- 7 pages
- Law Enforcement Sensitive
- For Official Use Only
- May 28, 2015
(U//FOUO) Militia extremists are expanding their target sets to include Muslims and Islamic religious institutions in the United States. This has resulted in increased violent rhetoric and plotting and has the potential to lead, over the long term, to additional harassment of or violence against Muslims by domestic extremists. The FBI makes these assessments with high confidence on the basis of a large body of source reporting generated mainly since 2013. This information augments prior FBI analysis that established militia extremists target government personnel and law enforcement officers, perceived threats from abroad, and individuals or institutions that seek to constrain Second Amendment rights.
(U) Communities, Mosques, Gathering Places Attract Extremist Interest
(U//FOUO) The FBI assesses militia extremists, increasingly over the past two years, have conducted surveillance, plotted, and advocated violence against mosques and Islamic centers across the United States and specific Muslim communities.
• (U//FOUO) Multiple sources with varying levels of access report conducting surveillance in diverse locations including Alaska, Arizona, Indiana, Montana, New York, North and South Carolina, Utah, and Texas.
• (U//FOUO) A reliable source with good access to the information reported that a leader of a militia extremist group in the western United States expressed in early 2015, interest in training members for direct action against ISIS and associated ISIS locations.
• (U//FOUO) In September 2014 militia extremists in Mississippi discussed kidnapping and beheading a Muslim and posting video of the attack to the Internet, according to reliable sources with good access to the information. The group has, however, since disbanded.
• (U//FOUO) A militia extremist posted calls over social media to kill Muslims attending worship services and during a public event in 2013, according to a reliable source with direct access to the information.
(U) Muslim Bias Fuels Conspiracy Theories about Terrorist Training Camps
(U//FOUO) The FBI assesses militia extremist interest in Islam as a target is a product of ideology that views Muslims collectively with suspicion. Salient perceptions within militia extremism that contribute toward an anti-Muslim bias include the following:
• (U//FOUO) Islam represents a foreign threat, equivalent to those which emanate from illegal immigration or international terrorism.
• (U//FOUO) The President of the United States not only sympathizes with Islamic extremists but directs US Government policy to align with their goals.
(U//FOUO)The FBI assesses various claims the US government allows the group Muslims of the Americas (aka Jamaat ul Fuqra, hereinafter referred to as MOA) to operate terrorist training camps at dozens of locations across the United States resonate with adherents of a militia ideology who seek validation of anti-government conspiracy theories. These assertions— repeated over the course of a decade by self-appointed watchdogs of Islamic extremism, Internet bloggers, and some news media–are based in part on official government information which bolsters claims the US Government chooses to ignore the camps. Accusations about the camps periodically surge, most recently in the wake of the 7 January 2015 terrorist attack against the French magazine Charlie Hebdo.
(U//FOUO) Militia extremists will likely continue to identify and discuss potential Muslim targets, should the level of concern generally about Islamic terrorism remain at current levels. The FBI further assesses primary target choices will continue to include locations easiest to access, such as local mosques or religious institutions, followed by locations portrayed by Internet sources as having threat potential, including MOA enclaves. Militia supporters also will likely continue to conduct surveillance of targets as they are identified. FBI confidence in these assessments is medium on the basis of current intelligence.
(U//FOUO) Assuming no new incidents or high profile controversies relating to Islam or Islamic extremism raise domestic extremist intent levels, the likelihood domestic extremists will harass or commit violence against Muslims or religious institutions is low. This assessment is made with low confidence, as domestic lone actors and small cells possess varied capability to attack Muslim targets. Successful acquisition of resources and detailed planning raise capability levels and, combined with heightened intent, likelihood of violence.
|C. Frank Figliuzzi, assistant director of the Counterintelligence Division, briefs members of Congress.|
FBI Counterintelligence executive C. Frank Figliuzzi briefed members of a House subcommittee on our efforts to disrupt economic espionage activity in the U.S., which—based on our pending cases—has resulted in losses of more than $13 billion to the American economy. Figliuzzi highlighted two growing threats: the willingness of so-called insiders to steal trade secrets and other proprietary information and hand it over to foreign entities; and the illegal transfer of U.S. technology, which could potentially end up in weapons of mass destruction.
