Criminals may have laundered around $1.6 trillion in 2009, one fifth of that coming from the illicit drug trade, according to a new report by the United Nations Office on Drugs and Crime (UNODC).
The $1.6 trillion represents 2.7 per cent of global gross domestic product (GDP) in 2009, says the agency. This figure is in line with the range of two to five per cent of global GDP previously established by the International Monetary Fund (IMF) to estimate the scale of money-laundering.
The report, entitled Estimating illicit financial flows resulting from drug trafficking and other transnational organized crimeAll criminal proceeds, excluding tax evasion, would amount to some $2.1 trillion or 3.6 per cent of GDP in 2009, according to the report., also says that the “interception rate” for anti-money-laundering efforts at the global level remains low.
Globally, it appears that much less than one per cent of illicit financial flows are currently being seized and frozen.
“Tracking the flows of illicit funds generated by drug trafficking and organized crime and analysing how they are laundered through the world’s financial systems remain daunting tasks,” stated UNODC Executive Director Yury Fedotov, who launched the report today in Marrakech, Morocco, during the week-long meeting of the Conference of the Parties to the UN Convention on Corruption.
The report points out that “dirty money” promotes bribery and corruption, finances insurgency and, in some cases, terrorist activities. It also destabilizes and deters legitimate enterprise, foreign investment and development.
All criminal proceeds, excluding tax evasion, would amount to some $2.1 trillion or 3.6 per cent of GDP in 2009, according to the report. Of this total, the proceeds of transnational organized crime, such as drug trafficking, counterfeiting, human trafficking and small arms smuggling, would amount to 1.5 per cent of global GDP, 70 per cent of which would likely have been laundered through the financial system.
The illicit drugs trade, which accounts for half of all transnational organized crime proceeds and one fifth of all crime proceeds, is the most profitable sector, UNODC notes.
The report focused on the market for cocaine, probably the most lucrative illicit drug for transnational criminal groups. Traffickers’ gross profits from the cocaine trade stood at around $84 billion in 2009.
While Andean coca farmers earned about $1 billion, the bulk of the income generated was in North America ($35 billion) and in West and Central Europe ($26 billion). Close to two thirds of that total may have been laundered in 2009.
The findings suggest that most cocaine-related profits are laundered in North America and in Europe. The main destination to process cocaine money from other subregions is probably the Caribbean.
The report says that for drug-related crime, there tends to be a significant “re-investment” of illicit funds into drug trafficking operations which have major negative implications for society at large.
Once illegal money has entered the global and financial markets, notes UNODC, it becomes much harder to trace its origins, and the laundering of ill-gotten gains may perpetuate a cycle of crime and drug trafficking.
“UNODC’s challenge is to work within the UN system and with Member States to help build the capacity to track and prevent money-laundering, strengthen the rule of law and prevent these funds from creating further suffering,” said Mr. Fedotov.
Wednesday, October 26, 2011
Monday, October 24, 2011
Michael Sarno Could Face 25 Years in Prison
The Chicago mob’s “Large Guy” could take a big fall — if federal prosecutors get their way.
Prosecutors are providing a detailed look at reputed Cicero mob boss Michael “The Large Guy” Sarno’s ties to organized crime in a new court filing as they ask a federal judge to sentence Sarno to the maximum possible prison sentence — 25 years behind bars.
Sarno was convicted in December of racketeering conspiracy and illegal gambling and is set to be sentenced Friday in federal court in Chicago. The conviction is Sarno’s third for mob crimes — and one that could put him in prison until his 70s.
Federal prosecutor Amar-jeet S. Bhachu describes Sarno as a career criminal who began his Outfit work in 1975. Prosecutors write “it is obvious that he does not care about the law.
“His interest today still lies with taking what he wants for himself and other members of organized crime . . .”
Sarno was convicted at trial with four other men in which prosecutors described a slew of crimes, including a bombing of a Berwyn company in competition with the mob’s video poker business along with a burglary ring that targeted jewelry stores.
Sarno ordered the bombing of the Berwyn business and controlled the burglary ring, prosecutors said.
Sarno began running the Outfit’s Cicero crew after the disappearance of mobster Anthony Zizzo in 2006, who is presumed to have been murdered, although his body has never been found.
Sarno, who at his biggest has tipped the scales at more than 300 pounds, has several mob nicknames, including “Big Mike,” “Large” and “Fat Ass.” When he was a free man, Sarno often was seen with his close friend, Salvatore Cataudella, convicted in a juice loan case. The pair was dubbed “Mutt and Jeff.”
They were referred to by the nicknames in a secretly recorded conversation between Chicago mob boss James Marcello and his half-brother Michael Marcello in 2003.
An attorney for Sarno could not be reached Sunday, but a former lawyer for him has disputed the characterization of Sarno by federal prosecutors and the FBI’s informants.
