The Russian Mafia, 1

Running Head: THE RUSSIAN MAFIA

The Russian Mafia

In APA Style

Jason Fahey

The Pennsylvania State Capital College

English 202D, Fall 2006

Dr. Julie Kearney

December 6, 2006
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Table of Contents

List of Illustrations………………………………………………………………………3

Abstract………………………………………………………………………………….4

Introduction……………………………………………………………………………...5

Background……………………………………………………………………...5

Problem………………………………………………………………………….5

Purpose………………………………………………………………………….5

Scope……………………………………………………………………………5

Discussion………………………………………………………………………………6

Organization and Structure……………………………………………………..6

The Code………………………………………………………………………..7

Criminal Activity……………………………………………………………….8

Law Enforcement………………………………………………………………10

Conclusion……………………………………………………………………………..11

References……………………………………………………………………………..12
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List of Illustrations

Figure 1: Power Pyramid…………………………………………………………………6

Figure 2: Russian Mob Leader, Vyatcheslav Ivankov……………………………………8

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Abstract

Al Capone, John Gotti, and Goodfellas are some of the first images that come to

mind when one hears the word “mafia”. In television and film, mobsters are portrayed as

rich Italian men with gaudy suits, expensive cars, and beautiful women. However, in real

life, a different group of men have emerged that pose a serious threat not only to their

own society, but ours too. This report will discuss the Russian mafia, the crimes they

commit, and why they have become a significant problem in the United States. It will

also discuss how they originated, how they get their means, and how they have become

so powerful.
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The Russian Mafia

Introduction

Background

It is not news to anyone that crime is an ongoing problem in the United States.

The type of crime discussed in this report, though, is of a little more concern because it is

organized. According to Freeh (1996), Americans view organized crime as “a continuing

criminal conspiracy having a firm organizational structure, a conspiracy fed by fear and

corruption.” In my eyes, it doesn’t matter how you define it, but how you stop it.

Problem

“The political, social, and economic changes occurring in Eastern Europe and in

the former Soviet Union Republics have provided significant, unintended opportunities

for organized crime groups and criminal enterprises in these countries to expand

internationally (Freeh, 1996).”

Purpose

The purpose of this report is to expose the reader to what goes on in Russian

Organized Crime (ROC) and find out what is being done to stop it.

Scope

This report explores several areas of ROC including their organization and

structure, their code of conduct, their criminal activity, and what methods are being used

to prevent ROC.
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Discussion

Organization and Structure

The Russian Ministry of Internal Affairs reported that over 5,000 organized crime groups

consisting of nearly 100,000 members existed in Russia in 1993 (Lungren, 1996). Each

group is led by a “pakhan”, or boss, who heads smaller divisions called “brigadiers”

(Lungren, 1996). Criminal activity is carried out at the bottom of the command chain by

“enforcers” who are not even aware of their pakhan’s identity for security purposes

(Lungren, 1996). In the United States, “Russian is used generically to refer to a variety

of Eurasian crime groups—many of which are not Russian (Finckenauer, 2000).”

According to Lungren (1996), in

the United States “most Russian

organized crime groups are loosely

organized and do not have

elaborate levels of structure.”

Vory v zakone, or thieves-in-law,

are the closest group of ROC

Figure 1: Power Pyramid 1

resembling the traditional forms of mafia in terms of organization and conduct according

to Finckenauer (2000). “The roots of the vory v zakone are usually traced back to the

Russian prison system, and most notably the Stalinist gulags (Finckenauer & Waring,

2001).” They dedicate their lives to crime and “follow only their own rules and laws and

reject any involvement with or obligation to the legitimate world (Finckenauer & Waring,
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2001).” One high-ranking member of the vory v zakone, Vyatcheslav Ivankov, was

arrested in Brooklyn, New York in 1995 “for trying to extort $3.5 million from a Wall

Street investment firm (Lungren, 1996).” He is serving a sentence that could last up to

nine and a half years (Finckenauer & Waring, 2001). Louis Freeh, head of the FBI, says

in (The Rise and Rise, 1998), “In 10 or 20 years Ivankov would have been a very, very

dangerous criminal leader, not just in the

United States but worldwide.” According to Lungren (1996), the Odessa mafia of

Brighton Beach, New York is the dominant Russian crime family in the U.S. They

formed in the mid 70’s and are “believed to be involved in

extortion, money laundering, fraud, loan-sharking, and

homicide (Lungren, 1996).”

The Code

In my opinion, the Russian mob is run like a business.

In order to be successful, a business must have a set of rules or Figure 2

Vyacheslav Ivankov's tattoo
guidelines to ensure stability and order within the organization. denotes him as a 'thief in law'

The Russian mob is no different. According to Lungren (1996), the Russian mafia is

governed by a set of rules known as “The Thieves Code”. The code consists of 18 rules

to be followed at all times. Here is a look at just a few of their rules:

“A thief is bound by the code to:”

#1. Forsake his relatives…

#2. Not have a family of his own…

#3. Live only on means gleaned from thievery…

#13. Teach the trade to young beginners…

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#18. Make good on promises given to other thieves…

(Lungren, 1996).