The hearing, titled “Economic Espionage: A Foreign Intelligence Threat to Americans Jobs and Homeland Security,” also featured officials from the Department of Homeland Security’s Immigration and Customs Enforcement, the U.S. Patent and Trademark Office, and the U.S. Government Accountability Office. Figliuzzi noted that the “partnerships represented at this hearing”—coupled with public awareness—are a vital component to combating economic espionage.
NEWARK, NJ—The chief investment officer and portfolio manager of the Clay Capital Fund, a hedge fund based in Summit, New Jersey, was sentenced today to 12 months in prison for participating in an insider trading scheme which netted more than $2.5 million in illicit profits, U.S. Attorney Paul J. Fishman announced.
James Turner, 45, of Traverse City, Michigan, previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh to an information charging him with securities fraud. Judge Cavanaugh imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning in 2006, Turner received inside information from his brother-in-law, Scott Vollmar, and from Scott Robarge, Turner’s friend and former college classmate. Vollmar, who was formerly employed as a director of business development at Autodesk Inc., a software company based in California, passed inside information to Turner concerning Autodesk’s confidential negotiations to acquire Moldflow Corp. Turner admitted he used that inside information to purchase more than $7 million worth of Moldflow stock for the Clay Capital Fund and for himself and his family members. Following the public announcement of Autodesk’s acquisition of Moldflow, Turner sold the Moldflow shares he had bought, realizing illicit profits of more than $1.7 million. Turner admitted he received inside information from Vollmar in advance of the public release of Autodesk’s earnings reports and that he used this information to trade Autodesk stock, resulting in illicit profits of more than $500,000.
Scott Robarge, who was formerly employed as a recruiting technology manager at Salesforce.com Inc., a software company based in California, passed inside information to Turner concerning Saleforce’s quarterly sales results. Turner admitted he used this inside information to trade Salesforce stock, realizing illicit profits of more than $200,000.
In addition to the prison term, Judge Cavanaugh sentenced Turner to three years of supervised release and fined him $25,000.
Vollmar and Robarge have both previously pleaded guilty and are scheduled to be sentenced on May 14, 2012.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael Ward in Newark; postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Philip R. Bartlett; and the U.S. Securities and Exchange Commission’s Chicago Regional Office, under the direction of Merri Jo Gillette, for the investigation leading to today’s plea. He also thanked the SEC Market Abuse Unit, under the direction of Daniel M. Hawke, for its important role in the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Christopher J. Kelly of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Italian Organized Crime
Since their appearance in the 1800s, the Italian criminal societies known as the Mafia have infiltrated the social and economic fabric of Italy and now impact the world. They are some of the most notorious and widespread of all criminal societies.
There are several groups currently active in the U.S.: the Sicilian Mafia; the Camorra or Neapolitan Mafia; the ’Ndrangheta or Calabrian Mafia; and the Sacra Corona Unita or United Sacred Crown.
We estimate the four groups have approximately 25,000 members total, with 250,000 affiliates worldwide. There are more than 3,000 members and affiliates in the U.S., scattered mostly throughout the major cities in the Northeast, the Midwest, California, and the South. Their largest presence centers around New York, southern New Jersey, and Philadelphia.
Their criminal activities are international with members and affiliates in Canada, South America, Australia, and parts of Europe. They are also known to collaborate with other international organized crime groups from all over the world, especially in drug trafficking.
The major threats to American society posed by these groups are drug trafficking and money laundering. They have been involved in heroin trafficking for decades. Two major investigations that targeted Italian organized crime drug trafficking in the 1980s are known as the “French Connection” and the “Pizza Connection.”
These groups don’t limit themselves to drug running, though. They’re also involved in illegal gambling, political corruption, extortion, kidnapping, fraud, counterfeiting, infiltration of legitimate businesses, murders, bombings, and weapons trafficking. Industry experts in Italy estimate that their worldwide criminal activity is worth more than $100 billion annually.
A Long History
These enterprises evolved over the course of 3,000 years during numerous periods of invasion and exploitation by numerous conquering armies in Italy. Over the millennia, Sicilians became more clannish and began to rely on familial ties for safety, protection, justice, and survival.
An underground secret society formed initially as resistance fighters against the invaders and to exact frontier vigilante justice against oppression. A member was known as a “Man Of Honor,” respected and admired because he protected his family and friends and kept silent even unto death.
