Bulgarian Organized Crime Tihomir Bezlov Center for the

Bulgarian Organized Crime Tihomir Bezlov Center for the Study of Democracy 2006

Origin of organized crime in Bulgaria Overwhelming presence of organized crime groups § Organized crime and the creation of large private companies. § Strands of origins: § – Violent Entrepreneurs / “Wrestlers” – protection rackets and smuggling – G-13 “Oligarchs” – privatization scams and smuggling

Origins and history of organized crime Violent Entrepreneurs : – Former athletes – Security services officers – Criminals History § 1991 -1992 – racketeering and smuggling § 1992 -1994 – racketeering and smuggling into former Yugoslavia § 1995 -1997 -transformation into insurance racket (VIS-2 и G-13 “Oligarchs”: – Trade representatives abroad – Former SOE directors – Security services officers History § 1990 -1991 – banks and holdings § 1991 -1993 – international trade and smuggling § 1993 - 1996 – credit scams of state banks; draining stateowned companies

Organized Crime Hierarchies V. Volkov- Russian Stricture Bulgarian Structure

Traditional OC activities Parallel features of OC in Bulgaria and Russia: § Protection § Mediation of business conflicts Difference from Russian organized crime § Participation in legitimate business Organized crime developments : § From violence towards investments and corruption § From large hierarchical structures towards

Origin and history of organized crime in Bulgaria Featu res Stage Corruptio Organizati Violence on n Origin 1988 – 1991 Sporadic Chaotic None 1991 -1992 Widespread Chaotic Widespread, coordinate d Low-level Primitive Sporadic, policemen hierarchies protection 1992 -1994 Private security companies Market Neighborho Not involved od groups Mid-level: National police level departmen ts, prosecutor s Control of selected Markets: oil, cigarettes, alcohol, electronics

The Changing Nature of Organized Crime in Bulgaria Feature Stage Violence Corruption Organization Closure 1997 -1998 Abandoning of protection racket Police, prosecution Fragmented, creating international links Legalization 1999 -2000 Selective violence Entire Three levels of spectrum networks, + Political elites internationalizat ion Redistributi on 2000 -2002 EU- High-level Entire contract spectrum killings in + courts public places; intimidation Entire Three levels of networks + hierarchies, regions Three levels of Market Searching new sources of income Privatization, oligopolies & monopolies Monopolizin g markets, domestic and international investments.

Organized Crime as Network and Corruption

Organized Crime Hierarchies and Corruption in Bulgaria’s Drug-Distribution Market Drug distribution areas coincide police precincts. Each is headed by its own boss Hierarchical structure under the area’s boss

Organized crime structures: going legal Market А Legal markets Grey markets Illegal markets Market B Market C

Prospects for Bulgaria’s organized crime Ø Crime transfer (Spain, Holland, Latin America) Ø Use of political elites and judiciary Ø Facilitation of illegal market activities Ø Структури използващи конкурентни предимства на “сивите пазари” Ø Taking over local governments

New Risks - the Contract Killings