European Institute for Crime Prevention and Control, affiliated with the United Nations (HEUNI) P.O.Box 157 FIN-00121 Helsinki Finland Publication Series No. 42 Organised Crime, Trafficking, Drugs: Selected papers presented at the Annual Conference of the European Society of Criminology, Helsinki 2003 Edited by Sami Nevala and Kauko Aromaa Helsinki 2004 Copies can be purchased from: Academic Bookstore Criminal Justice Press P.O.Box 128 P.O.Box 249 FIN-00101 Helsinki Monsey, NY 10952 Finland USA Website: http://www.akateeminen.com Website: http://www.criminaljusticepress.com ISBN 952-5333-18-3 ISSN 1237-4741 Page layout: DTPage Oy, Helsinki, Finland Printed by Hakapaino Oy, Helsinki, Finland Foreword In the 2003 annual conference of the European Society of Criminology (ESC) in Helsinki (27–30 August), quite a large number of papers (21) were presented that focused on issues related to organised crime, including trafficking in human beings and corruption. This collection presents all of these papers to the benefit of those who attended and, in particular, those who did not. During the confer- ence, many colleagues expressed the feeling that such material should be made more widely available than was possible at the conference alone. One particular feature of interest is the high proportion of colleagues from Eastern European countries in this context—twelve out of twenty-one—which is a lot considering that the vast majority of presenters came from other regions than these. This feature is a special bonus, we hope, for many who are unfamiliar with criminological work in that region. It may be too hasty a conclusion to be- lieve that organised crime issues must be particularly acute and topical in those parts of Europe as the volume of contributions might indicate. The outcome could, however, just as well be a reflection of a peculiar lack of interest and tradi- tion concerning this topic in Western Europe, amazing as this may seem. My ob- servation has been, at any rate, that the European criminological tradition(s) have been oddly disinterested in this matter. This is not to say that a lot of good work had not been done; our concern is just that there might be more of it. The present situation is understandable as organised crime is not among the easiest research topics, in particular if empirical studies are called for. Not so long ago, many Eu- ropean colleagues were expressing serious doubts as to whether such a thing ex- ists at all in reality, it being the kind of social construct as it no doubt also is. One practical problem became quickly clear when the editing of this volume commenced: the language. Europe speaks and writes mostly languages other than English. For this reason, a project like this one easily becomes relatively ex- pensive and labour-intensive. The language barrier being a major cause of dis- semination difficulties, a volume like the present one attempts to overcome some of this European dilemma. Although a British standard of English has been as- pired to, this report serves also of an example of how English language is in use way beyond the borders of the Commonwealth, and ways of expression are con- stantly borrowed from other languages. This collection is hoped to inspire more serious work in this area. On behalf of HEUNI, I also wish continued success to the ESC in advancing researcher con- tacts and improved scientific work on issues related to organised crime. For this purpose, we have also included the contact information to the authors (as pro- vided to the ESC conference) as an appendix to this volume. Kauko Aromaa Director iii Contents Foreword. iii Banking, Fraud and Stock Manipulation: Russian Opportunities and Dilemmas . 1 Alan A. Block, The Pennsylvania State University, United States Research into Organised Crime in the Czech Republic—solved topics, methodology, basic results . 16 Martin Cejp, Institute of Criminology and Social Prevention, Czech Republic Mediterranean Sea and the Protection of the Underwater Cultural Heritage . 27 Silvia Ciotti Galletti, University for Foreigners, Perugia, Italy Map of Corruption in Lithuania: The Residents’ View. 38 Aleksandras Dobryninas and Laima Zilinskiene, Vilnius University, Lithuania Organized Crime and Corruption in Ukraine as a System Phenomenon . 49 Viktor Dryomin, Criminology and Penitentiary Law Department at the Odessa National Academy of Law, and Information and Research Center on Organized Crime, Ukraine Contemporary Russian Corruption . 60 Yakov Gilinskiy, Sociological Institute, St. Petersburg, Russia Human Trafficking: Concept, Classification, and Questions of Legislative Regulation. 70 Georgi Glonti, Transnational Crime and Corruption Center, Georgia Social Co-ordinates of the Use of and Experimentation with Drugs among Young People in the European Part of Russia—the Example of Tatarstan . 