Special Crime Investigation 2

Module 1 - This covers basic concepts, phases,

characteristics, and types of organized crime.

Defining Organized Crime

Organized crime is a continuing criminal enterprise that rationally works to profit
from illicit activities that are often in great public demand. Its continuing existence is
maintained through corruption of public officials and the use of intimidation, threats or
force to protect its operations.
The most obvious distinction between organized crime and other forms of criminal
conduct is that it is "organized." In general terms, it does not include random, unplanned,
individual criminal acts. Instead, it focuses exclusively on planned, rational acts that
reflect the effort of groups of individuals. Several efforts have been made to elicit
common elements to describe and define organized crime with greater specificity.
A list of all the crimes committed by organized criminal groups would be outdated
quickly as social, political and technological changes result in changing opportunities for
crime in different locations. Therefore, the unit of analysis in most definitions is not the
offence but the offender: an organized criminal group. A better understanding of the
nature of these groups will help in developing more effective responses to them.
There are many definitions of organized crime. Analysis reveals that several
characteristics of organized crime are common among these definitions (Albanese,
2016; Finckenauer, 2005; Hagan, 1983; Maltz, 1985). These characteristics include the
purpose of organized crime to financially profit through crime. Organized crime mainly
responds to public demand for services. Corruption is an enabler that protects organized
crime operations. Sometimes intimidation, threats and/or force are also needed to
protect those operations. These elements comprise organized crime as a continuing
criminal enterprise.

Definition in the Organized Crime Convention

The realization that not a single country, no matter how powerful, can fight
organized crime across borders in isolation, led to the passage of the United Nations
Convention against Transnational Organized Crime, which came into force in 2003. The
negotiations leading up to this Convention caused Member States to consider the
definition of organized crime in setting the stage for international action.
The Convention does not contain a definition of transnational organized crime or
organized crime. There are many elements of organized crime, which might not occur in
every case, and might also change over time, making a specific consensus definition
difficult. Instead, the Convention defines "an organized criminal group." A precise
definition is required because the Convention aims at directing policy, law, and practice
in preventing and combating organized crime.
Under the Convention (article 2a), an "organized criminal group" is defined using four
criteria:
1. A structured group of three or more persons;
2. The group exists for a period of time;
3. It acts in concert with the aim of committing at least one serious crime;
4. To obtain, directly or indirectly, a financial or other material benefit.

Structured group is defined in the negative: as one that does not need a formal
hierarchy or continuity of its membership. This makes the definition broad, including
loosely affiliated groups without any formally defined roles for its members or a
developed structure.
For purposes of the Convention, serious crime means an offence punishable by a
maximum penalty of incarceration of at least four years (article 2b). Four years was
selected by international consensus at the time of negotiation as a reflection of offence
seriousness while it recognizes that criminal codes vary widely around the world in
prescribing incarceration for various offences. There is no requirement for countries to
introduce a definition of serious crime or to follow the definition of the Convention. The
definition of serious crime is included to define the scope of application of the
Convention and to invoke the international cooperation provisions of the Convention.
OGC also define as the combination of two or more persons for the purpose of
establishing terror or corruption in the city/community or section of, either a monopoly,
of virtual monopoly or criminal activity in a field that provides a continuing financial profit.
Sadaran (2013) mentioned that organized crime can be characterized in two
ways:
1. Traditional Organized Crimes – are organized crime generally associated with the
Italian or the Sicilian Mafia or La Cosa Nostra. This is primarily due to the ability of this
elicit organization to endure through time.
2. Non-traditional Organized crimes – are organized crime committed by new emerging
groups as the Chinese Triads, Yakuza, and Columbian time.

What are criminal gangs?

