Organized corporate criminality - Tobacco smuggling between Canada and the US

Crime, Law and Social Change

Volumn 37, Issue 3, 2002, Pages 225-243

  Beare, Margaret ^a  

^a YORK UNIVERSITY   (Canada)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0036288801     PISSN: 09254994     EISSN: 15730751     Source Type: Journal    
DOI: 10.1023/A:1015077526420     Document Type: Review

References (61)

1. Threats and the shots fired into the civic complex were interpreted as a direct attack on the Mayor. However, after he went into hiding the local activity seemed to be to play "spot-the-mayor" since hiding half-heartedly in a small town is not the easiest of tasks. The Mayor called the smugglers "trigger happy renegades" which as of October 16th 1993 had caused the residents of the Akwesasne reserve to boycott shopping in Cornwall - even though apparently the Mayor had his speech notes approved by the communications officials from the reserve who determined that these comments were not discriminatory to the reserve members since "renegades" could be from any group.
2. Taken from a transcript of proceedings that included a presentation by Robert Blakey at a Solicitor General hosted Symposium on Enterprise Crime, Ottawa, June 1982. Quoted in Beare, Criminal Conspiracies, 1996, Nelson Canada, pp. 150.
3. Taken from a transcript of proceedings that included a presentation by Robert Blakey at a Solicitor General hosted Symposium on Enterprise Crime, Ottawa, June 1982. Quoted in Beare, Criminal Conspiracies, 1996, Nelson Canada, pp. 150.
4. Canada Customs is responsible for the interdiction of smuggling at all US/Canada official points of entry. The RCMP is responsible for smuggling investigations that take place at other locations along the border. Due to the location of the majority of tobacco smuggling operations, the RCMP Customs and Excise Section is the main enforcement agency.
5. Globe and Mail, "Smuggling of Cigarettes grows into Big Business", by Peter Moon, May 29, 1993, A1-2.
6. RCMP and Customs officials have stated publicly that tobacco smuggling is not an "enforcement problem and therefore law enforcement will not prove to be the solution". It is not customary for the police in Canada to resist taking ownership of a crime problem - regardless of its nature. The uniqueness of this situation regarding a police organizational recognition that their resources will necessarily prove futile should be of note regardless of the dynamics of cigarette smuggling.
7. CBC Newsworld, "Cigarette Smuggling at Akwesasne", July 23, 1991, Time 19:30.
8. Quantities used are: 25 cigarettes per cigarette package; 200 cigarettes per carton; 50 cartons per case.
9. RCMP and Customs Canada estimate. Comparison may be with the appropriate Canadian charge for cigarettes. Even if the customer of contraband cigarettes is able to buy them slightly cheaper, there is still a wide profit margin to be shared between the smuggler, the retailer, and the customer.
10. Linquist Avey Macdonald Baskerville Contraband Tobacco Estimate June 30 1992, p. 16. The RCMP reports of seizures in Ottawa supports their assumptions about the diplomatic community reselling their supplies.
11. Salem Alaton Globe and Mail, Saturday, March 6, 1993, p. D3.
12. Linquist Avey Macdonald Baskerville, Contraband Tobacco Estimate-June 30 1992, released October 29, 1992, p. 62.
13. These reports are fairly well researched. The problem lies with what is avoided - chiefly any complicity of the tobacco companies in the smuggling situation.
14. The decision was made by the Linquist group that they could no longer continue to produce an objective report - that would be seen to be objective - when in the employ of such a potentially "interested" party. Conversations with Mr Rod Stamler, Spring 1993. However, Rod Stamler eventually joined FIA (International Group of FIA companies) and FIA was then hired by the National Coalition Against Crime and Tobacco Contraband (the Coalition) to study "Organized Crime and the Smuggling of Cigarettes in the United States". Update reports were produced through 1999. Once again - organized crime, the exploiter of the contraband cigarettes market consisted of criminals unrelated to the tobacco companies.
15. Whig Standard, "Cornwall mayor rejoins battle", Sept. 25, 1993.
16. In British Columbia, the smuggling trade tends to be in American cigarettes from the source states of Maryland, North and South Dakota, Nevada, Montana, Idaho, California, Oregon and Washington. Police intelligence indicates that Vietnamese criminals are heavily involved in the smuggling of cigarettes into BC. The smuggling in BC seems to be one directional - American cigarettes are smuggled from the US into Canada rather than involving the scam of smuggling in the exported tax-free Canadian brands. See, Canadian Association of Chiefs of Police, Organized Crime Committee Report, August, 1993, p. 72.
