatory and administrative procedures

RICO is a weapon against organized crime that involves

using statutory power to investigate and prosecute organized
crime activities. Such legislation exists at both the state and
federal levels. RICO allows law enforcement entities to go
after the organizational aspects of organized crime. The
process typically allows for the use of criminal and civil
processes that include criminal sanctions, as well as fines and
forfeitures.
Some state statutes define “racketeering activity” as those
actions that refer to person(s) committing, attempting to
commit, conspiring to commit, or soliciting, coercing or
intimidating others to commit crimes as defined by state
statute. Such criminal actions can range from evasion of
taxes, the environment, frauds and schemes, investment
violations, usurious practices, and so forth.
 35

According to testimony before the Permanent Subcommittee on

Investigations of the Senate committee on Government Affairs in 1988, it
has been reported that organized has been undergoing a transformation.
Traditional organized crime has been evolving and changing over the last
two decades as it competes in a transforming global environment. The
following represents opening statements from Senator Roth of the
Subcommittee on Investigations.

…we are facing a new generation of the LCN which differs

significantly from its predecessors. They lack respect for tradition
and for the family, they have succumbed to the influence of drugs,
both as traffickers and as users. As a result, they have become more
greedy, selfish, more violent. Many have chosen to forsake omerta,
the traditional vow of silence and turn in other family members to
safe their own skins.
While it may be true that the LCN has changed, what has not
changed is the fact that it is still here, terrorizing citizens, draining
our economy, and in many cases taking over legitimate businesses.
As long as that is true, our efforts to eliminate organized crime must
continue to be unchanged. (17)

Major “Family” Cities in the U.S.

Buffalo, NY Madison, WI Pittsburgh, PA

Chicago, IL Milwaukee, WI Rochester, NY
Cleveland, OH New England-Boston, MA Rockford, IL
Dallas, TX New England-Providence, RI San Francisco, CA
Denver, CO New Orleans, LA San Jose, CA
Detroit, MI New York/New Jersey St. Louis, MO
Kansas City, MO Northeast, PA Tampa, FL
Los Angeles, CA Philadelphia, PA
(18)
 36

Chapter 6: The Changing Nature of Organized Crime – Asian Crime

Group:

During the 1960’s, traditional organized crime sought to control the growth
and expansion drug dealing activities. Drugs were becoming a major source
of revenue and an extremely profitable endeavor. The profit potential from
illegal drugs was, and continues to be, enormous by comparison to other
operations. Disagreements arose as to how such activities could be
collectively monopolized. There were different views on how to approach
the lucrative business of illegal narcotics. Some within the organized crime
families felt the income was not worth the high risks associated with drug
trafficking activities. Others, in opposition to this viewpoint, felt differently.
The prosecution and conviction of several high-ranking family members
caused many to express caution over such business operations. Essential to
the drug operations were the large inner city areas of the major metropolitan
areas across the U.S. Much of this territory was under the control of various
minority groups. Gangsters in the local neighborhoods wanted to dominate
their own exploitation of their fellow citizens. Caucasians found it difficult
to influence or otherwise manipulate such operations in ethnic communities.
As a result of ongoing conflict and territorial disputes, some members of the
various crime families wanted to declare war on the competing minorities.
Others, seeking a more common sense approach, preferred to develop
“partnership” instead. This view saw “warfare” as inviting too much
governmental attention and interdiction. And, this would not be good for
business. Partnership would include minority groups such a black,
Hispanics and others. This shift in operational tactics demonstrated a
significant movement away from traditional means of achieving selected
goals. It is a transitional variation that represents an organizational effort at
diversification.

The move to develop partnerships with neighborhood minority groups

represents a major shift in organizational aspects. The movement led to
the extension of the “family” to include outside ethnic groups. This
would in effect create a stronger hold on drug trafficking connections
both in Europe and South America. And, at the same time signify a
transition from traditional to non-traditional organized crime operations.
 37

From the sixties through the seventies, drugs and adult entertainment (i.e.
movies, videos, etc) took on an expanded emphasis to ensure the profit
continuity requirements of organized crime. The adult entertainment
industry provided increased revenues to the various groups operating within
this particular realm of “goods and services”. In the adult entertainment
business, for instance, the initial investment was low, and the potential
profits were very high. These particular activities were particularly of
interest to organized crime for this reason. The cost-benefit analysis was
low investment high return.

A video was extremely

inexpensive to produce and
develop. The actors and
actresses were readily
available for any particular
number of reasons. Studios
and props were cheap and
easy to set up. A few
hundred dollars investment
could generate hundreds of
thousands of dollars once
the video was put into
distribution.

In a related manner, magazines, photos, CD’s, DVD’s, and

related media were easy to produce and distribute. Through a
network of theaters, bookstores, video sales and rentals, etc, large
profits could be generated from such activity. With the changes
and advances in technology, and growth of the Internet, the profit
potential could be greatly enhanced. Technological innovations
have made it cheaper and faster to process, develop and reproduce
various media for adult oriented products. The input is low cost,
and the output is high return on investment.
 38

Cooperation with minority groups has been part of the historical process of
traditional organized crime. At the turn of the century, from the 1800’s into
the 1900’s, cooperation occurred between Irish and Jewish gangs, as well as
others. This was done to ensure profit continuity and maintain certain power
relationships. Partnerships with non-Italian gangs are important to the
survival of organized crime operations. Warfare between various factions
was not uncommon in the early history of organized crime activities. Yet,
this was often found to be counterproductive to the overall goals of the
various organizations. Over time, various ethnic groups have evolved to
leave their special mark on the history and nature of organized crime in the
U.S.

Traditional organized crime has a long history of relationships with non-

Italian criminal gangs. Cooperation with Cuban and black organizations
have developed quickly over the past several decades since the late 1960’s.
These efforts were fostered by the growth of the narcotics trade and the vast
potential for profits. In Asian communities, particularly those of Chinese
heritage, the “Tongs” exercised significant influence in nearly every aspect
of illicit goods and services demanded by the Asian community. Gambling
operations, in particular, were of significant interest and very widespread.
Protection services, along with drug activity, provided avenues for lucrative
profit making opportunities. And, it appears, that as long as such things
were confined to the ethnic communities involved, law enforcement pretty
much ignored most of the activity that took place. In the early 1900’s, Asian
gangs also experienced violent and turbulent times. In time, rival gangs
decided it was in the best interest of their operations to cooperate. Such
actions created the opportunity for mergers. Like their contemporaries in
traditional organized crime, Asian crime groups tend to be highly formalized
structures. Such operations tend to focus on gaining profits through
violence, extortion, bribes, and other related criminal activities.
 39

The victimization of ethnic neighborhoods by organized crime groups of the

same ethnicity is not something new. Since the turn of the century, criminal
elements within communities sharing the same ethnic history have
experienced the range of criminal activity typically carried out by criminal
organizations. In the early 1900’s, opium, for example, found wide
acceptance within Asian neighborhoods. “Opium dens” were not
uncommon in these communities. And, law enforcement endeavored
primarily to contain the activities within these areas. The drug trade was
extremely profitable. Various factions within these communities fought for
control of the Opium market. The “Tongs” represent one organized crime
group that sought to control illicit activities within Chinese-American
neighborhoods. The Tongs were mainly concerned with the basic supply
and demand of illicit services that included drugs (Opium), prostitution, and
gambling. By bribing local politicians and the police, they ensured
protection from interference in their operations. Their influence was
reinforced through the use of violence. To do this, they employed
“enforcers” who had specialized in fighting tactics and techniques.

At the turn of the century there existed various types

of syndicates in the United States. Primarily in San
Francisco and to some extent other cities there
existed the Chinese Tongs, the term being roughly
translated as “society”, “lodge”, or “association”.
The Tongs were organizations that participated in
criminal activities in the Chinese-American
community. They were located primarily in San
Francisco and other cities on the West Coast.
However, according to Gong and Grant, two groups
existed in New York and one, The Hip Sing Tong,
had members in every city that had a large Chinese
population. An Industrial Commission report notes
that in 1901 fifteen such Tongs existed in San
Francisco alone. (19)
 40

The Tongs carried out their operations between the early 1900’s and 1930’s.
Gradually, as they moved into more legitimate and benevolent activities,
they began to disappear. The violence prone era of the Tongs appears to
have been during this several decade period of history. Their efforts to
control things in their communities included extorting local “taxes” for the
purposes of providing protection. The local media assisted in adding to the
mysterious nature of the Tongs by asserting their secretive and hidden
nature. Yet, their ranks were composed primarily of local business owners,
as well as laborers and workers of various trades. As time passed, the Tongs
formed more peaceful agreements with rival gangs and began to share
profits and eventually merge various operations. They remained pretty
much an integrated part of the oriental community.

Tongs
Preyed on members of own community
Focus on drugs, gambling, prostitution
Sold protection to individuals and businesses
Extortion of local “taxes” for security
Extension of local merchants’ association
Developed out of a sense of persecution by others

It appears from their early history, the Tongs evolved out of so called
“rebel” organizations that had existed in China. As benevolent associations
forming in the U.S., they seemed to develop out of their perceived sense of
self-preservation in reaction to local prejudice. In the early 1900’s, they
were composed of business owners and workers and paid membership fees
for protection and security within their Chinese-American communities.
The earliest Tong group is said to have existed in San Francisco in about
1874. During this time, there was much mistreatment of Chinese-Americans
by both the public and the news media. (20)
 41

In contemporary times, the “Triads” seem to carry with them a kind of

media generated mystique. Like the Tongs before them, their nature tends to
be viewed as somewhat secretive and seemingly elusive. Operational
activities appear to be focused primarily within their own ethnic
communities.