A group of two or more persons who have common identifying signs or symbols
and whose members individually or collectively engage in or have engaged in a pattern
of criminal activity, creating an atmosphere of fear and intimidation within the
community or a specific area using violence and intimidation.
The following are the essential elements of criminal gangs:
1. Capability
1.1. Organizational Structure
1.1.1. Composition
1.1.2. Disposition
1.2. Resources
 1.2.1. Basic criminal tools
1.2.2. Minimal logistical support
1.2.3. Minimum or no special training and indoctrination
1.3. Network/Connections
1.3.1. Local criminal network, if any
1.3.2. Few or no operating linkages and influence with law enforcement or
other government agencies
1.4. Modus Operandi
1.4.1. Less Corporate
1.4.2. Territorial
1.4.3. Scavenger
1.5. Personalities
1.5.1. Low level of criminal prominence, influence, and linkages in
their locality.
1.5.2. Mainly from financially/socially disadvantaged sectors of society
2. Motive
2.1. Profit and Personal Advantage

3. Nature of Criminal Activity

3.1. Crimes committed are perpetrated by having vendetta or if for profit
on a particular crime such as kidnapping only, or robbery.
3.2. Petty crimes

4. Time, Duration and Frequency

4.1. Short term goals
4.2. Irregular operations
4.3. Limited to a specific area of operation

Phases of Organized Crime

Predatory Phase
1. The Criminal Group is basically a street gang.
2. The incubator for organized crime groups.

Parasitical Phase
1. The predatory street gang matured in-age, criminal skills, organizational leadership,
and specialization of labor.
2. The organized criminal group begins to develop a corruptive interaction with the
legitimate power sectors in the political system.

Symbiotic Phase
The host, the legitimate political and economic systems, becomes as dependent
on parasite, organized crime, as the criminal enterprise is on the host.
The organized crime monopolistic control over certain sectors of the illegitimate
and legitimate economies combines with the entrenched corruption it has promoted
and with its ability to use threat, force, and violence.
How Organized Crime works?

For organized groups to work usually it has at least the following:

1. An Enforcer. One who makes for the arrangements for the killing (injuring or carrying
out the task physically, economically or psychologically) the members or non-
members.
2. A Corrupter. One who corrupts or bribes, intimidate or threatens, negotiate or “sweet
talks” into a relationship with public officials, law enforcement officer, or anyone who
would be of help in obtaining security and immunity from possible arrest, prosecution
and punishments.
3. A Corruptee. A public official, law enforcement officers or anybody who not a
member of the organization who can helps the organization

Characteristics of organized crimes

1. It is a conspiracy activity involving coordination of members.
2. Economic gain is the primary goal.
3. Economic goal is achieved through illegal means.
4. Employs predatory tactics such as intimidation,
5. Effective control over members,
6. Organized crimes do not include terrorists dedicated to political change.

Generic Types of Organized Crimes

1. Political Graft – manned by political criminal who use force and violence to obtain
profit or gain and or achieving political aims or ambitions. Example is vote buying and
employment of private armies to control a certain political area.
2. Mercenary/Predatory Organized Crime – crimes committed by groups for direct
personal profit but prey upon unwilling victims. Example: extortionist/racketeer.
3. In-Group Oriented Organized Crime - groups manned by semi organized individual
whose major goals are for psychological gratification such as adolescent gangs. Ex.
Motorcycle gang.
4. Syndicated Crime – the organization that participates in illicit activity in society by the
use of force, threat or intimidation. The group with formal structure, whose purpose is
to provide illicit services, which are in strong public demand thru use of secrecy on
the part of associates. There is assurance of protection necessary for its operation thru
political corruption or avoidance of prosecution.
Module 2 - Problems Caused by Organized Crime

ATTRIBUTES OF ORGANIZED CRIMES

1. Has no Political Goals.

2. Hierarchical.
3. Limited or Exclusive Membership.
4. Constitute a unique subculture.
5. Perpetuates itself.
6. Willingness to use Illegal Violence and Bribery.
7. Specialization/Division of Labor. There is a need for established functional position
filled with qualified members. Commonly, there is a need for:
(1) an enforcer, one who carries out difficult assignments involving the use of
violence, including murder, in a rational manner. He may use members or non-
members or even a specialist to carry out the assignment; and
(2) a corrupter (fixer/money mover), excels in developing contacts.
8. Monopolistic.
9. Governs by explicit rules and regulation.