17. In keeping with the romantic prohibition era smuggling history of the French Islands that lie off the coast of Newfoundland, St Pierre and Miquelon have apparently reentered (or are merely continuing in) the smuggling trade. Alcohol and cigarettes pour into the Maritime Provinces from these islands. See Prohibition and St. Pierre, by J.P. Andrieux, W.F. Rannie Publ. 1983.
18. CACP, Organized Crime Report, 1993, p. 75.
19. The report describes an incident where the RCMP were forced to back off after being tipped off about a shipment of tobacco crossing the St Lawrence River due to the Warriors use of these weapons.
20. See Gambling in America, 1976 Commission on the Review of the National Policy Toward Gambling, Charles H. Morin Chairman, Washington. See particularly a paper by Peter Reuter "An Analysis of the Characteristics of Arrested Gamblers in the State of New Jersey".
21. See Gambling in America, 1976 Commission on the Review of the National Policy Toward Gambling, Charles H. Morin Chairman, Washington. See particularly a paper by Peter Reuter "An Analysis of the Characteristics of Arrested Gamblers in the State of New Jersey".
22. Rod Stamler was a former Assistant Commissioner of the RCMP and presently the chief forensic investigator for Linquist, Avey, Macdonald, Baskerville Forensic and Investigative Accountants and responsible for the "Linquist" reports that quoted throughout this paper.
23. Globe and Mail, May 29, 1993, p. A2.
24. Michael Woodiwiss Crime Crusades and Corruption: Prohibition in the United States 1900-1987, Pinter Publ. London, 1988, p. 13.
25. Customs Intelligence reports and Statistics Canada figures released in May 1993.
26. Estimates from law enforcement and from the Non-Smokers Rights Association, using different strategies. These estimates are only that and can not be assumed to be as accurate as those making the claims my argue. However, there is no doubt that a large majority of exported Canadian cigarettes arrive back into the Canadian market.
27. David Friedrichs encourages the reader to acknowledge the importance of the perception of respectability or legitimacy in discussions regarding white collar crimes or corporate crimes and in the case of cigarette smuggling we must ask whether the corporate "suppliers" would be seen as culpable if they were less powerful. See David Friedrichs, White Collar Crime and the Definitional Quagmire: A Provisional Solution" Journal of Human Justice, Spring 1992 (3:2), 18.
28. Doreen McBarnet, "Legitimate Rackets: Tax Evasion, Tax Avoidance, and the Boundaries of Legality", Journal of Human Justice Spring 1992 (3:2), 56-74.
29. Toronto Star, "Task Force Targets Tobacco Smugglers", by Peter Small, Friday, October 15, 1993, p. A10.
30. Globe and Mail, January 28, 1994. Comments made in response to a paper prepared by Margaret Beare.
31. Report by André Raynauld and Jean-Pierre Vidal titles Smokers' Burden on Society: Myth and Reality in Canada, quoted by Salem Alaton, Globe and Mail March 6, 1993, p. D3.
32. Report by André Raynauld and Jean-Pierre Vidal titles Smokers' Burden on Society: Myth and Reality in Canada, quoted by Salem Alaton, Globe and Mail March 6, 1993, p. D3.
33. I b i d.
34. Stan Sesser, "Opium War redux: Pushing American Cigarettes in Asia", The New Yorker, September, 13, 1993, 78-89.
35. New York Times, Nov. 28, 1993.
36. See a special issue of the Journal of Human Justice Spring 1992 (3:2) titled "Crimes of the Powerful" edited by F. Pearce and L. Snider. See also Frank Pearce and S. Tombs "Ideology, Hegemony, and Empiricism" in British Journal of Criminology Autumn 1990 (30:4); and Lorraine Snider Bad Business: Corporate crime in Canada (Nelson Canada, 1992).
37. See a special issue of the Journal of Human Justice Spring 1992 (3:2) titled "Crimes of the Powerful" edited by F. Pearce and L. Snider. See also Frank Pearce and S. Tombs "Ideology, Hegemony, and Empiricism" in British Journal of Criminology Autumn 1990 (30:4); and Lorraine Snider Bad Business: Corporate crime in Canada (Nelson Canada, 1992).
