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Introduction To Organized Crime PDF
Introduction To Organized Crime PDF
Of
Organized Crime
For
Law Enforcement
By Randy Gonzalez
www.drgonzo.org
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
3
Traditional Notions About Organized Crime
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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 todays traditional organized crime
began to develop in its formative stages. It appears that Palermo, Sicily is
the birthplace of the Italian (Sicilian) version of todays 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 Italys cry!. From this, legend suggests that the name Mafia
stems from creating initials out of the so called death slogan. Reid points
out:
Italys 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)
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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.
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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
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-1930s, 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.
10
General Historical Development
1830s 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.
1850s 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.
1860s 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.
1880s 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.
1900s 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.
1920s 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)
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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)
13
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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 1930s, 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.