Organized Crime: Political and Corporate Alliances

exchanges between “underworld” and “upperworld” are

common- long term relationships

organized crime and politics

organized crime is an intergral part of structures:

political, economic, social

organized crime and politics

emphasis on _ amongst criminals, police, politicians, and other business ppl

collusion

political corruption is very much essential for

the survival of organized crime

organized crime and public officials have a

symbiotic relationship*

examples of favours that organized crime groups might due for public officials and vice versa

–Org crime might gift Campaign money

–Might get preferential Investment opportunities

–Bargaining assistance

Zebyelina (2013)
The untouchables:

transnational organized crime
behind diplomatic privileges and immunities

abuse of diplomatic immunities being used for

–Organizing Transnational Organized Crime

–Facilitating Transnational Organized Crime

–Conducting  Transnational Organized Crime

organized crime enter politics for a number of reasons such as __ all to secure profitable criminal activities

deter law enforcement and undermine investigations

diplomatic immunity/inviolability is not only

for members of government/heads of state

diplomatic immunity is also for diplomatic agents which is

a generic term that has traditionally denoted a public officer who acts as an intermediary between a foreign nation (the receiving state) and the nation which employed and accredited the diplomatic agent (the sending state)”

the main functions of diplomatic agents is to

–Supervise/transact affairs

–Protection of interests/welfare of citizens

examples of diplomatic immunity privileges for diplomatic agents

•Personal inviolability – no liability – arrest/detention

•Immunity from criminal jurisdiction  - detain/arrest/prosecution

•Immunity from civil and administrative jurisdiction – civil/administrative law suits/legal application

•Exemption from taxation – dues/taxes

distinction between privleges and immunity

•Privileges: “…mainly pertain to the right to commit certain activities and engage in relationships that others are not entitled to.”

•Immunity: “…exemption from local jurisdiction.”

diplomatic agents are _ in international law

well protected

diplomatic being well protected in International law makes them

hard targets for cases in which theyre believed to be part of transnational org crime

immunity/privileges enshrined in

1961: Vienna Convention on Diplomatic Relations*

•Vienna Convention on Diplomatic Relations Makes ability for law enforcement to Exercise power on diplomatic agents

almost impossible

the view of abuse of diplomatic immunity is simple like they dont pay their parking tickets but the reality is

significantly worse

•Diplomats, Their Families, Their Staff, Servants

Engage in

•Variety of offences:

–Corruption

–Drug Trafficking

–Human Smuggling

when diplomats and their associates are caught engaging in crime, their treatment by law enforcement is

overly generous *

publication of diplomatic criminals is generally rare because it

causes damage to reputation

study

•“…a qualitative analysis of various types of abuse of diplomatic immunities and privileges for the purpose of organizing, facilitating and conducting illicit activities.”

•Three categories:

•Diplomatic agents as victims of organized crime

•Diplomatic agents as facilitators of criminal activity

•Diplomatic agents as principal perpetrators

which category of diplomatic abuse is this

•Exploited by organized crime groups

–Diplomatic agent –has no knowledge this is happening

Diplomatic agents as victims of organized crime

example of

Diplomatic agents as victims of organized crime

Counterfeit diplomatic bags (cant be opened)

Criminals can use that for Smuggling **

Diplomatic agents as victims of organized crime

•Case:

•January 26, 2012

•New York Times

–U.N. Sees an Unexpected Arrival: Bags of Drugs

–A diplomatic bag got sent to the un and it had drugs

Diplomatic agents as victims of organized crime

•Perpetration – families of diplomats might be engaging in some sort of crime

–And the diplomat themselves has no knowledge

•examples

Identity theft and forgery

Fraudulent ID’s – various criminal functions

Photo substitution (changing pics), forged visas, passports

•All under the guise of Diplomacy

Diplomatic agents as facilitators of criminal activity

issues with visa processing

oversight and accountability

Diplomatic agents as facilitators of criminal activity

visa malfeasance

–Issuance of fake visas

–Procurement of fake visas

–Counterfeiting of fake visas

–Forgery  of fake visas

Diplomatic agents as facilitators of criminal activity

•Within the context of Human smuggling

•Individuals obtaining real Visas:

As a result of Connections

–with particular consulate

•Specific officials:

–Clerical staff that deals with passports or visas

•UNODC – corruption and smuggling

Diplomatic agents as principal perpetrators

_ of data on this

lack

Diplomatic agents as principal perpetrators

lack of data on this because cases

–Can be rlly Threatening

–And rlly Easy to engage in

Diplomatic agents as principal perpetrators

examples

•Drug Trafficking

•Contraband

issues with diplomatic immunity

Lax administration of visas/passport

Oversight

Legal comprehension

•Law enforcement – comprehension of limits relating to diplomatic immunity

Organized Crime and the Business Community

characteristics

•legal business

: “represents, in virtually every instance, an extension of a legitimate market spectrum into areas normally proscribed. Their separate strengths derive from the same fundamental considerations that govern entrepreneurship in the legitimate marketplace: a necessity to maintain and extend one’s share of the market”