Thanks to Steve Warmbir
Prosecutors are providing a detailed look at reputed Cicero mob boss Michael “The Large Guy” Sarno’s ties to organized crime in a new court filing as they ask a federal judge to sentence Sarno to the maximum possible prison sentence — 25 years behind bars.
Sarno was convicted in December of racketeering conspiracy and illegal gambling and is set to be sentenced Friday in federal court in Chicago. The conviction is Sarno’s third for mob crimes — and one that could put him in prison until his 70s.
Federal prosecutor Amar-jeet S. Bhachu describes Sarno as a career criminal who began his Outfit work in 1975. Prosecutors write “it is obvious that he does not care about the law.
“His interest today still lies with taking what he wants for himself and other members of organized crime . . .”
Sarno was convicted at trial with four other men in which prosecutors described a slew of crimes, including a bombing of a Berwyn company in competition with the mob’s video poker business along with a burglary ring that targeted jewelry stores.
Sarno ordered the bombing of the Berwyn business and controlled the burglary ring, prosecutors said.
Sarno began running the Outfit’s Cicero crew after the disappearance of mobster Anthony Zizzo in 2006, who is presumed to have been murdered, although his body has never been found.
Sarno, who at his biggest has tipped the scales at more than 300 pounds, has several mob nicknames, including “Big Mike,” “Large” and “Fat Ass.” When he was a free man, Sarno often was seen with his close friend, Salvatore Cataudella, convicted in a juice loan case. The pair was dubbed “Mutt and Jeff.”
They were referred to by the nicknames in a secretly recorded conversation between Chicago mob boss James Marcello and his half-brother Michael Marcello in 2003.
An attorney for Sarno could not be reached Sunday, but a former lawyer for him has disputed the characterization of Sarno by federal prosecutors and the FBI’s informants.
Thanks to Steve Warmbir
Sunday, October 16, 2011
Mob Museum Now The National Museum of Organized Crime & Law Enforcement
Nothing personal, Las Vegas. It's just business.
The Mob Museum is now known as the National Museum of Organized Crime & Law Enforcement -- swapping its original Las Vegas title for one more reflective of its content, museum officials said.
The museum, which is scheduled to open Feb. 14, 2012, to coincide with the 83rd anniversary of the St. Valentine's Day Massacre, will tell the story of organized crime as it affected the entire country, not just Las Vegas.
That isn't to say Sin City's mob stories are lessened in any way, said Jonathan Ullman, the museum's executive director. Prominent mob figures had a higher profile in other cities nationwide, including Chicago and New York.
"You really cannot tell this story without addressing larger national content," Ullman said. "We cover Prohibition, immigration and the evolution of the criminal justice system. We believe our name should reflect our status as a world-class museum and a foremost venue for an informal education on this subject matter."
The name change is showcased on the museum's website, themobmuseum.org. The decision was finalized in August and "embraced by representatives at the city, the museum board and other key stakeholders," Ullman added.
"We hope it's not perceived as a slight on anyone in the local community," he said. "There's a great deal of community pride in this venue."
Former Las Vegas Mayor Oscar Goodman, who used to work as an attorney representing reputed organized crime figures and was involved in bringing the museum to the area, said he welcomed the change. "It should be more expansive," Goodman said. "I think it should be called the international museum. As we got into this whole project, we saw this is an international story of folks coming from foreign lands into the United States as immigrants and becoming a part of what was referred to as organized crime."
Goodman added that no one should consider the change negatively. "This is a great thing," he said.
The $42 million Mob Museum will be dedicated to the history of organized crime and the law enforcement that hunted mobsters for decades. It is expected to draw 600,000 visitors annually once it opens at 300 Stewart Ave.
The Depression-era building is a historic former federal courthouse and post office included on both the Nevada and National Registers of Historic Places.
The Mob Museum is now known as the National Museum of Organized Crime & Law Enforcement -- swapping its original Las Vegas title for one more reflective of its content, museum officials said.
The museum, which is scheduled to open Feb. 14, 2012, to coincide with the 83rd anniversary of the St. Valentine's Day Massacre, will tell the story of organized crime as it affected the entire country, not just Las Vegas.
That isn't to say Sin City's mob stories are lessened in any way, said Jonathan Ullman, the museum's executive director. Prominent mob figures had a higher profile in other cities nationwide, including Chicago and New York.
"You really cannot tell this story without addressing larger national content," Ullman said. "We cover Prohibition, immigration and the evolution of the criminal justice system. We believe our name should reflect our status as a world-class museum and a foremost venue for an informal education on this subject matter."
The name change is showcased on the museum's website, themobmuseum.org. The decision was finalized in August and "embraced by representatives at the city, the museum board and other key stakeholders," Ullman added.