The Triads of China and the

Yakuza of Japan are the most
notorious of the Asian crime
organizations, but there are
countless smaller groups from
Taiwan, Vietnam, North and
South Korea, Thailand, Laos, the
Philippines and elsewhere in some
form of criminal activity. (21)

Like the Tongs, the Triads date back to earlier periods of history, and
becoming established by about the 1700’s. They developed from militaristic
organizations that fought against foreign dominance or an unpopular ruler.
And, eventually, they evolved into powerful criminal organizations. Control
is exercised within Chinese-American communities in areas such as:
gambling, loan sharking, money laundering, extortion and drugs trafficking.
Enforcement usually stems from the recruitment of young immigrants who
can be quickly indoctrinated into following the dictates of the organization.
Cooperation with traditional organized crime “families” is often in the best
interest of all parties concerned. This is especially true in the area of drug
trafficking.

Activities include: murder, contract hits,

kidnapping, gambling, bribery and extortion,
drugs, and prostitution. Business fronts are
used to conceal illicit activities such as
gambling and money laundering.
 42

Since Asian organized crime tends to operate primarily within their

own ethnic communities, they seem to be somewhat invisible in
nature. This characteristic often makes law enforcement action
difficult and time consuming. Drug trafficking appears to be the
heavy favorite in terms of business activity. Chinese gangs are
considered to be very diversified and global in scope. Other activities,
besides drugs (mainly heroin and opium), include: gun smuggling,
fraudulent use of credit cards, counterfeiting, computer software theft,
vice crimes, loan shark activities, robberies, as well as assorted other
types of crimes.

The first Triad known by name was the “Red eyebrows”, which
acted to overthrow the Han dynasty (who ruled from 206 BC to
220 AD) in China. The first greater Triad society however was the
“Hung league”. They were established in the 17th century by five
monks who wished to overthrow the Chi’ing-dynasty and restore
the Ming-dynasty back on the throne. During the 18th and 19th
centuries, there were many new secret Chinese societies founded,
but they were not concerned as much in overthrowing the ruler as
in terrorizing and robbing citizens. Then, in the first half of the
20th century, Triads took root in Hong Kong. (22)

In contrast to the ancient traditions from which they developed, modern

Triads focus on profit continuity as their primary objective. This is similar
to the operational nature of traditional organized crime. High tech crimes,
involving computer hardware and software, seem to be a current trend of
their criminal activities and efforts to generate increased profits. And, since
they operate on an international scale, national borders and different legal
systems hamper law enforcement efforts.
 43

Chapter 7: Non-Traditional Organized Crime – Asian and Other Crime

Groups

Contemporary Chinese related organized crime has ancient roots that span
the centuries. Originally, their ideology was founded on a mystical basis
unique to their history and origin. These various groups, with historical roots
based in China, have been typically called Triads. The terms stems from a
word associated with them by the British and refers to a triangular symbol.
This symbol has appeared on flags and tattoos of the various groups
associated with the Triad organizations. The triangle is reported to represent
the three powers of heaven, earth and man. Shaolin monks are said to have
developed these groups as means to oppose oppression and fight against
foreign powers. Highly spiritual and secretive, the early groups pursued
political action against ruling factions within China. One group, in
particular, became famous to foreigners. They were called the “Fists of
Harmony and Justice” initially. Later, they were called the “Boxers”. This
name related to the physical and athletic prowess of the membership of the
“Boxers”. Later, hundreds of groups grew from their association with these
original societies. They became Triads as they evolved into criminal
organizations. With the Communist takeover of China in 1949, the Triads
relocated to places like Hong Kong, Taiwan, and Singapore. Some moved
to Burma, Laos, Thailand and other locations in Southeast Asia. As a result
of this migration, they now control the opium-growing region of the so-
called “Golden Triangle”. From this region China, coupled with alliances in
Hong Kong with other Triads, the groups control one of the most significant
heroin exporting operations in the world. Not only do they influence the
political system of Hong Kong, and other similar locations, but they also
control huge profits from prostitution, gambling, drugs, loan sharking,
extortion, bribery and so on. (23)

Today, there are an estimated 57 triad societies operating in Hong Kong,

with between 15 and 20 triads actively involved in criminal activity. While
some triads have only 50 known members, larger triads boast membership
of more than 30,000. Given the loose structure of triad societies, however, it
is impossible to determine the exact number of members. (24)
 44

The contemporary drive for criminal activity includes the ongoing quest for
more money, more power and more control. Triads today differ from
traditional organized crime in terms of ritual, historic tradition and the focus
on power. They are driven by an extreme desire for profit, and any activity
that means more profit.

At one time, triad initiation ceremonies lasted up to three days. Decorated

altars and colorful ceremonies – such as the drawing of blood from the
fingers of new members and the beheading of chickens – were all
symbolic of a member’s journey into the triad world. Today’s versions of
the triad rite of passage have been simplified. In order to become a triad
member, candidates must pay a fee to the dai lo (protector) who has
introduced them to the triad. New recruits might also recite an initiation
poem or the triad society’s 36 Oaths of Allegiance. The 36 oaths are the
commandments of a triad society; to break one is to invite retribution. (25)

Triads strive for efficiency, often detailing which tasks are to be performed
and how they are to be carried out. In the smuggling of illegal immigrants
or drug trafficking, rival triads may work together to ensure mutual gain and
profit. They view each member as a “brother” in the network of triad
activities. This is true even though they may have disputes and conflict over
territorial issues. Although some triads have simplified their ranking
structure, some continue a traditional form of hierarchy. Much of Triad life
reflects ceremony, ritual and the use of various signs and symbols. The
symbolic use of numbers is indicative of the interest in basing things on
historic events.

The first Triad was founded by 108 monks of the shaolin

monastery and consequently criminal Triads often use the
figure 108 in an extortion demand, such as asking for
$108,000 instead of, say, $100,000. Victim will invariably
know the meaning of 108 and will more readily pay up. (26)
 45

Like the symbolism of numbers, and other aspects of ceremonial tradition,

an initiation ceremony commits a person to lifelong allegiance to the Triad.
Once a member, a person is a member until death. Anyone who tries to
leave is met with sure and swift punishment including death. Yet, in spite of
traditional acceptance of ritual, ceremony and symbolism, younger members
today seem less inclined to take such things seriously.

Historical Chronology

700-1000 A.D. - Opium for medical purposes finds its way from the
Middle East to China. Migration from China to Burma, Thailand and
Laos occurs.
1700’s to 1800’s - Opium smoking spreads from other parts of the
world to China. The Chinese make opium smoking illegal in 1720.
China makes importation of opium illegal, as well as its cultivation in
1800. Western countries ignore China’s law against opium and
merchants press for greater profits through cultivation, imports and
exports through the 1800’s.
1839 to 1850’s – The British expand opium trade from India to China
and First Opium War takes place. British merchants refuse to halt
opium trading in China, and China subsequently stops trading with the
British. The British defeat China, take possession of Hong Kong, and
trade is resumed. In 1852, after banning on two occasions the opium
trade (1811 and 1839), Thailand establishes a government approval of
the opium trade. Opium taxation generates up to 50% of the
governments revenues. Between 1856 and 1858, the Second Opium
War takes place. Military forces of the English and the French force
China to accept once again opium importation. Later, France makes
colonies out of Vietnam, Cambodia and Laos. Indochina becomes a
French drug monopoly by the later part of the 1800’s.
1880’s to 1910 – The British colonize Burma and obtain a 90-year
lease on Hong Kong, which expired in 1997. During the same time,
the American Medical Association approves heroin for general use.
The British Opium Act controls opium production and distribution.
1925 to 1949 – The Geneva Convention places restrictions worldwide
on production and sales of heroin. Civil war takes place in China.
(27)
 46

1949 to 1962 – China’s civil war took place from 1927 to 1949. Some
flee to Formosa during the conflict. Trafficking in drugs intensifies,
which involves intelligence agencies of other countries, including the
CIA. Guerilla forces in Viet Nam defeat the French, ending years of
colonial rule. Various factions in the Golden Triangle lead rebellions
financed by drugs.
1975 – Present – The era of the Viet Nam war involving the U.S.
begins. Government regimes in Laos, Cambodia, and South Vietnam,
with pro-western leanings collapse. Wide spread government
corruption, oppression, poverty and the drug trade continue.

The “Golden Triangle”

(28)
 47

Groups considered to be a part of what is called “Chinese organized crime”

are often viewed as fitting into at least two categories. These are typically
referred to as “American Chinese Organized Crime” and “Triads”. Two
states, which seem to be the primary focal point of Triads, are California and
New York. Chinese organized crime groups have developed from street
gangs in the U.S., and are considered extremely dangerous in the operations
and activities. Due to the need to ensure profit continuity, the gangs tend to
cooperate with the Triads in order to maximize their respective assets.
These groups continue to be heavily involved in drug trafficking operations.
And, they are responsible for a significant amount of drug smuggling into
the U.S. The so-called “Golden Triangle” continues to be a major source
area for the exportation of heroin controlled by Asian organized crime
groups.

Burmese heroin moves

China is a key source
area for the shipment of
opium, which moves to
heroin production areas
in Burma.
through Southern China to
Hong Kong, Macao and
other exportation areas.
Movements continue to
Australia, Taiwan, Europe
and North America by sea
and air transportation.

Opium production is
primarily
concentrated in three
regions of the world.
These include:
Southeast Asia
Southwest Asia
Latin America
The main markets for
the consumption of
drugs include Europe
and North America by
way of land, sea and
air conveyances.
Heroin moves through
Thailand to Bangkok and
other points. Secondary
market areas include Laos,
Vietnam and Cambodia.
Indonesia, Malaysia and
Singapore have become
markets and transit routes
for heroin on its way to
Europe. (29)
 48

In contrast to the Tongs and the Triads, the “Yakuza” is of Japanese origin.
It is a criminal organization composed of several major groups. As such, it
is somewhat similar to their American counterpart in regard to the Mafia or
La Cosa Nostra. Their activities and operations generate huge profits from
the typical “goods and services” sought by the public, business people,
investors and politicians. These naturally include: prostitution, drugs,
pornography and associated elements of adult entertainment, as well as the
sales of various types of weapons. They have become heavily involved in
the real estate market, especially in the U.S. Aside from infiltrating
legitimate businesses, they have become partners in hotels, condominiums,
various trading companies, golf courses and so forth. In the process of
becoming involved in such business, they endeavor to skim or extort large
sums money from the operations. Their efforts appear to focus on high-level
corporate financial fraud.