Organized Crime and the Business Community

looks for investments that are

safe and profitable

Organized Crime and the Business Community

•Organized crime – might purchase or open

legitimate businesses:

–Bars

–Nightclubs

–Trucking companies

Organized Crime and the Business Community

•Might make Legitimate investments

–Bc

there are Constraints –in  illegal market

Organized Crime and the Business Community

constraints in illegal market

example,

•Difficult for– geographic expansion for org crime

–Less employees than what they require

•So they wont be its better to have Control vs. further investment (illegal enterprise)

reciprocity

Reciprocal relationships

•Unite:

–Criminals

–Clients of org crime

–Government representatives

the bridge for reciprocal relationships is

organized crime

organized crime is the bridge between

Covert –organized crime

–And Overt world of– business, politics, finance

example of reciprocity

–Liquor syndicates in prohibition era

Prohibition Era – Philadelphia:

–Liquor syndicates- Union National Bank **

–Using False accounts to move illegal liquour thorugh railroads

–Laundering – real estate

–Contract – Reading Railroad

Interface – Legitimate Business: Five Functions

•1. A means to conceal other illegal activities

•2. A means to launder profits from criminal activities

•3. A source of legitimate and reportable income 

•4. Furtherance of and the already high degree of integration between organized crime and respectable business people

•5. Stable and relatively safe investment opportunities

How business people benefit from organized crime reciprocity

examples

•Stolen goods – resale for cheaper price so business ppl spend less and wont ask where they got it from

•Racketeering services:

–Harass competition

–Favourable employee contracts

•Relationship btwn org crime and business:

functional and necessary

efficient operation of reciprocal relationship of org crime and business

–Existence of both business and org crime

Organized crime and legitimate business may mutually assist one another, as in

regulating prices on commodities or enforcing labor contracts. Interdependence between the underworld of crime and upperworld of business ensures that both systems will be maintained. Mutual assistance accompanied by the profit motive provides assured immunity.”

US political economy- illegitimate money , licit endeavours

•Symbiotic relationship:

Case of

meyer lansky

Quebec Corruption Inquiry

aka

•The Charbonneau Commission

Commission of Inquiry into the Tendering and Management of Public Contracts in the Construction Industry

Quebec Corruption Inquiry

people involved

•Chair: Justice France Charbonneau

•Co-commissioners: 

•Renaud Lachance

•Roderick MacDonald

Quebec Corruption Inquiry

focus

Corruption in Construction industry

Particularly looking at Ties – btwn organized crime – and politics

Quebec Corruption Inquiry

creator

–Jean Charest (Former Premier of Quebec)

Quebec Corruption Inquiry

•Mandate (Montreal Gazette):

•1. Examine the

awarding of public construction contracts by a wide variety of public and para-public entities in Quebec during the last 15 years.

•Transportation Department

•Hydro Quebec

•Municipal Governments

Quebec Corruption Inquiry

•Mandate (Montreal Gazette):

•Identify the

specific techniques used by organized crime groups (including the Mafia and biker gangs) to infiltrate the province’s construction industry.

Quebec Corruption Inquiry

•Mandate (Montreal Gazette):

find

routes towards solutions

Quebec Corruption Inquiry

•Mandate (Montreal Gazette):

what was not in the mandate

to arrest and charge individuals

Quebec Corruption Inquiry

included tons of

•Testimony from:

–Bureaucrats

–Engineering executives

– Construction bosses

Quebec Corruption Inquiry

noted was

Collusion – in terms of increase in price of contracts

Quebec Corruption Inquiry

•General Revelations –related to

ties btwn: companies, political parties, mafia, bureaucrats

Quebec Corruption Inquiry

end of inquiry november 2014

closing statement:

nov 14

Quebec Corruption Inquiry

public hearings included

189 factual witnesses

Quebec Corruption Inquiry

final report

april 2015

Quebec Corruption Inquiry

final report delayed 7 months

november 2015

Quebec Corruption Inquiry

cost

•$988,000 per month

•42 months: 41.5 million

•Initial: 14.6 million per year

•Under budget

Quebec Corruption Inquiry

report tabled and details

•November, 2016

•1741 pages

•60 recommendations in total

Quebec Corruption Inquiry

•The recommendations include:

•Creation of an independent authority to oversee public contracts.

•Better protection for whistleblowers.

•Requirement that construction companies report acts of intimidation or violence.

•Increased penalties for construction companies that break the law, up to and including cancelling their license under Quebec's building authority, la Régie du bâtiment du Québec.

•Increased penalties for people who make use of so-called "strawman" schemes.

documentary

•International timber smuggling

•Bribery, kidnapping, attempted murder

•The timber mafia Stephen mcdonnel

•Kalimantan- where faith was abducted

•Indonesia forests

•Stealing wood from national parks- illegal timber cutting without gov permission

•China Japan Australia and US buying illegal wood

•70% of timber illegal