Microsoft word - orcmiddleeast.doc

MEDIA REPORTS – MIDDLE EAST CONNECTION
ORGANIZED RETAIL CRIME

Detroit Free Press: March 30, 2006 – Nine members of an alleged Dearborn-based
smuggling operation were arrested Wednesday, accused of taking part in a global scheme
involving bootlegged cigarettes, phony Viagra and counterfeit tax stamps, and sending a
cut of their illicit profits to Hizballah. The gang was also involved in the theft of infant
formula. The 37-page indictment charges the group with a racketeering conspiracy and
lists more than 100 separate criminal acts by its various members.
The Detroit News: December 24, 2005 – The FBI is investigating criminal ties between
members of the international street gang Mara Salvatrucha and fencing rings operated by
Middle Easterners suspected of trafficking in millions of dollars in stolen medicine and
other retail goods. FBI Director Robert S. Mueller III has said fencing operations
working with similar rings are suspected of providing support to terrorist groups such as
Hamas and Hizbollah.
The Christian Science Monitor: June 29, 2005 – In Texas, Operation Blackbird
uncovered a retail theft gang that specialized in reselling stolen infant formula where
proceeds were wired to the Middle East. The FBI has traced money from these
traffickers back to nations where terrorist groups, such as Hamas and Hizbullah, are
active. Texas authorities seized some $2.7 million in stolen assets, including $1 million
worth of infant formula.
Texas Star Telegram: April 6, 2004 - Law enforcement authorities in North Texas
successfully broke up an organized retail crime ring that specialized in the theft of baby
formula, glucose strips, nicotine patches, razor blades and Viagra. The ring generated
millions of dollars in illegal proceeds, some of which went overseas to countries such as
Jordan and Egypt.
CBS News: May 11, 2005 - CBS News reported that this North Texas retail crime ring
was investigated by the FBI’s Joint Terrorism Task Force and other law enforcement
agencies, including the alleged shipment of millions in illegal proceeds to the Middle
East to help finance terrorist groups.
Wall Street Journal: February 27, 2004 - In North Carolina, four people were
arrested on charges relating to the theft of infant formula and that the group could be part
of a larger operation that resells stolen infant formula and funnels the money to terrorist
groups.
Ohio G2 Bulletin: October 6, 2003 – Police in Cinncinnati broke a money laundering
scheme using dozens of convenience stores in the city’s poorest neighborhoods. More
than $100 million was raised by selling stolen goods including cigarettes and teeth-
whitening stripes. Police and prosecutors believe the money might have been used to
fund terrorism around the globe.
The Arizona Republic: July 30, 2003 – A terrorism task force of federal and state
agents arrested 15 individuals accused of trafficking more than $22 million in stolen
infant formula. These individuals are facing charges of conspiracy to commit interstate
transportation, receipt of stolen property and conspiracy to commit money laundering.
Washington Post: August 12, 2002 – Arab gangs in Canada truck millions of tablets of
pseudoephedrine – an over-the-counter medicine ingredient into the United States where
it is sold to Mexican gangs that use it to manufacture methamphetamine. Authorities
have tracked $10 million in the gang’s profits to the Middle East

Source: http://www.fmi.org/docs/loss/ORCMiddleEast.pdf