Eurasian
Organized Crime
We apply the term “Eurasian Organized Crime” to organized
crime groups comprised of criminals born in or with family from the
former Soviet Union or Central Europe.
These groups operate in numerous countries around the world, including
the U.S., where their criminal activities cause hundreds of millions
of dollars in losses to U.S. businesses, investors, and taxpayers
through sophisticated fraud schemes and public corruption.
History of Eurasian Organized Crime
The roots of Eurasian organized crime in the U.S. lie with
the Vory V Zakone or “thieves in law,” career criminals
who banded together for support and profit in the Soviet prison system.
During the Soviet period, their leaders or “shop managers” were
illicitly paid a 30 percent margin to acquire scarce consumer goods
and divert raw materials and finished goods from production lines
for the benefit of Nomenklatura, or the educated elite, and criminals.
With the collapse of the Soviet Union in 1991, members allied themselves
with corrupt public officials to acquire the control of industries
and resources that were being privatized. This gave the syndicate
a one-time infusion of wealth and supplied the infrastructure for
continuing cash flows and opportunities to launder criminal proceeds.
In February 1993, Boris Yeltsin, the first elected president of
the Federation of Russian States, said, “Organized crime has
become the No. 1 threat to Russia’s strategic interests and
to national security...Corrupted structures on the highest level
have no interest in reform.”
Organized crime members first emerged in the West in the 1970s when
Soviet Refuseniks were allowed to emigrate to Europe, Israel, and
the U.S. Among the Refuseniks were criminals who sought to exploit
their new-found freedoms. These criminals helped the major criminal
groups expand to the West when the Soviet Union collapsed and the
people of the region were able to move about freely.
These groups based in the former Soviet Union have also defrauded
newly formed governments of billions of dollars, as industries and
resources formerly owned by the government have been privatized.
They profit through tax-evasion schemes and using corrupt officials
to embezzle government funds.
Their activity threatens to destabilize the emerging political institutions
and economies of the former Soviet Union, where nuclear weapons remain
deployed. The potential political and national security implications
of this destabilization cannot be ignored.
In the U.S., they are heavily involved in healthcare fraud, auto
insurance fraud, securities and investment fraud, money laundering,
drug trafficking, extortion, auto theft, and the interstate transportation
of stolen property. They also are active in human smuggling and prostitution.
To concentrate on the activities of these organized crime groups,
the FBI established investigative squads in New York and Los Angeles
in 1994, San Francisco in 1995, Miami in 1997, Philadelphia in 1998,
and in Newark and Chicago in 1999.
How We Combat Eurasian Organized Crime
The FBI belongs to several international working groups
to combat the influence and reach of Eurasian Organized Crime and
limit its impacts on all countries.
Eurasian Organized Crime Working Group
Acting under the auspices of the G8, this working group evolved from a group
established in 1994. It meets to discuss and jointly address the transnational
aspects of Eurasian organized crime that impact member countries and the
international community in general. The member countries are Canada, Great
Britain, Germany, France, Italy, Japan, the U.S., and Russia.
Central European Working Group
In 1995, our Eurasian Organized Crime Unit developed the concept and hosted
the first meeting of the Central European Working Group at the International
Law Enforcement Academy in Budapest, Hungary. Participants at the first meeting
were law enforcement representatives from the Czech Republic, Slovakia, Hungary,
Poland, Austria and Germany.
This group is part of a project that brings together the FBI and
Central European law enforcement agencies to discuss cooperative
investigative matters covering the broad spectrum of Eurasian organized
crime. A principal concern is the growing presence of Russian and
other Eurasian organized criminals in Central Europe and the U.S.
The initiative works on practical interaction between the participating
agencies to establish lines of communication and working relationships,
to develop strategies and tactics to address transnational organized
crime matters impacting the region, and to identify potential common
targets.
Within a year, the working group had expanded to include law enforcement
agencies and representatives from Romania, the Ukraine, Russia, Israel,
Great Britain, and Belgium.
Southeast European Cooperative Initiative
The Southeast European Cooperative Initiative is an international organization
intended to coordinate police and customs regional actions for preventing
and combating trans-border crime. It is headquartered in Bucharest, Romania,
and has 12 fully participating member countries. The U.S. has been one of
14 countries with observer status since 1998.
The initiative’s center serves as a clearing house for information
and intelligence sharing, allowing the quick exchange of information
in a professional and trustworthy environment. The initiative also
supports specialized task forces for countering trans-border crime
such as the trafficking of people, drugs, and cars; smuggling; financial
crimes; terrorism; and other serious trans-border crimes.
The 12 member countries are Albania, Bosnia and Herzegovina, Bulgaria,
Croatia, Greece, Hungary, Macedonia, Moldova, Romania, Slovenia,
Serbia/Montenegro, and Turkey. The observers are Austria, Azerbaijan,
Belgium, Canada, France, Georgia, Germany, Italy, the Netherlands,
Portugal, Spain, Ukraine, the United Kingdom, and the U.S.
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