The enterprise “model” of organized crime: Assessing theoretical propositions

In recent years, the study of organized crime has been oriented around the enterprise “model.” This model is really an approach to studying organized crime, founded on the notion that legal and illegal businesses are quite similar. This notion provides the method used by enterprise theorists: theories established for studying formal legal organizations are applied to the study of businesses that provide illegal goods and services. The most noteworthy research based on the enterprise approach is that of economist Peter Reuter. Reuter used principles of industrial organization and marketplace dynamics to predict that illegal enterprises will be relatively small and shortlived, and that illegal markets will be characterized by competition, not by collusion. Here I seek to assess the degree to which Reuter's propositions were confirmed or disconfirmed by observations of the numbers gambling industry in New York City in the 1960s. Most of Reuter's propositions were not supported by the data used in this study.     

The Internet gambling conundrum: Extraterritorial impacts of U.S. laws on Internet businesses

Internet gambling is a significant commercial activity that has been successfully adapted to the online environment. The geographical transcendence of the Internet presents challenges for government regulation, which varies considerably. U.S. patrons have historically provided a significant portion of the Internet gaming market, despite a dubious legal status. The Unlawful Internet Gambling Enforcement Act (UIGEA) enacted in October 2006 clarifies the legal status otherwise imposed by state law by prescribing felony criminal status to the Act of receiving an Internet wager from a jurisdiction where such wagering is illegal. This article provides an analysis of the UIGEA and its effects on Internet gambling firms, as well as related businesses. Despite targeting gambling firms, this legislation may also assist in the prosecution of other firms through aiding and abetting liability. UIGEA also targets financial services providers, requiring additional safeguards to stop unlawful transactions destined for Internet gaming sites. Financial markets suggest that this legislation has reduced Internet gambling in publicly traded firms. However, the bill may also have the effect of enhancing investment capital flows for online gambling firms, due to clarification of the legal status for firms who are not targeting U.S. residents in violation of UIGEA. The ultimate result may depend on whether other nations follow suit in targeting extraterritorial business with domestic gambling patrons.     

ILLEGAL ENTERPRISE: A THEORETICAL AND HISTORICAL INTERPRETATION *

Illegal enterprise—defined as the sale of illegal goods and services to customers who know that the goods or services are illegal—has long been a central part of the American underworld, but it has received little attention as a separate criminological category. Although such activities are often relatively short term and small scale when compared with legal businesses, three major factors explain the cooperation that sometimes emerges among illegal entrepreneurs. The first factor is systematic corruption, which often permits police or politicians to bring order to illegal activities within a political subdivision. A second factor is overlapping partnerships by which entrepreneurs often launch and maintain illegal businesses. A third factor is the internal economic characteristics of illegal businesses, which shape the manner in which they operate. The paper explores the implications of each factor through historical examples and suggests hypotheses concerning the changing structure of illegal enterprises in American cities.     

Bingo! Cheating and legally suspect practices in one of North Carolina’s only forms of legalized gambling