Sicilians weren’t concerned if the group profited from its actions because it came at the expense of the oppressive authorities. These secret societies eventually grew into the Mafia.
Since the 1900s, thousands of Italian organized crime figures—mostly Sicilian Mafiosi—have come illegally to this country. Many who fled here in the early 1920s helped establish what is known today as La Cosa Nostra or the American Mafia.
Charles “Lucky” Luciano, a Mafioso from Sicily, came to the U.S. during this era and is credited for making the American La Cosa Nostra what it is today. Luciano structured the La Cosa Nostra after the Sicilian Mafia. When Luciano was deported back to Italy in 1946 for operating a prostitution ring, he became a liaison between the Sicilian Mafia and La Cosa Nostra.
Sicilian Mafia (based in Sicily)
The Sicilian Mafia formed in the mid-1800s to unify the Sicilian peasants against their enemies. In Sicily, the word Mafia tends to mean “manly.” The Sicilian Mafia changed from a group of honorable Sicilian men to an organized criminal group in the 1920s.
In the 1950s, Sicily enjoyed a massive building boom. Taking advantage of the opportunity, the Sicilian Mafia gained control of the building contracts and made millions of dollars. Today, the Sicilian Mafia has evolved into an international organized crime group. Some experts estimate it is the second largest organization in Italy.
The Sicilian Mafia specializes in heroin trafficking, political corruption, and military arms trafficking—and is also known to engage in arson, frauds, counterfeiting, and other racketeering crimes. With an estimated 2,500 Sicilian Mafia affiliates it is the most powerful and most active Italian organized crime group in the U.S.
The Sicilian Mafia is infamous for its aggressive assaults on Italian law enforcement officials. In Sicily the term “Excellent Cadaver” is used to distinguish the assassination of prominent government officials from the common criminals and ordinary citizens killed by the Mafia. High-ranking victims include police commissioners, mayors, judges, police colonels and generals, and Parliament members.
On May 23, 1992, the Sicilian Mafia struck Italian law enforcement with a vengeance. At approximately 6 p.m., Italian Magistrate Giovanni Falcone, his wife, and three police body guards were killed by a massive bomb. Falcone was the director of Criminal Affairs in Rome. The bomb made a crater 30 feet in diameter in the road. The murders became known as the Capaci Massacre.
Less than two months later, on July 19, the Mafia struck Falcone’s newly named replacement, Judge Paolo Borsellino in Palermo, Sicily. Borsellino and five bodyguards were killed outside the apartment of Borsellino’s mother when a car packed with explosives was detonated by remote control.
Under Judge Falcone’s tenure the FBI and Italian law enforcement established a close working relationship aimed at dismantling Italian organized crime groups operating in both countries. That relationship has intensified since then.
Camorra or Neapolitan Mafia (based in Naples)
The word “Camorra” means gang. The Camorra first appeared in the mid-1800s in Naples, Italy, as a prison gang. Once released, members formed clans in the cities and continued to grow in power. The Camorra has more than 100 clans and approximately 7,000 members, making it the largest of the Italian organized crime groups.
In the 1970s, the Sicilian Mafia convinced the Camorra to convert their cigarette smuggling routes into drug smuggling routes with the Sicilian Mafia’s assistance. Not all Camorra leaders agreed, leading to the Camorra Wars that cost 400 lives. Opponents of drug trafficking lost the war.
The Camorra made a fortune in reconstruction after an earthquake ravaged the Campania region in 1980. Now it specializes in cigarette smuggling and receives payoffs from other criminal groups for any cigarette traffic through Italy. The Camorra is also involved in money laundering, extortion, alien smuggling, robbery, blackmail, kidnapping, political corruption, and counterfeiting.
It is believed that nearly 200 Camorra affiliates reside in this country, many of whom arrived during the Camorra Wars.
’Ndrangheta or Calabrian Mafia (based in Calabria)
The word “’Ndrangheta” comes from the Greek meaning courage or loyalty. The ’Ndrangheta formed in the 1860s when a group of Sicilians was banished from the island by the Italian government. They settled in Calabria and formed small criminal groups.
There are about 160 ’Ndrangheta cells with roughly 6,000 members. They specialize in kidnapping and political corruption, but also engage in drug trafficking, murder, bombings, counterfeiting, gambling, frauds, thefts, labor racketeering, loansharking, and alien smuggling.
