FBIS4-43552
"drweu118_h_94012"
FBIS-WEU-94-118
Daily Report
19 Jun 1994
GERMANY
Criminal Gangs Reportedly Forming Cover Firms
Criminal Gangs Reportedly Forming Cover Firms
AU1906190794 Berlin DIE WELT in German 19 Jun 94 p 1
AU1906190794
Berlin DIE WELT
German
BFN
[Peter Scherer report: "Mafia Gangs Are Founding an
Increasing Number of Cover Firms"]
[Text] Frankfurt/Main -- According to findings by German
security authorities, the number of cover firms that are
operated by international criminal organizations to cover up
illegal activities is rising in Germany. These include, among
others, import and export companies, travel agencies, bus
companies, restaurants, trucking companies, used-car dealers,
leather goods and textile shops, as well as foodstuffs and fish
wholesale companies.
In their investigations police discover the establishment of
business structures in almost one out of two cases of organized
crime. Security experts say: "Legal business structures are
the ideal foundation for illegal deals, including money
laundering."
This is particularly true for drug trafficking: Thus, last
year authorities noticed, for instance, that one cartel was
selling its drugs via a "pizza service." Orders by telephone --
under cover names -- were filled promptly. The Italian Camorra
prefers leather shops run by straw men to service the German
drug market. To camouflage heroin transports from Turkey,
Kurdish dealers are using travel agencies, companies producing
car bodies, trucking companies, and bus companies. However, an
"advertising company" founded in South America has also been
used for cocaine deals.
Original ideas to cover up its varied and highly criminal
activities were used by a gang of pimps, who expanded their
commercial empire by a "security company."
Over the past months authorities have noticed increasing
boldness among organizations for smuggling people, which have
established virtual "bus passenger services." Smuggling tours
are declared to the border authorities as "tourist trips" or
"transports of guest workers." In the FRG it is primarily
restaurants, laundries, cultural associations, or temples that
are used as contact points for the man-traders.
Popular logistical bases for car smuggling gangs are car
workshops and used-car companies. So as not to attract the
attention of the authorities, the provisions of the Trade
Inspection Office are followed and plausible tax statements are
presented.