"We hope it's not perceived as a slight on anyone in the local community," he said. "There's a great deal of community pride in this venue."
Former Las Vegas Mayor Oscar Goodman, who used to work as an attorney representing reputed organized crime figures and was involved in bringing the museum to the area, said he welcomed the change. "It should be more expansive," Goodman said. "I think it should be called the international museum. As we got into this whole project, we saw this is an international story of folks coming from foreign lands into the United States as immigrants and becoming a part of what was referred to as organized crime."
Goodman added that no one should consider the change negatively. "This is a great thing," he said.
The $42 million Mob Museum will be dedicated to the history of organized crime and the law enforcement that hunted mobsters for decades. It is expected to draw 600,000 visitors annually once it opens at 300 Stewart Ave.
The Depression-era building is a historic former federal courthouse and post office included on both the Nevada and National Registers of Historic Places.
Friday, October 14, 2011
Roberto Saviano, Author of Naples Mafia Book "Gomorrah", Wins PEN/Pinter International Writer of Courage Award.
Italian writer Roberto Saviano, who has lived under police protection since penning 2006 bestseller "Gomorrah" about Naples' mafia, has won the PEN/Pinter International Writer of Courage Award.
Saviano, 32, shares the award with Briton David Hare, who is perhaps best known for his work about British institutions.
Each year a British writer is honored with the PEN/Pinter award, established in 2009 by literary and human rights organization PEN in memory of Nobel Prize-winning playwright Harold Pinter, alongside another writer who has been persecuted for expressing his or her beliefs.
"Roberto Saviano took on the Neopolitan mafia, first in the novel Gomorrah and then in the film made from it," playwright Hare said at an awards ceremony in London on Monday.
"He did so at great risk to his own safety. My hope in sharing my prize with him is that a measure of recognition from PEN may, in however small a way, make his life easier."
Saviano, now living in hiding following threats to his life, sent a message expressing gratitude.
"When you feel that so many need to see, to know and to change, and not just to be entertained or comforted, then it is worth it to carry on writing," he said in a statement released by organizers.
Saviano, 32, shares the award with Briton David Hare, who is perhaps best known for his work about British institutions.
Each year a British writer is honored with the PEN/Pinter award, established in 2009 by literary and human rights organization PEN in memory of Nobel Prize-winning playwright Harold Pinter, alongside another writer who has been persecuted for expressing his or her beliefs.
"Roberto Saviano took on the Neopolitan mafia, first in the novel Gomorrah and then in the film made from it," playwright Hare said at an awards ceremony in London on Monday.
"He did so at great risk to his own safety. My hope in sharing my prize with him is that a measure of recognition from PEN may, in however small a way, make his life easier."
Saviano, now living in hiding following threats to his life, sent a message expressing gratitude.
"When you feel that so many need to see, to know and to change, and not just to be entertained or comforted, then it is worth it to carry on writing," he said in a statement released by organizers.
Thursday, October 13, 2011
John Gotti Movie Starring John Travolta is Placed on Hold
John Travolta’s upcoming movie about the notorious Gotti family has been put on hold due to financial issues, according to a report.
The Hollywood actor is due to star as late Mafia boss John Gotti, who died in prison in 2002, in upcoming movie Gotti: In the Shadow of My Father, alongside his real-life wife Kelly Preston and Al Pacino.
Filming is slated to begin in January ahead of a 2012 release date, but a new report suggests production has been put on hold. Showbiz411.com reports work on the project has come to a halt and won’t resume until more financing is secured.
A source tells the website, “If (producer) Marc Fiore doesn’t come up with money this week, and doesn’t show that more is coming, and that he’s really secured financing, it could all fall apart.”
The film’s producers are also facing a legal battle with Goodfellas star Joe Pesci, who is suing bosses at Fiore Films over allegations he was offered a $3 million deal to play Angelo Ruggiero, an associate of Gotti, but was later told he would be given a smaller part.
The Hollywood actor is due to star as late Mafia boss John Gotti, who died in prison in 2002, in upcoming movie Gotti: In the Shadow of My Father, alongside his real-life wife Kelly Preston and Al Pacino.
Filming is slated to begin in January ahead of a 2012 release date, but a new report suggests production has been put on hold. Showbiz411.com reports work on the project has come to a halt and won’t resume until more financing is secured.
A source tells the website, “If (producer) Marc Fiore doesn’t come up with money this week, and doesn’t show that more is coming, and that he’s really secured financing, it could all fall apart.”
The film’s producers are also facing a legal battle with Goodfellas star Joe Pesci, who is suing bosses at Fiore Films over allegations he was offered a $3 million deal to play Angelo Ruggiero, an associate of Gotti, but was later told he would be given a smaller part.
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