Midterm review organized crime
– (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.
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
– 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
– 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.”
– 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.
– 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.
– 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.
– 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: 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.
– 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
– 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
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.
– 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
– 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.
– 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
was a New York businessman and gambler who became a famous kingpin of the Jewish Mafia
who fixed the 1919 World Series
– 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
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
• 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
– 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
– 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.
– 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.
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
Paramilitaries are sometimes allied with – sometimes fighting against – the drug traffickers and receive financial backing from wealthy landowners
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
– guilty of income-tax evasion
– suffering from syphilis
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.
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.