Crime Inc. like us

By Maryanna Lewyckyj

CROOKS VIEW Canada as the perfect testing ground to fine-tune ripoff schemes before trying to crack the U.S. market, says a leading authority on money laundering and terrorism. "Because authorities here are so naive, it's almost a given that you would come and try to do your business here," Juval Aviv, president and CEO of Interfor Inc., told a conference on organized crime yesterday.
"It's so easy to operate here."
Aviv -- a former Israeli counterterrorism intelligence officer -- has been tracking fraudsters and recovering ill-gotten gains for 25 years.
"We can see that frauds travel from Europe to Canada and then move to the U.S.," said Aviv, who has hunted down more than $10 billion US in illicit funds over the past 10 years.
He says crime and fraud worldwide rake in $5 billion US to $8 trillion US annually, making it the third-largest global enterprise, behind armaments and the energy sector.
It's estimated that money laundering has ballooned into a $5-billion US annual business.

MONEY-TERROR LINK

"As terrorism grows, money laundering grows because the two are inextricably linked," notes Aviv. "The ties between terrorists and money launderers have increased because of the state of the global economy."
Crooks hoping to hone their skills in money laundering, bank ripoffs, stock manipulation, shady investment schemes, terrorist financing and shifting of assets offshore find Canada a good place to set up shop. Aviv's assessment was echoed by author and organized crime expert Antonio Nicaso, who said crooks have a leg up on cops in Canada because of cracks in the system.
Nicaso blames lax immigration laws, an archaic judicial system, outdated evidence rules, police budget cuts, soft sentences and a lack of commitment to combat white-collar crime.
Because crime is such big business, fraudsters can afford not only the best technology, but can hire the best lawyers, accountants and investment advisers to hide their money, he said.

WEALTH OF CROOKED CAPERS

- About 25,000 people enter Canada illegally every year.

- It's estimated that crooks laundered $17 billion in money in Canada in 1999 alone.

- A common form of organized crime is telemarketing fraud. Eighty percent of victims are over age 60.

- In a 24-hour period, about 500 vehicles are stolen in Canada -- 25% are never recovered.

- Canadian stock markets are more vulnerable to stock manipulation schemes involving short selling. Unlike in the U.S., investors in Canada don't have to own a stock to short it.

- There are an estimated 150 mobs operating in Russia, controlling up to 40,000 companies and 400 banks.

- Some U.S. lawyers now specialize in "asset protection," giving seminars on how to hide money in offshore havens.

- Before Enron collapsed, 495 companies were set up in the Caribbean in just six weeks, and $2.6 billion US in funds were transferred there.

Toronto Sun, Sept. 22, 2004