Cells are loosely connected family groups based on blood relationships and marriages. In the U.S., there are an estimated 100-200 members and associates, primarily in New York and Florida.
Sacra Corona Unita or United Sacred Crown (based in the Puglia region)
Law enforcement became aware of the Sacra Corona Unita in the late 1980s. Like other groups, it started as a prison gang. As its members were released, they settled in the Puglia region in Italy and continued to grow and form links with other Mafia groups. The Sacra Corona Unita is headquartered in Brindisi, located in the southeastern region of Puglia.
The Sacra Corona Unita consists of about 50 clans with approximately 2,000 members and specializes in smuggling cigarettes, drugs, arms, and people. It is also involved in money laundering, extortion, and political corruption. The organization collects payoffs from other criminal groups for landing rights on the southeast coast of Italy, a natural gateway for smuggling to and from post-Communist countries like Croatia, Yugoslavia, and Albania.
Very few Sacra Corona Unita members have been identified in the U.S., although some individuals in Illinois, Florida, and New York have links to the organization.
La Cosa Nostra is the foremost organized criminal threat to American society. Literally translated into English it means “this thing of ours.” It is a nationwide alliance of criminals—linked by blood ties or through conspiracy—dedicated to pursuing crime and protecting its members.
La Cosa Nostra, or the LCN as it is known by the FBI, consists of different “families” or groups that are generally arranged geographically and engaged in significant and organized racketeering activity. It is also known as the Mafia, a term used to describe other organized crime groups.
The LCN is most active in the New York metropolitan area, parts of New Jersey, Philadelphia, Detroit, Chicago, and New England. It has members in other major cities and is involved in international crimes.
History of La Cosa Nostra
Although La Cosa Nostra has its roots in Italian organized crime, it has been a separate organization for many years. Today, La Cosa Nostra cooperates in various criminal activities with different criminal groups that are headquartered in Italy.
Giuseppe Esposito was the first known Sicilian Mafia member to emigrate to the U.S. He and six other Sicilians fled to New York after murdering the chancellor and a vice chancellor of a Sicilian province and 11 wealthy landowners. He was arrested in New Orleans in 1881 and extradited to Italy.
New Orleans was also the site of the first major Mafia incident in this country. On October 15, 1890, New Orleans Police Superintendent David Hennessey was murdered execution-style. Hundreds of Sicilians were arrested, and 19 were eventually indicted for the murder. An acquittal generated rumors of widespread bribery and intimidated witnesses. Outraged citizens of New Orleans organized a lynch mob and killed 11 of the 19 defendants. Two were hanged, nine were shot, and the remaining eight escaped.
The American Mafia has evolved over the years as various gangs assumed—and lost—dominance over the years: the Black Hand gangs around 1900; the Five Points Gang in the 1910s and ‘20s in New York City; Al Capone’s Syndicate in Chicago in the 1920s. By the end of the ‘20s, two primary factions had emerged, leading to a war for control of organized crime in New York City.
The murder of faction leader Joseph Masseria brought an end to the gang warfare, and the two groups united to form the organization now dubbed La Cosa Nostra. It was not a peaceful beginning: Salvatore Maranzano, the first leader of La Cosa Nostra, was murdered within six months.
Charles “Lucky” Luciano became the new leader. Maranzano had established the La Cosa Nostra code of conduct, set up the “family” divisions and structure, and established procedures for resolving disputes. Luciano set up the “Commission” to rule all La Cosa Nostra activities. The Commission included bosses from six or seven families.
Luciano was deported back to Italy in 1946 based on his conviction for operating a prostitution ring. There, he became a liaison between the Sicilian Mafia and La Cosa Nostra.
Other Historical Highlights:
1951: A U.S. Senate committee led by Democrat Estes Kefauver of Tennessee determined that a “sinister criminal organization” known as the Mafia operated in this nation.
1957: The New York State Police uncovered a meeting of major LCN figures from around the country in the small upstate New York town of Apalachin. Many of the attendees were arrested. The event was the catalyst that changed the way law enforcement battles organized crime.
1963: Joseph Valachi became the first La Cosa Nostra member to provide a detailed looked inside the organization. Recruited by FBI agents, Valachi revealed to a U.S. Senate committee numerous secrets of the organization, including its name, structure, power bases, codes, swearing-in ceremony, and members of the organization.
