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Challenging the Broad Tom Photo source: Russian Mystique by James O. Finckenauer and Elin Waring about the author he tall man with dark hair James O. Finckenauer is the Director of NIJ’s International Center. He is on leave from and eyes sweeps out of a his position as Distinguished Professor of Criminal at Rutgers, the State University T Lincoln Navigator wearing of New Jersey. Elin Waring is an Associate Professor of Sociology at Lehman College and a long, black leather coat, an impec- the Graduate Center of the City University of New York. Finckenauer and Waring coauthored cably tailored suit, and a scar that in America (Northeastern University Press, 1998). everyone knows not to mention. He runs his with an iron fist and demands absolute loyalty of enforcement heritage, including the state-run, from his “family.” His English has in New York, New Jersey, and centrally planned Soviet command only a slight Russian accent, and Pennsylvania created the Tri-State economy, which resulted in short- he has influential friends in the Joint Soviet-Emigre Organized ages and, therefore, widespread U.S. Congress, courts, and law Project (TSP) in 1992. and thievery. (See “Studying Russian Crime and enforcement—friends over whom For instance, of state property Criminals,” page 4.) Drawing on he has considerable influence. This or use of it for personal profit was information collected by TSP and godfather is often the not viewed as wrong. This belief several other research initiatives, the perception that Americans have stemmed from the centuries old about criminals who have arrived research reported here describes distinction between stealing from a here from the former the historical context, the types of peasant, which would be considered and the so-called “Russian Mafia.” crime in which Russian criminals wrong, and stealing from the czar It is almost entirely inaccurate. in the have been and nobility, which was not regard- implicated, the extent to which these ed as wrong. This belief carried Following the collapse of the Soviet activities fit definitions and under- over into the Soviet period, with Union in 1991, movies and television standings of , and the state taking the role occupied shows featured depictions of crimi- most importantly, whether what is by aristocrats. nals from the former Soviet Union as seen is mafia-like. (See “Defining the newest type of “romantic” - Organized Crime,” page 5.) For In this atmosphere, three tiers of ster, and newspapers and magazines purposes of simplicity, all persons organized crime developed in the published chilling articles about in question will be referred to as Soviet Union. The first tier was 1 “Russian godfathers.” Although a . high-level and party few serious works have begun to bureaucrats; the second was shadow appear, such as Russian Organized economy operators who produced Crime: The New Threat? edited by Historical Context goods off the books; and the third Phil Williams and Red Mafiya by of Russian Crime was professional criminals, includ- Robert I. Friedman, what is known ing the vory v zakone (thieves in The use of bribery, black markets, is still more anecdotal than empirical law). The roots of the vory v zakone and other schemes to survive in are usually traced to the Soviet in nature. 2 Soviet society is well documented. system, and most notably to It was in response to this absence of This connive-to-survive attitude the Stalinist . They are distin- solid information that a consortium is borne out of the shared Soviet guished by being completely com- mitted to a life of crime. They fol- low only their own rules and and reject any involvement with or Many moral compromises were made and distinctions obligation to the legitimate world. These tiers were, in part, the result between right and wrong were blurred so average of an economy where the govern- ment could not provide people with Soviet citizens could feed and clothe their families. the basic necessities, and the elite and loyal Communist Party mem- Due to the unpredictability of the economy, informal bers were lavishly rewarded. Many moral compromises were made and distinctions between right practices, such as bartering and deal making, and wrong were blurred so average Soviet citizens could feed and clothe became the means that Soviets used to get what their families. Due to the unpre- dictability of the economy, informal they needed and to do what they wanted. National Institute of Justice Journal April 2001 3 Studying Russian Crime and Criminals

