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Midterm review organized crime

Who was al capone
A gangster in Chicago famous for bootlegging alcohol during the prohibition.
– (Chicago outfit)
– was the most powerful person in Chicago thanks to prohibition.
Alphonse “Scarface” Capone. Left from New York an arrived in Chicago in 1919. Allied with Johnny Torrio, Capone rose to power during the time of prohibition. Struck a deal with a local Republican leader while Torrio was on vacation in Italy. In return for helping the Republicans maintain control in Cicero, Torrio would be given a free hand in that city. Al and Frank Capone advanced towards Cicero and overwhelmed the opposition. Frank Capone died in a gunfight at the polls. The Capone candidate won and Al Capone moved his headquarters from Chicago to Cicero operating out of the Hawthorne Inn. Imprisoned for tax evasion. Contracted syphilis. Died from pneumonia following a stroke.

how do Organized crime (OC) Groups function
1.) They operate within limited areas to control the operating environmen
o Absence of political goals[has no political goals] (the goal of an organized crime group are money and power whose procurement is not limited by legal or moral concerns. They are not motivated by social doctrine, political beliefs, or ideological concerns.
o Is hierarchical (vertical power structure with a least three permanent ranks- not just a leader and followers- each with authority over the level beneath. The authority is inherent in the position and does not depend on who happens to be occupying it any given time)
o Has a limited or exclusive membership (qualifications may include ethnic background, kinship, race, criminal record, or similar considerations.
o Constitutes a unique subculture (a subcultural base provides the flexibility necessary for criminal entrepreneurs to switch enterprises. )
o Perpetuates itself (cressey states that in order for an organized crime group to survive, it must have “an institutionalized process for inducting them with the values and ways of behaving of the social system.”
o Exhibits a willingness to use illegal violence (violence is a readily available and routinely accepted resource. Access to private violence is an important dimension that allows the group to actively pursue its goal. The use if violence is not restricted by ethical consideration but controlled only by practical limitations)
o Is monopolistic (a particular industry [gambling, drug trafficking] , violence and corruption may be employed)
o Is governed by explicit rules and regulations

terrorism vs organized crime??
– Terrorists often choose their target at random
– Both share the same geography. Membership can overlap and have similar needs for weapons.
– Both may use compartmentalization (organized into cells, to how they communicate)
– both engage in money activity for support
– both engage in money laundering
– terrorism is inherently political, and such it is relative to one’s political view.
– Domestic terrorism; right wing extremists
– They work around each other
– Both use sponsorship. Apprenticeships, and initiation ceremonies.
– Differences in the means and ends
– Terrorists use their funds to further political ends to overthrow governments and impose their worldview.
– OC are not motivated by ideology, while terrorist groups try to give their activities an altruistic aura to justify their acts and to solicit people’s sympathy for their cause.
– OC groups prefer to carry out their activity’s secretly, while terrorist seek maximize media coverage and to promote their message

define organized crime?
In the 20s, there was lots of organized crime. There were mafias and groups that produced and distributed drugs and alcohol, since the 20s was also the time of prohibition.

– the FBI defines organized crime as ” any group having some manner of a formalized structure and whose primary objective is to obtain money through illegal activities. Pg2
– they are a rational organization positions assigned based on competence, impersonal manner, extensive written rules, communication from the top/down.
Organized Crime: “Any group having some manner of a formalized structure and whose primary objective is to obtain money through illegal activities. Such groups maintain their position through the use of actual or threatened violence, corrupt public officials, graft, or extortion, and generally have a significant impact on the people in their locales, region, or the country as a whole.” (Pg 2).
“A structured group of three or more persons, existing for a period of time and acting in concert with the aim of committing one or more serious crimes or offences established in accordance with this Convention, in order to obtain, directly, or indirectly, a financial or other material benefit.”

organizations of Cartels and terrorist groups
each cartel contains various sections with a separate function, such as manufafacturing, transportation, distribution, finance, and security.

the robber barons
-“Robber barons” such as Astor, Vanderbilt, Drew, Fisk, Gould, Stanford, and Rockefeller, engaged in crime on unparalleled level, providing models for immigrant-based crime that fallowed.
– Barons helped enrich the fertile soil necessary for the growth of organized crime in the US and whose spiritual legacy lives on the 21century corporate crime.

