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

2. 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

3. Origins and history of organized crime Violent Entrepreneurs : – Former athletes – Security services officers – Criminals History  1991-1992 – racketeering and smuggling  1992-1994 – racketeering and smuggling into former Yugoslavia  1995-1997 -- transformation into insurance racket (VIS-2 и SIK) G-13 “Oligarchs”: – Trade representatives abroad – Former SOE directors – Security services officers History  1990-1991 – banks and holdings  1991-1993 – international trade and smuggling  1993- 1996 – credit scams of state banks; draining state-owned companies

4. Organized Crime Hierarchies V.Volkov- Russian StrictureBulgarian Structure

5. 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

6. Origin and history of organized crime in Bulgaria Features Stage ViolenceCorruption Organization Market Origin 1988 – 1991 Sporadic Chaotic NoneNeighborhood groups Not involved 1991-1992Wide-spread Chaotic Low-level policemen Primitive hierarchies Sporadic, protection 1992-1994 Private security companies Wide-spread, coordinated Mid-level: police departments, prosecutors National level Control of selected Markets: oil, cigarettes, alcohol, electronics 1995-1997 Insurance Companies Attempts at reducing violence High-level government officials Hierarchies, corporate structures, international links Smuggling, oligopolies & investments

7. The Changing Nature of Organized Crime in Bulgaria Feature Stage ViolenceCorruption Organization Market Closure 1997-1998 Abandoning of protection racket Police, prosecution Fragmented, creating international links Searching new sources of income Legalization 1999-2000 Selective violence Entire spectrum + Political elites Three levels of networks, internationalization Privatization, oligopolies & monopolies Redistribution 2000-2002 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 2005 - present Entire spectrum, +EU accessions funds Three levels of networks, redistribution

8. Organized Crime as Network and Corruption

9. 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

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

11. 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

12. New Risks - the Contract Killings