The structure of the yakuza appears to exist in two forms.

The first is the “freelance” type. They do not to belong to a
larger organization, and generally commit crimes on a much
smaller scale. The second type is the “clan-yakuza”. This is
the type of yakuza we normally think of when we associate
organized crime with Japan. Clan-yakuza can be more
closely compared to the traditional Sicilian oriented “family”
or mafia-like organization. The clan organization follows
that which is similar to a family structure. All members give
allegiance, loyalty and respect to one leader, who is the
“father” of the clan. He is the absolute authority and law
within the organization. All members must be strictly
obedient to his leadership. He must be obeyed at all costs.
(30)
 49

The yakuza is a male-dominated “society”. To them, their world is very

male oriented. The organization places high regard on what they perceive
are manly qualities of courage, discipline, strength, death before dishonor,
and respect for their bosses. They believe that woman are to serve their
husbands, bear children, take care of the family and let men deal with
matters of business and commerce. Since they have strong belief in silence
and loyalty to the group, they do not believe women are capable keeping
secrets. They see woman as not being as strong as men, especially when it
comes to fighting, or dieing in battle. To them, it is better to die than to lose
a fight. Women, they feel, are not strong enough for such things.

The yakuza have their own unique way of apologizing when

they make a mistake, or do something wrong. It is called
“Yubizume”. Yubizume is the act of cutting off their little
finger and giving it to the person they are apologizing to.
(31)

Being arrested and going to jail is considered a noteworthy thing to

the yakuza. Likewise, serving time in prison gains one a sense of
importance for having taken punishment for a crime. The yakuza’s
main focus of various business activities includes: gambling,
narcotics, prostitution, loan-shark operations, as well as other
associated adult oriented operations. A significant amount of money
comes from gambling. Gambling operations are generally connected
to a liquor establishment, restaurant or combination of both. They
seek to be secretive in their operations, preferring not to become
involved with the police whenever possible. Traditional ways of
doing things remain their preference. Another source of income is
prostitution. Various “men’s clubs” are established in order to foster
prostitution operations. Membership fees are required to join, and
the management of the club arranges “dates” for the members.
 50

Chapter 8: Asian and Other Crime Groups Continued:

The history of the yakuza in Japan spans several hundred years. Like other
organized crime groups around the globe, they are not a recent development.
The yakuza have been operating in Japan for quite a long period of time.
Their heritage stems from the time of the legendary samurai, shoguns, and a
feudal way of life. Origins date back to the early 1600’s. Even then, as
today, they were known for being very different from the rest of the
population. Their clothing, hairstyle, mannerisms, and swords set them
apart from mainstream society. The community often considered them
“eccentric samurai”. Members expressed intense loyalty to each other, and
fiercely protected their turf and members from external threats. Sometimes
they were called the “kabuki-mono”, or the “crazy ones”. Today, the yakuza
clans spend a portion of their money on weaponry. Although Japanese
citizens cannot own firearms without a permit, the yakuza ignore the legality
of such things.

The early yakuza did not surface until the middle to late 1700’s.
These members include the bakuto (traditional gamblers) and the
tekiya (street peddlers). These terms are still used today to
describe yakuza members today, although a third group, gurentai
(hoodlums) has been added in the post World War II era.
Everyone in those groups came from the same background: poor,
landless, delinquents and misfits. The groups stuck closely in the
same small areas without problems, as the bakuto remained
mostly along highways and towns, and the tekiya operated in the
markets and fairs of Japan. The yakuza began organizing into
families, adopting relationships known as oyabun-kobun (father-
role/child-role). The oyabun was the “father”, providing advice,
protection and help; the kobun acted as the “child”, swearing
unswerving loyalty and service whenever the oyabun needed it.
(32)
 51

The yakuza follow an organizational structure similar to that of traditional

organized crime operations. Their organization includes a boss, an
underboss, enlisted personnel and apprentices. Initiation into the yukuza
tends to be less oriented toward cutting fingers and so forth. Instead, they
toast by drinking sake to celebrate the entrance into the organization as a
“family”. The ceremony is usually performed in front of a Shinto shrine to
add a religious connotation to the initiation rites. The exchange of sake is
considered a significant event. Depending on one’s position, the amount of
sake varies. The derivation of the word “yakuza” stems from a card game as
indicated in the following.

The word comes form a hand in a card game called

hanafuda (flower cards), similar to blackjack. Three cards
are dealt per player, and the last digit of the total counts as
the number of the hand. A hand of 20, the worst score,
gives the score of zero. One such losing combination is
8-9-3, or ya-ku-za, which began to be widely used to
denote something useless. This term began to be used
about bakuto, as they were on the whole, useless to society.
(33)

Body art, or tattoos, became a significant aspect of yakuza culture. Tattoos

were used to symbolize the number of crimes a person committed. Rings
were tattooed around an arm for each crime. Such markings became
identified with a “criminal culture”, and associated the wearer as being
unable to adapt to a normal way of life with society.
 52

In the tradition of the yakuza, a practice known as

“yubitsume” involves the cutting off of a portion of
the little finger of one hand. As an act of apology
to one in authority, the submissive member
removes a portion of the finger beginning at the top
joint. Further actions may require the loss of the
rest of the finger, or cutting off a portion of another
finger. Exile from the group could be subsequent
punishment.

As mentioned earlier, tattoos have taken on unique

meaning among the membership of the yakuza, in
addition to such acts as “yubitsume”. They are a
badge of membership, and serve as an expression of
one who does not conform to the normal
conventions of collective society. As a renegade, or
outcast, tattoos express an aspect of rebellion
against the larger society.

After World War II, yakuza gangs began to cooperate in an effort

to end rivalry among them. Alliances took place between rival
factions in an effort to end warfare among the gangs.
 53

Over the past several decades, the U.S. and Canada have seen the growth
and emergence of Asian gangs. These groups are sometimes connected to
Asian organized crime structures, and tend to be more loosely organized.
They are particularly prevalent in newly developing Asian immigrant
neighborhoods. Their presence tends to make many in the Asian
communities fearful and terrorized. Asian gangs do not seem to be
concerned about the law, consequences of their acts or their victims. They
use violence and intimidation to achieve their ends. Victims rarely report
crimes and a very afraid of retaliation. From the 1970’s to the present,
Asian gangs have become loosely formed within growing Asian immigrant
populations. They have associated with major organized crime structures.
In terms of organization, the Asian gangs do not usually have an assigned
group name. Their origin tends to either extend from an organized crime
group, or they develop as a result of delinquent youths forming their own
local gang. (34)

Gang Activities
Extortion
Home invasion
Prostitution
Gambling
Drug Trafficking
Robbery
Active In
New York City
Philadelphia
Washington, D.C.
Chicago
Houston
Los Angeles
San Francisco
Portland
 54

Asian immigrants tend to be

the targets of crime due to a
couple of key factors. First,
they tend not to trust the local
banking system. As such,
money and other significant
valuables are kept at home.
Investing in gold and jewelry is
viewed as a good investment.
Second, they are typically
fearful of reporting crimes to
the police. They tend to see the
police as an oppressive arm of
the government. This stems
from their experience with the
policing systems of the
countries they came from.
Third, there is a deep-rooted
sense of collective shame about
Asians victimizing their own
people. As they attempt to
present themselves in a positive
light, criminal activity within
the community is seen as a
serious issue that reflects on all
members of the community.
(35)

Asian gangs have come to be known for their extreme use of violence in
order to achieve their ends. The gangs are willing to terrorize their
communities to keep victims from reporting or testifying against them.
Gang members are accustomed to fighting and conflict. As such, they are
not afraid of violence. They have grown up in a culture where violence is
prevalent. And, they understand the cultural dynamics in which Asian
victims tend not to report crimes to the police. The multiple factors make
it difficult for law enforcement to carry out its mission.
 55

The global community continues to grow smaller in terms of technology,

transportation, communications and so on. Our world community is very
conducive to mobility and migration. Today, traditional organized crime has
changed greatly since the early 1900’s. Significant law enforcement efforts
have damaged the operations of the older established organizations. The
new threat appears to be that of non-traditional organized crime. It is
represented by numerous varieties of groups, which have adapted to a
changing global environment. In all large immigrant population groups,
there are elements of criminal organizations, or at least the potential for such
aberrations to develop. The communities harbor various operatives of one
type or another, including criminals, radicals, activists, terrorists and foreign
government agents. With regard to organized crime, some gangs are well
organized and formed around a leadership core supported by a committed
membership. This is similar in many respects to traditional organized crime.
Others groups, by comparison, are not as organized and are more loosely
joined together for their various objectives.

Overview –1

Yakuza – organized crime groups of Japan; similar to American La

Cosa Nostra or Mafia; within their realm, they control drugs,
prostitution, pornography, weapons market, commercial development,
extortion, etc;

Vietnamese – considered to be in early stages of development, and

tend to prey on immigrants; use violence and intimidation, and commit
robberies and extortion;

Korean – involved in bribery, smuggling, credit fraud and prostitution

activities; related high-tech crimes, financial crimes;

Various elements of organized crime groups have become more and more
involved in so called “techno-crimes”. That is, in an effort to ensure their
profit continuity, they have moved into more sophisticated criminal
activities such as banking and financial crimes.
 56

Involvement in securities fraud and stock manipulation has been noted in

traditional organized crime operations, as well as emerging Eurasian non-
traditional crime groups. Aside from typical shakedown operations of
extorting money from stockbrokers, new ventures have become more
complex in design. In addition, the internet has provided even greater
opportunities for surreptitious criminal activities of a global nature. Some
groups have worked together to achieve their common goal of increased
profits. In their effort to commit financial and securities related frauds and
schemes, organized crime groups tend to utilize offshore banking
establishments. The following graphic depicts the overall scheme of
Chinese organized crime in terms of geographical relationships. (36)
 57

Chapter 9: Changing Nature of Organized Crime:

In the traditional classic manner of criminal activities, organized crime has

typically focused on the usual street crimes and vices. These have usually
followed a pattern as suggested in the following depiction. The listings of
assorted activities are by no means exhaustive or comprehensive. Anything
that has the potential to make large sums of money in a relatively short
period of time is a target for organized crime, whether traditional or non-
traditional. While these remain prominent activities and interests, expansion
into financial areas, the internet, securities, land development and other
similar areas have grown rapidly over the past few years. Money
laundering, drug trafficking and arms smuggling continue to be significant
enterprises among the various global organized crime groups.

