Protection racket
Encyclopedia
A protection racket is an extortion
scheme whereby a criminal group or individual coerces
a victim (usually a business) to pay money, supposedly for protection services against violence or property damage. Racketeers coerce reticent potential victims into buying "protection" by demonstrating what will happen if they don't—they damage the victims' property. In most cases, the racketeers do not actually protect their client from anything but the racketeers themselves, and their "protection" is merely extortion. However, if their victim is seriously threatened by a third party, sometimes gangsters will protect their source of revenue.
Legitimate businesses are not the only victims of protection racketeers. Other criminals are also targeted, since they cannot ask police to stop the extortion. However, for that same reason, criminals sometimes actively seek to buy this "protection". Paradoxically, in a parasitic relationship, the parasite both damages the host and prefers that the host remain healthy. Thus, when criminals are cheated or abused (e.g., a cocaine dealer is swindled by his supplier) they cannot turn to the police and instead rely on powerful gangsters to protect the gangsters' income.
The person who periodically visits the victim to collect protection payments is called a "bag man".
Protection from theft and vandalism is one service the racketeer may offer. For instance, in Sicily, mafiosi know all the thieves and fences in their territory, and can track down stolen goods and punish thieves who dare to attack their clients.
Protection racketeers establish what they hope will be indefinitely long bonds with their clients. This allows the racketeers to publicly declare a client to be under their protection. Thus, thieves and other predators will have little confusion as to who is and isn't protected.
Protection racketeers are not necessarily criminals. In "A Short History of Progress," Ronald Wright notes on p.49, "The warrior caste, supposedly society's protectors, often become protection racketeers. In times of war or crisis, power is easily stolen from the many by the few on a promise of security. The more elusive or imaginary the foe, the better for manufacturing consent."
The term has been expanded by feminists to refer to men who 'rescue' women by insisting on protecting them from dangerous strangers when it is actually the so-called protector who will turn on the woman who rejects his protection and deprives him of his excuse for violence. Susan Griffin was one of the first feminists to put this into words, in her 1971 article in Ramparts. More recently, Ellen Goodman opined that this analogy can be extended to George W. Bush
, where preemptive violence provokes blowback that tends to affect women and children most. Susan Faludi goes into more detail in her most recent book, "The Terror Dream."
Extortion
Extortion is a criminal offence which occurs when a person unlawfully obtains either money, property or services from a person, entity, or institution, through coercion. Refraining from doing harm is sometimes euphemistically called protection. Extortion is commonly practiced by organized crime...
scheme whereby a criminal group or individual coerces
Coercion
Coercion is the practice of forcing another party to behave in an involuntary manner by use of threats or intimidation or some other form of pressure or force. In law, coercion is codified as the duress crime. Such actions are used as leverage, to force the victim to act in the desired way...
a victim (usually a business) to pay money, supposedly for protection services against violence or property damage. Racketeers coerce reticent potential victims into buying "protection" by demonstrating what will happen if they don't—they damage the victims' property. In most cases, the racketeers do not actually protect their client from anything but the racketeers themselves, and their "protection" is merely extortion. However, if their victim is seriously threatened by a third party, sometimes gangsters will protect their source of revenue.
Legitimate businesses are not the only victims of protection racketeers. Other criminals are also targeted, since they cannot ask police to stop the extortion. However, for that same reason, criminals sometimes actively seek to buy this "protection". Paradoxically, in a parasitic relationship, the parasite both damages the host and prefers that the host remain healthy. Thus, when criminals are cheated or abused (e.g., a cocaine dealer is swindled by his supplier) they cannot turn to the police and instead rely on powerful gangsters to protect the gangsters' income.
The person who periodically visits the victim to collect protection payments is called a "bag man".
Territorial monopolies
A protection racketeer cannot tolerate competition within his sphere of influence from another racketeer. If a dispute erupted between two clients (e.g. businessmen competing for a construction contract) who are protected by rival racketeers, the two racketeers would have to fight each other to win the dispute for their respective clients. The outcomes of such fights can be unpredictable, and neither racketeer would be able to guarantee a victory for his client. This would make their protection unreliable and of little value; their clients would likely dismiss them and settle the dispute by other means. Therefore, racketeers negotiate territories in which they can monopolize the use of violence in settling disputes. These territories may be geographical, or they may be a certain type of business or form of transaction.Providing genuine protection
Sometimes racketeers will warn other criminals that the client is under their protection and that they will punish anyone who harms the client. Services that the racketeers may offer may include the recovery of stolen property or punishing vandals. The racketeers may even advance the interests of the client, such as muscling out unprotected competitors.Protection from theft and vandalism is one service the racketeer may offer. For instance, in Sicily, mafiosi know all the thieves and fences in their territory, and can track down stolen goods and punish thieves who dare to attack their clients.
Protection racketeers establish what they hope will be indefinitely long bonds with their clients. This allows the racketeers to publicly declare a client to be under their protection. Thus, thieves and other predators will have little confusion as to who is and isn't protected.