81 Yuri Komlev, Kazan Law Institute of the Ministry of Internal Affairs, Russia Organized Crime and Smuggling Through Abkhazia and South Ossetia . 87 Alexander Kukhianidze, American University’s Transnational Crime and Corruption Center (TraCCC), Georgia Office Criminal Networks and Trust. On the importance of expectations of loyal behaviour in criminal relations. 102 Klaus von Lampe and Per Ole Johansen, Freie Universität Berlin, Germany, and University of Oslo, Norway v Trafficking in Women and Children in Europe . 114 Martti Lehti and Kauko Aromaa, National Research Institute of Legal Policy, and European Institute for Crime Prevention and Control, affiliated with the United Nations, Finland Развитие межнациональной экономики и углубление интеграционных процессов как криминогенные факторы и пути их минимизации . 129 English summary: The Intensification of Inter-State Integration and the Rise of Inter-State Economic Integration as Factors Enabling Criminalization, and Methods of Minimizing this Criminalization. 145 Natalia Lopashenko, Saratov Center for the Study of Organized Crime and Corruption, Russia The Main Weaknesses of the Management System in the State Administration of Georgia as Supporting Factors for Corruption and Money Laundering . 147 Shalva Machavariani, Transnational Crime and Corruption Center, Georgia Representations of Organised Crime in Estonian Printed Media . 157 Anna Markina, Researcher, Criminological Research Unit, Institute for International and Social Studies, Tallinn Pedagogical University, Estonia The last resort in action: initiatives to stop the diffusion of white-collar crime and corruption in transitional countries . 174 Anna Markovska and Dmitriy Nochvay To Counter Effectively Organized Crime Involvement in Irregular Migration, People Smuggling and Human Trafficking from the East. Europe’s Challenges Today . 188 Robert Oberloher, United Nations Interregional Crime and Justice Research Institute (UNICRI) Impact of Transnational Organized Crime on Law Enforcement . 197 Marvene O’Rourke, National Institute of Justice, USA An Occupational Perspective on some Efforts to Fight Organized, Transnational Crime in the European Union . 210 Lotta Pettersson, Department of Criminology, Stockholm University, Sweden Organized Crime in Ukraine: Contemporary Situation and Methods of Counteraction . 216 Olena Shostko, National Law Academy, Ukraine International Trafficking in Human Organs . 226 G.V. Travaini, S. Garibaldo, V. Arcari, R. Molteni, Institute of Legal Medicine, University of Milan, Italy The Penal Legislation Concerning Illegal Drugs in the Czech Republic: The Right Time for Change Now?. 233 Petr Zeman, Institute of Criminology and Social Prevention, Czech Republic Appendix. Alphabetical list of principal authors . 247 vi Banking, Fraud and Stock Manipulation: Russian Opportunities and Dilemmas Alan A. Block The Pennsylvania State University, United States Introduction There are two primary and related issues when it comes to the money that flowed out of the former Soviet Union and the Eastern bloc. How much was more or less traditional capital flight in which rapacious and sometimes frightened business people moved their money to safe havens; how much was the result of organized criminal activities; and how much was clandestinely contributed by politicians and state officers. It certainly is not possible to effectively calculate the real fig- ures of capital flight, although there have been, from time to time, educated guesses, and more importantly, real cases which light a small corner or two of the sums involved in capital flight. The real bottom line, therefore, is not how much was moved nor by whom, but how lucky it was for all those involved that so many Western banks were so anxious to co-operate. And indeed none more so than The Bank of New York. The Bank of New York: Berlin and Edwards Plead Guilty On February 16, 2000, forty-one year old Lucy (Ludmilla) Edwards, a Bank of New York (BONY) vice-president working in the newly minted Eastern Euro- pean Division, and her husband, Peter Berlin, forty-five years old with a degree in physics from the Moscow Physical Technical Institute, pled guilty for partici- pating in a conspiracy to evade income taxes, establishing a branch of a foreign bank in the United States without the approval of the Federal Reserve, operating an illegal money-transmitting business, laundering money and engaging in a wire fraud service scheme to defraud the Russian government of customs duties and tax revenues.1 There was much more. Edwards and Berlin admitted to mak- ing corrupt payments to two Bank of New York employees as well as laundering these payments through offshore accounts.