Chapter 16: Organized Crime (PDF)

Chapter 16 Organized Crime by Stephen Schneider Saint Mary’s University Slides prepared by Stephen...

Chapter 16 Organized Crime by Stephen Schneider Saint Mary’s University Slides prepared by Stephen Schneider Saint Mary’s University Copyright © 2020 by Top Hat 16-1 Learning Objectives Define OC and a criminal organization. Understand the characteristics, complexity, and diversity of OC. Identify the dominant types of OC groups operating in Canada. Identify the common types of OCs committed in Canada. Copyright © 2020 by Top Hat 16-2 Learning Objectives Analyze the competing theories on the causes of OC and the social, economic, and political factors that give rise to OC in North America, and specifically in Canada. Compare competing theories on the organizational structures of organized criminal conspiracies. Understand the role Canada plays in global OC. Copyright © 2020 by Top Hat 16-3 Introduction Organized crime (OC) can be distinguished by how crimes are carried out The ultimate goal of these crimes is financial profit. Criminal activity is “organized” if it is perpetrated by a group of people who conspire together on a continuing and secretive basis toward a financial or other material benefit. Scale is also important in determining the extent to which criminal activity is organized The broader the scope of the criminal activities, the greater the need for organization. Copyright © 2020 by Top Hat 16-4 Defining Organized Crime Copyright © 2020 by Top Hat 16-5 Defining Organized Crime Involves three or more persons inside or outside Canada Has as a main Section activity one or 467.1 more serious Criminal criminal offences This activity results Code of in a material Canada: benefit Excludes a group that forms randomly to commit a single offence Copyright © 2020 by Top Hat 16-6 Characteristics of Organized Crime Copyright © 2020 by Top Hat 16-7 Table 16.1: A Comprehensive Classification of Organized Crime Copyright © 2020 by Top Hat 16-8 1- Structural/Organizational Characteristics Two or more people involved The larger the number, the more likely it is organized. Systematic pattern of relationships Offenders’ relationships may be based on kinship, friendship, business ties, etc. the structure of an organized criminal conspiracy may be hierarchical (based on power relations among the offenders involved) or more symmetrical (based on the specialized tasks performed by or resources available to the conspirators).  Hierarchical: are "associational networks," which are held together by close personal relationships among members. Examples of these personal relationships are kinship and shared ethnicity, as embodied by the Italian mafia "family.  Symmetrical: follows an "entrepreneurial model," where the bond among the offenders is less personal and determined more by business interests Copyright © 2020 by Top Hat 16-9 1- Structural/Organizational Characteristics Limited or Exclusive Membership Traditional OC groups place restrictions on who can become members. Group membership is based on factors such as ethnicity, race, nation­ality, kinship, or criminal record Assigned tasks/Specialization/Division of Labour Offenders involved may be assigned specific functions. In a hierarchical criminal organization, this division of labour often corresponds to the member's position in the power structure. In a more symmetrical criminal network, the roles played by individual offenders are often based on their particular skills or resources. Multi-jurisdictional/Transnational in Scope Some criminal groups and activities span national borders, giving rise to transnational organized crime. Copyright © 2020 by Top Hat 16-10 2- Institutional Characteristics Continuity/Continuing Enterprise OC groups are designed to last longer than current membership and leadership. Personnel can be replaced; no one is indispensable. Involves career criminals One reason why some organized crime groups persist over time is that the offenders involved are usually chronic offenders. A criminal record is a prerequisite for membership in some groups. Offenders remain involved in criminal activities even after accumulating wealth or spending time in prison. Copyright © 2020 by Top Hat 16-11 2- Institutional Characteristics Insulation against enforcement and prosecution The hierarchical organization or code of secrecy provides buffers for higher levels and helps protect the group. This is done by ensuring that the hands-on execution of illegal activities is carried out by those at the lowest level of the organization or even by "associates" who are not official members of the organization. Sophistication