Street crimes: arson, Smuggling, fraud, planned

threats of assault and business failures, gambling, high
battery, robberies and interest loans, drugs, prostitution,
burglaries, corruption protection and related illegal
of political systems, business activities;
extortion, blackmail,
hi-jackings of cargo
shipments, etc.

In filtration of legitimate business operations, such as liquor distribution,

night clubs and related adult entertainment, garbage disposal, vending
operations, unions, shipping and hauling, construction, real estate and so
forth.
 58

Organized crime activities have greatly expanded as the global environment

has changed. The world, in terms of travel, communications and technology
has evolved in dramatic ways. Organized crime has been quick to seize
opportunities associated with a changing world. Criminal organizations,
from the Asia to Europe, have developed international networks. The end of
the Cold War era and the emergence of commercial globalization have
enhanced various operations. Criminal groups have exercised considerable
freedom of movement from one country to another. Probably every major
country of the world experiences some kind of organized crime activity
within their borders. Some are used as source countries for contraband
materials, as others serve as transportation routes. A country may serve as a
base of operations, while criminal operations are carried out in other
countries. And, some countries may be used to launder money or provide
the setting for illegal financial operations. South Asia is a significant
location by which heroin reaches the rest of the world. This region accounts
for 80% of the heroin used in Europe and other associated Asian markets.

Criminal organizations with international networks centered in Turkey,

Pakistan, India the United Arab Emirates (UAE), and Cyprus operate
within a centuries-old commercial tradition of moving contraband
merchandise through the South Asia-Middle Eastern Mediterranean
region. The region is a focal point for narcotics and arms smuggling
between Europe and Asia and for brokering a wide range of illicit deals,
including to evade US or international sanctions and to transfer
controlled technologies and materials associated with weapons of mass
destruction. Major port and commercial cities in the region –
particularly Istanbul, Karachi, Mumbai (Bombay), and Dubai – are key
centers of criminal activity. Criminal organizations in these cities
exploit extensive underworld connections, pervasive political and
business corruption, and the large volume of trade and financial
transactions. Although commercial centers now have modern financial
services, criminals also hide their funds and arrange financing through
complex, virtually impenetrable underground banking systems. (37)
 59

South Asia – Heroin trafficking – supplies 80% used in

Western Europe;
Turkey, Pakistan, India and UAE – drug and arms
smuggling transportation routes;
Istanbul, Karachi, Mumbai (Bombay) – centers for
criminal networks, corruption of commercial operations
and political systems, trade and financial transactions;
Afghanistan – largest producer of opium and major
transportation route; provides base or operations for drug
dealers and terrorists;
India – black market source for diversion of opium (for
legal purposes) to illicit drug operations;
Iran – Afghan drugs move through this country on their
way to European markets, as well as ports throughout the
Persian Gulf;
Turkey – long history of smuggling, trafficking and
criminal groups; a major diversion route for illicit drugs
and contraband going to the former Soviet Union and
Europe;
 60

The United Arab Emirates – this location of the Middle East has
a reputation for a somewhat open business and commerce
setting. It is a unique focal point for various sorts of
international criminal activity. Given its banking and
transportation aspects, it serves as a conduit between the Middle
East and Europe in terms of the movement of drugs and
contraband. Maritime shipping operations are conducted from
numerous port facilities uses the latest technologies.

The social and political consequences of criminal activity have been

considerable for all countries in the region. A large criminal
underground largely immune from law enforcement and judicial
actions because of bribes and favors bestowed on powerful
politicians, bureaucrats, police, and military figures has helped
undermine the credibility of Southeast Asian institutions. Criminal
earnings, especially from the drug trade, underpin important new
investments in Southeast Asia. Russian crime groups, for example,
are involved in the tourism industry in Ban Phattha Ya, Thailand.
(38)

As China has emerged as a significant economic power, so has its role as a

home of international criminal activity. Chinese criminal organizations have
asserted a more intense role in the global community, exercising
considerable influence. And, in addition to drug trafficking, China plays a
major role in the theft of intellectual property rights, as well as other
smuggling operations, including weapons and humans.
 61

Across the globe to the west, Europe offers many opportunities for
organized crime activities. The commercial infrastructure, combined with
telecommunications, provides the setting for organized crime activities.
European countries offer markets that are favorable to increased organized
crime activity given the location, communication systems, transportation,
affluence and so forth. Mutual agreements among various countries allow
for easier movement of goods and services across borders.

Western European Organized Crime Activities

Financial fraud schemes

Corruption of Government Social Programs
Illegal financial transactions
Money laundering
Drug Trafficking
Arms Smuggling
Immigration Violations
Other Contraband Movements

Organized crime, throughout the U.S. and Europe endeavors to corrupt the
political processes to every extent possible. The ability to exploit
government officials aids in its efforts to safeguard profit and power
continuity. By way of campaign financing, election contributions, bribery
and so on, organized crime groups subvert the political systems of various
countries. The Mediterranean area offers a number of opportunities for the
growth and development of organized crime. From Italy to the Balkans, a
strong sense of culture and heritage has helped solidify internal
organizational strength within organized crime groups. Historical smuggling
routes, connecting Europe, North Africa, the Middle East and Asia, remain
thriving arteries for illegal activity. By virtue of social cohesiveness in small
communities, strong ties among crime groups have led to move civic and
political activism. Organized crime, particularly in Italy, remains deeply
entrenched.
 62

(39)
 63

Russian Organized Crime

Russian organized crime tends to be involved in activities which

include fraud, money laundering, drug trafficking, extortion and the
theft of motor vehicles. Such crime groups have been known to
operate in the U.S. for the past two decades or more. They appear to
have effective international connections and capable of generating
large sums of money. Russian criminals are considered very effective
in committing economic related crimes.

Russian criminal organizations in the United States are adept

at moving funds through a global complex of front
companies, offshore financial service centers, and crime-
controlled banks to facilitate extraction of criminal proceeds
originating in Russia, as well as launder funds generated
from US-based criminal operations.
Russian criminal organizations operating in the United States
are primarily involved in extortion, drug trafficking, auto
theft, cigarette smuggling, trafficking in stolen art and icons,
and money laundering.
Russian criminals are also extensively involved in a wide
array of fraudulent schemes, including health care fraud and
defrauding financial institutions. Some of these scams are in
league with La Cosa Nostra. Insurance fraud schemes in the
United States by Russian crime groups netted $2 billion from
California’s subscribers to one insurance company in the
1990’s, according to press reports,…(40)
 64

Chapter 10: The Business Threat of Organized Crime:

With the demise of the former Soviet Union, organized crime has found
greater freedom of movement across borders and geographic boundaries.
Law enforcement systems within these countries have not been able to keep
up with the sudden and swift transitions that have taken place. Political,
social and economic change has forced governments to focus on more
fundamental issues national survival. Columbian, Russian, Italian and other
crime groups have been quick to look for developing markets within the
various regions. In order to ensure ongoing monetary flow, organized crime
groups have not be averse to forming mutually beneficial relationships.
Some form of organized crime activity affects virtually every region of the
former Soviet Union. Activities of one form of another continue to affect
the U.S., particularly in terms of law enforcement response.

Factors Attracting Organized Crime to the U.S.

Size
Population Diversity
Economic Strength
Modern Business Operations
Transportation Routes and Infrastructure
Legal Protection – Legal System
Modern Telecommunications
Banking Systems
Protections under the Constitution
Property Rights
Free Market Economy
High Standard of Living
Diversified Economy
Luxury Goods and Services
(41)
 65

The U.S. has become a major crossroad between Europe and Asia for
organized crime opportunities. Modern facilities and financial operations, as
well as legal protections, offer organized crime groups a good atmosphere in
which to conduct business. Various crime groups take advantage of the
expansive coastlines, seaports and transportation routes to carry out criminal
activities. The very characteristics that make the United States of America a
great and powerful nation also create possibilities for organized crime
activity. Advanced communications, finances, travel, Internet, legal system
and so forth, allow for innovation and creativity in many aspects of daily
life. The U.S. has a rich diversity in terms of population groups, as well as a
dynamic economy. Given these attributes, along with a high standard of
living, organized crime groups have many opportunities to exploit such
conditions to their own benefit. On the down side, law enforcement in the
U.S., as compared with other countries of the world, is effective, efficient
and persistent. U.S. law enforcement capabilities create a high-risk aspect
for organized crime operations. Yet, given the protections afforded to
everyone in the U.S. by the U.S. Constitution, and the safeguards provided
by the legal system, organized crime is willing to take the risks in order to
further their enterprises.

The United States is one of the world’s leading sources of contraband

luxury goods, firearms, tobacco products, and alcohol smuggled and
sold overseas. Both US and foreign crime groups operating in the
United States are involved in rackets stealing cars and other high-
priced items and illegally shipping them out of the country.
International criminal groups profit from evading import and other
taxes in countries of destination and selling them below retail price to
consumers unwilling to pay exorbitant markups and taxes in the
legitimate marketplace. The tremendous volume of goods entering and
leaving the United States in legitimate trade provides criminal groups
with unparalleled opportunities to smuggle contraband through US
ports to overseas destinations. In addition to being a point of origin for
contraband smuggled overseas, the United States is used by
international criminals as a transit country for contraband being
shipped from one foreign destination to another. (42)
 66

Not only is the U.S. a world leader

in the importation of illegal drugs,
it is also a leading source of
narcotics and associated materials.
South American countries rely on
US products (precursor chemicals)
to produce cocaine and other drugs.
And, although laws significantly
control and regulate chemical
shipments, drug dealers set up
business fronts to fraudulently
obtain the products.