The study of organized crime is a This joint intelligence, investigative, quantity of written materials, includ- difficult and often risky undertaking. and prosecutorial effort set about to ing a mailed questionnaire and Many of the methods commonly accomplish three goals—to identify in-depth interviews with a variety employed in criminological research, the participants, to describe their of individuals, including: such as survey research and self- criminal activities, and to analyze Writers and journalists who had report studies, are either inappro- the markets in which the criminal studied and written about Soviet priate or not applicable. Thus, the activities occur. organized crime. opportunity presented to Finckenauer TSP generated considerable source and Waring to affiliate with the Residents and businesspersons material, and the authors pursued a Tri-State Joint Soviet-Emigre in , , agreement with TSP as Organized Crime Project (TSP) which is alleged to be the cen- the primary data source. The project provided unprecedented access ter of Russian criminal activities provided data on the types of offend- to a wide range of information and in the United States. ing by Russians who had come to the sources. In return for unrestricted Key community figures in attention of the participating agen- access,1 the researchers agreed the large emigre communities cies. The information came in seven not to compromise the investigative in Brighton Beach and forms—indictments, newspaper and techniques employed nor to disclose . magazine articles, telephone records, any information pertinent to active general undercover observation Law enforcement professionals criminal cases. reports, reports, confi- (both in the United States and The agencies in the consortium dential interviews, and vari- the former U.S.S.R.). were the New York State Organized ous other reports—and included 404 Crime Task Force, the New York separate documents in a variety of 1. The authors had complete access to State Commission of Investigation, formats and lengths. Although each investigative reports, memos, infor- mation from other agencies, and the Pennsylvania Crime Commission, of the seven source types had defi- other investigative materials collected and the New Jersey State Commis- ciencies, the sources complemented by TSP. However, they did not have sion of Investigation. The consor- one another and provided information access to grand jury transcripts, the tium’s directive was “to identify the that was more reliable and valid than identities of confidential , nature and extent of Russian-emigre any other single source. and other similar materials. crime within the tri-State region... 2. The Tri-State Joint Soviet-Emigre In addition to the information Organized Crime Project, An in order to assist law enforcement garnered from TSP, research was Analysis of Russian-Émigre Crime in in its ongoing effort to combat the the Tri-State Region, New York: New conducted through several other threat of organized crime.”2 York State Commission of Investi- research initiatives to collect a large gation, 1996: 33.

practices, such as bartering and deal income outside official channels. amount of exchanging making, became the means that The shadow economy also was a hands is greater, and the number of Soviets used to get what they needed means for citizens to obtain legal items on the is more and to do what they wanted. The goods in an illegal manner. extensive—it now includes antiques, children learned from watching stolen cars, precious metals, and The black market, a second aspect their parents deal with the shadow advanced weapons, including of the illegal economy, was used to economy or black market: You had nuclear weapons materials. obtain illegal items, including to manipulate the system or you and Western products as well as stolen your family would suffer. goods, , and bootleg liquor Russian Crime in Taking advantage of shortages, an and cigarettes. This market was the United States illegal second, or shadow, economy comprised of work activities carried began to work alongside the official out for private gain, such as carpen- It isn’t surprising that criminals who economy. This economy was made try, plumbing, and electrical work emigrated from the former Soviet up of the activities deemed neces- that was officially unauthorized. Union would commit crime based sary by factory managers, farm Instead of being curtailed by the on their past experiences. In fact, directors, and others in similar collapse of the Soviet Union, evi- one could easily imagine that some positions to exceed their production dence indicates that black market who left the Soviet Union simply quotas and produce profits and activity actually has increased. The continued their old ways and saw

Challenging the Russian Mafia Mystique 4 Defining Organized Crime

Three assumptions helped shape the the legal and political systems. This however, is to citizens, who lose basis of this research into Russian may have both a specific respect for the legitimacy of the crime. The first is that a criminal instrumental purpose (creation and legal and political systems and who, organization can be usefully exam- maintenance of criminal monopo- as a result, fail to support what they ined both in terms of its structure lies) and a more general intent believe are corrupted processes. and the activities in which it (creation of an atmosphere ripe Of the types of harm traditionally engages; second, that a criminal with fear and ). Not associated with the operation of organization is not synonymous with only does this facilitate the estab- organized crime, the one most organized crime; and third, that the lishment of market control, it clearly evident in the Tri-State Joint nature and extent of harm caused is eventually controls the community Soviet-Emigre Organized Crime an essential dimension for charac- and undermines the legal system Project data was violence. Russian terizing a criminal organization. because local residents will not criminals in the tri-State region use report or serve on juries. Organized crime is typically defined violence to intimidate the public, by three characteristics: criminal As with violence, is potential competitors, and persons , violence, and corruption. instrumental in providing organized viewed as disloyal. There is, howev- Although other forms of criminal crime with against arrest, er, no indication that Russians have organization may involve one or prosecution, and conviction for established any criminal two of these activities, true organized crimes. Corruption also facilitates in the United States. Rather, their crime is unique because all three monopoly control by enlisting the offenses take place in a variety of are essential, each one reinforcing authorities in the elimination of areas and do not represent total the other two. criminal competitors. The integrity domination of any market. Russian of the legal and political systems criminals also do not appear, at A monopoly (total control of a mar- is harmed as law enforcement this point, to be using systematic ket) is gained through the threat and becomes distorted and the rule of corruption to protect their enterpris- use of violence and the corruption of law is subverted. The ultimate harm, es in the United States. anything having to do with the gov- impact of the illegal activity and Naturalization Service documents, ernment as “fit for the taking.” This makes it harder to detect. For exam- passports, and other documents. may mean that it could be expected ple, in the early 1990’s a Pennsyl- In addition to the and coun- for some, if not many, such emigres vania automobile insurance ring terfeiting allegations, Russians are to have few reservations about staged automobile accidents that involved in and drug para- defrauding the government and resulted in more than $1 million in phernalia markets, including the government programs and mount- phony claims. This scheme, which importation and street-level sale ing various scams and schemes illegally used people in the legiti- of drugs. Evidence indicates that against bureaucracies. mate economy, was led by the owner Russians have cooperated with other of a medical clinic and at least one In fact, fraud is the most common ethnic groups, such as Colombian doctor employed at the clinic. type of crime among Russian crimi- drug cartels. In addition, the former nals in the United States, according Other fraud involves confidence Republics of the Soviet Union serve to the TSP investigation. Fuel tax schemes in which the victims are as transshipment points for impor- evasion cases are the largest and often members of the Russian com- tation of drugs into the United best-known type of fraud carried munity, which varies from the old States.3 has involved out by these individuals. The crimi- belief that it was all right to steal more than drugs and drug-related nals take advantage of the ways that from the government but not from items; smuggled products include various States and the Federal citizens. For example, an emigre aluminum, weapons, and currency, Government collect taxes on may purchase a ticket to for among others. motor fuel. his mother from a Russian travel Russian criminals in the tri-State agency, but because the agency is Russians also commit other sophis- region have shown a willingness and a criminal front, a ticket is never ticated types of fraud that blend capacity to use violence, including received. Other operations orga- legal and illegal operations, as often , , and . nized by Russian offenders have happened in the former Soviet Additional information was found included making counterfeit credit Union. This blend maximizes the on this topic when another data cards, checks, Immigration and