STRUCTURE OF ORGANIZED CRIME GROUPS

1. The Bureaucratic/ Corporate Model.

2. Patrimonial/ Patron Client.

3.

Organizational Structure - the family has the boss who exercise general oversight of the
family and makes executive decisions.
1. The underboss is the second in command
2. Senior adviser or counselor acts as screener
3. Capo-regimes/caporegime supervise crews made up of soldiers
4. Soldiers is the member of the organization
5. Good fellows or wise guys made members of the Italian decent, consist of males.
Generic Type of Organized Crimes
1. Political Graft.
2. In-Group Oriented Organized Crime.
3. Mercenary/Predatory organized crime.
4. Syndicated Crimes.

Typical Organized Crime Activities

Categories of Organized Crime:

1. THEFT and FRAUD

Victimizing business:
• Hijacking of cargo trucks
• Robbery
• Bankruptcy fraud (“bust-out”)
• Insurance Fraud
• Stock Fraud (Inside Trading)

Victimizing individual persons:

• Car theft (chop-shop or export)
• Burglary (robbery in a building)
• Stock Fraud (pump and dump scam)

Victimizing State:
• Bid-rigging public projects
• Counterfeiting of Money
• Smuggling (Alcohol –bootlegging; Cigarettes – butt legging)

2. PROVIDING ILLEGAL SERVICES and GOODS

• Loan Sharking
• Murder for hire
• Book makingToxic Substance
• Gambling
• People Smuggling
• Prostitution
• Trafficking in human beings
• Drug Trafficking
• Arms dealing
• Pornography
3. Miscellaneous Activities:
• Money laundering;
• Political corruptions;
• Bullying; and Piracy.

The Sicilian Mafia

The beginning of the Sicilian Mafia or Cosa Nostra is hard to identify, because of
its secretive nature and lack of historical record keeping. In the history of Sicily there was
an upheaval when the island community transitioned from a feudalist to a capitalist form
of government in 1812. Cosa Nostra may have developed during that time or later when
the island was annexed by mainland Italy in 1860.
In 1864, we see the first written reference to the Sicilian Mafia. It was made by
Nicollo Colonna, the leader of the Palermo National Guard. He wrote of a sect of thieves
that operated across the island. He said that they had special signals to recognize each
other, enjoyed political protection in many regions, abided by a code of loyalty and
made every effort to avoid interaction with the police. Colonna warned that the Italian
government's brutal attempts to crush unlawfulness alienated the populace and made
the sect stronger.
As we move forward in the history of Sicily, we see the reign of fascist Benito
Mussolini. In 1925, he initiated a campaign to destroy Cosa Nostra and its political allies.
He appointed Cesare Mori as prefect of Palermo and gave him special powers to attack
the Mafia.
Over 1 1,000 arrests were made. Wives and children of Mafiosi were held hostage
to force them to surrender. Massive trials were held and over 1200 men were convicted
and imprisoned. Many others were exiled without trial. Cosa Nostra was not "crushed" as
the Fascist press proclaimed, but many of the families were broken up.( shorturl.at/gixIZ)

What is MAFIA?
Mafia is a term used to describe a number of criminal organizations around the
world. The first organization to bear the label was the Sicilian Mafia based in Italy, known
to its members as Cosa Nostra.
In sum, mafia means protection against arrogance of the powerful, remedy to any
damage, sturdiness of body, strength and serenity of spirit, and the best and exquisite
part of life.
Apparently Sicilian-Arabic derived from terms meaning to protect and to act as
guardian; a friend or companion; to defend; preservation, power, integrity, strength, and
a condition that designates the remedy of damage and ill.
OMERTA is a code of silence and secrecy that forbids Mafiosi from betraying their
comrades to the authorities.
 Ideal of manliness
 Noncooperation with authorities
  Self-control in the face of adversity
 Vendetta-blood washes blood
 Neither government nor church to be trusted

Some of the Asian Organized Crime Groups

 Triads and Tongs in Hong Kong and China
 Yakuza in Japan
 United Bamboo Gang in Taiwan
 Warlords in Myanmar
 Nam Cam Gang in Vietnam and
 Other ethic entrepreneur throughout the Asia

