2005/06/15 Council Agenda Packet

App. B / Adult Businesses controlled by organized crime families. If they do not own the business outright, they most certainly extract street tax from independent smut peddlers." Id. at 1048 (emphasis in origi- nal). The Pornography Commission stated that it had been advised by Los Angeles Police Chief Daryl F. Gates that "organized crime families from Chicago, New York, New Jersey and Florida are openly controlling and directing the major pornography operations in Los Angeles." Id. The Pornography Commission was told by Jimmy Fra- tianno, described by the Commission as a member of LCN, "that large profits have kept organized crime heavily in- volved in the obscenity industry." Id. at 1062. Fratianno testified that "95% of the families are involved in one way or another in pornography.... It's too big. They just won't let it go." Id. at 1062-63. The Pornography Commission concluded that "organized crime in its traditional LCN forms and other forms exerts substantial influence and control over the obscenity indus- try. Though a number of significant producers and distribu- tors are not members of LCN families, all major producers and distributors of obscene material are highly organized and carry out illegal activities with a great deal of sophisti- cation." Id. at 1063. The Pornography Commission reported that Michael George Thevis, reportedly one of the largest pornographers in the United States during the 1970's was convicted in 1979 of RICO (Racketeer Influenced and Corrupt Organizations) violations including murder, arson and extortion. The Com- mission also reported examples of other crimes associated with the pornography industry, including prostitution and other sexual abuse, narcotics distribution, money laundering and tax violations, copyright violations and fraud. Id. at 1066-66. Although the Pornography Commission report has been criticized for relying on the testimony of unreliable inform - 396 Minnesota Attorney General's Report / App. B ante in drawing its conclusions finding links between por- nography and organized crime (See Scott, Book Reviews, 78 J. Crim. L. & Criminology 1146, 1168-69 (1988)), its conclu- sions find additional support in recent state studies. The California Department of Justice recently reported that: California's primacy in the adult videotape industry is of law enforcement concern because the pornography business has been prone to organized crime involve- ment. Immense profits can be realized through pornog- raphy operations, and until recently, making and distributing pornography involved a relatively low risk of prosecution. But more aggressive law enforcement efforts and turmoil within the pornography business has destabilized the smooth flow of easy money for some of its mEkjor operations.... As long as control over pornography distribution is contested, and organized crime figures continue their involvement in the business, the pornography industry will remain of interest to law enforcement officials state- wide. Bureau of Organized Crime and Criminal Intelligence, De- partment of Justice, State of California, Organized Crime in California 1987.AnnualReport to the California Legislature at 69-62 (1988). The Pennsylvania Crime Commission similarly deter- mined in a 1980 report that most pornography stores exam- ined were affiliated or owned by one of three men who had ties with "nationally known pornography figures who are members or associates of organized crime families." Pennsyl- vania Crime Commission, A Decade of Organized Crime: 1980 Report at 119. For example, Reuben Sturman, a leading pornography industry figure based in Cleveland, was reported by the FBI in 1978 to have built his empire with the assistance of LCN member DiBernardo. Federal Bureau of Investigation Report Regarding the Extent of Organized Crime Involv,ment in �7