OC undertakes diverse and complex (transnational) illegal activities. It uses sophisticated technology. Some crime groups possess the computer technology to steal personal identification directly from bank cards or through the Internet. It has the ability to commit complex frauds, money laundering, cybercrime, etc. Copyright © 2020 by Top Hat 16-12 2- Institutional Characteristics Recruitment Traditional organized crime groups like the Italian mafia, outlaw motorcycle gangs, and Chinese triads use "an institutionalized process for admitting new members and admitting them with the values and ways of behaving Modern OC groups require specialized skills or resources that highlight the need for recruitment; sometimes outside contractors are used. Copyright © 2020 by Top Hat 16-13 3- Commercial Characteristics Profit-oriented crimes The business of OC is making money. The vast majority of OC groups are involved in the drug trade, because it so profitable. Criminal groups are exceptionally opportunistic. Consensual and predatory crimes Organized criminals are involved in both consensual and predatory crimes. Consensual crime involves no victim. That is, two or more individuals voluntarily engage in an illegal transaction. OC provides prohibited or restricted goods or services that are in demand by the public, but prohibited. Predatory crime directly affects a victim—for example, theft, fraud, human trafficking. Copyright © 2020 by Top Hat 16-14 3- Commercial Characteristics wide range of illegal activities associated with organized crime Serious Criminal Offences Multiple Enterprises Can carry out more than one type of profit-oriented activity. Drug trafficking, gambling,… Provide Goods and Services Goods: drugs, contraband tobacco, counterfeit goods Services: gambling, loansharking, sex, illegal migration Illegal and Legal Commercial Goods and Markets Cigarettes and liquor are legal products; they are also distributed through black markets. Ability to sell at lower price than the legal market. Legal businesses help generate revenue, legitimize the offender, and launder money. Copyright © 2020 by Top Hat 16-15 Table 16.2: Common Organized Criminal Activities Copyright © 2020 by Top Hat 16-16 3- Commercial Characteristics Monopolistic tendencies Groups often seek monopoly through violence and corruption. Tactics support commercial activities Corruption of public officials, labour unions, political parties, the judiciary. In recent years, police in Canada have uncovered many conspiracies to corrupt officials working in marine ports and airports in order to facilitate the international movement of drugs, contraband, and the cash proceeds of crime Violence. Violence is also used to maintain internal discipline within crime groups and to enhance the group's reputation. Money laundering referring to the process of legitimizing illegally earned revenue Intelligence gathering and counter-surveillance. This includes the use of eavesdropping technology as well as placing gang associates inside enforcement agencies to gather information Copyright © 2020 by Top Hat 16-17 4- Behavioural Characteristics Rationality organized crime is one of the most rational forms of criminality because it responds to the laws of supply and demand in the same way as legitimate businesses OC tries to maximize profits in response to supply and demand of illegal products and services. Even violence is used rationally. Subcultural values/contempt for civil society openly rebel against the social rules and values that govern civil society; instead, they organize their behaviour according to the norms of their criminal group. Serious and chronic offenders adhere to values and norms at odds with the dominant culture. They learn these values through their immersion in a deviant subculture. Copyright © 2020 by Top Hat 16-18 4- Behavioural Characteristics Non-Ideological Motivation OC groups are not motivated by political ideology, religious dogma, or a desire to change society. Their goal is to accumulate financial and other material benefits. Rules and Regulations Rules are made to be followed and may be implicit or explicit. Key ones call for secrecy and loyalty. because those are the rules that protect illegal organizations from the threats posed by law enforcement officials and by other organized crime groups. Discipline To ensure that the rules and regulations are obeyed, most criminal groups have strict forms of discipline based on loyalty, a code of honour, and most importantly, the fear of reprisal (death). Copyright © 2020 by Top Hat 16-19 Theories of Organized Crime Copyright © 2020 by Top Hat 16-20 Etiological Theories Several theories