Black Market Billions: How Organized Retail Crime Funds Global Terrorists (Gal Zentner's Library) (37 page)

Uniform Crime Reporting System

Used by the FBI to track and monitor trends in crime.

United Nations Office on Drugs and Crime (UNODC)

UNODC is a global leader in the fight against illicit drugs and international crime and is mandated to assist Member States in their struggle against illicit drugs, crime and terrorism. Established in 1997 through a merger between the United Nations Drug Control Programme and
the Centre for International Crime Prevention, UNODC operates in all regions of the world through an extensive network of field offices.

U.S. Customs and Border Protection (CBP)

A federal law enforcement agency of the U.S. Department of Homeland Security. Regulates and facilitates international trade, collecting import duties, and enforcing U.S. regulations, including trade, drug, and immigration laws.

USIA

The United States Information Agency, which existed from 1953 to 1999, was devoted to “public diplomacy.” In 1999, USIA’s broadcasting functions were moved to the newly created Broadcasting Board of Governors, and its exchange and nonbroadcasting information functions were given to the newly created Undersecretary of State for Public Affairs and Public Diplomacy at the U.S. Department of State.

zakat

Muslims are required to give away 2.5% of their earnings as a form of
zakat
, or alms.

Endnotes

Introduction

1.
This IM exchange has been edited to include the most relevant aspects of the conversation.

2.
Cincinnati Enquirer
, “Retailers Reining in Sophisticated Theft Rings,” Laura Baverman, May 7, 2011.

Chapter 1

1.
New York Times
, “Taliban Leader Flaunts Power Inside Pakistan,” Jane Perlez, June 2, 2008.

2.
The Tehreek-e-Taliban held a two-day “Ghazi Islam Conference” in April 2008, attended by Taliban leaders and delegations from the Tank and Swat districts of NWFP, North and South Waziristan, Kurram, Orakzai, and Bajaur tribal agencies.

3.
Forbes
magazine, “Is al Qaeda Bankrupt?,” Nathan Vardi, February 2010.

4.
Author interview with Bill Martel, June 24, 2010.

5.
An informal value transfer system of Islamic origin facilitated by brokers.

6.
All groups who were at one point al Qaeda sympathizers and were responsible for terrorist attacks in India, the U.S., and South America.

7.
Terror Incorporated: Tracing the Dollars Behind the Terror Networks
, Loretta Napoleoni (Seven Stories Press, 2005).

8.
Author interviews with Jerry Biggs, head of Loss Prevention at Walgreens, November 15, 2009; Read Hayes, the National Association for
Shoplifting Prevention, November 17, 2009; Larry C. Johnson, former analyst at the U.S. Department of State, January 7, 2010.

9.
Author interviews with Read Hayes, Ph.D. University of Florida and the Loss Prevention Research Council, November 17, 2009 and Gary Weisbecker, FBI agent working on organized retail crime cases, October 20, 2009.

10.
Author interview with Joe LaRocca, April 6, 2011.

11.
Author interview with Casey Chroust, April 18, 2009.

12.
Chris spoke to me on the condition of anonymity for fear of incriminating himself or his colleagues.

13.
Bertelsmann Stiftung, BTI 2010, Somalia Country Report. Gutersloh: Bertelsmann Stiftung, 2009.

14.
United Nations Development Programme, “The Economic Crisis in the Arab States.”

15.
CIA World Fact Book on Somalia, November 2010.

16.
I witnessed Faisal Shahzad make this statement when he answered to charges in a ten-count indictment on June 21, 2010.

17.
CNN.com, “N.J. men planned to ‘wage violent jihad,’ feds say,” June 6, 2010.

18.
In a conversation with James L. Patton, attorney representing Carlos Eduardo Almonte, after their indictment June 7, 2010 in New Jersey, he mentioned funding came from the sale of stolen items.

19.
Videotaped interview with Taliban leader Mullah Muhibullah, August 21, 2008, translated into English on the web site
www.islamicawakening.com
.

20.
“Militancy in Pakistan’s Federally Administered Tribal Areas (FATA) and Afghanistan,” Magnus Norell, Swedish Defence Research Agency (FOI), February 2010.

21.
“Islamberg” is a community in upstate New York composed of mostly African-Americans who converted to Islam and choose to live by strict religious codes apart from regular society. The sister town called “Red House” in Virginia is home to a sect called “Muslims of the Americas” who are followers of Sheikh Mubarik Gilani. The news on Islamberg was initially reported by FOX 5 News, February 2006.

22.
“No Trespassing: U.S. facing homegrown terror,” Wajid Ali Syed, Foreign Policy Association, Pakistan.foreignpolicyblogs.com, January 18, 2011.

23.
FBI Affidavit from special agent David J. Glawe outlining his investigation into a $7 million fraud operation involving counterfeit and stolen apparel by three people living in Red House, Virginia, Muslim community.

24.
A Review of Current and Evolving Trends in Terrorism Financing: Written testimony submitted to the House Committee on Financial Services, Subcommittee on Oversight and Investigations, Stephen I. Landman, September 28, 2010.

25.
“Countering Ideological Support to Terrorism in the Circum-Carribbean,” John T. Fishel and Mary Grizzard, 2005.

26.
“Kevin James and the JIS Conspiracy,” Frontline’s “The Enemy Within,” Rob Harris, with contributed reporting by Neil MacFarquhar of the
New York Times
.