National Institute of Justice Journal April 2001 5 Regardless, some law enforcement authorities and journalists have described Russian criminals operat- ing in the United States as being structured in the manner of the mafia or La Cosa Nostra (the U.S- based version). For example, when , nicknamed “Yaponchik” or “Little Japanese,” was arrested in June 1995, he was labeled the “capo di tutti capos” (boss of all bosses) of Russian crime in the United States.5 Officials viewed Ivankov’s arrest as proof of Russian organized crime in the United States. His known associa- tion with the Solntsevskaya gang, the largest gang in the former Soviet

Photo source: The AssociatedPhoto source: Press Union, strengthened the idea that he Vyacheslav Ivankov, who some consider of the Russian mafia in the United States, was was the leader of a group similar to arrested by the FBI in 1995 for extortion. He was sentenced to 9 1/2 years in prison. La Costra Nosa.6 Ivankov is believed to be one of the Russian vory, and source was used to complement Organized Crime perhaps even among the top leader- the information garnered from vs. Crime That Is ship group.7 TSP—interviews with residents in Brighton Beach, Brooklyn, the oldest Organized: Whither Other authorities believe that and most prominent Russian com- the Russian Mafia Russian crime networks and organi- munity in the United States. A trans- zational structures in this country The notion of mafia is associated do not look anything like La Cosa planted Russian, who is now a most often with and southern 8 teacher in Brighton Beach, gave a Nostra. According to this view- . Mafia is said to point, criminals from the former detailed description of this trend be a way of life that is particularly Soviet Union operate mostly as toward the use of violence in the Sicilian, with a code based on Sicilian individual specialists instead of with criminal arena. traditions and customs. The notions the hierarchical structure tradition- Russian murderers are being of honor, respect, and omerta (code ally associated with continuing ordered and brought from of silence) are critical to defining the criminal enterprises. Because they Russia to complete a specific mafia. The so-called Russian Mafia, operate in this manner, the groups task of killing someone. The however, is not associated with are variable and occasionally come mafia shows them who to kill honor and respect and should not together to commit a crime. This and that is the end of it. It is be confused with the real thing. point of view suggests that the planned and organized pretty The label Russian Mafia offers a Russian crime groups are not rigidly well.However,I ’t think that convenient hook for understanding, authoritarian and that the people Russians occupy any of the involved do not answer to anybody but at the same time sensationalizes higher positions in the criminal in particular. When these groups matters so as to peak interest. The structure. do work together, it is in a market- use of the term Russian Mafia may like manner, choosing others to Since 1981, investigators have report- actually create a self-fulfilling work with purely because of the ed at least 65 and attempted prophecy in which people—whether expected financial return on their murders in the tri-State area involv- Russian emigres, members of the collaboration. ing Russians that have indications of general public, law enforcement organized crime involvement.4 These officials, or journalists—map their But neither view is entirely correct. murders do not appear to be either images of mafia onto the crimes Data indicate that the individuals systematic or designed to protect a that occur in Brighton Beach and identified by law enforcement as criminal enterprise, but instead are elsewhere. A criminal group gains involved in or suspected of criminal motivated mainly by greed or per- stature when it is called “mafia,” activities are part of large, ongoing sonal vendettas. which only heightens its power. networks of criminals. Although