Organized crime is involved in a range of global activities which

include: cybercrimes, legal business fronts, economic and financial
crimes, smuggling of illegal aliens, drug operations, money
laundering, business takeovers, the Internet, etc.

Organized crime knows no borders, according to a report from the

Canadian Security Intelligence Service (CSIS), the Canadian
government agency responsible for national security. The
globalization of the world economy and sophisticated new
technology means organized crime has moved from “low-level”
activities like drug trafficking, prostitution and illegal gambling to
“corporate” activities, like migrant smuggling, environmental crime,
bank fraud, and large-scale insurance fraud. (43)
 67

The Royal Canadian Mounted Police (RCMP), in 1997, started a significant

effort to assist and otherwise educate businesses about organized crime. In
particular, the RCMP was focused on helping companies understand the
underworld efforts to launder and conceal illegal monies. Organized crime
attacks any business operation, regardless of size or configuration. With
huge sums of money coming into illicit activities, especially from drug
trafficking, criminals search for ways to conceal the funds as well as the
source. They are constantly in the market to launder the proceeds of their
activities. In the scheme of their cash flow efforts, organized crime
members seek to transfer the monies into usual legitimate assets. The
following represents terms and methods by which criminals seek to hide
their illegal gains. (44)

Structuring (Smurfing) – In this scheme, organized crime seeks to

diffuse money by having a number of people deposit cash or buy
bank drafts under $10,000. This activity is commonly used in the
U.S. and Canada.
Bank Complicity – Corrupt bank employees help launder the money
from organized crime by assisting in the monetary deception. They
find ways to implement “creative financing”.
Currency Exchanges – Various currency exchanges find ways to
allow organized crime to buy foreign money. The foreign money is
then transported to other countries. The exchange may also assist in
wiring money to offshore bank accounts throughout the world.
Asset Purchase – Sometimes using an associate’s name, organized
crime members will purchase expensive items. They try to conceal
their ownership, and typically buy things like cars, boats, airplanes,
real estate investments, and so forth.
Electronic Transfer of Money – Cash is sometimes wired around
the world to different locations. Money can be wired from city to
city or country-to-country. This saves the actual transportation of the
money itself.
Credit Cards & Postal Money Orders – The underworld uses high
balance credit cards to hide money. This may include over-paying
the balance on the credit so money is kept there whenever needed.
Sometimes, criminals will purchase a lot of money orders. After
purchasing a large number, the money orders may be transported out
of the country and deposited somewhere else.
 68

Travel Agencies – A common method of monetary exchange and

transfer includes the use of travel agencies. Criminals will
purchase travel tickets and subsequently move the money to
another country.
Gambling Casinos – Organized crime members will enter casinos
and purchase gambling chips. After a time, in which normal bets
are placed, the individuals will cash out all the chips and be issued
a “casino check” for the total amount.
Refining – Many small denomination currency bills are exchanged
for larger notes. The intent in this effort is to lessen the quantities
of cash by securing larger denomination bills. Individuals will
visit a number of banks to decrease exposure in the exchange
process.

Organized crime organizations seek to infiltrate and takeover legitimate

business operations. They are particularly interested in those businesses
with a high cash volume. This includes businesses such as: night clubs,
adult entertainment, bars, restaurants, currency exchange shops, vending
machine operations, car washes and other establishments with a high
cash volume turnover.
 69

In an effort to launder money, criminals

sometimes seek out a prospective piece of
real estate. They contact the owner and try
to get them to sell the property at a price
considerably below the true market value.
The difference between the below market
value “sale” price, and the true market value
is paid to the owner “off the books” in a
secret deal. Once the property is acquired,
the buyers then resale it at the true market
value and “wash” their money.

In other scams, criminals try to get phony

loans from a cooperative second party.
They provide a willing participant with a
large sum of illegal money. The helpful
associate sets up a loan arrangement
whereby the appearance is given that the
criminal has borrowed money from a
legitimate source. A scheduled payback
period, along with loan payments is
created in the “loan documentation”.
From the outside, it appears the criminal
has obtained a bone fide loan or mortgage
and the person making the “loan” gives
the original amount back to the criminal.

The threat of organized crime is significant and spans many spheres of

influence, corruption, and decadence. Organized crime will go to any
lengths to ensure its profit continuity. It is global in scope and devious in its
operations. Cities such as New York, Dallas, Los Angeles, Miami, Moscow,
Palermo, Medellin, Tokyo, Hong Kong, and so on, are major organized
crime centers. They represent important ports of entry for drugs and money
entering the respective countries. Organized crime is a huge “corporate”
enterprise that has evolved into large-scale financial activities.
 70

Organized crime, in addition to adversely impacting our economic system,

undermines our political processes. The implications are social, political,
economic and cultural. Through corruption and influence peddling,
organized crime ensures the perpetuation of its illegal activities. Corruption
devastates our political system, and takes place at all levels of government.
The public often calls the integrity and honesty of public officials into
question. Corrupt officials assist in the criminal enterprises and allow the
decay of public trust in our political institutions. It occurs through bribery
and other forms of influence such as campaign contributions. And, with
much of the battle at the local level, law enforcement runs up against
obstacles such as jurisdiction, political influence, lack of information
exchange, limited budgets, resources and personnel. And, added to this
complex mix, there can be no single stereotype of organized crime, since its
very nature is diverse and widespread. It crosses ethnic and racial
boundaries and exists on a global scale. The global economic, social and
political impact is like an iceberg in a sense. We do not often see its overall
size and dimension. Occasionally, we may see or be exposed to only a small
portion of the activities of organized crime.

Organized Crime Activities Impacting Society

Drug Trafficking
Money Laundering
Financial and Economic Crimes
Internet and Computer Crimes
Contraband Smuggling
Cargo Theft
Business Infiltration and Takeover
Banking Fraud
Illegal Alien Smuggling
Environmental Crimes – Ozone Depletion Substances
Trading in Endangered Species
Hazardous Materials Disposal
Motor Vehicle Exportation
Counterfeit Products
Gambling
Prostitution
Adult Entertainment
Complicity in International Terrorism
 71

Chapter 11: Activities Associated with Organized Crime:

Historically, any investigative effort or research study of organized crime

has often associated various crimes of vice with the underworld of collective
criminal behavior. Gambling, for example, is typically identified as an
organized crime activity. There are many forms of gambling, which are
considered illegal under existing laws in the various states. And, even the
legal forms of gambling are often considered, in some way, controlled by
organized crime groups. Gambling involves large sums of money given the
volume expended on the activity by the American people each year.
Generally speaking, related to gambling operations, other so called “vice”
crimes include prostitution and adult entertainment services. From a socio-
economic standpoint, “vice” crimes relate to those law enforcement
objectives, whereby, enforcement targets activities considered detrimental to
the moral fabric of a community. “Vice” concerns behavior that is viewed
as contributing to the depravity and corruption of society. Once again, the
assertion can be made that these activities, although damaging to the moral
nature of society, flourish because the public, including politicians, want
them. There are several key law enforcement concerns with “vice” crime
activities. These include various criminal conspiracies (skimming money),
extortion and blackmail, political corruption, loan sharking, money
laundering, tax evasion, trafficking women for prostitution, child
pornography and abuse, exploiting personal addictions (gambling,
alcoholism, sexual deviance, etc.), as well as other related activities.
 72

U.S. News and World Report did a comparison of crime rates in

cities with gambling versus those that do not. The crime rates were
significantly higher in the places that allowed gambling. Industry
researchers dispute the view that cities with gambling have higher
crime rates and asset that the rates aren’t higher when the tourist
population is considered.
How big is illegal gambling? It may run as high as $100 billion per
year. Other estimates put the figure even higher. That may seem
like a very large figure, but as noted earlier, sports betting is
immensely popular and most of it is illegal.
(45)

Gambling is essentially an agreement where several people enter into a risk

arrangement to put up money on a contest, based on chance. The outcome
of this contest will produce winners and losers, depending on the
arrangement. It is a process that exists nationwide and has the potential to
lend great power to organized crime groups. Organized crime is known for
its ability to infiltrate either directly or indirectly any kind of business
operation. In Florida, for example, Florida Statutes Chapter 849 defines
gambling.

849.05 Prima Facie Evidence. – If any of the implements,

devices or apparatus commonly used in games of chance in
gambling houses or by gamblers, are found in any house, room
booth, shelter or other place it shall be prima facie evidence that
the said house, room, booth, shelter or other place where the
same are found is kept for the purpose of gambling.

849.08 Gambling. – Whoever plays or engages in any game at

cards, keno, roulette, faro or other game of chance, at any place,
by any device whatever, for money or other thing of value, shall
be guilty of a misdemeanor of the second degree, punishable as
provided in s. 775.082, or s. 775.083. (46)
 73

For some people, gambling can be addictive given the shape and scope of
their personalities and thinking processes. Predators throughout society
often exploit such human weaknesses, and this is especially true in the realm
of gambling, prostitution and adult entertainment areas. Gambling, and
associated vice activities, represent a significant source of profit continuity
for organized crime groups. By itself, gambling is one of the most important
sources of revenue. It is a multi-billion dollar industry. Proceeds from
gambling finance other organized crime activities, such as loan sharking,
public corruption, political influence and others. Bookmaking, for instance,
tends to be a category within gambling and involves wagering on certain
activities. With bookmaking, a bet or wager is accepted by one person on
behalf of another person. This wager is placed on the outcome of a contest,
and typically applies to horse racing, sports events and related activities.
Gambling is one of the most widespread activities that generate large
amounts cash and spin off activities. Generally speaking, such activities
have often been associated with organized crime groups nationwide.

