Tag Archives: organized crime

Organized Crime: the Invisibles

Struttura_ndrangheta_2011

From modest beginnings as the local mafia of Calabria, at the toe of the Italian boot, the ’Ndrangheta has spread far and wide. It has penetrated Italy’s financial and industrial heartlands, Lombardy and Piedmont, more than any other organised-crime group. It has a dominant position in the transatlantic cocaine trade, building on alliances with Colombian and then Mexican mobsters. One study put its turnover in 2013 at over €50 billion ($69 billion).

But who controls the ’Ndrangheta? The question is central to one of Italy’s longest-running mafia trials, which is expected to end shortly after almost three years. The trial arose from an investigation code-named “Operation Goal” that led in 2010 to more than 40 arrests. Among the accused are members of the most notorious families in Reggio di Calabria. One, Pasquale Condello, is known as Il supremo.

The prosecutor, Giuseppe Lombardo, argues that neither Mr Condello nor any other known or alleged mobster is truly supreme; they take their cues from an “invisible” ’Ndrangheta from the outwardly respectable middle class. In February Mr Lombardo altered the charges to reflect this, inviting the judges to express their view of his case in their written judgment.

The earliest hint of a hidden ’Ndrangheta emerged in 2007, during an investigation overseen by Mr Lombardo into how the group tried to profit from the construction of a new motorway. Eavesdropping on a trade unionist, Sebastiano Altomonte, police heard him describe his contacts with ’Ndrangheta leaders and explain to his wife that they were split between “the visible and the invisible, which was born a couple of years ago”. He was among the “invisibles”, he said. It was previously believed that a co-ordinating body, the Provincia, was the ’Ndrangheta’s high command; it also has an assembly called the Crimine (“Crime”), believed to meet once a year during the pilgrimage to a sanctuary in the Aspromonte uplands.

He argues that in recent years the police in Calabria have had excellent results against the ’Ndrangheta. “But the organisation does not get any weaker. So we know that we are hitting it at a level below that which really counts

Organised crime in Italy: From toe to top, Economist, Apr. 26, 2014, at 52

The Evolution of Organized Crime: from rhino horn to illegal waste disposal

rhino heads

[A]ccording to America’s Congressional Research Service, is worth as much as $133 billion annually. Commodities such as rhino horn and caviar offer criminals two benefits rarely found together: high prices and low risk. Rhino horn can fetch up to $50,000 per kilogram, more than gold or the American street value of cocaine. Get caught bringing a kilogram of cocaine into America and you could face 40 years in prison and a $5m fine. On January 10th, by contrast, a New York court sentenced a rhino-horn trafficker to just 14 months…Organised crime is globalising and diversifying. Mono-ethnic, hierarchical mafias are being replaced by multi-ethnic networks that operate across borders and commit many types of offence. In an ongoing investigation into rhino-horn trafficking, the Fish and Wildlife Service (FWS) arrested Irish travellers using indigent Texans to procure material for Chinese and Vietnamese buyers. Europol, the European Union’s law-enforcement agency, estimates that just a quarter of Europe’s roughly 3,600 organised-crime groups have a main nationality, and that some operate in dozens of countries. A third are involved in more than one criminal enterprise, with half of those linked to drug-trafficking.

And though traditional trafficking in drugs, guns and people is still lucrative, gangs are increasingly moving into lower-risk, higher-reward areas—not just wildlife, but fraud and illegal waste-disposal….Gangs in Britain make around £9 billion ($14.8 billion) a year from tax, benefit, excise-duty and other fraud—not much less than the £11 billion they earn from drugs. In America cigarette-trafficking deprives state, local and federal governments of $5 billion in tax revenues annually. The European Union estimates that losses within its borders from cigarette smuggling, tax fraud and false claims on its funds by organised groups total €34 billion ($46.5 billion) a year. But member states bring fewer than ten cases each a year for defrauding the EU, and sentences tend to be light.

According to the FLARE Network, an international group of campaigners against organised crime, criminal groups in Italy make around €14 billion a year from being mixed up in agriculture. In some parts of the country mafias control food production and distribution; Franco La Torre, FLARE’s president, says they also enrich themselves through fraudulent claims on EU agricultural funds. Increasingly strict regulation of waste disposal has created another profitable opportunity for organised crime in Europe—particularly, according to Europol, for the Italian Camorra, ’Ndrangheta and Cosa Nostra…

Old-style loan sharks and drug-dealers are finding a new role as distributors for the modern mobsters who manage the supply chains, marketing, finance and human resources needed to move goods, money and people across borders. “The new generation are very talented businessmen and technologically advanced experts,” says Mr La Torre. They prefer invisibility to showy violence. Many also have legitimate business interests.  Clever criminals acting across borders are extremely difficult to prosecute. They profit from gaps in enforcement and regulation, and conceal their illegal acts in complex supply chains. If a network of Nigerian scammers based in Amsterdam defrauds French, Australian and American credit-card holders, where does the crime occur? And who has the motivation, not to mention the jurisdiction, to prosecute?

A commodity such as oil, ivory or fish will be transported on a ship flying a flag of convenience, explains Mr Leggett. The ship will be owned by a holding company registered in a tax haven with a phoney board. Thus the criminals can disguise the provenance of their ill-gotten goods and middlemen can plead ignorance….

Until then, illicit goods will keep coming in quantities too great for governments to stop. One FWS inspector estimates that for all the peering, prodding and chirping, for all the rewards promised and rhino-horn traffickers caught, the agency picks up perhaps 5% of wildlife brought illicitly into America. For criminals, that is merely a light tax on the profits from the rest.

Excerpts, Organised crime: Earning with the fish,Economist, Jan. 18, 2014, at 59