Bingo is one of two legalized forms of gambling in the state of North Carolina. This paper is largely a product of information gleaned from an undercover police operation conducted by a special state task force constructed by the State Attorney General in 1983. The investigation concerned violation of state law designed to regulate bingo activity. This report provides the reader with the development of state law associated with bingo operations, and concentrates on the illegitimate methods used by professional operators to cheat bingo patrons. Legislation designed to crack-down on bingo abuse is discussed as well Gambling is one of the most controversial social activities yet one of the least studied forms of social behavior (King, 1985). Bingo is a specific form of legalized gambling which has received very little attention by social scientists. There have been, however, a few studies which address the characteristics and motivations of bingo players. For example, it has been suggested that bingo is primarily a female activity (Dixie, 1987). However, it has been found that motivations among male and female players differ. Females are motivated more by social contact with other players, whereas men are motivated more by a need for economic advancement (King, 1985). Although some studies exist on the characteristics of bingo players, there is a dearth of research on the operators of bingo games, particularly those operators who ply their trade in a legally suspect fashion. This paper focuses upon the legally suspect mechanisms utilized by some professionals who run bingo gambling operations. The controversy over gambling often extends to state legislatures where lawmakers must wrestle with the question of whether or not to allow legalized gambling within their borders. On the one hand, advocates of legalized gambling cite potential advantages such as the creation of employment opportunities, its potential for enhancement of state revenues, the recreational value of such activity for consumers and the general enhancement of tourism within states having legalized gambling. On the other hand, critics of legalized gambling proclaim its evils such as the perceived relationship of gambling to organized crime, the belief that gambling breeds other social ills (e.g. theft or other crimes of economic desperation) and the belief that gambling can become a psychologically addictive disease which can contribute to individual and family impoverishment as well as community disorganization. North Carolina is one state in which the legislature has demonstrated strong resistance to the allowance of legalized gambling operations. Two exceptions exist, however. North Carolina allows two forms of legalized gambling, bingo games and raffles. This paper focuses upon bingo gambling operations. The central thesis of this paper is bingo was originally legalized to provide tax-exempt, charitable organizations a means of revenue enhancement which would help fund their socially worthwhile endeavors. The legislative changes allowing this form of gambling, however, have created opportunities for professional game operators whose major motivation is personal economic enrichment (versus economic enhancement of charitable organizations). The personal economic enrichment motive is offered to account for the various forms of cheating which were observed in a special investigation of a sample of bingo operations. In a review of theoretical explanations of gambling behavior Kim King (1985) suggests an extension of the functional approach which he labels an “Economic/Status” explanation. This explanation stresses the positive functions of gambling for society and the individual. According to the economic/status explanation, the positive functions of gambling (for the individual) include an innovative opportunity for economic enrichment, success, and status (King, 1985). We would like to suggest that such reasons explain why a number of legally suspect bingo operations have emerged in North Carolina. The same reasons appear to explain the use of various schemes by some bingo operators to cheat their patrons. In short, bingo profits appear to be the primary reason for the massive increase in the number of bingo operations. Other theoretical factors are suggested to account for the attraction of patrons to bingo games. According to King (1985), the “functionalist” explanation of the recent popularity of bingo gambling is due to the tension-release afforded to players of bingo; bingo offers an exciting and innovative way to attain economic success. A concurrent Marxian explanation sees bingo gambling as an opiate of the oppressed, providing a false sense of control and success (King, 1985). Other theoretical factors suggested by King include the symbolic interactionist idea that gambling is a way to display one’s self to others in order to gain character (Goffman, 1967) and the idea that gambling for some people is a means of conspicuous consumption (Veblen, 1899). These factors may account for the popularity of bingo operations, however the focus of this paper is not upon an explanation of why bingo has become so popular. This paper will outline some of the legally suspect methods used by unscrupulous bingo game operators. The information for this report is based upon an undercover police investigation of illegal bingo activity in North Carolina. The investigation was to explore the nature of illegal bingo gambling within the state. Bingo gambling has a unique history in North Carolina; its recent legal history will be discussed in this treatise as well as the various legitimate and illegitimate methods of bingo game operators, state law designed to regulate bingo gambling and measures taken by “professional” (versus “charitable”) operators to protect their lucrative but legally suspect trade.     

Characteristics and dynamics of illegal firearms markets: Implications for a supply-side enforcement strategy

The question of whether the illegal firearms market serving criminals and juveniles can be disrupted has been vigorously debated. Recent research suggests that illegal gun markets consist of both “point sources” (ongoing diversions through scofflaw dealers and trafficking rings) and “diffuse sources” (acquisitions through theft and informal, voluntary sales). To the extent that systematic gun trafficking is an important source of weapons for criminals and youth, focused regulatory and investigative resources may be effective in disrupting the illegal flow. In this research, we use data on traced firearms to examine one aspect of the illegal gun market that holds the most immediate promise for focused supply-side enforcement efforts—close-to-retail diversions. We find that almost one-third of traceable crime guns were recently diverted from legitimate retail firearms commerce and that nearly one-third had two or more indicators of gun trafficking involving dealers, purchasers, and possessors. We discuss the implications of these findings for understanding illegal gun markets and for developing effective supply-side enforcement strategies.     

The Triborder–terrorism nexus

The Triborder region of South America, where the borders of Argentina, Brazil and Paraguay intersect, comprises a population of approximately 700,000 inhabitants, among them 15,000–20,000 are Arabs, mostly of Lebanese descent. The region has gained a reputation as a hub of illegal activities, ranging from sales of pirated electronic goods and software to trafficking in drugs, weapons and illegal migrants. Also, the Triborder's relatively unregulated financial sector launders tens of billions of dollars of criminal funds and causes flight of capital annually. Reports that the region is a terrorist haven and staging area seem exaggerated; yet Arabs' extensive participation in the Triborder underground economy is believed to generate funds on behalf of Islamic extremists in the Middle East, especially Hezbollah and Hamas. Efforts to crack down on pirate businesses and alleged terrorist financiers have been constrained by government apathy, widespread police and judicial corruption and a lack of effective anti-terrorist legislation. Also, the dependence of many of the Triborder's inhabitants on the underground economy represents an effective constraint on enforcement action.     

