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Joseph D. Serio - Investigating the Russian mafia

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Joseph D. Serio Investigating the Russian mafia
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In the 1990s, the so-called Russian mafia dominated newspaper headlines, political analysis, and academic articles around the world. It was the new scourge, a threat so massive that it was believed to hold the Russian economy hostage. Former FBI Director Louis Freeh announced that the Russian mafia was a significant threat to the national security of the United States.Before the end of the decade, Director Freeh reversed himself, saying that in reality the magnitude of the danger from the Russian mafia had been overestimated. Heading into the new millennium, the international hue and cry about gangsters from the former Soviet Union subsided dramatically, particularly after the terrorist attacks of September 11. Al-Qaeda shifted the spotlight from organized crime to terrorism and U.S. homeland security. Has the Russian mafia been eradicated or has it simply fallen below the radar?Countless books and articles have reported on the Russian mafia in breathless terms bordering on hysteria. Casting a broad net, Serio brings a different, more analytical approach to his exploration of the subject. In Investigating the Russian Mafia, Part I begins by asking a series of basic questions: What did the Soviets understand mafia to mean? Was this a Russian phenomenon or more broadly-based, multi-ethnic groups? How did the media influence the perception of the Russian mafia? What does a close examination of the official statistics reveal about the nature of crime groups in the former Soviet Union?In Part II, Serio discusses an overview of attitudes and practices of the criminal world, business, and policing, among others, in Russian history. He demonstrates that many of the forces at work in the 1990s did not originate in the Communist era or arise because of the collapse of the USSR. Part III presents a discussion of the crime groups that developed in the post-Soviet era, the challenges that faced the business world, and the law enforcement response.This book is not simply a discussion of the Russian mafia. It is an exercise in critical thinking about one of the major developments in international crime over the past two decades. Readers will be challenged to examine information being presented by the media and government authorities, to put the current news stories in a broader historical and cultural context, and learn to ask questions and arrive at their own conclusions. Investigating the Russian Mafia is ideal for students, law enforcement, practitioners, and business people operating in the former Soviet Union, as well as the general reader.Serio brings a unique perspective to his subject matter. He lived in the former Soviet Union for seven years, witnessing the country and culture from a variety of angles. In the Soviet era he was a tourist and student in Moscow. He also served in a unique internship in the Organized Crime Control Department of the Soviet police prior to the collapse of the USSR. In the 1990s, he worked as a media consultant to The New York Times, The Washington Post, CNN, BBC, the Chicago Tribune, and others. Serio became a security consultant to the global corporate investigation and business intelligence firm, Kroll Associates, and later served as director of Kroll s Moscow office overseeing investigations across the former Soviet Union.

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I NVESTIGATING THE R USSIAN M AFIA
Investigating the Russian Mafia

Joseph D. Serio

Copyright 2008 Joseph D Serio All Rights Reserved Library of Congress - photo 1

Copyright 2008

Joseph D. Serio

All Rights Reserved.

Library of Congress Cataloging-in-Publication Data

Serio, Joseph, 1964-

Investigating the Russian mafia : an introduction for students, law enforcement, and international business / by Joseph D. Serio.

p. cm.

Includes bibliographical references and index.

ISBN 978-1-59460-225-2 (alk. paper)

1. Mafia--Russia (Federation) 2. Organized crime--Russia (Federation) I. Title.

HV6453.R83S47 2008

364.1060947--dc22

2008001758

Carolina Academic Press

700 Kent Street

Durham, North Carolina 27701

Telephone (919) 489-7486

Fax (919) 493-5668

Printed in the United States of America.

For Sasha Gorkin

CONTENTS
PREFACE

This book grew primarily out of the enthusiasm of students I encountered in the classroom and the curiosity of law enforcement officers I met in the field. While many of them had heard the dramatic reporting of the 1990s or read textbooks on organized crime in recent years, they understood that there was much more to know, about Russia generally and the context of the development of the Russian mafia in particular.

In undertaking this project, I wanted to present a slightly different perspective from other writers. Earlier works by well-qualified writers presented the Russian mafia without sufficient context for readers. The most popular books produced in the mid-1990s caught the imagination of the public through involved story telling and dramatic use of language, with what amounted to a mere glance at history and culture. Other books, of a more academic nature, were thick with theory or written in an inaccessible style. I have endeavored here to present a broad overview of the so-called Russian mafia through a consideration of language, statistics, culture, history, and Russian realities in a way that ultimately is like my lectures at the university: part investigation, part conversation, and part anecdote. I would encourage you, after reading this book, to explore the topic further. Two excellent, well-written, and detailed accounts are Federico Vareses The Russian Mafia and Vadim Volkovs Violent Entrepreneurship.

