1. Organized Crime Professor Brown

2. Project 2: What have I Learned So Far? Write a 2 - 4 page paper demonstrating your understanding of organized crime in Japan, China, Russia, and Mexico. Your paper should address the following: Compare and contrast these organized crime groups with U.S. organized crime groups. Use at least two sources of information excluding the text.

3. Unit 8: Organized Crime in Labor and the Drug Trade Unit Overview - This unit examines the relationship between organized crime and legitimate business, notably its long-term involvement with America's labor unions. Through an affiliation with the labor unions, organized crime is able to extort money from legitimate business by means of a threatened strike. Labor unions' pension funds also provide it with a vehicle for money laundering.

4. What should you learn in this unit? The history of the drug business, both worldwide and in the United States How the business of heroin is conducted The evolution of anti-drug legislation in the United States The history of organized labor in America The relationship between organized crime and organized labor

5. Chapter 13: The Drug Business Until the 1914 Harrison Act � the result of efforts to enhance America � s trade position with China � drugs such as heroin were legally available in the United States. Enforcement efforts by federal agents led to a thriving black market. The four main sources for heroin are Golden Triangle, Golden Crescent, Mexico, and more recently, Colombia. In these areas, a volatile mixture of politics and poverty support poppy cultivation and provide wealth and resources to political insurgents and criminal organizations.

6. Chapter 13: The Drug Business After heroin and cocaine is smuggled into the United States, the drugs move through a distribution network during which the substance is usually diluted with various inert powders until it reaches the retail- consumer level. At each step, the enormous profits that accrue can give rise to violence because transactions must be accomplished without recourse to the formal mechanisms of dispute resolution. The drug world is filled with heavily armed and dangerous persons in the employ of the larger cartels, although even street-level operatives are often armed.

7. Chapter 14: Labor, Business, and Money Laundering Labor and business racketeering distinguish traditional OC from other forms and make the former more influential than the latter. The rise of organized labor and the subsequent reaction of American business generated a conflict that provided fertile ground for the seeds of racketeering and OC. The leaders of OC provided mercenary armies to unions that were willing to use violence to organize workers and thwart strikebreakers. Craft and large industrial unions have generally been free of OC, and although the locals of a variety of unions have been linked to OC, four unions have historically had the closest relationship: the International Brotherhood of Teamsters, the Hotel and Restaurant Employees Union, the Laborers � International Union of North America, and the International Longshoremen � s Association.

8. Chapter 14: Labor, Business, and Money Laundering As was seen with respect to the waterfront, there is no hard-and-fast line separating labor racketeering from business racketeering. Corrupt union officials and � legitimate � businessmen have willingly cooperated to derive such benefits as decreased labor costs and restraint of trade agreements; OC can police these illegal agreements, Certain industries, such as construction and private solid waste hauling, are more vulnerable to OC because they are relatively easy businesses to enter � they do not require a large cash investment � and highly competitive. Other characteristics include an intense need for timely action, such as those that deal with perishable foods and industries where any disruption of work or deliveries can be quite costly.

9. Question The earliest “war against drugs” in the United States was in response to opium At a time when the practice of medicine was quite primitive, opium became the essential ingredient in innumerable remedies What started or what catapulted the war against opium and was it affected? What could you see as the outcome of this effort?

10. Question What is money laundering?

11. Money Laundering Money laundering is “to knowingly engage in a financial transaction with the proceeds of some unlawful activity with the intent of promoting or carrying on that unlawful activity or to conceal or disguise the nature, location, source, ownership, or control of these proceeds”

12. Money Laundering According to the United States Treasury Department, money laundering is “the process by which criminals or criminal organizations seek to disguise the illicit nature of their proceeds by introducing them into the stream of legitimate commerce and finance”

13. Money Laundering Getting currency into the bank, around the reporting system, at home or abroad, is called placement Once the money is in the form of a bank entry, the launderer hides its criminal origins through a series of complex transactions. Police call it layering The launderer then makes the proceeds available to the criminals in an apparently legitimate form. The term for this is integration

14. What is the Hawala? Customers trust hawala ‘bankers’ (known as hawaladars) who use their connections to facilitate money movement worldwide Hawala transfers take place with little, if any, paper trail, and, when records are kept, they are usually kept in code Money is never actually moved and periodically hawaladars/brokers balance their respective transactions usually by wire transfers using goods and invoices as a cover

15. Question Within the context of money laundering, how do we “see” organized crimes using this system? Give an example…