2 Delivery of Illicit Goods and Services Organized crime provides a wide array of illegal goods and services to millions of customers on a daily basis.Some organizations operate world-wide.Organized crime also conducts its business in a legal way.
3 CorruptionCorrupt relationships between organized criminals and public officials must occur:At the law enforcement level.Between the organized criminals who infiltrate businesses and the public officials who regulate these businesses.
4 Pornography Soft-Core Hard-Core Results from restrictiveness of public policy that prohibits hard-core pornography. (Simulated sex.)Hard-CoreDepict more specific and explicit sexual acts (and private parts of the body).
5 ProstitutionAny sexual exchange in which the reward is neither sexual nor affectionLegal definition: (Something of monetary value)CashPromiscuityRelationship to a sexual partnerSubtlety
6 Prostitution Types of Prostitutes Streetwalkers Massage Parlor Stag Party GirlsHotel and ConventionBar GirlsEscort Service
7 Drug Trafficking The Distribution Chain Importers bring large quantities of cocaine or heroin into US.Importer hires skilled smugglers to transport the drugs.Once drug is in US, wholesaler purchases drugs from importer.Mules or runners – transport drugs for wholesaler.
8 Drug Trafficking Wholesalers receive nearly pure drugs. Drugs must be diluted (stepped on) with chemicals to increase the amount of the drug.
9 Drug Trafficking Drugs, Guns, and Armed Conflict Transfer of Arms in “Gray” MarketFraudulent documents issued by the company, may be used to disguise the actual customer.Fraudulent documents may disguise the military nature of the goods.
10 Drug Trafficking Drugs, Guns, and Armed Conflict Transfer of Arms in “Gray” MarketFalse declarations by the company may hide the actual identity of the supplier.The arms transfer may be disguised as humanitarian.Difficult to do without corrupt customs officials.
11 Contraband SmugglingSeeks to achieve high levels of illicit profits by avoiding taxes, tariffs, and duties on certain consumer items.US is a primary transit country for contraband being shipped to other destinations.US is a major source of considerable contraband.Automobiles, alcohol, tobacco products.
12 Counterfeiting Currency Typically outside the portfolio of organized crimeHigh riskLabor intensiveRelatively low yield profitsHalf of the counterfeit money is produced in US.Therefore; half the counterfeit money is produced outside the US!
13 Counterfeiting Consumer Goods Counterfeit goods are called knockoffs and is global.Consumer goods that are desirable and easy to produce are targets of counterfeiting.
14 Gambling The Process Writers - write bets Bets taken to central office.Layoff bank covers extraordinary high bets.Banker is the person that supplies capital to establish the business.
15 Loan SharkingProvides money at a high interest rate to people who have little choice but to go to such sources in search of financial support.Because the loan is illegal, default cannot be sought in a court of law “unclean hands doctrine”. This leads to “self-help measures” to collect the debt.
16 Environmental CrimeLegitimate business of waste removal for organized crime.Illegal waste disposal.Illegal international trade in animal parts.Unsafe shipping of Hazardous Materials.
17 Business Racketeering Reasons to seek LegitimacyOrganized crime groups seek profitable and safe investments.Active participation in legitimate business enhance the integration of crime group members with members of the business community.
18 Business Racketeering Reasons to seek Legitimacy:Organized crime often supplies investment capital that would otherwise not be available from other sources.Provides money laundering opportunity.
19 Labor Racketeering The use of union power for personal profit. Major activities by which organized crime realizes illicit profits:Sweetheart contracts.The misuse of union benefit funds.Extortion or “strike insurance.”
20 High-Tech Crime Target computer networks: Government entities Public utilitiesIndustriesBusinessesFinancial institutions
21 High-Tech Crime“Computer Crimes” (Any crime in which a computer is utilized):Identity Theft & Subsequent PurchasesTrading in “kitty porn”Arranging ProstitutionCommunicating ConspiraciesSoliciting Financial Schemes
22 Human Trafficking A significant current crime problem. Individuals are usually sold for forced into agricultural or industrial labor.
23 Trafficking in Women and Children Source Countries of TraffickersPoor economic and employment prospects for women.Well-defined and organized extant criminal organizations.A culture that emphasizes a subordinate role for women in society (e.g. Asia, Middle East).
24 Money LaunderingProcess where criminals conceal or disguise the proceeds of their crimes or convert those proceeds into goods and services.Money Laundering Process:Placement stageLayering stageIntegration stage
25 Money Laundering Methods: Bulk movement strategy Use of financial institutionsUse of nonfinancial and commercial businessesMovement through the underground banking systemThe Underground Banking System