ORGANIZED CRIME

Organized crime is a group of individuals, either local, national or international, that engage in criminal
enterprises for profit. The rationale behind why they are formed varies because they may be politically
motivated, financially motivated or an organized criminal 'gang.' We will look at the makeup of these
organizations in this lesson.

Organization

There are three ways in which networks are formed within organized crime:

1. The first is within a family, what we often refer to as a mafia. This form of organized crime
operates based on the hierarchies of the related families, training of family members, reliance
on religion, tradition and culture.

2. The second way in which a network is formed is through a business. These organized crime
groups are rigid, have a complex authority hierarchy and are impersonal. These tend to be
particularly dangerous for the members due to the impersonal nature of the organizational
members, the lack of familial or interpersonal loyalties to other members, and the importance
of power relationships rather than the protection of family members as in the prior network.An
example of a business that has incorporated organized crime would be to conduct illegal
activities, such as insider trading, racketeering or drug trafficking. These legal corporations
incorporate illegal organized crime methods in order to help them succeed and earn more
money. An infamous example would be Bernard Madoff and his corporate associates who
orchestrated a $65 billion Ponzi scheme, which was considered one of the biggest frauds in
U.S. history, taking the life savings of over 1,000 investors.

3. The third way in which a network is formed is through a 'gang.' These members are often
recruited through members' involvement in crime as youths and the connections made in the
correctional facilities. Members often join a gang for protection or the need to belong, typically
due to their lack of a support system in their homes. Some gangs have a loose hierarchy,
especially when dealing with drugs, firearms or sex trafficking. Infamous criminal gangs
around the United States include the Aryan Brotherhood, Latin Kings and Hells Angels.

Activities

Organizational criminals typically use extortion, which is the practice of obtaining something,
especially money, through force or threats to get what they want. The organization also typically
victimizes companies and individuals by stealing cars (to either trade or take apart and sell the parts),
robbery, fraud, counterfeiting money and rigging public projects.

These criminal organizations use violence regularly as a way to obtain what they want. Bodily harm
may come to victims that do not comply or to members themselves that do not take their roles
seriously or complete their assigned task successfully.
One of the main ways that organized crime groups obtain money is by drug trafficking and arms, or
weapons, smuggling. Because this money is illegal and unable to be placed into a bank, these
organizations launder the money, or convert this money into useable assets, such as real estate,
vehicles or other tangible items.

Rationale

Most criminal organizations reduce a new member's fear of getting in trouble with the law by offering
protection and by demonstrating the potential of personal and financial gain. Members see the
organization as being strong and powerful and eventually begin to respect or fear those in charge.
Members learn from one another how to commit a crime effectively. These members also develop
plans that require a group to work together to efficiently produce the end goal. This creates
relationships amongst members and strengthens their communication with one another.

Summary

Organized crime is a category of crime that involves a group of individuals, either local, national or
international, that engage in criminal enterprises for profit. Organizations can be formed within a
family, within a business or corporation or within a criminal 'gang.' These groups are formed with the
intent of protection of one another and financial or status success. Criminal organizations tend to use
violence and threats as a means to get what result they want.