Protection racketeers are not necessarily criminals. In "A Short History of Progress," Ronald Wright notes on p.49, "The warrior caste, supposedly society's protectors, often become protection racketeers. In times of war or crisis, power is easily stolen from the many by the few on a promise of security. The more elusive or imaginary the foe, the better for manufacturing consent."
The term has been expanded by feminists to refer to men who 'rescue' women by insisting on protecting them from dangerous strangers when it is actually the so-called protector who will turn on the woman who rejects his protection and deprives him of his excuse for violence. Susan Griffin was one of the first feminists to put this into words, in her 1971 article in Ramparts. More recently, Ellen Goodman opined that this analogy can be extended to George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
, where preemptive violence provokes blowback that tends to affect women and children most. Susan Faludi goes into more detail in her most recent book, "The Terror Dream."
Real-world examples
- In Melbourne, Australia, Alphonse Gangitano ran a protection racket along the famous Lygon Street during the 1990s.
- In SicilySicilySicily is a region of Italy, and is the largest island in the Mediterranean Sea. Along with the surrounding minor islands, it constitutes an autonomous region of Italy, the Regione Autonoma Siciliana Sicily has a rich and unique culture, especially with regard to the arts, music, literature,...
, Italy, it is estimated that around 80% of businesses of the city of PalermoPalermoPalermo is a city in Southern Italy, the capital of both the autonomous region of Sicily and the Province of Palermo. The city is noted for its history, culture, architecture and gastronomy, playing an important role throughout much of its existence; it is over 2,700 years old...
pay pizzoPizzo (extortion)In Southern Italy, the pizzo is protection money paid by a business to the Mafia, usually coerced and constituting extortion. The term is derived from the Sicilian pizzu . To wet someone's beak is to pay protection money...
, or protection money, to the MafiaMafiaThe Mafia is a criminal syndicate that emerged in the mid-nineteenth century in Sicily, Italy. It is a loose association of criminal groups that share a common organizational structure and code of conduct, and whose common enterprise is protection racketeering...
. - In Ciudad JuárezCiudad JuárezCiudad Juárez , officially known today as Heroica Ciudad Juárez, but abbreviated Juárez and formerly known as El Paso del Norte, is a city and seat of the municipality of Juárez in the Mexican state of Chihuahua. Juárez's estimated population is 1.5 million people. The city lies on the Rio Grande...
, Mexico, when the Mexican Drug WarMexican Drug WarThe Mexican Drug War is an ongoing armed conflict taking place among rival drug cartels who fight each other for regional control, and Mexican government forces who seek to combat drug trafficking. However, the government's principal goal has been to put down the drug-related violence that was...
escalated in 2008, criminal groups saw their financial backbone threatened and began asking for racketeering money to businesses ranging from convenience stores to clubs and restaurants with the threat of burning down the business, kidnapping the owners or killing everyone inside with assault rifles. - In the post-Soviet Russia, law enforcement was too underfunded and poorly trained to protect businesses and enforce contracts. Most businesses had to join a protection racket (known as a krysha, the Russian word for "roof") run by local gangsters.
- In the United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
in the 1950s and 60s the Kray twinsKray twinsReginald "Reggie" Kray and his twin brother Ronald "Ronnie" Kray were the foremost perpetrators of organised crime in London's East End during the 1950s and 1960s...
ran protection rackets in the East End of LondonEast End of LondonThe East End of London, also known simply as the East End, is the area of London, England, United Kingdom, east of the medieval walled City of London and north of the River Thames. Although not defined by universally accepted formal boundaries, the River Lea can be considered another boundary...
.
See also
- ExtortionExtortionExtortion is a criminal offence which occurs when a person unlawfully obtains either money, property or services from a person, entity, or institution, through coercion. Refraining from doing harm is sometimes euphemistically called protection. Extortion is commonly practiced by organized crime...
- FBI
- Organized crimeOrganized crimeOrganized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...
- Pizzo (extortion)Pizzo (extortion)In Southern Italy, the pizzo is protection money paid by a business to the Mafia, usually coerced and constituting extortion. The term is derived from the Sicilian pizzu . To wet someone's beak is to pay protection money...
- Racket (crime)Racket (crime)A racket is an illegal business, usually run as part of organized crime. Engaging in a racket is called racketeering.Several forms of racket exist. The best-known is the protection racket, in which criminals demand money from businesses in exchange for the service of "protection" against crimes...
- Revolutionary taxRevolutionary taxRevolutionary tax is a major form of funding for violent non-state actors such as guerrilla and terrorist organizations. Those outside the organization may consider it to be a euphemism for "protection money"....
- Monopoly on violenceMonopoly on violenceThe monopoly on violence is the conception of the state expounded by Max Weber in Politics as a Vocation. According to Weber, the state is that entity which claims a monopoly on the legitimate use of violence, which it may therefore elect to delegate as it sees fit...
- Taxation as theftTaxation as theftThe identification of taxation as theft is viewpoint held by anarchists and some non-anarchist libertarians. It states that government is transgressing property rights by enforcing compulsory tax collection.-See also:*Anarchism*Libertarianism*Objectivism...