Criminal Activity

In my eyes, the Russian mafia’s main concern is money. In order to get this

money they commit crimes such as fraud, extortion, racketeering, money laundering,

internet scams, and even murder (Finckenauer & Waring, 2001). According to

Finckenauer and Waring (2001), “fraud is the most common type of crime among

Russian criminals in the United States.” The most prevalent type of fraud is fuel tax

evasion in which these criminals manipulate the ways the government collects fuel taxes

(Finckenauer & Waring, 2001). According to Finckenauer & Waring (2001), “other

operations organized by Russian offenders have included making counterfeit credit cards,

checks, Immingration and Naturalization Service documents, passports, and other

documents.” Another growing concern is internet hacking. “The hackers hired by the

Russian mafia break into e-commerce computers and steal credit cards and bank account

numbers. Some of them even resort to extortion, pledging to release the data if

companies do not pay them off (Lorek & Ploskina, 2001).” According to Finckenauer

(2000), “Russians have become the principal purveyors of credit card fraud in the U.S.,

supplanting the West Africans.” According to Lorek and Ploskina (2001), “The FBI said

that 40 companies in 20 states have been identified as targets of what the agency

euphemistically calls Eastern European organized crime groups. More than 1 million

credit card numbers have been stolen by the group.” Russian hackers may be given fines
 The Russian Mafia, 9

along with jail sentences of up to ten years; but few cases are ever prosecuted according

to Lorek and Ploskina (2001). Extortion is another activity that the Russian mafia

partakes in. According to (“The Rise and Rise”, 1998), Doug Steele, owner of a

nightclub in Moscow, estimates he has paid $1 million in payoffs to “police, officials,

and the mafia.” Steele goes on to say that there would be no economy in Russia if not for

the mafia (“The Rise and Rise”, 1998). “You have to grease the palm or you won’t be in

business”, says Steele (The Rise and Rise, 1998). “The threat and use of violence is a

defining characteristic of Russian organized crime (Finckenauer, 2000).” According to

Finckenauer (2000), this comes as no surprise since extortion and racketeering are staples

of Russian criminal activity. (“The Rise and Rise”, 1998) states that Russia sees about

600 contract killings per year and that “in the last five years, 95 bankers have been

murdered.” According to a 1995 report of the Tri-State Joint Émigré Organized Crime

Project, Russian criminals have been involved in numerous assaults and murders in the

U.S. and used intimidation tactics to prevent witnesses from testifying (Finckenauer,

2000). “Russian murderers are being ordered and brought from Russia to complete a

specific task of killing someone. The mafia shows them who to kill and that is the end of

it”, says a Brighton Beach school teacher originally from Russia (Finckenauer & Waring,

2001). According to Finckenauer & Waring (2001), “Since 1981, investigators have

reported at least 65 murders and attempted murders in the tri-State area involving

Russians that have indications of organized crime involvement.” In my opinion, 65

murders in 20 years are not the many for a group that so many people fear. It only works

out to be slightly over one killing per year per state. However, the tri-State area consists
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of New York, New Jersey, and our home state of Pennsylvania which, in my eyes, hits a

little close to home.

Law Enforcement

According to Freeh (1996), “The United States and Russia fully realize the nee for

joint cooperation against crimes that harm both countries---and other parts of the world as

well.” For this reason, a Legal Attache Office composed of highly-skilled FBI agents

was opened in Moscow (Freeh, 1996). According to Freeh (1996), they will “work

closely with Russian police against a variety of costly crimes.” In 1995, the FBI trained

4,400 foreign law enforcement personnel in an international effort to combat organized

crime (Freeh, 1996). These programs are funded by Congress and the State Department

through the Freedom Support Act (FSA) and the Support for Eastern European

Democracies (SEED) funds (Freeh, 1996). Other programs such as the International Law

Enforcement Training Academy in Budapest, which trains many Russian officers, are

also funded by the FBI and the Department of State (Freeh, 1996). In addition to crime

investigation, 212 Russian officers were trained by the FBI in areas such as ethics and

internal controls from January to April of 1996 (Freeh, 1996). In my opinion, ethics and

internal control should be taught first and foremost to ensure we are teaching our ways of

law enforcement to trustworthy individuals. According to Finckenauer (2000), “the FBI

has created units to combat Russian organized crime in its field offices in seven U.S.

cities…major departments such as New York City and Los Angeles have likewise created

specialized crime units to target Russian crime in their jurisdictions.”

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Conclusion

Whether organized or not, the Russian mafia is causing problems in different

parts of the world. They follow a code of thievery that makes any place they inhabit

unsafe for others. Hopefully, the ongoing collaborative efforts of U.S. and Russian

authorities can curb these activities and turn these “thieves-in-law” to “thieves-behind-

bars”.
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References

Finckenauer, James O. (2000). Russian organized crime in the united states. National

Institute of Justice. Retrieved November 21, 2006 from http://www.ojp.usdoj.gov

Finckenauer, James., & Waring, Elin. (2001). Challenging the russian mafia mystique.

National Institute of Justice Journal. Retrieved November 21, 3006 from

www.yorku.ca/nathanson/genres/htm.

Freeh, Louis J. (1996). Hearing on russian organized crime. Federal Bureau of

Investigation. Retrieved November 21, 2006 from

www.fas.org/irp/congress/1996_hr/h960430f.htm

Lorek, Laura., & Ploskina, Brian. (2001, July 16). Russian mafia net threat. Eweek.

Retrieved November 21, 2006 from

www.eweek.com/article2/0,3959,123772,00.asp

Lungren, Daniel E. (1996). Russian organized crime. Office of the Attorney General:

State of California. Retrieved November 21, 2006 from

www.fas.org/irp/world/para/docs/rusorg4.htm

The rise and rise of the russian mafia. (1998). Retrieved November 21, 2006 from

www.news.bbc.co.uk/1/hi/special_report/1998/03/98/russian_mafia.htm