7. Fraud

Part: 
Four
Chapter: 
4

Layers of corporations and hidden transactions of all descriptions are used by organized crime families involved in pornography to conceal true ownership and activities.[1218]

Other crimes associated with organized crime involvement in obscenity include child pornography,[1219] possession, transfer and sale of machine guns and silencers,[1220] and illegal gambling.[1221]

Notes

  1. See, The discussion in the Recommendations for Law Enforcement Agencies. "To effectively conceal the full extent of its involvement in the nation's pornography industry, organized crime has developed a maze of organization structures through complex legal maneuvering. Pornography businesses are often represented on corporate papers by persons with no apparent ties to the company's true owner. Business transactions are commonly conducted with hidden corporate affiliates which creates an appearance of legitimate competitive business practices. Foreign corporations and banks have been used to circumvent normal business accounting methods.
  2. For protection purposes, pornographers frequently form several corporations for one operation. They know that law enforcement authorities, when serving search warrants as a result of possible obscenity violation, are restricted to search only the corporation named. The other corporations remain protected from police inspections." Investigative Report on Organized Crime and Pornography Submitted to the Attorney General of California, 5, 6(1978).

  3. New York Hearing, Vol. II, Marcella Cohen, p. 38.
  4. Id.
  5. Pornographer Michael Joseph Glita, member of Accardo family was reported to the United States Senate Rackets Committee as the number two man in a North Side Chicago numbers racket. New York Hearing, Vol. I, Thomas Bohling, p. 182.