Today, La Cosa Nostra is involved in a broad spectrum of illegal activities: murder, extortion, drug trafficking, corruption of public officials, gambling, infiltration of legitimate businesses, labor racketeering, loan sharking, prostitution, pornography, tax-fraud schemes, and stock manipulation schemes.
Named after legendary boss Vito Genovese, the Genovese crime family was once considered the most powerful organized crime family in the nation. Members and their numerous associates engaged in drug trafficking, murder, assault, gambling, extortion, loansharking, labor racketeering, money laundering, arson, gasoline bootlegging, and infiltration of legitimate businesses.
Genovese family members are also involved in stock market manipulation and other illegal frauds and schemes as evidenced by the recent FBI investigation code named “Mobstocks.”
The Genovese crime family has its roots in the Italian criminal groups in New York controlled by Joseph Masseria in the 1920s. The family history is rife with murder, violence, and greed.
Early History—Masseria and Maranzano
Masseria sparked the so-called “Castellammarese War” in 1928 when he tried to gain control of organized crime across the country. The war ended in 1931 when Salvatore Maranzano conspired with Masseria’s top soldier, Charles “Lucky” Luciano, to have Masseria killed. Maranzano emerged as the most powerful Mafia boss in the nation, setting up five separate criminal groups in New York and calling himself “Boss of Bosses.”
Two of the most powerful La Cosa Nostra families—known today as the Genovese and Gambino families—emerged from Maranzano’s restructuring efforts. Maranzano named Luciano the first boss of what would later be known as the Genovese family. Luciano showed his appreciation less than five months later by sending five men dressed as police officers to Maranzano’s office to murder him.
Luciano, Costello, and Genovese
With Maranzano out of the way, Luciano become the most powerful Mafia boss in America and used his position to run La Cosa Nostra like a major corporation. He set up the LCN Commission, or ruling body, composed of seven bosses, and divided the different rackets among the families.
In 1936, Luciano was sentenced to 30 to 50 years in prison. Ten years later, he was released from prison and deported to Italy, never to return. When he was convicted, Frank Costello became acting boss because Genovese—then just an underboss—had fled to Italy to avoid a murder charge. His return to the states was cleared when a key witness against him was poisoned and the charges were dropped.
Costello led the family for approximately 20 years until May of 1957 when Genovese took control by sending soldier Vincent “the Chin” Gigante to murder him. Costello survived the attack but relinquished control of the family to Genovese. Attempted murder charges against Gigante were dismissed when Costello refused to identify him as the shooter.
In 1959, it was Genovese’s turn to go to prison following a conviction of conspiracy to violate narcotics laws. He received a 15-year sentence but continued to run the family through his underlings from his prison cell in Atlanta, Georgia.
Valachi Sings—and Lombardo Leads
About this time, Joseph Valachi, a “made man,” was sent to the same prison as Genovese on a narcotics conviction. Labeled an informer, Valachi survived three attempts on his life behind bars. Still in prison in 1962, he killed a man he thought Genovese had sent to kill him. He was sentenced to life for the murder.
The sentencing was a turning point for Valachi, who decided to cooperate with the U.S. government. On September 27, 1963, he appeared before the U.S. Senate Permanent Subcommittee on Investigations and testified that he was a member of a secret criminal society in the U.S. known as La Cosa Nostra.
In 1969, several years after Valachi began cooperating with the FBI, Vito Genovese died in his prison cell. By then the Genovese family was under the control of Philip “Benny Squint” Lombardo. Unlike the bosses before him, Lombardo preferred to rule behind his underboss. His first, Thomas Eboli, was murdered in 1972. Lombardo promoted Frank “Funzi” Tieri, and later Anthony “Fat Tony” Salerno as his front men.
Throughout the 1980s, the Genovese family hierarchy went through several changes. Tieri, recognized on the street as the Genovese family boss in the late 1970s, was convicted for operating a criminal organization through a pattern of racketeering that included murder and extortion.
Salerno then fronted as boss until he had stroke in 1981. In 1985, Salerno and the bosses of the other four New York families were convicted for operating a criminal enterprise—the LCN Commission. Lombardo, his two captains in prison and his health failing, turned full control of the Genovese family over to Gigante—the man who tried to kill Costello 30 years earlier.