Gambling is essentially a contract. It represents an agreement

between two or more people who desire to put up something of value
in the hopes of gaining something of value. This is a process of
betting or wagering cash or other valuables in exchange for the
potential of a greater reward. Legalized gambling may take the
following forms:
Dog racing
Horse racing
Harness racing
Quarter horse racing
Jai-alai
Bingo
State lottery
Licensed Cardrooms
Penny-Ante Games
 74

Bookmaking is generally defined as

actions that involve taking or receiving
bets on the result of a contest of some
configuration. The contest can include
skills, speed, power, endurance and so
forth. It can also involve humans,
animals, birds, vehicles, vessels, etc.
Bookmaking is an associated aspect of
gambling and the making of money
based on the placement of wagers
contingent on an outcome of an event.

Bookmaking in Florida, for example, is illegal,

and constitutes a felony crime. Factors that law
enforcement may consider in the determination of
bookmaking activities include:
• Taking advantage of betting odds created
to make a profit for the bookmaker, or
charging a percentage on accepted wages;
• Placing all or part of accepted wagers with
other bookmakers to reduce the chance of
financial loss;
• Taking or receiving more than five wagers
in a single day;
• Taking or receiving wagers totaling more
than $500 in any single day, or more than
$1,500 in any single week;
• Engaging in a common scheme with two
or more persons to take or receive wagers;
• Any factor relevant to establishing that the
operating procedures of such persons are
commercial in nature;
• The existence of any two factors listed in
the above may constitute prima facie
evidence of a commercial bookmaking
operation. (47)
 75

In Florida, as defined by State Statues

550.02, Pari-mutual wagering refers to an
organized process whereby bets are placed
on races or games. After the contests, the
total wagers are divided among the winners
involved. From the total receipt, expenses
for the facility and its operations are
deducted. Taxes are also paid from these
winnings. A “pari-mutual facility”
generally refers to a location where the
betting and the races take place. This
includes racetracks, fronton or other type
of racing place where a licensed permit
holder conducts the gambling operations.

Gambling, or “gaming” as used in the industry, became a more

acceptable form of recreation for the general public during the
1960’s. It was during this period that state sanctioned lotteries
began to appear. During the 1930’s the State of Nevada had some
form of legalized gambling. In 1988, with the passage of the
Indian Gaming Regulatory Act, Native American tribes were
allowed to operate gambling operations in the State where the
tribe resided. They could operate any form of gambling that was
legal in the given State. While legal gambling is a huge cash flow
operation, illegal gambling remains almost as popular. It is
difficult to measure illegal gambling and its associated economic
impact. Some have suggested that the overall betting in terms of
illegal gambling is somewhere in the vicinity of $50 billion
annually. Numbers games, sports betting and placing bets with
bookmakers remain the most popular forms of illegal gambling.
Within the United States there are currently 48 states that have
some form of legalized gambling. At present, Utah and Hawaii
have yet to legalize gambling activities. Typically, gambling is
overseen and regulated by some type of gambling commission.
(48)
 76

When it comes to bookmaking activities, there is often a close association

with organized crime. This is usually the source of the money to fund the
operations, and provide a “money man” or “banker” to supply the necessary
resources. A percentage is paid for this service on all profits from the
operations.

The Money
Man

The Head
Bookie

While the bookie handles the communications aspect of the

business, clerks and satellite bookies may be employed to
handle the volume of business. These associates are under
strict supervision, and generally deal with the street level
customers. The head bookie receives and takes the bets from
the subordinates. This also includes responsibility for
keeping the “books”. A bookmaking operation may look like
the following:

Banking Operation
Bookmaker
Bookkeeper
House of Operations/Line Services
Street Bookie – Satellite Bookie
Bettors
 77

Organized crime is attracted to activities such as gambling because of

money. The public does not normally realize the attractiveness that
gambling and associated activities have for organized crime groups as well
as professional criminals. Canada’s experience with organized crime
activities and gambling are noteworthy. As the following suggests,
organized crime can infiltrate and otherwise intimidate legal gambling
operations through various schemes and scams in addition to carrying out
illegal gambling operations. Front companies, owned secretly by organized
crime groups, conspire to gain control of legal gambling operations by
obtaining permits and licenses to provide goods and services to the gaming
industry. Organized crime groups continue to launder money, distribute
counterfeit currency, conduct loan sharking operations, carry out drug
trafficking plans as well as other associated activities within the sphere of
legal gambling operations.

In Alberta and in Canada the past decade has realized a surge of

illegal gambling activity. With the introduction of wide scale legal
gaming some speculated the illegal activity would wane. There is
no evidence to suggest that has occurred. Illegal gaming houses
still prevail, unlicensed electronic gaming machines continue to
surface and there are illegal lotteries and raffles. Pyramid schemes
surface from time to time and bookmaking sports betting operations
persist.
An argument can be made that casinos attract crime. Canadian
casinos inclusive of those in Alberta have been victimized by
organized crime groups perpetrating sophisticated cheating at play
scams. Some of those scams were conducted in collusion with
registered gaming staff.
Also, the casino provides opportunities from criminals. They
provide a conduit for distributing counterfeit money. They can
facilitate money laundering and loan sharking activity. Those
engaged in illegal gaming operations have been known to pursue
bookmaking operations inside legal casinos. We know criminals
attend casinos to conduct drug transactions because our
surveillance operations lead us there. None of this should be
surprising and these types of occurrences surface in all gaming
jurisdictions.
(49)
 78

Chapter 12: Organized Crime, Public Corruption and RICO:

Organized crime groups need public “support” in order to operate. This

means that the public either directly or indirectly wants the goods and
services supplied by organized crime operations. As a matter of supply and
demands, the public, and their elected representatives, desire the things
organized crime can provide. This generally means money, gambling,
prostitution, vice activities, and so forth. Gambling, for instance, represents
one of the most significant areas of organized crime interest. It represents
nearly $500 billion dollars a year in revenues. Bookmaking operations are
an example of one aspect of organized crime that is labor intensive for law
enforcement. Investigating this, as well as other areas of illegal gambling
and vice, involves serious time and effort to build a case. Investigative and
prosecutorial efforts must be proactive and vigorous. Operational
techniques, procedures and tactics of organized crime activities may adapt
and change in order to block law enforcement efforts. Gambling operations
represent a significant source of income for organized crime groups. It is a
major financial endeavor. Law enforcement efforts against organized crime
must be a focused and determined investigative process.

The Difficulty of Law Enforcement Interdiction

1. Time consuming investigations
2. Manpower shortages or limitations
3. Strained organizational resources
4. Organizational commitment
5. Lack of time to develop research
6. Demand for deployment in other areas
7. Political corruption
8. Prosecution priorities
 79

Associated criminal activities involving

various vice crimes remain a local law
enforcement responsibility. Enforcement
efforts are sometimes difficult when it
comes to laws regulating gambling,
prostitution, drugs, obscenity, liquor
violations and so forth. As an important
resource for organized crime activity,
gambling remains among the most
important sources of money. Gathering
information becomes critical to the local
law enforcement operations. It is a part
of assembling criminal intelligence
information from the field of operations.

Patrol Officer’s Enforcement Efforts

ü Develop tactical and strategic plans for developing an
organized crime investigative process.
ü Gather effective street level intelligence to contribute
to the departmental intelligence system.
ü Use effective surveillance and research techniques for
information assessment and analysis.
ü Document and report information in a timely manner
to enhance coordinated responses.
ü Be alert to political corruption, influence, and note that
politicians (inside and outside the department) will
make every effort to cover themselves.
ü Be alert to people, places and situations as related to
the information gathering process.
ü Analyze the facts of each case involvement to discern
other connected issues or criminal activities.
ü Assert the value of ‘uncommon sense’ (if it were
common, everyone would have some) in the appraisal
of different activities.
ü Note that the ‘police beat’ offers many opportunities to
gather information from the people encountered.
 80

Organized crime – the primary target of intelligence operations – is

very much related to street crime, the type of criminal activity that
officers are most familiar with. Although this does not mean every
crime or criminal is associated with organized crime, it does suggest
that organized criminal activity is widespread and encompasses many
of the illegal operations that the patrol officer regularly confronts. The
following criminal activities are often the work of organized crime:
gambling, numbers, and policy rackets, hijacking, bankruptcy frauds,
fencing, labor racketeering, prostitution, narcotics, loan sharking,
pornography, and credit card theft and counterfeiting. In addition,
organized crime has infiltrated legitimate businesses.
(50)

Vice profits, when permitted in any community, are an open invitation

to the gangster to organize the criminal activity in order to ensure
continuing and still greater profits. Organized crime gains a foothold
in a community only through some form of corruption of public
officials, and once entrenched, Herculean efforts are required to
remove it. Police attempts to eliminate organized vice operations meet
strong resistance; in some communities the resistance is more than the
police can overcome. In no community can the police satisfactorily
control vice without strong public support. All citizens have the
responsibility to see that their communities are free from vice, because
only then can they be certain that their government is free from
corruption.
(51)
 81

Sports betting represents a significant source of cash flow opportunities

for organized crime. Generally, a bookie will charge a percentage, say
10% (the “vig” , “vigorish”, or the “juice”) as the bookie’s profit. This is
an important part of the gambling transaction. Once the “vig” is agreed
upon, and the wager is made, it establishes the fact that a betting
transaction took place. The term “shylock” refers to a person who loans
money at a high interest rate, and is sometimes called a “loan shark”. A
“Banker” is the head of an organization who provides money to the
activities and operations being controlled. The “take” refers to the total
amount of money and wagers accumulated by a lottery writer or the
organization conducting the gambling. In pari-mutual wagering,
organized crime attempts to exert influence in some aspect of the racing
activities. “On-track” bookmaking has the potential to become very
destructive to legal gambling situations. Fixing a race, for example,
would give corrupt individuals control over the operations. If control
were established, then money transaction would subvert the tax and fee
structure of the state. In addition, skimming on concessions, fees and
other functions would gain a foothold. Because of the large amount of
money involved in illegal gambling activities, undercover operations are
essential, coupled with careful investigative analysis of all aspects of
gambling.

