And how do those at the top buy those mansions and estates. I can’t imagine they’ve got a mortgage nor can I imagine then paying in heaps of cash
In: Economics
They take their “dirty” money and spend it in small amounts at a legitimate business they own to make the money look like it came from a clean source.
Some examples from the show Breaking Bad:
Walt Jr sets up a charity donation website for Walt’s cancer treatment. Walt took his dirty money and had it “donated” by other people he works with that are difficult to trace to make it look like a legitimate donation, then deposits that “clean” money to use in legitimate ways.
They buy a car wash, let’s say they get 70 customers a day, on their books they would record say 80 customers, now the money from the 10 non existent customers is taxed and looks legit. They do it in small amounts to avoid suspicion.
It’s the same idea for Gus Fring and his restaurants. The show does a pretty good job of breaking down how the various players launder their money. There’s more but the show does a better job than I will.
Well, start imagining them paying heaps of cash. They pay their staff cash bi-weekly by management. Yes, they do have structure.
Mobs and cartels work differently. Mobs make money at the lower level, and each level above gets a cut. The “employees” are the ones who make the money and pay it up to the bosses, not the other way around. Unless you are a specialist, you are expected to earn money and pay your capo his cut. It’s like a hooker/pimp relationship.
In a cartel it’s different because most of the business is manufacture and/or distribution. The overwhelming majority of cartel members never actually handle any money. In this case legitimate companies with legitimate employees are paid to do work that they don’t do, while they are actually busy making and moving drugs.
Bottom guys – Direct cash (they dont pay tax)
Middle guys – Salaried from laundered money (See below)
Upper guys – Direct or laundered cashflow towards a company they are in charge of, that can also go to middle guys.
Organized crime needs money that looks legal, therefore they create companies where you cant trace money and records are easy to manipulate. A good example is a tanning salon, you open it and estimate that if people used the most expensive services at all opening hours, it would profit you $1.000.000. Then you bring $1.000.000 cash and write that people came in last month, all using money and paid a total of $1.000.000 dollars. You then report that to the tax, pay your “employees” and put the profit into various things. This is simplified and just one example of how it can be done.
Latest Answers