Italian Mobsters buck Downturn, May Target Bourse

Submitted by C Costigan on

Written by :

C Costigan

Published on :

ROME - (Reuters) - Italy's mafia crime syndicates bucked the recession in 2009 to raise 'profits' by almost 8 percent with the financial crisis making companies and even the stock market even more vulnerable to cash-flush mobsters.

"Mafia Inc. is reinforcing its position as the number one Italian company," said a report published on Wednesday by a body whose members bear the brunt of mafia extortion and crimes, the small business and shopkeepers' association Confesercenti.

It estimated that the impact on business equalled about 7 percent of Italy's economic output, enjoying healthy growth in a year when the Italian economy shrank by almost 5 percent.

Experts had predicted when the crisis began that Calabria's 'Ndrangheta, with its huge slice of the global drugs trade, Sicily's Cosa Nostra, Naples' violent Camorra and Puglia's Sacra Corona Unita would see more demand for loan-sharking.

But the report said mobsters had also been able to launder their earnings by buying up cheap assets and had found a cheap and willing workforce among the newly unemployed.

"In times of crisis the Mafia's money, even though it is dirty, makes people's mouth water," the report says.

Confeserscenti's research arm SOS Impresa, citing data from police, mob informants, magistrates, government agencies and its own network across the country, said the boom had been so strong that organised crime may target the bourse to launder its money.

"There is a risk the Mafia could take advantage of the difficulties of some large business groups who are undergoing a liquidity crisis to attempt to get into the stock market behind the scenes in a big way," said the report.

MOB "SHOPPING SPREE"

It estimated the mob's joint turnover last year at 135 billion euros, topped by trafficking in drugs, people, weapons and contraband worth just under 68 billion euros. Second came "business" interests like public contracts, gambling, forgeries and supplying illegal labour at 25 billion euros, then extortion and loan sharking at 25 billion euros.

Robbery and fraud represented just 1 billion euros of the total business and prostitution brought in 600 million, said SOS Impresa. The mob laid out 1.17 billion in wages and 2.75 billion on corrupting officials, invested 26 billion and laundered an estimated 19.5 billion, the researchers said.

Total "profits" ran to an estimated 78 billion euros, SOS Impresa said there was a risk that with the prices of property, stocks and bonds and companies themselves brought down by the crisis, mobsters could use profits from recession-proof activities like drugs to "go on a financial shopping spree".

The group portrayed an increasingly sophisticated business environment, with mobsters diversifying away from traditional areas like public contracts, property and construction.

While the mob is still essentially clan-based, in Sicily there was "a sort of criminal career" where a bodyguard could become a godfather, and in the slums of Naples the child drug runners known as "muschilli" grow up in gangs where "pushing is considered a real job giving them independent economic status".

Related Content

Does Your PPH Platform Offer Premier League Soccer Match Betting?

Does Your PPH Platform Offer Premier League Soccer Match Betting?

The England Premier League new season got under way this weekend with bookmakers across the globe licking their respective chops.
Washington State Congressman Wants End to Wildfire Betting on Kalshi, Polymarket as Spokane Area Still Reeling

Washington State Congressman Wants End to Wildfire Betting on Kalshi, Polymarket as Spokane Area Still Reeling

Rep. Michael Baumgartner, R-Spokane, introduced the bill this week. Critics say betting on wildfires is, at best, grotesque and could incentivize arson and other illegal acts.
UNLV Researcher Looks at the Growing Connection Between Social Media and Online Gambling

UNLV Researcher Looks at the Growing Connection Between Social Media and Online Gambling

The study was presented at the 19th International Conference on Gambling & Risk Taking, where researchers and public health experts gathered to discuss the latest work in the field.
Delta to Focus on Premium Flyers Between Atlanta and Las Vegas

Delta to Focus on Premium Flyers Between Atlanta and Las Vegas

A one way flight between Atlanta and Las Vegas for Wednesday December 7. As of August 20, fight class was a mere $609 with just three seats booked. If you think that's expensive, consider that nearly all the other nonstop first class one way flights out of Atlanta were going for $2000!