Undercover Look Inside The Russian Mob

It's A Growing Threat To America's Security - And Two Men Infiltrated It: The Russian Mafia

(CBS)  The Justice Department is launching a bold 21st Century attack to combat what Attorney General Michael Mukasey calls the "growing threat" that international organized crime is posing to "U.S. security and stability." CBS News chief investigative correspondent Armen Keteyian looks inside one of the most dangerous threats: The Russian Mob.

---

They were known as Z and Louie, Thick and Thin. Partially disguised, they talked for first time to CBS News about their nearly 10 years as undercover agents for the FBI.

"What were kind of roles you guys played here?" Keteyian asked.

"Well, we portrayed ourselves as not only high rollers but wise guys from Atlantic City," Z said.

They had big-time U.S. Customs connections, and a bankroll to match.

"The $2,000 dinners. The fancy cars. And, yes, I did fit in them," Z laughed.

More than 100 nights a year, Z and Louie wined and dined their way around Atlantic City, slowly working their way in, helping to expose the magnitude of the Russian Mafia:

Diamond and arms dealing

Cigarette smuggling

Health care and credit card fraud

Cyber crime

An appetite for violence

"They have no qualms about murdering people," Z said.

"If they have to kill you, they kill you?" Keteyian asked.

"Absolutely," Z said.

CBS News has learned that hundreds of FBI agents in New York are now devoted to fighting what one top official called an "explosive" growth in organized crime fueled by the growing influence of Asian, Albanian and Russian mobs.

In the last three years, in New York alone, the FBI has indicted more than 300 "non-traditional" crime figures.

"The public has the perception that organized crime has largely gone away," said Mark Mershon, the FBI assistant director in charge of New York. "That of course is not at all true."

Over the last 15 years, the Russian mob, based in Brighton Beach, Brooklyn, has grown into an intimidating force - a lucrative international enterprise stretching from Moscow to Israel to Thailand to the United States, blending old-fashioned brutality with high-tech skills.

The Russians' massive smuggling operations run out of a port in Newark, N.J. One ingenious scam to avoid paying taxes had tanker loads of wood-grain alcohol being shipped back to the Mother Land - vodka with a twist.

"They would dye it blue. They would label it windshield washer fluid, ship it to Russia, un-dye it, and then sell it as vodka," Z said.

In time, Louie and Z left the shores of the Atlantic for Zurich, Switzerland - and a far more menacing situation: A meeting with a high-ranking Russian General offering his government's arsenal for sale.

"We're talking long-range missiles, tanks, submarines, everything," Z said.

The danger was driven home last week with the New York indictment of notorious Russian arms dealer Victor Boot, captured in Thailand in March. He was charged with selling weapons to a terrorist group to be used to kill Americans.

That's hardly a scene from "The Sopranos."

Italian organized crime, neighborhood drugs, prostitution, sports betting. Traditional stuff. This is … this is way up the ladder.

"Exactly," Z said.

Keteyian asked: "And if they'll sell that to a couple of mob guys from Jersey, what are they selling to al-Qaeda? Terrorists?"

"It's all available for the right price. Greed drives everything," Z said.

Those are wise words from a couple of unlikely wise guy who played their part in the war against the Mob.


© MMVIII, CBS Interactive Inc. All Rights Reserved.

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Add a Comment See all 12 Comments

by vinzenzo-2009 May 13, 2008 7:45 PM PDT

The big guy, Z or Thick I believe is his name, is he the agent you featured last month for infiltrating the Gambinos and the one who was proposed for membership into the mob like Donny Brasco? They certainly look the part of wiseguys. I liked this story. these guys should be in the Sopranos.

Reply to this comment

by juniper97 May 13, 2008 9:50 PM PDT

I believe any report on the "New Mafia" is incomplete without in-depth invesigation of this Mafia''s central role in global human trafficing. I recommend that CBS explore and further expose global human trafficing and its impact on human rights.