Prohibition and all its impact (and all variables) from the law to who it made infamous
– in 1915, nativism and prohibitionism fueled the rebirth of the Ku Klux Klan
– the 18 amendment to the constitution was ratified in 1919 and ten months later, over a veto by president Woodrow Wilson. Congress passed the Volstead act.
– Volstead Act provided for federal enforcement and the prohibition Bureau
– Prohibition agents set up illegal roadblocks and searched cars; drivers who protected were in danger of being shot.
– Prohibition agents escorted liquor trucks and helped smugglers unload cargoes

• Arthur Flegenheimer “Dutch Schultz”: Bough trucks and garages and, aided by a vicious crew of gunmen, became a major beer distributor. Expanded into the territory of rival beer businesses. The man with the money and guns became the powerful.
• Willie Bioff: Small-time Chicago racketeer who specialized in shakedowns of kosher butchers. Partnership with George Browne. Extorted money from theater chains under the threat of labor trouble.

Murder Inc.
group of mobsters that were hired hit-men for various gangs

– was an outcome of the cooperation between criminal organization
– “boys from Brooklyn” were used as staff killers by the newly formed confederation of organized crime leaders that emerged from Prohibition.
– Was an experiment gone astray placing too much knowledge into the hands of a small group of low-level psychopaths, eventually becoming a threat to syndicate leaders.

Started with grouping of Abe “Kid Twist” Reles, Martin “Bugsy” Goldstein, and Herschel “Pittsburgh Phil” Strauss. They attempted to take over neighborhood rackets dominated by the three Shapiro brothers. Killed all three Shapiro brothers after multiple attempts. The Reles group took over gambling, loansharking and prostitution in the East NY-Brownsville section. The group was used as staff killers by the crime leaders that gained power during prohibition. Always had someone on-call for when the situation arose. They were used by leaders across the country.

the early mafia wars
– the Catellammarese War between the two makor Mafia factions in New York ended with murder of jospeph Masseria.
– In the aftermath of the castellammarese war, five Italian-American crime Families emerged, and they continue to maintain distinct identities: bonanno, Colombo. Gambino, Genovese, and lucchese.
– Luciano excused himself and went to the washroom

Castellammarese War: Struggle for domination of Italian-American organized crime. Two major Mafia factions at the time were headed by Giuseppe “Joe the Boss” Masseria and Salvatore Maranzano. Many of Masseria’s allies turned to Maranzano’s side. Masseria was killed in a restaurant after meeting Lucky Luciano for a card game.

lucky luciano
immigrates with his family to America as teen gets involved with 5 points gangs. By 1925 lucky runs crime syndicate, prostitution, gambling protection money, as money poors in they buy off police force, judges, politicians. and by 1930 started new organization of Mafia, more structure; imprisoned for prostitution, released to Sicily to “convince” Sicilian mafia to cooperate with American troops. He moves base to Havana cubana bc he can live in the U.S. anymore, they kicked him out and he moved to Italy died of natural cause.

– Lucky Luciano: with the death of masseria and maranzano, lucky became the most important American mafia figure in NY. Lucky chose to take the stand in his own defense- a bad decision, because Dewey was able to trap him in lies about his criminal record.

After Masseria and Maranzano’s death, Luciano became the more important American Mafia in New York. Was imprisoned on charges of compulsory prostitution. Had his organization provide service during the war. At the request of Naval officials, they prevented strikes and other forms of labor unrest that could interrupt wartime shipping. Lucky was released from prison due to his help.

meyer lansky
luciano’s associate, member of jewish mafia but connections to italian mafia, heavy gambler (gambling ties him to cuba), member of national crime syndicate/murders inc. Developed an international gambling empire. Had established gambling operations in Louisiana, Florida, and Cuba. Was not a cheating establishment.

Siegel “bugsy”
Mobster who built the Flamingo Hotel and Casino in Las Vegas; his nickname was “Bugsy”; initials C.S. One of the founders and leaders of Murder Inc.

The structure of the mafia
– Each member of a NY mafia family is an independent entrepreneur who shared a portion of his income with the hierarchy.
– Membership eligibility requires Italian descent on your father’s side, a sponsor, and a history of successful criminal activity or possess certain skills required by the group, an earner or a shooter.
– Law enforcement agencies take great interest in a criminal if they discover he is a made guy. Any insult or assault on a member requires that he kill the offender. He is requires to obey the orders of his boss, even if this means participating in the murder of a complete stranger or perhaps a close friend or relative.
– Members and associates are organized into crews, which are semi-independent units
– Members are not under the direct or indirect supervision of the boss and he does not a complete overview of the decentralized activities of members
– Given the violent nature of “made guys,” peacekeeping is a primary responsibility of a boss.
– Family boss are linked in a rather informal arrangement known as the commission
– American Mafia rules are contrary to the southern Italian credo that places family above all else
– The formal organizational structure of a Mafia family is not the same as its economic structure
– Boss (capo), underboss (sottocapo), counselor (consigliere), Captain (caporegime), member (soldato)
– Membership, crews (members and associates are organized into crews, semi-independendent units nominally headed by a caporegime, a capodecina, a street boss, or even a soldier. The Boss
– Crews generate the money

