On the distribution end, Pennisi said that advancements in how products are tracked through the supply chain have reduced the amount of unauthorized diversion of goods to the gray or black markets. Pennisi said retailers also need to be careful of schemes that involve paying a higher fee to dispose of garbage because either a criminal group controls the waste removal company or collects a “tax” from the provider, which in turn is factored into the cost paid by the retailer. “They will charge a higher amount to their customers.” “The shipper is not going to take the loss,” explained Pennisi. Criminal organizations may also attempt to impose a “tax” on legitimate shipping providers, which is then passed along to the retailers. In some cases, Pennisi said organized crime figures have owned trucking companies which retailers were then forced to use. You pay the cost to move the product it’s their way to get involved.” “Retailers may have to pay a higher shipping rate because the Mob puts a tax on moving goods, which goes to them. “Trucking is an essential part of retail,” he said. However, based on Pennisi’s comments, retailers should be sure to partner with established, trusted providers in transportation and waste disposal. “They used to be even more involved in areas like the Garment Center and fish market, but Rudy Giuliani chased them out of those areas.” “Organized crime is heavily involved in retail,” stated Pennisi. Pennisi was blunt about organized crime having an established retail presence. Retailers need to vigilantly watch for organized crime infiltration of their business activities on both the front and back ends of the enterprise.Ĭhain Store Age recently spoke with John Pennisi, a former member of the New York-based Lucchese Mafia family, about the extent of organized crime’s involvement in retail and specific ways criminal enterprises attempt to exploit the industry for profit.
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