All 19 Ways The New York Mafia Makes Money | How Crime Works | Insider

TL;DR

Former organized crime member reveals various methods used by Cosa Nostra to make money, including scams, legitimate businesses, food industry control, tax evasion, loan-sharking, gambling, and more.

Transcript

My name is John Pennisi. I'm a former made member of the Lucchese crime family. This is how crime works. We were involved in a Range Rover scam where the Range Rovers were purchased or financed from the United States, here, and shipped to countries like China, where they had a specific Range Rover that didn't have all the bells and whistles that th... Read More

Key Insights

• 🚙 Organized crime effectively engaged in a Range Rover scam, purchasing vehicles in the US and selling them in China at inflated prices.
• 🙃 The food industry has historically been a significant source of income for organized crime, who would create companies that supplied restaurants and sometimes even owned restaurants themselves.
• 🤑 Money laundering through the purchase of legitimate businesses and tax evasion has been a common practice for organized crime to legitimize illegal funds.
• 👷 The government's crackdown on unions and construction bid rigging significantly impacted organized crime's earning capabilities in these industries.
• 🎲 Online gambling has provided a new avenue for organized crime to generate income, transitioning from traditional paper-based gambling activities.
• 🤑 Loan-sharking, gambling, and extortion remain prevalent means of making money for organized crime.
• ℹ️ While drug dealing and prostitution were once major income sources, their earning potential has decreased significantly in recent years.

Questions & Answers

Q: How did organized crime members profit from the food industry?

Organized crime created companies that supplied restaurants, forcing them to use their products. They also purchased their own restaurants or took control of existing ones to generate revenue.

Q: How did organized crime influence Hollywood?

In the past, organized crime had significant control over unions in Hollywood, manipulating the movies and music business. However, law enforcement crackdowns, such as Rudolph Giuliani's targeting of organized crime in the Fulton Fish Market, diminished their influence.

Q: How did organized crime engage in money laundering?

Organized crime members engaged in tax evasion and money laundering by using illegal funds to purchase legitimate businesses, such as restaurants and companies, to "wash" the illegal money.

Q: How has online gambling impacted organized crime's earning potential?

With the rise of online gambling, organized crime has adapted by establishing online gambling websites, allowing customers to gamble remotely and increasing their revenue streams.

Key Insights:

• Organized crime effectively engaged in a Range Rover scam, purchasing vehicles in the US and selling them in China at inflated prices.
• The food industry has historically been a significant source of income for organized crime, who would create companies that supplied restaurants and sometimes even owned restaurants themselves.
• Money laundering through the purchase of legitimate businesses and tax evasion has been a common practice for organized crime to legitimize illegal funds.
• The government's crackdown on unions and construction bid rigging significantly impacted organized crime's earning capabilities in these industries.
• Online gambling has provided a new avenue for organized crime to generate income, transitioning from traditional paper-based gambling activities.
• Loan-sharking, gambling, and extortion remain prevalent means of making money for organized crime.
• While drug dealing and prostitution were once major income sources, their earning potential has decreased significantly in recent years.
• Organized crime members remain involved in arms trafficking, though on a smaller scale, and engage in criminal activities using cryptocurrency for anonymity.

Summary & Key Takeaways

• Former Lucchese crime family member John Pennisi discusses how organized crime engaged in a Range Rover scam, purchasing vehicles in the US and selling them in China for four times the price.

• Organized crime members often entered legitimate businesses, such as pizzerias, construction companies, and restaurants, with their own restaurants or as partners in existing ones.

• The food industry has historically been a major source of income for organized crime, with control over supply companies and restaurant vendors.