Asian Transnational Organized Criminal Groups

1. Japanese Yakuza. The term yakuza is well established globally, generally eliminating
the need to translate the Japanese word for "gambler" or "good-for-nothing"
(Shinnosuke, 1992, p. 353). However, its etymology remains unknown to most: The
numbers ya (8), ku (9), and za (3), when added together, constitute the worst possible
score in the Japanese card game hanafuda (Hill, 2004; Kaplan & Dubro, 2003). Initially
used among gambling gangsters to express that something was useless, the meaning
of ya-ku-za changed over time to describe the gangsters themselves, branding them
as useless elements in Japanese society (Hill, 2004; Kaplan & Dubro, 2003).

In stark contrast, Japanese authorities' official term for yakuza is bōryokudan,

which translates to 'violent group.' Regardless of naming conventions, members of
Japan's organized crime syndicates are, according to the average multimedia
consumer, easily identifiable by their missing fingertips and full-body tattoos, and
continue to retain an air of "Robin Hoods coming to the aid of the common people"
(Gragert, 1997, p. 148). While in the past there may have been a modicum of truth to
the latter, inevitable changes to the groups' socio-economic environment required
the yakuza to continue adapting to their surroundings in order to survive. Once
confining themselves to ‘traditional’ yakuza crimes such as illegal gambling, extortion,
prostitution, and labor racketeering, the Japanese mob have increasingly involved
themselves in drug trades, money laundering schemes, and corporate fraud, as well
as human trafficking and once looked-down upon crimes such as the defrauding and
burglarizing of the common people (Shikita, 2006).
Yakuza makes billions of dollars through corporate extractions and the Sokoiya
(shareholders meeting men). Other activities that they are involved include
exploitation of women, prostitutions (mostly coming from the Philippines, Thailand and
Taiwan) and gambling den.

2. Chinese Triads (Secrete Society of China)

History of Triads:
Triads are the most well-known organized crime group in China, Hong Kong, and
Macao. Despite its enormous population, China has only about 150 surnames
representing different clans that often have their own mutual-aid associations. In times of
unrest, many people with deferent surnames formed brotherhood for protection using
secrete oaths and rituals to substitute for familiar ties. These secret societies practiced
armed robbery, kidnap for ransom, and piracy. In 1821, the principal of an Anglo-Chinese
college wrote the first systematic account of these secret societies that he called
‘’TRIADS’’ .The term Triads was assumed to be coined by British authorities in Colonial
Hong Kong as a reference to the triads’ use of the Chinese mystical symbol, an
equilateral triangular imaginary that represents the three (3) Basic concepts of Heaven,
Earth and Man.
Triad and other secret societies have been mutual aid groups, personal networks
amongst Chinese, organized criminal gangs, as well as associated with patriotism. The
perceived patriotism of triads originated in the support of some for the restoration of the
Ming Dynasty and overthrow of the Manchu Qing dynasty. The association of triads with
patriotism continued as triad and secret societies used regimes for advantage and
regimes likewise used them when in need of support.
The bosses of the Triads are called ‘’Dragonheads’’. The Chinese Triad are base in
Hong Kong. The Triads are believed to control an empire worth many billions of dollars.
The largest and most powerful Triads, - Sun Yee On, is believed to have 40,000 members.
The unnamed Dragon Head of Kong Su Yee On, was named on Asiaweek’s list of the 50
most powerful people in Asia.

Hong Kong Organized Criminal Groups

Triads, such as “Wo Sing Wo” and 14K are two of the many triads in Hong Kong.
They are involved in various activities ranging from drug trafficking to corruption. ICAC-
Independent Commission against Corruption is one of the most active Criminal Justice
Unit involved in controlling illicit activities of these triads.

