Zog goes after the Yakuza

2 posts

el greco
Yakuza Godfather Targeted in Obama Crackdown on Japanese Organized Crime


By Terje Langeland - Feb 24, 2012 / bloomberg.com

Japan’s yakuza organized-crime groups, having operated openly in their home country for more than a century, are facing tougher treatment by an overseas foe: the U.S. Obama administration.

The largest of Japan’s yakuza organizations, the Yamaguchi- gumi, and two of its leaders will have their U.S. assets frozen and transactions barred under sanctions announced yesterday by the Treasury Department. The group earns “billions of dollars” a year from crimes in Japan and abroad, including drug and human trafficking, prostitution, money laundering and fraud, the department said in a statement.

The U.S. move represents “a slap in the face of the Japanese government” for failing to rein in organized crime, said Jake Adelstein, a Tokyo-based writer who covers the yakuza.

“The U.S. government feels that the Japanese government is very tolerant toward organized crime,” Adelstein said today by telephone. It’s telling Japanese authorities, “Start doing something about your problem,” he said.

The Yamaguchi-gumi’s leaders targeted by the sanctions are its “godfather,” Kenichi Shinoda, 70, and his deputy Kiyoshi Takayama, 64, the Treasury Department said in its statement. The U.S. also imposed sanctions against seven “key members and associates” of a syndicate called the Brothers’ Circle, based in Central Asia, Russia and the Middle East.

Obama Order

They are the first targets under an executive order issued by Obama last year “to target transnational criminal organizations and isolate them from the global financial system,” David S. Cohen, U.S. undersecretary for terrorism and financial intelligence, said in the statement.

John Sullivan, a Treasury Department spokesman, said Japan is making efforts to fight criminal organizations.

“Undersecretary Cohen noted that we are coordinating with the Japanese government when it comes to combating transnational criminal groups, and recognized the significant steps that the Japanese have taken, especially recently, to target the Yakuza,” Sullivan said in an e-mail.

A man who answered a phone call today from Bloomberg News to the Yamaguchi-gumi’s headquarters in the western city of Kobe hung up when asked to make a spokesperson available.

“The Japanese government has been watching the situation closely with interest and has been exchanging information with the U.S.,” Japanese Chief Cabinet Secretary Osamu Fujimura told reporters today. “We should promote stronger measures against organized crime gangs.”
Overseas Assets

The Yamaguchi-gumi, which operates out of a two-building complex in a residential neighborhood, was estimated to represent 44 percent of Japan’s yakuza with 34,900 members as of December 2010, according to the National Police Agency.

The group has “significant” overseas assets, Adelstein said. In 2005, U.S. Immigrations and Customs Enforcement seized almost $600,000 from accounts belonging to Susumu Kajiyama, a yakuza member who was sentenced in Japan for loan-sharking, the Associated Press reported in 2009. In 2003, Swiss authorities said they seized 61 million Swiss francs ($68 million) from accounts in Kajiyama’s name.

“While this is more of a sting than a blow, it certainly won’t make them happy,” Adelstein said of the U.S. action.

Shinoda was released in April from a Japanese prison, where he had served a six-year term related to firearms possession, according to the National Police Agency.

Shinoda and Takayama are “the top two representatives of the Yamaguchi-gumi,” Adelstein said. “Everyone knows who they are.”

Police ‘Doubling’ Efforts

The yakuza have been a force in Japanese society since at least the pre-1868 Edo period. While the group is linked to criminal activities including gambling and prostitution, yakuza also have been hailed for community service. In 1995, its members aided earthquake-hit neighborhoods of Kobe.

Japanese police are “doubling” efforts to crack down on the yakuza, the National Police Agency said in its 2010 White Paper, published last July. In 2010, 68 top members of the Yamaguchi-gumi and its affiliates, including Takayama, were arrested, compared with 23 arrests a year earlier.

The yakuza is increasingly turning to businesses such as construction, finance, waste disposal and securities markets to supplement their more traditional income sources, the agency said in the 2010 statement.


Japanese officials investigated whether Olympus Corp., which admitted to a 13-year cover-up to conceal losses, worked with organized-crime members, the New York Times reported in November. The fraud has also been investigated by U.S. and U.K. authorities. A panel of external examiners hired by Olympus to investigate said it found no evidence that money was funneled to criminal gangs.

“Today’s action casts a spotlight on key members of criminal organizations that have engaged in a wide range of serious crimes across the globe,” Cohen said in the Treasury Department’s statement. “We will continue to work with our international partners to target those who deal in violence, narcotics, money laundering, and the exploitation of women and children.”

U.S. Treasury Dept. Penalizes Japan’s Largest Organized-Crime Group
By ANNIE LOWREY - February 24, 2012 / nytimes.com


WASHINGTON — The Treasury Department has imposed sanctions on Japan’s biggest yakuza group, an organized-crime syndicate that operates with relative impunity there and whose far-ranging criminal activity has become a significant concern in Washington.

In an announcement on Thursday, the department said it would freeze the American-based assets of the group, the Yamaguchi-gumi, and two of its leaders. It will also bar any transactions between Americans and members of the penalized crime syndicate. Yakuza have been tied to drug trafficking and other crimes in the United States, with particular prominence in Hawaii and California. The Treasury did not elaborate on the dollar value of United States-based accounts that might be frozen under the new sanctions.

In a statement, the Treasury said the group made “billions of dollars” every year around the world. Its criminal activity includes prostitution, money laundering, fraud and trafficking in humans, weapons and drugs.

The action “casts a spotlight on key members of criminal organizations that have engaged in a wide range of serious crimes,” David S. Cohen, under secretary for terrorism and financial intelligence, said in a statement.

“We will continue to work with our international partners to target those who deal in violence, narcotics, money laundering and the exploitation of women and children,” Mr. Cohen said.

The Treasury is using sanctions authority created by a 2011 executive order. In the order, President Obama said he had determined that criminal organizations — including the yakuza, the Camorra crime syndicate in Italy and Mexico’s Zetas drug cartel — “constitute an unusual and extraordinary threat to the national security, foreign policy and economy of the United States.”

Yamaguchi-gumi; its reputed “godfather,” Kenichi Shinoda; and its “deputy godfather,” Kiyoshi Takayama, are the first to be penalized under the order.

The Treasury also announced sanctions against a major crime syndicate called the Brothers’ Circle, along with several of its top members. The Brothers’ Circle, formerly known as the Family of Eleven or the Twenty, is a multiethnic umbrella organization for criminal groups operating across Europe, the Middle East, Africa and Asia.

The yakuza gangs, which boast about 80,000 members, have deep historical roots in Japan and have operated for more than a century. They recently have been tied to a wide range of businesses, including the nuclear industry and Olympus, the Japanese camera manufacturer mired in a major accounting scandal.

According to a 2009 report by Japan’s National Police Agency, the Yamaguchi-gumi had 19,000 members and 17,400 associates, making it the biggest yakuza group. Recently, Japanese authorities have been cracking down on the yakuza, with citizens becoming increasingly intolerant of the criminal underworld. But local authorities have struggled to scrub the groups from industries where they hold considerable influence, like construction.

That's what they get for planning to dump the US dollar for Japan-China trade.