Fish on the Hook
In 1986, a second member turned against the Genovese family when Vincent “Fish” Cafaro, a soldier and right-hand-man to Anthony Salerno, decided to cooperate with the FBI and testify. According to Cafaro’s sworn statement, Gigante ran the family from behind the scenes while pretending to be mentally ill. Cafaro said this behavior helped further insulate Gigante from authorities while he ran the Genovese family’s criminal activities.
Gigante’s odd behavior and mumbling while he walked around New York’s East Village in a bathrobe earned him the nickname “the Odd Father.” After an FBI investigation, Gigante was convicted of racketeering and murder conspiracy in December 1997 and sentenced to 12 years. Another FBI investigation led to his indictment on January 17, 2002, accusing him of continuing to run the Genovese family from prison. He pled guilty to obstruction of justice in 2003.
Gigante died in prison in December 2005 in the same federal hospital where Gambino family leader John Gotti had died in 2002.
Over the years, FBI investigations have revealed how organized criminal groups have proliferated and impacted much of the world. Partnerships with foreign law enforcement agencies are essential to combat global organized crime groups.
Among the partnerships the FBI is involved with is the Italian American Working Group, which meets every year. The group addresses organized crime, cyber crime, money laundering, international terrorism, illegal immigration, cooperating witnesses, drug smuggling, art theft, extradition matters, and cigarette smuggling. The U.S. and Italy take turns hosting the meetings.
Labor racketeering is the domination, manipulation, and control of a labor movement in order to affect related businesses and industries. It can lead to the denial of workers’ rights and inflicts an economic loss on the workers, business, industry, insurer, or consumer.
The historical involvement of La Cosa Nostra in labor racketeering has been thoroughly documented:
- More than one-third of the 58 members arrested in 1957 at the Apalachin conference in New York listed their employment as “labor” or “labor-management relations.”
- Three major U.S. Senate investigations have documented La Cosa Nostra’s involvement in labor racketeering. One of these, the McClellan Committee, in the late-1950s, found systemic racketeering in both the International Brotherhood of Teamsters and the Hotel Employees and Restaurant Employees International Union.
- In 1986, the President’s Council on Organized Crime reported that five major unions—including the Teamsters and the Laborers International Union of North America—were dominated by organized crime.
- In the early 1980s, former Gambino Family Boss Paul Castellano was overheard saying, “Our job is to run the unions.”
Labor racketeering has become one of La Cosa Nostra’s fundamental sources of profit, national power, and influence.
FBI investigations over the years have clearly demonstrated that labor racketeering costs the American public millions of dollars each year through increased labor costs that are eventually passed on to consumers.
Labor unions provide a rich source for organized criminal groups to exploit: their pension, welfare, and health funds. There are approximately 75,000 union locals in the U.S., and many of them maintain their own benefit funds. In the mid-1980s, the Teamsters controlled more than 1,000 funds with total assets of more than $9 billion.
Labor racketeers attempt to control health, welfare, and pension plans by offering “sweetheart” contracts, peaceful labor relations, and relaxed work rules to companies, or by rigging union elections.
Labor law violations occur primarily in large cities with both a strong industrial base and strong labor unions, like New York, Buffalo, Chicago, Cleveland, Detroit, and Philadelphia. These cities also have a large presence of organized crime figures.
We have several investigative techniques to root out labor law violations: electronic surveillance, undercover operations, confidential sources, and victim interviews. We also have numerous criminal and civil statutes to use at our disposal, primarily through the Racketeer Influenced and Corrupt Organization (RICO) Statute.
The civil provisions of the RICO statute have proven to be very powerful weapons, especially the consent decrees. They are often more productive because they attack the entire corrupt entity instead of imprisoning individuals, who can easily be replaced with other organized crime members or associates.
Consent decrees are most effective when there is long-term, systemic corruption at virtually every level of a labor union by criminal organizations. A civil RICO complaint and subsequent consent decree can restore democracy to a corrupt union by imposing civil remedies designed to eliminate such corruption and deter its re-emergence.
The Teamsters are the best example of how efficiently the civil RICO process can be used. For decades, the Teamsters has been substantially controlled by La Cosa Nostra. In recent years, four of eight Teamster presidents were indicted, yet the union continued to be controlled by organized crime elements. The government has been fairly successful at removing the extensive criminal influence from this 1.4 million-member union by using the civil process.