have tried to explain the causes and existence of organized crime in North America. These can be grouped into the following categories: (1) alien conspiracy theory, (2) ethnic succession theory, (3) economic theories, and (4) public policy impetus. Alien Conspiracy Theory OC is the result of the importation of secret criminal societies rooted in foreign cultures. Thus, organized crime does not emerge from American culture; rather, it has been thrust upon the United States by specific immigrant groups. La Cosa Nostra LCN was labelled a nationwide conspiracy under central control that bring down the values of American society. Copyright © 2020 by Top Hat 16-21 Etiological Theories Alien Conspiracy Theory Critiques The theory is seen as xenophobic and racist. The two main pillars of this theory have been disproved: 1. LCN is largely a North American creation. 2. There is little evidence that there was ever a truly nationwide mafia criminal conspiracy with centralized control. There were a number of Italian organized crime groups spread across North America, and these were linked through ideology, ethnicity, methods, illegal networks, and criminal activities. Dwight Smith argues that the alien conspiracy theory arose in the United States in part because self-serving government commissions, politicians, and law enforcement officials were fabricating or exaggerating stories to help secure greater enforcement and prosecutorial resources. Canadians erred in the opposite direction, denying for the longest time that Mafia existed in Canada. Copyright © 2020 by Top Hat 16-22 Etiological Theories Ethnic Succession Theory Theorists noted the overrepresentation of ethnic groups in OC in North America. The lack of legitimate opportunities for ethnic minority groups pushes them towards criminal innovations to achieve the American Dream. As time passes, the ethnic group gains access to legitimate opportunities and moves into mainstream society. Their place in the underground economy is taken over by members of other ethnic groups. Copyright © 2020 by Top Hat 16-23 Etiological Theories Critiques of Ethnic Succession Theory Many people of Italian or Chinese heritage remained active in OC long after these groups were assimilated into mainstream society this theory fails to explain how criminal organizations such as outlaw motorcycle gangs—emerge in North American society. Ethnic succession in Canada? The history of organized crime in Canada provides some evidence supporting ethnic succession theory. Dominant OC groups in historical succession include groups that were Irish, Jewish, Chinese, Italian, Vietnamese, Jamaican, and Russian. Copyright © 2020 by Top Hat 16-24 Etiological Theories Economic Theories An economic analysis views organized crime not as pathological but rather as a rational system that operates according to the laws of supply and demand OC serves a commercial function for the society. organized crime fulfills certain commercial functions, thereby creating a symbiotic (mutually beneficial relationship) relationship between criminal organizations (as suppliers) and segments of society (as consumers) Critiques of the theory include the following: It oversimplifies how OC operates. It only focuses on consensual crime, and ignores predatory crime. Copyright © 2020 by Top Hat 16-25 Etiological Theories The State, Public Policy, and Organized Crime A product or service only becomes illegal when the government passes laws prohibiting its sale and consumption. Governments create demand for illegal goods and services by outlawing vices or through high tariffs or taxes (for example, high tariffs and taxes on cigarettes). This creates an underground market, which is eventually dominated by OC. A fundamental reason why OC exists is that governments have criminalized certain vices. Examples: Prohibition (1920s), drug trafficking, trafficking in women for the sex trade Copyright © 2020 by Top Hat 16-26 Theories of the Structure of Organized Criminal Conspiracies Four theoretical models capture how the relationship among the criminal offenders is structured organizationally: (1) the bureaucratic/hierarchical model, where there is a vertical power structure with at least three permanent ranks; (2) the kinship model, structured around blood relationships; (3) the patron-client model, where influential professional criminals become "patrons" to others; and (4) the network model, characterized by a fluid association of like-minded criminal offenders connected through complementary specializations or resources. Theories of the Structure of Organized Criminal Conspiracies Bureaucratic/hierarchical model This model views