![]() ![]() These studies show that systematic extortion racketeering occurs most often with small businesses in urban locations, where the police cannot be relied upon for protection (Chin, Ko-lin, 1996 Finckenauer and Waring, 2000 Finckenauer and Ko-lin Chin, 2007 Gambetta, 1996 Paoli, 2003 Tulyakov, 2001).Įxtortion by public officials (rather than by organized criminal groups) might also occur as ongoing racketeering when public officials are used to threaten to exercise their official authority if they do not receive a payment or favour (which is thus provided under duress). In other locations around the world, as many as four-fifths of all businesses have paid some form of extortion, but the numbers vary. For instance, interviews conducted with business owners in ethnic communities in New York City found that most admitted to being approached by gangs for money, goods, or services and that most of these businesses paid what was asked. There is no precise estimate of the extent of extortion racketeering, although empirical studies have been done on the topic. These fictitious "on the books" jobs are fraudulent and set up to hide their illicit income sources (Capeci and Mustain, 1996 Jacobs with Friel and Radick, 1999 Maas, 1999). In this way, members of powerful organized criminal groups have drawn salaries from companies without performing any work, after they threatened the businesses. ![]() Organized criminal groups in multiple locations around the world have systematically demanded kickbacks (i.e., secret bribe payments) on contracts to guarantee labour peace or an uninterrupted shipment of supplies (Rusev, 2016). There are numerous documented accounts of organized criminal groups infiltrating construction unions, hotels, restaurants, and the garment, food, and waste disposal industries. The term "protection rackets", mentioned earlier in this Module, is an analogous term to extortion racketeering, involving circumstances where money is paid by a victim under duress in exchange for avoiding damage to a business, construction site, or harm to employees and customers. The underlying conditions for the existence of extortion racketeering are the presence of vulnerable targets, inefficient social control, and motivated criminal actors. Although both extortion and racketeering imply planned intimidation, violence, corruption, and duress, extortion racketeering connotes the goal of organized criminal groups not only to sell illegal goods and services, but also to create criminal monopolies by extorting and controlling those who provide illegal goods and services. As discussed in Module 2, racketeering is a separate offence in some countries. Systematic extortion on a regular basis has also been called extortion racketeering. ![]()
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