Tag Archives: organized crime

trans-boundary organized crime

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This sounds like a conspiracy theory, but it is true: Chinese gangsters with ties to the Chinese government are in league with Mexican gangsters to smuggle drugs and people into the United States, and in at least some cases enslave those smuggled people on farms operating in the United States. Relatedly, Chinese gangsters with ties to the Chinese government are known to be laundering drug money through Canadian banks including TD (i.e. Toronto Dominion) bank.

None of this should be an excuse for racism of course. The gargantuan and inasatiable U.S. demand for drugs is the root driver of these problems, criminalization of said drugs creates the profit incentive, and organized crime exists to exploit opportunities like this while minimizing risks (to itself). Organized crime tends to be ethnicity based because recent immigrant groups have social ties to each other and to people and organizations in their countries of origin. And particularly in the case of human trafficking, it is the immigrants themselves who are typically exploited by criminals belonging to their own ethnic group. The risk of violence to those of us not directly involved would seem to be low, other than people who get caught up in the illegal drug marketplace in one way or another.

Nonetheless, all this needs to be smashed. And it can be smashed by traditional law enforcement, inside our traditional borders. Human trafficking and borderline or outright slavery in particular just have to be smashed without mercy. The Oklahoma story above is particularly disturbing where it sounds like law enforcement knew for quite a while that armed guards were confining and forcing people to work against their will, within the boundaries of the United States.

the new drug trade

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Precursors of fentanyl, methamphetamine, and other deadly, yet cheap, drugs are manufactured in places like China and shipped to Mexican drug cartels, who are happy to mix them up and move them across the U.S. border. U.S. drug dealers are buying pill presses and filling them with whatever is cheapest, then stamping them to look prescriptions drugs like Oxycontin, Xanax, Adderal. Users, some addicts, and some just looking for a party, are popping these pills and in some cases dying.

It’s a mess. I wouldn’t call it a “war”. The fundamental problem is the U.S. demand for these substances, and the secondary problem is the criminalization of these substances which creates plenty of business opportunities for criminals. The less organized ones are getting caught by law enforcement, the organized ones are making a fortune, and the customers are dying, especially the younger, less well informed, and lower income ones. The makeup of the customers/victims may look a little different than some drug waves of the past, but the story has not really changed.

illegal oil trade

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This article from Yale says there is a large illegal trade in oil. My first thought was that if countries or companies are producing oil, don’t they have the right to sell it to whoever they want? It turns out, oil is being stolen and sold by groups or even individuals who are not the actual producers in some cases, and in other cases it is being smuggled or laundered by producers who are under international sanctions.

In some cases, subnational actors openly export oil despite official prohibition by central governments. The Kurdistan Regional Government in Iraq maintains it is their region’s constitutional right to export oil independently, in defiance of the central government. With Baghdad withholding the region’s 17 percent of budget share, the regional government sought economic independence through hydrocarbons and found a degree of international sympathy, given its role in combatting ISIS and hosting 1.9 million refugees and internally displaced people. The unrefined product was sent via pipeline through Turkey’s Ceyhan port, loaded by various Greek shipping companies on tankers, then stored in Malta or Israel until buyers were found. Shifting routes of Kurdish oil tankers can be observed on sites like tankertrackers.com…

With 90 percent of the world’s goods, 30 percent of which are total hydrocarbons, traded by sea, much of the illegal fuel trade is conducted on water. Two thirds of global daily oil exports are transported by sea, reports the UN Conference on Trade and Development, and a staggering 64 percent of international waters are areas beyond any national jurisdiction. Non-state actors offshore West Africa, Bangladesh or Indonesia take advantage of loopholes created by international law and the law of the sea. Transfer of illegal fuel is often done ship to ship on neutral waters – with one ship commercially legal, recognized as carrying legitimate imports at the final port of destination. Thus, illegal crude from countries such as Libya or Syria finds its way to EU markets.  Recently Russian ships have been found involved in smuggling oil products to North Korea through ship to ship transfers.

Armed theft and piracy also occurs. Hijackings off the coast of Somalia resumed in 2017, the first since 2012, after the international community reduced enforcement. Beyond jurisdictional issues, many governments are overwhelmed by other maritime security threats and cannot prioritize the illegal trade. In fact, fuel traders have reported that the problem is so pervasive that many companies calculate in advance for losses up to 0.4 percent of any ordered cargo volumes.

 

Trump’s Russian Laundromat

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The New Republic has a long history of Trump’s ties to Russian mobsters. At the absolute minimum, he is guilty of taking their money and not asking any questions.

The very nature of Trump’s businesses—all of which are privately held, with few reporting requirements—makes it difficult to root out the truth about his financial deals. And the world of Russian oligarchs and organized crime, by design, is shadowy and labyrinthine. For the past three decades, state and federal investigators, as well as some of America’s best investigative journalists, have sifted through mountains of real estate records, tax filings, civil lawsuits, criminal cases, and FBI and Interpol reports, unearthing ties between Trump and Russian mobsters like Mogilevich. To date, no one has documented that Trump was even aware of any suspicious entanglements in his far-flung businesses, let alone that he was directly compromised by the Russian mafia or the corrupt oligarchs who are closely allied with the Kremlin. So far, when it comes to Trump’s ties to Russia, there is no smoking gun.

But even without an investigation by Congress or a special prosecutor, there is much we already know about the president’s debt to Russia. A review of the public record reveals a clear and disturbing pattern: Trump owes much of his business success, and by extension his presidency, to a flow of highly suspicious money from Russia. Over the past three decades, at least 13 people with known or alleged links to Russian mobsters or oligarchs have owned, lived in, and even run criminal activities out of Trump Tower and other Trump properties. Many used his apartments and casinos to launder untold millions in dirty money. Some ran a worldwide high-stakes gambling ring out of Trump Tower—in a unit directly below one owned by Trump. Others provided Trump with lucrative branding deals that required no investment on his part. Taken together, the flow of money from Russia provided Trump with a crucial infusion of financing that helped rescue his empire from ruin, burnish his image, and launch his career in television and politics. “They saved his bacon,” says Kenneth McCallion, a former assistant U.S. attorney in the Reagan administration who investigated ties between organized crime and Trump’s developments in the 1980s.

It’s entirely possible that Trump was never more than a convenient patsy for Russian oligarchs and mobsters, with his casinos and condos providing easy pass-throughs for their illicit riches. At the very least, with his constant need for new infusions of cash and his well-documented troubles with creditors, Trump made an easy “mark” for anyone looking to launder money. But whatever his knowledge about the source of his wealth, the public record makes clear that Trump built his business empire in no small part with a lot of dirty money from a lot of dirty Russians—including the dirtiest and most feared of them all.