We work closely with the Office of Labor Racketeering in the Department of Labor and with the U.S. Attorneys’ offices in investigating violations of labor law.
fter many hours on the road, the long-haul driver pulled his tractor-trailer into a Tennessee truck stop for a break and a hot meal. But by the time he looked over the menu, a crew of professional thieves had made off with his rig and all its contents.
Partnerships Make a Difference
In 2005, two large pharmaceutical companies were the victims of major cargo thefts at the same truck stop within a short time period, and each had no idea what had happened to the other. When they found out later, a meeting was called among pharmaceutical industry leaders, and the concept of a security coalition was born. The coalition would consist not only of industry members but also law enforcement.
Today, the Pharmaceutical Cargo Security Coalition shares information about thefts and best practices for reducing risk, according to Charles Forsaith, director of supply chain security for Purdue Pharma Technologies, who coordinates the coalition.
“We educate everyone in our industry,” said Forsaith, “and we work together with law enforcement to stop these crimes. That partnership has yielded a measurable decline in cargo theft.”
In 2008, for example, the pharmaceutical industry reported losses of 16 full trailer loads each valued in excess of $1 million. In 2011, Forsaith said, there were only four such losses valued over $1 million. In 2008, the odds of recovering a lost load were 31 percent. Today, he said, with the help of GPS tracking devices and a strong working relationship with law enforcement, the odds for recovery are better than 65 percent.
“We realized that we couldn’t put a stop to these crimes on our own,” he said. “In addition to educating our industry, we knew we needed buy-in from law enforcement, and we have been extremely pleased working with the FBI’s cargo theft task forces.”
Cargo theft is a multi-billion-dollar criminal enterprise in the U.S., and the FBI has seven task forces located around the country to combat the problem. In the Memphis region, according to Special Agent Conrad Straube, coordinator of the Memphis Cargo Theft Task Force, “there is an average of one cargo theft every day of the year.”
Memphis—located along major interstate highways and home to a variety of product distribution centers—is a hot spot for cargo theft. The thieves steal trucks with trailers or just the trailers and their contents. Often, goods are stolen from distribution center warehouses or even from moving rail cars.
On a recent day, Straube and his task force partners from the Memphis Police Department, Shelby County Sheriff’s Office, and the U.S. Marshals Service were on the road, following up on leads at truck stops and other locations in and around Memphis. The task force is busy—and successful. From January 2011 to the end of September, it recovered more than $1.5 million in stolen cargo and vehicles.
Task force member Barry Clark, a detective with the Shelby County Sheriff’s Office, explained that some of the theft crews are so organized that each member has his own specialty, from the break-in artist who can steal a rig in seconds to professional drivers, surveillance experts, and the guys who know how to defeat the specialized devices that lock trailers carrying extremely valuable loads. “This is their business,” Clark said. “And they are good at it.”
Crew leaders know where to find willing buyers, too—from small mom and pop stores who don’t ask questions when they buy at prices below wholesale to online merchants who may or may not know they are purchasing stolen goods.
Although many crews target specific cargo such as electronics and pharmaceuticals—always in demand and easy to sell—other thieves steal whatever they can get their hands on. Straube and his team have recovered stolen trailers full of dog food, hair dryers, lawn mower engines, and even popsicles.
“When you talk about the victims of cargo theft,” Straube explained, “beyond the trucking companies and manufacturers, you have to include all consumers. Because when these items are stolen, it eventually drives up the cost of merchandise for everybody.”
|Podcast: Special agent discusses cargo theft.|
Cargo theft is also a “gateway” crime, said Special Agent Eric Ives, a program manager in our Criminal Investigative Division at FBI Headquarters who coordinates major theft investigations from a national perspective. “Groups that do these crimes are often funding other illegal activities, like buying drugs or weapons. And compared to many crimes,” Ives added, “cargo theft is highly profitable and not particularly dangerous.”
Conrad agreed, adding that thieves often rob warehouses on a Friday night, and by the time the crime is discovered and reported Monday morning, the stolen merchandise may already be on a store shelf or auctioned online.
That’s why our task forces—comprised of local, state, and federal law enforcement—and our partnerships with private industry (see sidebar) are critical in the fight against these costly crimes, Ives said. “Cargo theft is a sophisticated and organized enterprise,” he added, “and we take this threat very seriously.”