In pursuit of organized crime, investigative efforts have developed around

the “RICO” process. Generally, RICO refers to “Racketeer-Influenced and
Corrupt Organizations”. In terms of federal law, this phrase is the heading
of the United States Code in Title 18. From a prosecution standpoint, RICO
is often considered a significant aspect of criminal prosecution against
organized crime activities. The focus of this legislation encourages
proactive case development in the gathering of credible evidence and
information to formulate a vigorous prosecution effort. Following the
gathering of evidence, the documentation of the events, and the development
of evidentiary materials, indictments are sought to interdict against the
corporate structure of the “crime family”.
 82

RICO has a couple of essential sections that address business

infiltration by organized crime elements. It focuses on such critical
issues as:
1. using income derived from racketeering activities,
accompanied by a showing of the criminal acts that took
place;
2. acquiring or maintaining control of the business entity and
its associated activities, which shows a pattern of
racketeering activity;
3. criminal prosecution can be directed toward anyone who is
associated with or employed by a business to conduct or
participate in a pattern of racketeering activity;
A significant amount of RICO provisions are concerned with
procedural matters of both a civil and criminal nature. Penalties can
range from twenty years to life depending upon the nature of
criminality. RICO is sometimes defined very much like a
conspiracy and has been used to prosecute groups who commit acts
of criminal behavior. It is used as a means to attack organized crime
activities, giving prosecutors the capability of going after each
member
(52).

The purpose of the Organized Crime Control Act of 1970 (Title 18, U.S.
Code) was to prosecute those individuals who infiltrated legitimate
businesses, involved in interstate commerce, and thereby eliminate their
racketeering activities. Statutory provisions encompass sufficient language
to pursue any illegal activities associated with interstate or foreign
commerce that affects legal business operations. In Florida, for example,
Florida Statutes, Chapter 895, addresses at the state the provisions of RICO.
This chapter is known as the “Florida RICO (Racketeering Influenced and
Corrupt Organization) Act, which came into being in the later part of the
1970’s. The statute defines “Racketeering”, and associated activities as
instances where persons commit or conspire to commit crimes chargeable
under certain criminal statutes of Florida.
 83

Racketeering activity can relate to violations regarding: cigarette tax

evasion, environmental control, public assistance fraud, healthcare fraud,
telemarketing schemes, gambling operations, alcoholic beverage violations,
excessive interest and usurious practices, kidnapping, weapons – firearms –
explosive violations, arson, prostitution, bribery and misuse of public office,
extortion, perjury, obscene literature, drugs, securities and financial
transactions, witness tampering, as well as other types of criminal activities.

Investigative and prosecutorial processes strive to interdict the various

activities and motivations of organized crime operations. Organized crime
in the U.S. is composed of various groups who reflect a multicultural
diversity. Their aim is the acquisition of power, influence and wealth at the
expense of the public’s weaknesses for certain illegal goods and services.
The attainment of profit continuity is central to organized crime activities.
They will seek to increase their cash flow by any means. The gathering of
intelligence and other aspects of case preparation require ongoing
surveillance action. Efforts must be directed toward a continuing
enforcement capability that serves to detect, identify, anticipate and intercept
organized crime activity.

Preliminary Investigation: detailed and systematic inquiries and

observations of anomalous situations leading to the collection, analysis,
reporting, dissemination and assessment of critical data; the process
establishes the scope and nature of criminality by virtue of the direct,
physical, circumstantial, testimonial and scientific evidence discovered.

Tactical Intelligence: focuses on specific immediate objectives in terms

of interdiction to deal with direct objectives in the field; unique and
specific to crime prevention objectives;
Strategic Intelligence: seeks to identify patterns and associated
behavioral characteristics of criminal activity. It identifies trends and
suggests general aspects of ongoing criminality. Such information serves
to assist in the plan development for interdiction and support the goals
and objectives of tactical intelligence. It is the building-block process of
information development.
 84

Interdiction efforts should bring to bear the necessary resource allocations to

conduct a thorough and effective investigative process. Such efforts should
consist of a combination of enforcement aspects including: arrests, seizures,
fines and forfeitures, imprisonment, civil and regulatory actions, and so
forth. Total disruption of organized crime operations is one of the major
goals of aggressive law enforcement and prosecution action. The process
should comprehensively target individual members, corporate structures,
land holdings, building ownership, business activities, monetary and other
property assets, vehicles, vessels, aircraft, licenses, products and other
associated materials related to the operations.

Organized crime flourishes in one form or another to provide services to a

willing public as well as their collusive public officials. Some public
officials, who reside in the realm of police officers, firefighters, regulators,
inspectors, elected officials, appointed representatives, and other public
servants, are more than eager to be influenced by organized crime
opportunities. Whether they patrol a beat assignment, serve on a zoning
board, or elected to public office, some desire to abuse the trust they have
been granted by virtue of the duly constituted democratic processes. They
abuse their oath of office, the precepts of their profession and the public
trust. Such violations occur in the course of their day-to-day activities in
business, government and other systems of enterprise, both public and
private, in which their loyalty, fidelity and integrity are for sale. They do it
for personal gain in the attainment of power, influence and monetary reward.
Whether in the disguise of a lobbyist for “private enterprise” soliciting
legislative action, the developer pursuing changes in zoning ordinances, or
the ripping off of a drug dealer, corrupt public officials violate the public
trust, endanger business and governmental systems, and otherwise degrade
the moral fabric of society. The list of crimes committed by corrupt officials
over the past decades is lengthy. It is only limited by the imagination.
Through arrogance, conceit and selfishness, politicians and their associates
in the underworld have committed acts that jeopardize our political,
economic and social systems. They perpetrate frauds and acts of dishonesty
on a daily basis. Their actions sometimes come the guise of the “public
good”, but they have hidden agendas. The collusive nature of influence
peddling is pervasive at every level of government.
 85

Chapter 13: Patrol Investigative Vigilance to Organized Crime and

Terrorism:

In both business and government, law enforcement vigilance for organized

crime activity is essential. Patrol operations are critical to this function of
gathering intelligence and monitoring the activities of organized crime
groups. The effectiveness of the law enforcement mission rests upon the
ability and striking power of the patrol force. Patrol officers represent the
most significant aspect of protecting and serving the public. They are the
primary first responders to the initial complaint of suspected criminal
activity. All other aspects of the law enforcement organization should be in
support of the patrol function. Law enforcement patrol operations should
receive the most support, personnel, resources, leadership and technology to
suppress and otherwise interdict criminal activity.

In the attack on crime and other police

problems, patrol service is at once the most
important and at the same time, one of the
most neglected phases of police management.
The patrol or uniformed division is the basic
element of line power in a police department.
It carries out in police service the functions
performed by the combat services in military
operations. It represents the front line where
policies and plans are translated into action,
including the prevention and suppression of
crime, preservation of law and order, and the
protection of life and property.
(53)

Aggressive patrol strategies are necessary to dealing with organized crime

issues. Abuses of public trust and fidelity, for example, should be part of the
focus of patrol crime suppression efforts. This includes all aspects of
criminal activity and public corruption perpetrated by organized crime
groups. In the course of their daily occupations, whether political, business
or governmental, deals are made throughout the community for one reason
or another. When a crime can be defined in terms of statutory enforcement,
then the patrol force should bring to bear its investigative efforts.
 86

Investigating organized crime is more than a single incident or a crime

specific issue. The tentacles extend in multiple directions and involve an
assortment of players. It encompasses a range of ongoing activities and
operations for which people, places and things are interconnected. Activities
are related to street level criminality. The investigative process should
proceed in with a more far-reaching view at the street level, and extend to
the “corporate management level”, and to the political influence level.

Investigating organized crime begins with intelligence, its collection and

interpretation, and its preservation by internal security, a safeguarding
against syndicate penetration and subversion within the police agency.
Investigation then progresses to a comprehensive investigation, which
encompasses a vigorous expansion of the investigation of gangland
homicides and other major felonies to include investigation of syndicate
leaders and a continuing alertness to the local operations of career
criminals.
Unity of action, insularity of executives, immunity from governmental
action, murder as a technique of business, and expansionistic methods
sum up the characteristics that have made the crime syndicate a
successful business in which large regional groups operate with
nationwide unity. (54)

The patrol officer represents the front-line defense mechanism for early
notification and observation of criminal activities. Each officer should be
keenly aware of the potential for organized criminal operations in each zone
or sector he or she works. It is his or her responsibility to assume a
proactive posture in response to criminal activities. Numerous possibilities
exist to develop an ongoing assessment of activities through the
development of intelligence data. Officers assigned to a particular zone or
beat should be allowed to develop community and neighborhood
information sources that assist the investigative process. The information
gathered needs to be processed and analyzed in an appropriate manner.
Every tour of duty is an opportunity to invoke a degree of “uncommon
sense” (used to be called “common sense”) about what is going in a
particular beat assignment. Patrol officers have the experience and
capability to develop important street level intelligence.
 87

In current times, the role of the patrol officer, or first responders, is

extremely critical to local community safety and security. The activities of
terrorist groups, and their association with organized crime, present a world
environment that is both dangerous and deadly at all levels of society. Being
prepared to act and respond to threats from organized crime as well as
terrorist groups requires enhanced vigilance on the part of the patrol forces
throughout the U.S. Organized crime’s collusion with terrorist groups is
clearly a threat to internal national security interests. Transnational criminal
organizations (aka organized crime, or TCO) and terrorist groups have
mutual interests in the global market place.

