Russian Organized Crime Case Study

To begin with, Russian organized crime is a group of different ethnicities under one umbrella. How did Russian Organized Crime even start? To understand how everything started we have to go, as far back as in the 1700’s hundreds in Russia when many of the people living in Russian lived in poverty and in reality had nothing. This is when the criminals would steal from the government and would give back to the poor. After doing this, the town would view them as heroes for giving back to the poor. While this was going on the criminals that would steal created a code called Thieves World and they had loyalty with each other and would oppose the government. As we move on in time when Joseph Stalin was the ruler of the Soviet Union he would send

You would think it is the typical organized crime things like drug trafficking, gambling, or anything else the typical criminals do. Instead Russians are involved in things like a broad array of frauds and scams, including health care fraud, insurance scams, stock frauds, antiquities swindles, forgery and gasoline tax evasion schemes (Finckenauer, n.d.). Russians are number one in the United States committing any type of fraud. Something else the Russians are doing is moving into having legitimate business. They are doing this because that way they have a way to launder their dirty money. An example of a scam the Russians had in the United States involved with the American Mafia was the fuel oil scam. It worked by using a “daisy chain with a vanishing point,” gasoline was transferred on paper from one bogus company to another (Abadinsky, 2012). You paid taxed when the gasoline was finally sold but the company buying the gas existed only on paper so it meant that it never existed. When investigators noticed what was going on it was too late because the company that bought that gas disappeared with no trace. Everything was destroyed. They could not charge them with anything. Also, in order to buy gasoline you need an IRS excise tax Certification of Exemption. They obtained these licenses by buying out legitimate companies or just making fake papers. This is one way they made millions for