More than anything, I wanted to create an exercise for students, criminal justice professionals, and international businesspeople that challenges the way they consider the world around them. Understanding the function of language, appreciating the way the media functions, and questioning the various versions that are created by a variety of interested parties (such as the media, law enforcement, and others) are some of the first steps in developing a critical-thinking capacity. Ultimately, I may reach similar conclusions as Varese, Volkov, and others, but the kind of journey this book takes, I dare say, is somewhat different.

Investigating the Russian Mafia is divided into three parts. , On the Front Lines, involves an examination of the three areas inextricably linked in the volatile struggle for power and property in the 1990s: criminal organizations, business, and law enforcement. It is critical to appreciate that these three spheres of Russian life played their roles on the same stage. Their relationships were far more intertwined in shades of gray than the black-and-white, good guy/bad guy scenario we might prefer.

I am hoping to raise in this book far more questions than provide answers as it is meant as encouragement for you to question what is said all around you in our rapid fire information age.

Joe Serio

November 2007

Huntsville, Texas

ACKNOWLEDGMENTS

Had it not been for the vision and daring of Dick Ward and Gennady Chebotaryov to push forward at a time when few others would, this book would not have been possible. In 1989, Dick was Vice Chancellor for Administration at the University of Illinois at Chicago and Executive Director of the Office of International Criminal Justice (OICJ), when he started exploring the possibility of cooperating with the Soviets on issues of organized crime control. Gennady Chebotaryov, then Deputy Chief of the 6th Department for Organized Crime Control in the Ministry of Internal Affairs (MVD) of the USSR, was very receptive to Wards overtures. One of the results of that cooperation was a year-long internship that I served in the MVDs Organized Crime Control Department in 1990-91 prior to the collapse of the USSR.

I also owe a debt of gratitude and friendship to three people who were by my side in Moscow at various points in the 1990s. Alexander Sasha Gorkin grew from acquaintance to adviser to friend and finally to older brother between 1990 and 1996 as he endeavored to enlighten the poor American who had stepped through the Looking Glass into a land where frequently up is down and black is white. To his credit, Sasha continued patiently peeling back the layers of Russian history, society, culture, and crime after he immigrated to the U.S. in 1996, and all the way up to his untimely death in July 2007. From 1997 to 1999, Andrei Dmitriev and Yevgeny Shagarin were my deputies in the global corporate investigation firm, Kroll Associates, when I was director of Krolls Moscow office. More than that, they were my brothers who labored long to lift the eternal veil that covers Russia, at least enough for me to have a glimpse at the other side.

Thanks to Erik Hoffmann at The University at Albany whose enthusiasm for the study of Russia set me on the path many years ago and whose friendship I value highly. Thom Shanker, at the Moscow office of the Chicago Tribune in the early 1990s and currently of the New York Times, was also an important early influence. He graciously gave me access to his files and became a friend whom, unfortunately, I see far too infrequently. Sherry Jones also provided an important window into Russian life for me through her various adventures while creating her numerous award-winning television documentaries. Caimin and Marlene Flannery have been unwavering in their support and enthusiasm for a variety of my projects, including this one. And thanks to Ian Brown for all the assistance he provided working with me in Moscow.

A special thanks to the surrogate fathers in my life. To Norbert Friedman, for his spirit and love of life. As a Polish survivor of the Holocaust, he has shared his hard-earned insights on the realities of that part of the world and more importantly helped me understand the meaning of life. To Andr Bossard, former Secretary General of Interpol, who over past twenty years has encouraged and supported me. And to Richard Allan, professor of law at Brooklyn Law School, part surrogate father, part brother, part teacher, who continues, twenty years on, to provide invaluable counsel.

From day one, the professionals at Carolina Academic Press expressed great enthusiasm for the project and have steered it to the light of day. Thanks to Jennifer Whaley for her assistance early on and her ongoing friendship. Thanks to Beth Hall for her heroic patience throughout this process. And a special thanks to publisher Keith Sipe for his support, kind words, and most of all for the book you now hold in your hands.

Karen Hitchcock, former President of The University at Albany, made it possible for me to hang my hat in the universitys library where I discovered vast and fascinating material about Russia. My thanks to Andr Bossard, James Phelps, Graham Turbiville, and Emilio Viano for reading the manuscript. At Sam Houston State University, Amanda Farrell, Brett Finn, and Sabrina Hager collected mountains of reference material that was critical to this and future projects. And to the faculty, staff, and students at Sam Houston who have made Huntsville feel more like being at home.

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