The TCO and terrorist organizations have evolved over the past fifty years
and have adapted to security improvements in the “environment” in which
they operate. In most instances, they have been far more adaptive than the
governments that are working against them. One such area, to which they
have adapted to, is the increased sophistication of the command and control
function, specifically communication systems, financial controls and
operations. One example of this “environmental” evolution is Al Qaeda
and Russian Organized Crime families who have actually morphed into
pseudo corporate structures. (55)

Organized Crime – Terrorist Groups Mutual Interests

1. Profit continuity – people delegated the task of financial
operations to produce income, assets and control costs;
2. Privacy – technology used to ensure the concealment of activities
and interests through encryption, mobility and anonymity;
3. Products and Services – use market diversification to enhance
“corporate portfolio”, in a mix of operations that generate money;
4. Criminal activities – traditional and non-traditional crimes such as
extortion, money laundering, gun smuggling, kidnapping, murder,
drugs, threat of violence, etc.
5. Cooperation – groups have mutual interests and cooperate to
enhance their respective postures; tend to have a key figure at the
head of the organization who provides a unique style of
“leadership”; followers are devoted to the “leader” of the group;
6. Structure – the hierarchy is organized to ensure confidentiality,
membership protection, insulation and so on;
 88

7. Security – enhanced and adaptive security efforts for command,

control and communications; organization divided into
compartment or “cells” to create smaller subunits to protect the
ongoing nature of the organization and its associated interests;
this includes decentralization of leadership, finances, members
and so forth so that each is protected from law enforcement
interdiction;
8. Money versus Politics – while organized crime groups pursue
economic interests, terrorist groups typically pursue political
and religious issues;

Given these issues, the patrol forces must be provided with the education,
training and resources to deal with urban and rural domestic security and
safety. Patrol services are the “backbone” of U.S. law enforcement
operations. These men and women are the key components to early
information gathering relative to organized crime and terrorist group
activities both legal and illegal in nature. Some key points are essential to
the law enforcement patrol mission in dealing with criminal activities that
often begin at the street level.

1) Uniformed patrol operations must be supported by a sound system of

recruitment, education, training and resource allocation. This includes
basic recruit training of a relevant paramilitary nature, that is both
academically sound, practical, forensic related and intensive. In
addition, from basic recruit to career placement, in-service and career
development education must likewise be exceptional. To this, must be
added a cadre of competent line supervisors and middle management,
who are effective leaders and committed to the development of
professional law enforcement officers. And, each departmental
component or subunit should focus its efforts in support of the patrol
function. Intelligence, education, training, character, integrity,
physical abilities and so forth are fundamental aspect of recruiting the
best and brightest for patrol services. Officers must be of sound mind
and body, and possess a high level of personal integrity and overall
fitness for duty.
 89

2) Officers should be allowed the opportunity to know, understand, and

interact in their zone assignments. They should be allowed to become
involved with the people they serve on a professional level. Skills in
patrol services, observation, surveillance, intelligence gathering,
aggressive patrol operations, supported by tactics, tools, training and
technology, should serve to enhance the patrol mission. “feel good”
or politically correct non-practitioner operational models should not
guide proactive patrol efforts. Patrol operations should exert its
striking power and interdiction efforts in an aggressive manner.
Striking power must be continuous and constantly vigilant.
3) Much of the success of interdiction into organized crime and domestic
security issues relate to the willingness of the line forces to
aggressively patrol the communities they serve. This means
becoming involved in the day-to-day interaction and activities of the
citizenry. It is a process of communication, observation, note taking,
and interacting in ways conducive to effective police work. A number
of situations may be more than what they appear on the surface. The
officer must look beyond appearances and dig deeper.
4) Officers must be on the lookout for the unusual, the out of the
ordinary, things that simply don’t look right. The presence of
gambling, prostitution, liquor law violations, drugs, and so on, may
take place in less than obvious places and under unique conditions.
Accepting things on a superficial basis is detrimental to the positive
collection of relevant information. Officers need to be alert to
potential drop sites, meeting places, package pickups, loading and
unloading areas, parking lots, suspicious business activities, people
coming and going quickly from a store, and other associated activities.
Such actions could indicate drug activity, prostitution, gambling and
other vice crimes.
5) Patrol can target and be alert to a range of illegal activities that may be
completely hidden from the general public’s normal field of view. A
seemingly not-so-complicated case of assault and battery could be
associated with organized crime activity. For example, it could have
been the result of non-payment of monies to a loan shark. Other
issues may arise as a result of power and turf struggles within a given
community. Indications of efforts to monopolize or otherwise control
competition in a business activity could suggest organized crime
influence.
 90

6) Patrol officers can be alert to “meetings” taking place in a somewhat

secretive fashion. A number of cars parked for an extended period of
time may indicate such a meeting is taking place. Or, if suddenly
vendors at a local bar, motel or restaurant change, the indication could
point to a business infiltration. This could affect trash collection,
vending machines, fuel supplies, food and produce deliveries. If an
organized crime group is trying to coerce a business owner to do
something, then there may be indications of sudden vandalism,
assaults and so forth. This could include joining a “business
association”, paying for protection and dealing exclusively with
certain vendors.
7) Making efforts to know the businesses and business people in a beat
assignment can enhance the effectiveness of patrol. Officers could
visit new business and discern the kinds of products and services they
intend to market. Patrol officers can also be attentive to neighborhood
complaints about certain businesses. Occasional inspections could be
conducted from a safety-security standpoint, to occupational permit
and license requirements. This could be done discreetly or directly,
depending on the profile preferred in establishing patrol presence.
Officers can be alert to deliveries on the weekends to an otherwise
closed establishment. Any unusual activities and unusual times should
provoke patrol activity. And, officers should be alert to unmarked
delivery vehicles loading and unloading. A storage facility or
warehouse suddenly becomes active and full of merchandise should
warrant at least some observation and surveillance.
8) A suspicious fire that burns down a business may indicate fraudulent
activity. Or, it could indicate hostile business actions for punitive
reasons. Numerous possibilities exist which may indicate an
organized crime group is actively engaged in some type of business
activity. Vigilance by the patrol force is essential to the safety and
security needs of the community. In addition, a close working
relationship with other public service agencies, departmental subunits,
and specialized units, such as the arson squad, could help facilitate a
more effective investigation. Close analysis of suspicious situations
could expand investigative. Patrol must be given the capabilities and
resources to fully investigate suspicious operations within each patrol
zone. Action must be sure and swift and conducted in a professional
manner, utilizing effective tactics, techniques and technology.
 91

9) The use of the “strike force” concept, integrated into effective tactical
patrol operations, along with the application of RICO statutes can be
used to make an impact on organized crime groups. Interdiction by
way of asset forfeiture, seizure of assets, proceeds and
instrumentalities of criminal activity, informants, surveillance and
other tactical countermeasures can be brought to bear on the activities
and interests of organized crime. Law enforcement training and
education, along with multi-jurisdiction cooperation, to enhance
investigative capabilities is essential. Mutual assistance, information
exchange and intelligence gathering can be exercised appropriately to
ensure interdiction and prosecution.
10) Patrol officers are in the best position to realize an important
fact about social interaction, and then do something about it. That is,
the mere existence of law does not by itself stop criminal behavior.
Many laws exist and are regularly ignored as criminals continue to
commit one crime after another. Enforcement must be active and
aggressive in support of the laws. Criminals commit crimes basically
because they want to commit such acts. Because of their self-centered
nature, there is something to be gained by such behavior. Organized
crime groups commit ongoing conspiracies to gain money, power,
influence and control. They utilized the full range of both economic,
psychological and physical force tactics to achieve their ends. This
includes both public and private corruption of those entities necessary
to their continued existence. It is the patrol officer who is the first
responder and twenty-four hour a day surveillance system. He or she
is in a good position to monitor organized crime activities. And, with
regard to corruption, and associated elements of temptation, each
officer must be on guard at all times.

For political corruption to flourish, at least two specific conditions must

be met: 1) large sums of money that political officials receive in return
for favorable exercise of their power and authority must be available; 2)
some aspects of the procurement process must be either illegal or
unethical. Unfortunately, there are a variety of ways in which these two
conditions can be easily met.
(56)
 92

q Organized crime is involved in

political corruption.
q It seeks profit continuity and
political influence.
q Power and control are essential
to corruption and influence
over police operations.
q Corruption climbs the political
ladder from the bottom to the
top.
q Politicians and the police are
targets for corruption.
q Police power has the capacity
to interdict into organized
crime activities.

Patrol operations can have an impact on organized crime groups and their
activities. It can be relentless in the pursuit of justice and the cause of law
and order. For organized crime to exist in any community, money and
power relationships must be conducive to its growth and development.

For organized crime to become entrenched in any community two factors

are necessary: protection from police interference, or police interference
rendered innocuous by court dismissals and indifferent prosecutions, and
monopolistic control of a criminal activity. The first of these conditions
presupposes corruption of public officials, and the second requires the
elimination of competition or intruders by killing or threats of violence. It
is only because of the tremendous illegal profits that organized crime is
possible; otherwise, public officials could not be easily corrupted, and the
risk of killing and being killed would not be justified.
These huge and continuing criminal profits are found in the field of vice,
i.e., in gambling, prostitution, and in the illegal sale of narcotics and liquor.
Vice profits, when permitted in any community, are an open invitation to
the gangster to organize the criminal activity in order to ensure continuing
and still greater profits.
(57)
 93

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 95

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 97

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 98

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 99

Internet Information Sources

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www.ncjrs.org
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www.americanmafia.com/lonardo_testimony.html
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www.organizedcrime.about.com
www.hhs.se/eijs/anomaly/HKTriads.htm
www.knowledgeproducts.net/goldentriangle1.html
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http://members.tripod.com/~orgcrime/index2.htm
http://members.tripod.com/~orgcrime/articles.htm
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 The Basics of Organized Crime

For

Law Enforcement

By Randy Gonzalez

Copyright  2002 Randolph A. Gonzalez – All Rights Reserved.

This book is protected by copyright. No part of this book may be
reproduced in any form by any means without permission in writing
from the author.