goodfellas the movie and all its components shown in class

the mafia in Chicago
– known as the Outfit
– mike McDonald: the gambling boss of Chicago demonstrated that under effective leadership the gamblers, liquor interest, and brothel keepers could be welded into a formidable political power
– McDonalds political mantle was picked up by Michael (Hinky Dink’) kenna and john (the bath)
– Mont Tennes inherited much of the gambling empire left by mike McDonald
– Anyone who wanted to enter the gambling business had to apply to the Tennes ring.
– Then they elected Thompson, he violated every campaign promise but one, he did keep Chicago wide open
– Jim colosimo opened several brothels and a string of gambling houses. He was the first Italian American gangster to cross over from the underworld to the fringes of respectability.
– Johnny Torrio: excelled as a master strategist and organizer as a result of colosimo death

Sam Giancana
NOTORIOUS NICKNAMES $1000: This Chicago mobster linked to CIA plots against Castro was affectionately known as “Momo”, Mobster who got Chicago’s vote for JFK. He was friends with Joe Kennedy. giancana lived a high- profile social life, some- thing that had become anathema to the now modernized leaders of organized crime.

Carlo Gambino
Boss of all bosses. Controlled the Comission after Lucky Luciano.

frank nitti
The Enforcer” Nitti, was an Italian American gangster. One of Al Capone’s top henchmen, Nitti was in charge of all strong-arm and ‘muscle’ operations. Nitti was later the front-man for the Chicago Outfit, the organized crime syndicate headed by Capone.

john gotti
a boss in the mafia who was brought down by the FBI, also known as “The Teflon Don”,
important figure in Gambino family & NYC mob, the underboss of the Gambino family turned on him and he went to prison for life

Made hundreds of millions from construction, highjacking, loansharking, gambling, extortion, etc. Became boss of Gambino family after having Paul Castellano killed.

Medellin a beautiful City
– 3 million folks
– a culture of violence
– trained “asesino de la moto”
– murder rate is 9 times of new york
– infamous criminals
o Pablo Escobar
o The Ochoa clan
o Carlos lehder-rivas

the Ocho familiy,
– Fabio Ochoa restrepo (murdered in Miami, 1970s)
– This clan differs from the escobar’s of criminal world
– They were in the “Finca” business ( la finca de la loma)
– Jorge the middle son saw Miami (1970s) as a big opportunity
– Thr family responded to a government offer, they confessed surrendered and served 5 ½ years
– The U.S. protested Fabio was arrested again, extradited to U.S. sentence to 30 years.

Pablo Escobar
– the most notorious member of the Cartel
– small time criminal
– but as the market for cocaine in U.S. increased:
o Escobar invest in planes
o Construction of 30 soccer fields
o was elected

the study of criminal behavior by well known scholars in criminology and sociology
sutherland / merton

the “brain”
Arnold Rothstein

was a New York businessman and gambler who became a famous kingpin of the Jewish Mafia

who fixed the 1919 World Series

the southern Italian developments
have no reason to meet anyone outside the family. Family is the only institution. they don’t pay attention to the pope or king. They do not attend church-dont follow laws of church or gov. just family. Trust no one

– every important Italian American organized crime figure has a cultural roots in the Mezzpgiorno
– Italian immigration made fortune for speculators and landlords, but it also transformed the neighborhood into a kind of human ant heap in which suffering crime, ignorance and filth were the dominant elements
– Italian immigrant provided the cheap labor vital to the expanding capitalism of that era
– the Mezzogiorno
o the southern Italy experience a culture of violence
– Omerta
o Manliness, noncooperation with authorities, blood washes blood, avenge offense to the famglia no matter the consequences, or how long it took
o In the famiglia physical aggression was rewarded
– the cosa nostra sicily wont give
nothing back

