Hitha Prabhakar - Black Market Billions: How Organized Retail Crime Funds Global Terrorists

Most people wouldnt think that buying an off-the-truck designer bag could fund terrorism. In my three decades of experience as a former Detective Investigator with the NYPD and now running a private investigation firm, I can say that Hitha understands and explains why this is a dangerous mentality to have. In Black Market Billions, she spells out why the mindset that a stolen designer handbag is a bargain disappears once you consider that your purchase may be funding a deadly organized crime group.

Thomas Ruskin, Former NYPD Detective Investigator and President of CMP Protective and Investigative Group, Inc.

Written like a financial thriller, Black Market Billions shines a bright light on the dark side of capitalism. The book opened my eyes to what really goes on behind the scenes in high-end retail, and the best part is you can feel her courage and passion on every page.

Lawrence G. McDonald, The New York Times Bestselling Author, A Colossal Failure of Common Sense

Black Market Billions is a must-read for all government policymakers, business leaders, opinion makers, and consumers. With global markets in chaos, states in recession, and extremists waging war against civilization, few topics are as vital to our security as the nexus between organized retail crime and terrorism. This book will change the debate as we come to understand just how much terrorism depends on funds raised by crime. This is an immensely important book for understanding why terrorism remains part of modern politics and why societies must find ways to cut off the financial tentacles of support.

William C. Martel, Associate Professor of International Security Studies, The Fletcher School of Law and Diplomacy, Tufts University

Counterfeiting is one of the least-acknowledged, most-damaging crimes of our time. In Black Market Billions, Hitha exposes this nefarious world of the violent syndicates and the crimes they commithuman trafficking, forced child labor, money launderingand discovers that the profits fund even worse acts such as terrorism. Youll never look at a fake Louis Vuitton handbag the same way again.

Dana Thomas, Author, Deluxe: How Luxury Lost Its Luster

Hitha Prabhakar

Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Executive Editor: Jeanne Glasser
Editorial Assistant: Pamela Boland
Development Editor: Russ Hall
Operations Specialist: Jodi Kemper
Senior Marketing Manager: Julie Phifer
Assistant Marketing Manager: Megan Graue
Cover Designer: Alan Clements
Managing Editor: Kristy Hart
Project Editors: Jess DeGabriele and Jovana San Nicolas-Shirley
Copy Editor: Gayle Johnson
Proofreader: Seth Kerney
Indexer: Erika Millen
Compositor: Nonie Ratcliff
Manufacturing Buyer: Dan Uhrig

2012 by Hitha Prabhakar

Publishing as FT Press
Upper Saddle River, New Jersey 07458

FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, .

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America

First Printing November 2011

ISBN-10: 0-13-218024-3
ISBN-13: 978-0-13-218024-5

Pearson Education LTD.
Pearson Education Australia PTY, Limited.
Pearson Education Singapore, Pte. Ltd.
Pearson Education Asia, Ltd.
Pearson Education Canada, Ltd.
Pearson Educacin de Mexico, S.A. de C.V.
Pearson EducationJapan
Pearson Education Malaysia, Pte. Ltd.

Library of Congress Cataloging-in-Publication Data:

Prabhakar, Hitha, 1975
Black market billions : how organized retail crime funds global terrorists / Hitha Prabhakar.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-13-218024-5 (hbk. : alk. paper)
1. Black market. 2. Shoplifting. 3. Smuggling. 4. Organized crime. 5. Terrorism--Finance. I. Title.
HF5482.6.P73 2012
363.325--dc23
2011023166

This book is dedicated to the memory of my grandmother Susilathe ultimate truth teller.

Like many large projects, writing a book takes the support of many great people. Black Market Billions could not have been written without the indefatigable help and support of many people in the public sector, including the Los Angeles Police Department, Albuquerque Police Department, Immigration and Customs Enforcement, the Federal Bureau of Investigation, the National Retail Federation, the Secret Service, and the Retail Industry Leaders Association. Captain Bill Williams and Detective Kent Oda of the Commercial Crimes Division put their trust in me based on a quick in-person conversation and a lengthy e-mail. They gave me unprecedented access to people, places, and divisions for days on end. Thanks to Kevin Tyrrell at Immigration and Customs Enforcement and to Cori Bassett, who took the time and had the patience to set up meetings, explain every little detail about money laundering instruments, and advise me on overseas travel to undisclosed locations. Karen Fischer and Commander Harold Prudencio also allowed me to come behind the doors of the APD, letting me ask questions about cases, incidents, and people who had never been discussed with outside sources.

This book started out as an idea based on an instant-message conversation I had with a former colleague. But the foundation of the research came from Joe LaRocca and Kathy Grannis at the National Retail Federation, as well as Elizabeth Jennings at the Retail Industry Leaders Association. These retail industry stars helped me sort through piles of documents, countless reports, and congressional testimony to get to the right sources. From the private sector, I cannot thank Jerry Biggs and Gary Weisbecker from the loss prevention team at Walgreens enough. The number of hours spent on the phone discussing, strategizing, and helping me understand how an organized retail crime group works, from the psychology of a Level 1 booster and fence to a Level 3 shell warehouse owner, was instrumental in creating the foundation for this book. Likewise, I owe a large amount of gratitude to the public relations and loss prevention teams at LVMH, Deckers, eBay, Target, and Limited Brands for fielding questions and requests for interviews and making sure every fact was correct.

I interviewed hundreds of sources, many on background, who helped me follow the money, so to speak. Although the majority of them requested anonymity, I would like to thank Professor Willam Martel at the Fletcher School of Law and Diplomacy for reviewing chapters, adding input, and convincing me not to bury the lede. Likewise, Kris Buckners input and wealth of information on the counterfeiting industry was insurmountable. And to my anonymous sources, thank you for your help.

Behind every good author is a great editor, and Jeanne Glasser is the best. The book would not have happened if it werent for her editorial advice, foresight, and direction. Through Jeanne I not only gained inspiration, but I made a friend for life. Thank you to the editorial and production team at Pearson North America: Tim Moore, Russ Hall, Jess DeGabriele, and Jovana Shirley. Their hard work in the last stages of the book got us to the finish line. I was lucky enough to have Molly Novero agree to be my research assistant even though she was a full-time law student. Words cannot express how grateful I am for her dedication and hours spent going through thousands of court documents, tracking down the names of attorneys, and interpreting Supreme Court decisions for me. Thank you to Adam Kirschner, Nik Deogun, and Nick Dunn for having the faith in me that I could be on television, run a research company, and write a book at the same time. And, I wanted to give an extra special thank you to my colleagues at Bloomberg Television, especially to Mark White, Dan Colarusso, Andrew Morse, and Andy Lack for their support.