Challenging the Russian Mafia Mystique 6 analyses found no evidence of a complex hierarchy or set of hierar- For More Information chies, they did find ad hoc teams that come together for specific crim- Finckenauer, James O., and Elin Waring, Russian Mafia in America, : Northeastern inal ventures, forming opportunistic University Press, 1998. . In these groups, orga- Friedman, Robert I., Red Mafiya, New York: Little, Brown and Company, 2000. nizational structure is created on an Williams, Phil, ed., Russian Organized Crime: The New Threat? Portland, OR: Frank Cass as-needed basis to enable the co- and Company, 1997. offenders to carry out particular crimes. They often create flexible, project-oriented structures similar The flexible structure of U.S.-based 3. Freeh, Louis, Testimony before to some licit organizations. Russian organized crime can be the Senate Permanent Sub- attributed to a number of forces. Of committee on Investigation, Many legitimate organizations have primary importance, this structure May 25, 1994, 100 Russell Senate moved to decrease the amount and is a continuation of the patterns and Office Building, Washington, degree of hierarchy and to increase practices that were so common in DC. the reliance on strategic partner- the former Soviet Union. Second, ships and task groups and on third- 4. The Tri-State Joint Soviet- this loose, flexible structure is well- party service providers.9 This style Emigre Organized Crime suited to the types of crime in which of organization seems to be effective Project, An Analysis of Russian- these criminals are involved. Crimes for both licit and illicit enterprises. Emigre Crime in the Tri-State such as fraud and confidence Region, New York: New York These forms of organization also are schemes and certain violent crimes State Commission of similar to those seen among Russian are particularly suited to this type of Investigation, 1996: 1. offenders in the tri-State area. structure because they require team- What is not found is evidence work, flexibility, and the ability to 5. The Times (Trenton, NJ), “New of mafia-like structures or activities. imitate the operation of a legitimate Comrades of Crime” (August 14, Ironically, Russian criminals have actor or organization. But because 1995): A1. adopted the structure of many Russian crime and the nature of 6. Dunn, Guy, “Major Mafia legitimate organizations, which is Russian criminal organizations in in Russia,” in Russian Organized becoming more horizontal rather this country are evolving, this pic- Crime: The New Threat? Phil than vertical in nature. ture also could change. Williams (ed.), Portland, OR: Frank Cass and Company, 1997: Of the tools used by sophisticated NCJ 187711 65–67. criminal organizations—monopoly, Notes 7. Friedman, 1994, op. cit. violence, and corruption—violence 1. For example: Anderson, Scott, is the only one that is seen as typical “Looking for Mr. Yaponchik,” 8. Rosner, Lydia S., “The Sexy of Russian criminals. The evidence Harper’s (December 1995): Russian Mafia,” Criminal does not indicate monopolization of 40–51; Attanasio, Traci Anne, Organizations, 10(1) (1995); criminal markets or a systematic use “How Russian Organized Surrett, Roy, “Remarks,” First of corruption. Crime Took Root in the U.S.,” International Law Enforcement The prevailing structure of Russian Organized Crime Digest 15(19) Sharing Conference on Russian organized crime in the United States (October 12, 1994): 1; Friedman, Organized Crime, September is characterized by people who knew Robert I., “The Organizatsiya,” 19–23, 1994. each other in the former Soviet New York (November 7, 1994): 9. Powell, Walter W., and Laurel Union, or who knew people in com- 50–58; Raab, Selwyn, “New Smith-Doerr, “Networks mon, and who collaborate for a spe- Group of Russian Gangs Gains and Economic Life,” in The cific criminal event. Although their Foothold in Brooklyn,” The New Handbook of Economic Sociology, backgrounds vary, they are most York Times (August 23, 1994): 1; Neil Smelser and Richard likely professional and entrepre- The Times (Trenton, NJ), “New Swedborg (ed.), Princeton: neurial criminals. Russian criminals Comrades of Crime,” The Times Press, in the United States associate mainly (August 14, 1995): A1. 1994. with each other, although their loy- 2. Simis, Konstantin M., USSR: alty does not seem to be based on The Corrupt Society,New York: shared ethnicity or culture. Simon and Schuster, 1982.

National Institute of Justice Journal April 2001 7