OC structure as a bureaucracy: It is highly structured, hierarchical, and tightly controlled. There is a rational arrangement of roles and positions. There is a division of labour. Critiques include the following: It attempts to explain OC in terms familiar to the public; it helped buttress government theory that the Mafia was a national conspiracy. Many aspects of a bureaucracy do not apply to Mafia families. Copyright © 2020 by Top Hat 16-28  Theories of the Structure of Organized Crime The Kinship Model This model is based on Ianni & Reuss-Ianni’s study of an Italian American Mafia family. It argued this family was organized around Kinship relations patterned by culture, and Blood, marriage, and shared ethnicity. This model posits that the Mafia runs like a family, not a corporation: Its activities are based on personalities, not positions. Individuals have no clearly delineated (described) duties. Some members are indispensable. Family standing and tradition affect who attains leadership roles. Copyright © 2020 by Top Hat 16-29  Theories of the Structure of Organized Crime Patron–client model OC involves a loose system of power and business relationships. A middleman is required to provide contacts and influence. This person becomes a patron who dominates a network of people in a given area. At the centre of this patron-client model is the Capo. The patron or capo ensures the welfare and security of his people and associates and receives a monetary tribute from his clients. Copyright © 2020 by Top Hat 16-30  Theories of the Structure of Organized Crime The Network Model views the relationship among criminal offenders not as a monolithic, self-contained organization but as a fluid and loosely knit network of like-minded criminal entrepreneurs, none of whom has any long-term authority over the others. It consists of not as hierarchical but as symmetrical business partnerships based on complementary areas of specialization. The network model is very applicable to international drug production, smuggling, wholesaling, and retailing. Copyright © 2020 by Top Hat 16-31  Theories of the Structure of Organized Crime The Network Model Morselli (2009): OC arises through personal contacts and social networking among offenders. Criminal conspiracies have a “flexible order” that makes them resistant to law enforcement. “Brokers” play an important centralizing role within loosely structured criminal networks. CISC (2006): Crime groups are based on temporary alliances of individuals who merge their skills to achieve success. Copyright © 2020 by Top Hat 16-32 Conclusion: Canadian Organized Crime Copyright © 2020 by Top Hat 16-33 Canadian Organized Crime: Conclusions Canada is a branch plant for transnational crime groups and a transit point for the international movement of illegal drugs. According to the US Department of State (2002) "heroin, cocaine, and MDMA (ecstasy) are trafficked through Canada, as international drug traffickers take advantage of Canada's proximity to the United States, less stringent criminal penalties as compared to the U.S., and the constant flow of goods across the U.S.-Canada border" Proximity to the US has made Canada an important base for the globalization of OC. Canada is a producer of marijuana and synthetic drugs. Canada’s large area, unprotected border, and small population located near the US haveCopyright contributed to OC and smuggling in 16-34 © 2020 by Top Hat particular. Summary OC can be broadly defined by how crimes are carried out and by the ultimate goal of the criminal activity. Dominant OC genres in Canada include Italian, Chinese/Asian, outlaw motorcycle gangs, Russian/Eastern European, and Indigenous. The defining characteristic has, in the past, been a shared nationality, ethnicity, and/or language. In recent years, though, these factors are no longer the most important criteria in determining who participates in an organized criminal conspiracy. Copyright © 2020 by Top Hat 16-35 Summary Two competing theories regarding the origins of OC in North America are Alien conspiracy theory, and Ethnic succession theory. There are four organizational models: Bureaucratic/hierarchical Kinship Patron–client Network Copyright © 2020 by Top Hat 16-36 Summary The past forty years have seen a proliferation of OC conspiracies in Canada and worldwide. Canada serves as a branch plant for transnational crime groups and as a transit point for the international movement of illegal drugs. The country is also a major producer of marijuana, methamphetamines, and ecstasy. Canada has become an international centre for telemarketing fraud and counterfeiting. Copyright © 2020 by Top Hat 16-37