赌博罪、赌博中的违法行为与娱乐活动的界定

赌博,是指用财物作注比输赢,以偶然性的胜负争财物或财产利益得失的行为。对赌博罪、赌博中的违法行为与娱乐活动进行界定,可以使我们正确区分罪与非罪,赌博罪、赌博中的违法行为与娱乐活动的界限以及认清赌博中的犯罪与违法的特殊形态和表现形式。     

Regulating online gambling: The Indian perspective

In India, the government has perniciously ignored the issue of internet gambling. Unfortunately, there is no specific legislation in place that addresses internet gambling, nor has there been any consistent policy professed with regard to internet gambling. Thus, online gambling operators, both domestic and offshore, are allowed to operate with impunity in India. Spurred on by factors like inadequate legislation, a lack of enforcement, and an indifferent judiciary, online gambling in India is unregulated, untaxed, and most of all, unclear. This paper posits that there is an urgent need for legislative clarity in India's policy towards internet gambling.     

The post-September spiral in Baja

As a result of the securityprecautions taken by the US after September11, Baja has experienced enormous economicdislocation, affecting both legitimate andunderworld businesses. Increased vigilancealong the border has complicated efforts totraffic undocumented immigrants and drugs.One of the consequences has been anincrease in other illegal operations on theMexican side of the border such askidnapping, robbery, and local distributionof drugs.     

Regulatory Categorization and Arbitrage: How Daily Fantasy Sports Companies Navigated Regulatory Categories Before and After Legalized Gambling

This article uses the context of daily fantasy sports (DFS) to analyze how companies use strategic categorization in regulatory arbitrage. Recent actions by two leaders in the DFS industry, DraftKings and FanDuel, provide an ideal context to study this issue. DraftKings and FanDuel categorized themselves differently to different audiences at different times in a manner that evaded categorization as an illegal gambling activity, only to then dominate the sports betting market after the Supreme Court's decision in Murphy v. NCAA. We examine how this type of strategic categorization, which we call “fluid categorization,” raises important questions for regulators and others concerned with regulatory arbitrage. We also explore how fluid categorization provides lessons for other businesses. While this article has broad implications for the sports gambling marketplace, it also contributes to meaningful discourse for the broader business community, as its findings are relevant to industries beyond DFS that offer gray market products and seek to fight categorical labels until there is a reclassification event.     

网络赌博案件的侦查取证模式研究

随着互联网技术的发展，各类网络犯罪案件日益增多，尤其是网络赌博犯罪日渐猖獗。由于网络赌博犯罪具有空间跨度大、犯罪成本低、隐蔽性强和赌资流动性大等特点，这对侦查机关提出了挑战。笔者从网络赌博犯罪的特点入手、在分析网络赌博犯罪的侦查难点的基础上，提出了针对此类案件的侦查取证模式。基于此模式，侦查人员通过相关性、功能性和时间性等三方面的调查分析，进行网络赌博案件的侦查取证工作。     

The Stability Operations Industry: The Shared Responsibility of Compliance and Ethics

Abstract

Companies in the stability operations industry have been subjected to painstaking scrutiny while critics have ignored the value they bring to contingency operations and government clients. Moreover, the scope of the industry is often overlooked by critics who paint a picture of uncontrollable companies making ridiculous profits. In response, this article offers some insight on stability operations, contracting processes, pitfalls, and opportunities. The article then discusses some of the criticisms that surround the industry. These criticisms are often due to sensationalized reporting, and a significant problem is that reports on criminal activity such as fraud and abuse are exaggerated. In contrast, the far larger problem of waste due to poor client planning and oversight is glossed over. Finally, the article discusses industry self-policing efforts that have emerged to support the use of professional and compliant businesses in stability operations. Ultimately it is governmental regulatory enforcement and quality contracting practices that will do the most to marginalize unethical companies, reward better firms, and improve partnerships and success rates in stability operations globally.     

Economic Crime and Casinos: China’s Wager on Macau

Notwithstanding the results of some empirical studies, casinos and gambling are widely considered to be breeding grounds for a range of deviant behavior and criminal offenses. As one writer expressed it, “the world of gambling offers a portfolio of anonymous expenditure” which allows for money laundering and other illegal activities associated with the legal operation of casinos. This paper examines economic and white-collar criminal activities and case histories of offenses related to Macau’s growing casino industry, now the highest revenue generating in the world. A Portuguese colony from 1557 until 1999 when it was returned to China, Macau is a Special Administrative Region (SAR) with its own governing officials operating under the PRC maxim of “one country, two systems.” The dramatic recent growth of the casino industry in Macau offers a unique opportunity to examine issues of economic crime and law enforcement within the context of the People’s Republic of China’s recently acquired political and economic stewardship in this SAR. The paper documents white-collar and organized crimes that present new challenges and risks to China now that Macau has become an international marquee.     