TRIAD GROUP
1. The 14K Triad. The 14K is responsible for large-scale drug trafficking around the world,
most of it heroin and opium from China or Southeast Asia. This is their primary business
in terms of generating income, but they are also involved in illegal gambling, loan
sharking, money laundering, murder, arms trafficking, prostitution, human trafficking,
extortion, counterfeiting and, to a lesser extent, home invasion robberies.
The 14K was formed by Kuomintang Lieutenant-General Kot Siu-wong in
Guangzhou, China in 1945 as an anti-Communist action group. However, the group
relocated to Hong Kong in 1949 when the Kuomintang fled from the Communists
following the Chinese Civil War. Originally there were fourteen members who were
 part of the Kuomintang, hence the name 14K. However, other sources say 14 stands
for the road number of a former headquarters and K stands for Kowloon.
Compared with other triad societies, the 14K is one of the largest and most violent
Hong Kong-based triad societies, and its members appear to be more loosely
connected. 14K factional violence is actually out of control because no dragonhead
is able to govern all factions of 14K worldwide.

2. The United Bamboo Gang. The United Bamboo Gang is a notorious gang in Taiwan,
and its Tiger Division makes continuous profits by running casinos and being entrusted
with debt collection, which is obviously suspicious of violating Organized Crime
Prevention Act. (shorturl.at/dvT69).
The United Bamboo gang has a headquarters and numerous local branches in
Taiwan. The original source of the gang's capital accumulation came from traditional
organized crime activities in the 1980s, such as extortion, debt-collection, gambling,
protection, and prostitution. In the 1990s the gang added operations in legitimate
businesses, such as security, investments, bid-rigging, construction, underground
banking, and the entertainment industry. There is both intergang and intriguing
violence, with the main weapon being guns.
The Heavenly Alliance gang stemmed from the banding together of native
Taiwanese inmates in prison to protect themselves from members of the United
Bamboo, whose members were primarily descendants of Mainland Chinese who
came to Taiwan after 1949. This gang was formally organized in 1986 at the Taipei
Detention Center. The gang has branches throughout Taiwan, with the main criminal
enterprises being protection for sex establishment, gambling, and the operation of a
lottery game, along with traditional organized crime activity. The gang is heavily
armed and prepared to use violence to resolve conflicts.
The Four Seas Gang also has branches throughout the country and has a history
of involvement in traditional organized crime activities. Like the United Bamboo, it
became involved in legitimate businesses in the 1990s and uses such tactics as bid-
rigging, credit card fraud, and price fixing. It engages in both intergang and
intragang violence. Police have countered gang activities under a number of laws
that target gangs. (shorturl.at/jvI36)

3. TONG. Similar to triads, Tongs originated independently in early immigrant Chinatown

communities. The word means "social club", and tongs are not specifically
underground organizations. The first tongs formed during the second half of the 19th
century among marginalized members of early immigrant Chinese-American
communities for mutual support and protection from nativists. Modeled on triads, they
were established without clear political motives and became involved in criminal
activities such as extortion, illegal gambling, drug and human trafficking, murder and
prostitution.( shorturl.at/szEF0)
Myanmar has the largest organized crime groups controlled by military Junta. It
include.es the following:
United Wa State Army (UWSA) under the command of Wei-Huseh-Kong – has connection
with Southeast Asian and North America.
Kinkang Chinese in coordination with MNDAA, protects cultivation areas and refining of
drugs.
Myanmar National Democratic Alliance Army controls the plantations and refine opium
into heroin and also produced methamphetamine.
Trafficking of women and children to Pakistan and Thailand and corruption are also some
of the activities of the group.

Other Organized Crime Groups in the Asian Countries

Taiwan organized crime has close connection with the Chinese Triads and Hong
Kong particularly the United Bamboo Gang. They are involved in drug trafficking,
prostitution, women and child trafficking.
Thailand is the country considered to be the most notorious in the world in terms
of sex industry. Supplies or imports about one (1) million women in different countries in
Asia.
In Vietnam, “Nam Cam Gang” is one of the most noted organized crime group in
Vietnam and known for drug trafficking and one of the major transit point of drugs in
Laos, Myanmar, China and Taiwan from Cambodia.
Philippines is the country considered as the heaven for the sex industry. A number
of women are sent abroad as entertainers but later end-up as prostitutes. Thailand,
Japan and other Asian Countries are common places of their destination. Young children
for pedophiles are also being catered.