38. See a special issue of the Journal of Human Justice Spring 1992 (3:2) titled "Crimes of the Powerful" edited by F. Pearce and L. Snider. See also Frank Pearce and S. Tombs "Ideology, Hegemony, and Empiricism" in British Journal of Criminology Autumn 1990 (30:4); and Lorraine Snider Bad Business: Corporate crime in Canada (Nelson Canada, 1992).
39. Martin's Annual Criminal Code, 1993, Canada Law Book Inc. pp. 52-55. The Canadian Criminal Code defines "abetting":
40. National Center for Tobacco-Free Kids, March 2, 2000 "The big Cigarette Companies and Cigarette Smuggling".
41. Maud Beelman, D. Campbell, Maria Teresa Ronderos and E. Schelzig. Report of the Center for Public Integrity "Major Tobacco Multinational Implicated In Cigarette Smuggling, Tax evasion, Documents Show, 2000, p. 2.
42. Taken from Tobacco-Free Kids, March 2, 2000 quoting from Maud Beelman, Duncan Campbell, Maria Teresa Ronderos and Erik Schelzig, International Consortium of Investigative Journalists, Part 1 of the Report of the Center for Public Integrity "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show", 2000.
43. K. Maguire The Guardian, "Clarke admits BAT link to smuggling", February 3, 2000.
44. Toronto Star, "Lawsuit Links Sales to Top Brass", Dec. 22, 1999.
45. Part 2, An Investigative Report of the Center for Public Integrity. March 2001, "Tobacco Companies Linked to Criminal Organizations In Lucrative Cigarette Smuggling" by The International Consortium of Investigative Journalists.
46. Attorney General of Canada v. R.J. Reynolds Tobacco Holdings, United states District Court, Northern District of New York, June 30, 2000.
47. The Toronto Star, December 22, 1999.
48. See Attorney General of Canada v. R.J. Reynolds Tobacco Holdings paragraph 93.
49. U.S. District Court, eastern District of New York, docket No. 00 Civ. 2881 (NGG) The Departments of the Republic of Colombia (separately listed) against Philip Morris Defendants, BAT Defendants) dated November 6, 2000.
50. Samples of articles include: "Tobacco Insider Talks: Major Firms Were Deeply Involved in cross-Border Smuggling Former Executive Says" (Marsden, Montreal Gazette, Dec. 18, 1999); "RJR affiliate pleaded guilty to cigarette smuggling" (CNN December 23, 1998); "Tobacco giant implicated in global smuggling schemes" (The Guardian, January 31, 2000); "BAT accused of criminality" (The Guardian, September 22, 2000); "Racketeer cases Shed light on Cigarette Smuggling in Italy" (New York Times, September 2, 1997); "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show" (An investigative Report of the Center for Public Integrity); "Lawsuit Links Sales to top brass" (The Toronto Star, December 22, 1999); "Tobacco giant ran smuggling rackets" (The Age, Melbourne Australia).
51. Samples of articles include: "Tobacco Insider Talks: Major Firms Were Deeply Involved in cross-Border Smuggling Former Executive Says" (Marsden, Montreal Gazette, Dec. 18, 1999); "RJR affiliate pleaded guilty to cigarette smuggling" (CNN December 23, 1998); "Tobacco giant implicated in global smuggling schemes" (The Guardian, January 31, 2000); "BAT accused of criminality" (The Guardian, September 22, 2000); "Racketeer cases Shed light on Cigarette Smuggling in Italy" (New York Times, September 2, 1997); "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show" (An investigative Report of the Center for Public Integrity); "Lawsuit Links Sales to top brass" (The Toronto Star, December 22, 1999); "Tobacco giant ran smuggling rackets" (The Age, Melbourne Australia).
52. Samples of articles include: "Tobacco Insider Talks: Major Firms Were Deeply Involved in cross-Border Smuggling Former Executive Says" (Marsden, Montreal Gazette, Dec. 18, 1999); "RJR affiliate pleaded guilty to cigarette smuggling" (CNN December 23, 1998); "Tobacco giant implicated in global smuggling schemes" (The Guardian, January 31, 2000); "BAT accused of criminality" (The Guardian, September 22, 2000); "Racketeer cases Shed light on Cigarette Smuggling in Italy" (New York Times, September 2, 1997); "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show" (An investigative Report of the Center for Public Integrity); "Lawsuit Links Sales to top brass" (The Toronto Star, December 22, 1999); "Tobacco giant ran smuggling rackets" (The Age, Melbourne Australia).