A Review of “Taking Back Eden: Eight Environmental Cases That Changed the World”

Abstract

The biological aspects of illegal harvests of threatened wildlife are outlined. It is shown that local agriculturalists are beneficiaries of illegal harvesting and that competition from agriculture exacerbates the extinction risk. Illegal harvesting of wildlife is driven by the profitability of the exercise, but law enforcement activity can deter poaching by reducing the associated expected profits. Law enforcement may be unable to limit illegal harvesting to levels threatened populations can sustain as a result of perverse consequences or strategic responses by poachers to law enforcement activity. Poaching activity is sensitive to the beliefs of participants about future prices and the availability of wildlife. Erroneous beliefs result in price collapses being observed. Integrating legal markets with increased local control of wildlife and punitive law enforcement strategies may be the most effective and efficient means to constrain illegal harvests.     

对违法行为的分类治理研究——从提高违法成本角度分析

我国违法现象易发、多发,违法成本低是重要原因。对违法行为的处罚标准和查处概率都对违法成本产生重要影响。设定的处罚标准越高、查处概率越高,违法者的违法成本就越高。处罚标准高低是立法问题,查处概率高低则受执法人员数量、执法频率、执法技术水平、执法意愿等多种因素影响。为了提高违法成本,需根据情况适当提高处罚标准,增加执法人员,改进执法技术,但更重要的是提升执法者的执法意愿。     

行政执法与刑事司法衔接初探——以广州市违法建设查处领域为例

针对当前广州违法建设行为的具体情况,提出在强化行政执法的同时,有选择的使用刑法手段对违法建设行为进行打击,分别从违法建设行为本身、阻挠违法建设执法行为、违法建设相关监管部门渎职等三个角度入手,提出使用"非法占用农用地"、"非法倒卖土地使用权"、"暴力威胁阻挠执法"、"玩忽职守"等共计20余个罪名对违法建设定罪量刑,形成打击违法建设的合力,有效遏制违法建设的势头。     

Organizational Social Capital and Performance of Drug Law Enforcement Departments

Supply reduction efforts by drug law enforcement departments are a significant factor in improving the effectiveness of drug control policies. The performance of drug law enforcement departments is one of the most important concerns for policy makers. Therefore, improving the performance of these departments is crucial in order for governments to constrict illegal drug markets and prevent illegal drug distribution. The literature suggests that social capital may have significant impacts on organizational performance. Using survey data from 12 city law enforcement departments in Turkey, this study examines the effects of three social capital dimensions (structural, relational, and cognitive dimensions) on the perceived performance of drug law enforcement departments by using structural equation modeling. The results of this conceptually grounded and empirical study suggest that drug law enforcement departments should pay close attention to promoting social capital among officers in order to fight effectively against drug trafficking.     

县域社会违建执法的组织形态与治理绩效辨析

县域社会违建执法需要一定的组织载体,但在不同农村类型中,体制层面执法资源配置不均和社会层面违建个体情境差异共同塑造了不同类型的政府执法组织,并产生不同治理绩效。在城中村,正式化执法组织具备常规执法权且执法密度大,虽能够强化执法效果,但在执法过程中始终存在政府与征拆居民的利益博弈;在城郊村,正式化与半正式化相结合的执法组织有助于强化政府执法力量和权威,但受信息制约和人情关系影响容易产生灰色利益空间,进而侵蚀执法目标;在远郊村,半正式化执法组织本身没有专业执法权,政府常在一定时期内通过组织动员手段来补强执法力量,但执法绩效具有不稳定性。三类农村违建执法组织的治理绩效差异,反映出国家法律在县域城乡社会落地的非均质性。     

反垄断私人诉讼困境与反垄断执法的管制化发展

中国反垄断法私人诉讼的发展与预期落差巨大。原因在于,反垄断法私人诉讼强调法院的作用,但法院受限于司法机构的根本性质,存在难以调节原被告力量失衡、对于特定行为无法救济以及救济不及时的问题。相比之下,反垄断法行政执法机构具有资源与权力配置上的显著优势。更重要的是,现代反垄断法执法的不断发展和演化,使原来简单判断是否违法的执法方式向以提高社会整体福利为目标的管制方式转变。在这一过程中,建立独立的反垄断执法机构、颁布反垄断指南、广泛采用同意裁决、深入运用经济学分析等都是具体表现。与之相应,当反垄断行政执法占据中心地位时,为了确保其不偏离反垄断法的目标,须建立完善的行政机构内部执法程序以及司法审查程序,进行有效制约。