Friday, November 14, 2008

How Organized Crime Works

SEARCH BLOG: CRIME

Organized crime has been involved in a variety of efforts from drugs, to alcohol, to prostitution, among others. They are involved because 1) there is an illegal market and 2) there is a high financial reward despite a high risk. But there is one time-tested, profitable activity that requires neither offering a risky product nor having an illegal market: extortion.

It works something like this:
  1. target an individual, business, or industry that has a large wealth base
  2. create a situation that places financial strain on the target through added costs that are extraneous to normal business
  3. when the target is sufficiently weakened financially, offer to provide financial assistance for a high payment
  4. take control when the target is unable to continue operating under the burden of the artificially imposed financial drain
A real-life example. And in case you missed it... this.

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