53. Samples of articles include: "Tobacco Insider Talks: Major Firms Were Deeply Involved in cross-Border Smuggling Former Executive Says" (Marsden, Montreal Gazette, Dec. 18, 1999); "RJR affiliate pleaded guilty to cigarette smuggling" (CNN December 23, 1998); "Tobacco giant implicated in global smuggling schemes" (The Guardian, January 31, 2000); "BAT accused of criminality" (The Guardian, September 22, 2000); "Racketeer cases Shed light on Cigarette Smuggling in Italy" (New York Times, September 2, 1997); "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show" (An investigative Report of the Center for Public Integrity); "Lawsuit Links Sales to top brass" (The Toronto Star, December 22, 1999); "Tobacco giant ran smuggling rackets" (The Age, Melbourne Australia).
54. Samples of articles include: "Tobacco Insider Talks: Major Firms Were Deeply Involved in cross-Border Smuggling Former Executive Says" (Marsden, Montreal Gazette, Dec. 18, 1999); "RJR affiliate pleaded guilty to cigarette smuggling" (CNN December 23, 1998); "Tobacco giant implicated in global smuggling schemes" (The Guardian, January 31, 2000); "BAT accused of criminality" (The Guardian, September 22, 2000); "Racketeer cases Shed light on Cigarette Smuggling in Italy" (New York Times, September 2, 1997); "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show" (An investigative Report of the Center for Public Integrity); "Lawsuit Links Sales to top brass" (The Toronto Star, December 22, 1999); "Tobacco giant ran smuggling rackets" (The Age, Melbourne Australia).
55. Samples of articles include: "Tobacco Insider Talks: Major Firms Were Deeply Involved in cross-Border Smuggling Former Executive Says" (Marsden, Montreal Gazette, Dec. 18, 1999); "RJR affiliate pleaded guilty to cigarette smuggling" (CNN December 23, 1998); "Tobacco giant implicated in global smuggling schemes" (The Guardian, January 31, 2000); "BAT accused of criminality" (The Guardian, September 22, 2000); "Racketeer cases Shed light on Cigarette Smuggling in Italy" (New York Times, September 2, 1997); "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show" (An investigative Report of the Center for Public Integrity); "Lawsuit Links Sales to top brass" (The Toronto Star, December 22, 1999); "Tobacco giant ran smuggling rackets" (The Age, Melbourne Australia).
56. Samples of articles include: "Tobacco Insider Talks: Major Firms Were Deeply Involved in cross-Border Smuggling Former Executive Says" (Marsden, Montreal Gazette, Dec. 18, 1999); "RJR affiliate pleaded guilty to cigarette smuggling" (CNN December 23, 1998); "Tobacco giant implicated in global smuggling schemes" (The Guardian, January 31, 2000); "BAT accused of criminality" (The Guardian, September 22, 2000); "Racketeer cases Shed light on Cigarette Smuggling in Italy" (New York Times, September 2, 1997); "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show" (An investigative Report of the Center for Public Integrity); "Lawsuit Links Sales to top brass" (The Toronto Star, December 22, 1999); "Tobacco giant ran smuggling rackets" (The Age, Melbourne Australia).
57. Samples of articles include: "Tobacco Insider Talks: Major Firms Were Deeply Involved in cross-Border Smuggling Former Executive Says" (Marsden, Montreal Gazette, Dec. 18, 1999); "RJR affiliate pleaded guilty to cigarette smuggling" (CNN December 23, 1998); "Tobacco giant implicated in global smuggling schemes" (The Guardian, January 31, 2000); "BAT accused of criminality" (The Guardian, September 22, 2000); "Racketeer cases Shed light on Cigarette Smuggling in Italy" (New York Times, September 2, 1997); "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show" (An investigative Report of the Center for Public Integrity); "Lawsuit Links Sales to top brass" (The Toronto Star, December 22, 1999); "Tobacco giant ran smuggling rackets" (The Age, Melbourne Australia).
58. Letter to Maud Beelman the center for Public Integrity, from R.J. Reynolds Tobacco Company, January 28, 2000.
59. Report of the Center for Public Integrity, 2000. "Major Tobacco Multinational Implicated in Cigarette Smuggling, Tax Evasion, Documents Show". page 11 of 15.
60. Report of the Center for Public Integrity. 2001. p. 24.
61. See Matthew G. Yeager, "The Gangster as White Collar Criminal: Organized Crime and Stolen Securities", Issues in Criminology 1975 (8:1).