Bulgarian Organized Crime Tihomir Bezlov Center for the Study of Democracy 2006

Origin of organized crime in Bulgaria  Overwhelming presence of organized crime groups  Organized crime and the creation of large private companies.  Strands of origins: – Violent Entrepreneurs / “Wrestlers” – protection rackets and smuggling – G-13 “Oligarchs” – privatization scams and smuggling – Clienteles – national and local level

Origins and history of organized crime Violent Entrepreneurs : – Former athletes – Security services officers – Criminals History  – racketeering and smuggling  – racketeering and smuggling into former Yugoslavia  transformation into insurance racket (VIS-2 и SIK) G-13 “Oligarchs”: – Trade representatives abroad – Former SOE directors – Security services officers History  – banks and holdings  – international trade and smuggling  – credit scams of state banks; draining state-owned companies

Organized Crime Hierarchies V.Volkov- Russian StrictureBulgarian Structure

Parallel features of OC in Bulgaria and Russia:  Protection  Mediation of business conflicts Organized crime developments :  From violence towards investments and corruption  From large hierarchical structures towards networks Difference from Russian organized crime  Participation in legitimate business Traditional OC activities

Origin and history of organized crime in Bulgaria Features Stage ViolenceCorruption Organization Market Origin 1988 – 1991 Sporadic Chaotic NoneNeighborhood groups Not involved Wide-spread Chaotic Low-level policemen Primitive hierarchies Sporadic, protection Private security companies Wide-spread, coordinated Mid-level: police departments, prosecutors National level Control of selected Markets: oil, cigarettes, alcohol, electronics Insurance Companies Attempts at reducing violence High-level government officials Hierarchies, corporate structures, international links Smuggling, oligopolies & investments

The Changing Nature of Organized Crime in Bulgaria Feature Stage ViolenceCorruption Organization Market Closure Abandoning of protection racket Police, prosecution Fragmented, creating international links Searching new sources of income Legalization Selective violence Entire spectrum + Political elites Three levels of networks, internationalization Privatization, oligopolies & monopolies Redistribution High-level contract killings in public places; intimidation Entire spectrum + courts Three levels of networks + hierarchies, regions Monopolizing markets, domestic and international investments. EU-integration present Entire spectrum, +EU accessions funds Three levels of networks, redistribution

Organized Crime as Network and Corruption

Organized Crime Hierarchies and Corruption in Bulgaria’s Drug-Distribution Market Drug distribution areas coincide police precincts. Each is headed by its own boss Hierarchical structure under the area’s boss

Organized crime structures: going legal Legal markets Illegal markets Grey markets Market А Market B Market C

Prospects for Bulgaria’s organized crime  Crime transfer (Spain, Holland, Latin America)  Use of political elites and judiciary  Facilitation of illegal market activities  Структури използващи конкурентни предимства на “сивите пазари”  Taking over local governments

New Risks - the Contract Killings