• Family was organized hierarchically, headed by family patriarch
• The southern Italian experience led to the development of a culture that stresses the bariables necessary for survival in a hostile environment, omerta and vendetta, in which the only basis of loyalty is famiglia
• Unification of Italy was harmful to the south as the new government issued edict after edict that affected the southerners. Led to the development of different types of criminal organizations: Mafia, Camorra, ‘Ndrangheta, and Sacra Corona Unita

the old mafioso bosses
– old Mafioso
– sciclian: Arabic
o 1. To protect and to act as a guardian
o 2. a friend or companion
o 3. To defend
o 4. And preservation power
– in sum protection against the arrogance of the powerful, remedy to any damage sturdiness of body strength and serenity of spirit.
– Player with the mafia are called Mafioso
o They succeed because they command a “portito” a network of relationships
• Where he acts as intermediary
• A broker
• Providing services
• Which includes votes and violence for the holders of institutionalized power

the new mafioso bosses
– the new mafia
– Cosa nostra now called
– The most important capo mafiosos Don calo vizzini (supported the Christian democratic party, CDP) born 1877, an illiterate son to a peasant father
o 1. Incarcerated by Mussolini during WW2
o after the war he gained power, the “mayor of villaba”
o would hold court, listen to concerns help with bank loans, court cases ect.

the mafia in Naples Italy
– Campania region
– Camorra was structured as an urban based criminal society
– The camorra was more efficiently organized than the police
– The constituted police power
– In the 19700 the camorra began trafficking in heroin and cocaine
– Earlier version of the camorra did not delve into politics but that changes in the 1980s.

drug money and banks, how it impacts society
– Drug money
o Entered Colombia freely
o Theough “ask no questions” attitude banks and unregulated currency exchange
o FARC (Marxists guerilla outfit) protects the corps, taxes the product)
o The army is no match for FARC ( FARC has the support of the masses)
o Then right-wing paramilitary units (the united self-defense forces enter the picture)
o Between 1985 and 2008 2,500 union members killed

Colombian paramilitary organizations and protection of the crops
Marxist guerrilla forces of the Revolutionary Armed Forces of Colombia (FARC) protect the crops and levy taxes on the drug business
Paramilitaries are sometimes allied with – sometimes fighting against – the drug traffickers and receive financial backing from wealthy landowners

the Mexican drug cartels, they want to control what??
– a Cartel : a drug trafficking organization
o 1. A criminal network
o 2. Structure resembles that of a holding company
o 3. A collection of flexible groups with senior managers
o 4. This bureaucracy promotes efficiency but also protects the organization
o 5. The money made is maintained by financial experts
The have control due to domination of law enforcement and corruption

What is the problem statement?

what questions can be derived form the problem statement?

what was Capone’s downfall?
– the depression severely reduced the income of the Capone organization, and special team of federal investigators
– guilty of income-tax evasion
– suffering from syphilis

the political role of the mafioso change
– since 1971 the “rivuvo(idk how its spelled) mafia has killed investigate judicial and political officials not good for the mafia

John Jacob Astor
John Jacob Astor : arrived from Germany penniless and died the richest man in America, fortune was base on alcohol and fraud., Created one of the largest fur businesses, the American Fur Company. He bought skins from western fur traders and trappers who became known as mountain men. Astoria was named after him.

Cornelius Vanderbilt
war profiteer,
A “Capital of Industry” who is generally associated with railroads; he first made his fortune in the steamboat-railroad venture and acquired the nickname “Commodore;” later built the NY Central Railroad.

Daniel drew
oldest of the erie ring watered stock (his cattle were kept thirsty by a liberal diet of salt and very little water, before arrival at the drover’s market the cattle were allowed to quench their thirst increasing their poundage accordingly. He became a moneylender, steamship owner and a stockbroker,
The term “watered stock” was derived originally from an inventive business method employed in cattle by a sly scoundrel. He let his cows eat salt and then drink as much water before they were going to be weighed.

james Fisk
during the civil war fisk acted as an agent for marsh to the union army lobbying congressman and generals with lavish entertainment and liberal spending, he was murdered by the paramour of his favorite mistress, an American financier that was partnered with Jay Gould in tampering with the railroad stocks. He, like other railroad kings, controlled the lives of the people more than the president did and pushed the way to cooperation among the kings where they developed techniques such as pooling

Jay Gould
third member of the Erie Ring. The family’s original name was the Golds. Taking advantage of positions of trust was to become the basis for Gould’s early financial success.

Leland Stanford
An American railroad entrepreneur and organizer of the Central Pacific Railroad. He became governor and eventually Senator of California. he is also the founder of Stanford University.

John D. Rockefeller
youngster, successful commodities broker buying and selling grain and produce., An American industrialist and philanthropist, in 1870, Rockefeller founded the Standard Oil Company and ran it until he retired in the late 1890s. Often forced rival companies to sell out by drastically lowering his own prices. At one point he controlled 90% of the oil business. He became the world’s richest man and first U.S. dollar billionaire.

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