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.