27.
FBI Deputy Assistant Director Donald Van Duyn, statement before the Senate Committee on Homeland Security and Governmental Affairs and Related Agencies, September 19, 2006,
http://www.fbi.gov/congress/congress06/vanduyn091906.htm
(accessed March 26, 2010).

28.
Greg Grandin, “The Narcissism of Violent Differences,” in
Anti-Americanism
, Andrew Ross and Kristin Ross, editors, (New York University Press, 2004), p. 19.

29.
Ibid.

30.
Pew Global Attitudes Project, “America Admired, Yet Its New Vulnerability Seen as Good Thing, Say Opinion Leaders,” December 19, 2001.

31.
“Countering Ideological Support to Terrorism in the Circum-Carribbean,” John T. Fishel and Mary Grizzard, 2005.

32.
“El Rukns Had Early Terror Ties,”
Chicago Sun Times
, Carlos Sadovi, June 11, 2002.

33.
MS-13 stands for Mara Salvatrucha, an organized criminal gang composed largely of Central Americans who operate in U.S. urban areas.

34.
A matricula consular is an identification card issued by the government of Mexico through its consulate offices to Mexican nationals residing outside of Mexico, regardless of their immigration status.

35.
“A Line in the Sand: Confronting the Threat at the Southwest Border,” prepared by the majority staff of the House Committee on Homeland Security Subcommittee on Investigations, Michael T. McCaul, Chairman,
http://www.fbi.gov/news/testimony/consular-id-cards-in-a-post-9-11-world
.

36.
Strategic Insights,
“The Maras and National Security in Central America,” Thomas C. Bruneau, Volume IV, Issue 5 (May 2005).

37.
Ibid.

38.
Ibid via the PNC in El Salvador.

39.
Ibid.

40.
Ibid.

41.
Erick Stakelback, “Unholy Border Alliance,” frontpagemagazine.com, Jan. 3, 2005.

42.
Author interview with Samuel Logan, November 2009.

43.
Ibid.

44.
Author interview with Samuel Logan, March 21, 2010.

45.
GAO, Terrorist Financing: U.S. Agencies Should Systematically Assess Terrorists’ Use of Alternative Financing Mechanisms, November 2003.

46.
GAO, Report to the Chairman, Committee on the Judiciary, House of Representatives, International Financial Crime Treasury’s Role and Responsibilities Relating to the Selected Provisions of the USA Patriot Act, July 29, 2005.

47.
Author interview with John Tobon, July 1, 2010.

48.
CNN.com, “South America’s ‘Tri-Border’ Back on Terrorism Radar,” Mike Boettcher, November 7, 2002.

49.
MSNBC.com, “Hezbollah Builds a Western Base,” Pablo Gato and Robert Windrem, May 9, 2007.

50.
Ibid.

51.
CIA paper from 2004.

52.
A legal pronouncement in Islam issued by a religious law specialist on a specific issue.

53.
“Hezbollah: Social Services as a Source of Power,” JSOU Report, James B. Love, 2010.

54.
Hezbollah: Financing Terror Through Criminal Enterprise, Testimony of Dr. Matthew Levitt, Senior Fellow and Director of Terrorism Studies, the Washington Institute for Near East Policy, May 25, 2005.

55.
Philadelphia Inquirer
, “Ex-Camden County Resident Indicted in Alleged Terror Cell Held in Paraguay,” Mike Newall, June 17, 2010.

56.
Ibid.

57.
Ibid.

58.
Levitt conducted an interview with a former U.S. law enforcement official, Washington D.C., April 27, 2004 for his testimony on May 25, 2005.

Chapter 2

1.
According to a Fendi spokesperson, only one public event took place in 2009 and again in 2010. There was no event in 2008.

2.
Bloomberg BusinessWeek,
“LVMH’s Fendi Is ‘Very Positive’ on Luxury Outlook, Burke Says,” February 26, 2010.

3.
Interview with Milton Pedraza, April 28, 2011.

4.
Department of Justice press release, “Jury Convicts Two New York Importers in One of the Largest Counterfeit Goods Prosecutions in U.S. History,” June 11, 2010.

5.
Ibid.

6.
Author interview with an ICE investigator, April 15, 2011.

7.
Fendi corporate press release, “Fendi and Burlington Coat Factory Warehouse Settle Fendi’s Trademark Counterfeiting Lawsuit Against Burlington for $10,050,000.00,” October 20, 2010.

8.
Ibid.

9.
Speech Michael Burke gave on Fendi 2010.

10.
United States District Court for the Northern District of Illinois, Eastern Division, Coach, Inc. and Coach Services, Inc., v. City of Chicago, d/b/a New Maxwell Street Market, Cong Wu, Xiao Yang, and DOES 1 through 100, May 19, 2010.

11.
Author interview with an anonymous source (NYPD detective), August 20, 2010.

12.
National Income and Product Accounts, Table 2.3.1, Percent Change from Preceding Period in Real Personal Consumption Expenditures by Major Type of Product.

13.
From “The Future of Luxury” in Marketing Daily. Richard, Baker April 30, 2009. Follow up interview with Richard Baker, May 17, 2011.

14.
“The Globalization of Crime: A Transnational Organized Crime Threat Assessment,” United Nations Office on Drug and Crime, June 2010.

15.
Ibid.

16.
Ibid.

17.
Ibid.

18.
Ibid.

19.
FBI 2009 report done by the Internet Crime Complaint Center (IC3), a partnership of the FBI and the National White Collar Crime Center.