Reply to this comment

by edwardl4 May 14, 2008 8:29 AM PDT

Very good story on the Russian Mafia. If you check Florida, especially South Beach. They have brought in many ex-communist block women. They work the motels, restaurants. Many new blonde women everywhere. Some say tha Mafia is behind it, but also has made the streets safer. Check the condo buyers in Naples area, Russians. Thay also bought towing companies in Detroit and Miami. New World everywhere and they have the money.

Reply to this comment

by noaanhc May 14, 2008 10:34 AM PDT

When it comes to the Russian mafia and their brutal and murderous ways of doing business,the Italian mafia looks tame compared to them.

Reply to this comment

by avenger09123 May 14, 2008 10:47 AM PDT

Trading one evil for another is no better. The mafia may make the streets safer, but they''re not called the mafia for no reason. The real mafia keep their hands clean of the human trafficking, keeps them from going down should someone bust into the circle like this one. This way their network can just dissappate until the boss gets out of jail or theres a new leader. Unfortunately, with gas prices driving the price of everything up, funding for stuff like the police is going down....which means its going to get worse before it gets better...the question is...do you believe in the right to bear arms?

Reply to this comment

by allanwat May 15, 2008 1:17 AM PDT

This article is grossly misleading and insulting to my intelligence having worked for law enforcement.
Using the term "Russian Mafia" does not make sence. Ive even noticed a Minority of Journalists have described Criminals from All over Eastern Europe and at times who mostly act as individual Specialists as "Russian Mafia" and this article is a prime example. Viktor Bout is not Russian, he is Tajik.
Thirdly,this incorrect term "Russian Mafia" is no longer used by Law enforcemnt and this will back me up 100%:
%u201CRussian mafia%u201D gave place to %u201CEurasian criminality%u201D 13.12.2006
The new tendency was reported by the head of the Russian National central bureau, Timur Lakhonin at a press-conference held in Moscow on December 12.
According to his report, it can be now said for sure that the term "Russian mafia" has almost disappeared from lexicon of international police organizations. "Our partners we closely interact with mark nowadays that the term "Russian mafia" has started to disappear from lexicon giving place to another expression %u2013 "Eurasian criminality", which is closer to modern realities". By this expression it is meant criminality from Eastern Europe and countries of the former USSR, - as the head the Russian Interpol bureau commented. Timur Lakhonin also adds that the term "Russian mafia" has now been almost out of usage amongst the Interpol professionals.

Reply to this comment

by bigot3 May 15, 2008 8:20 AM PDT

And the Russian General who offered to sell submarines, etc.? Is he now a private or even still alive? I doubt Putin would like that kind of publicity and would certainly take immediate steps to make this guy "go away" as an example to others.

Reply to this comment

by vinzenzo-2009 May 15, 2008 8:38 AM PDT

What the heck is "%u2013" allanwat????????????? and eurasian criminality? Give me a break....A rose by any other name.......

Reply to this comment

by intnatnlwise_guy March 1, 2009 8:50 AM PST

After a long bout of laughing at the comment posted by bigot3, I couldn't help but post myself. Those comments and poor spelling are indicative of how ignorant the American public, and low level law enforcement really is and chooses to remain. Law enforcers need to get out of the office a little bit and take a good look around the streets. Those comments, sir, are indicative of a police clerk manning the evidence room. Call it what you want, the Russian Mafia still owns Port Newark, Port Elizabeth, Secaucus, the Canadian Border, the Russian made subs delivering narcotics from Colombia to Miami, and the trade of AK 47s from Europe, China, and Africa to the US continent. The level they conduct business at has been beyond the comprehension and grasp of US law enforcement since the "Russian Missile Crisis" of 1962. On the other hand, denying they exist will make them just go away. Apparently, American law enforcement needs to make the peephole of reality a little bit larger.

Reply to this comment

by joshrstone March 10, 2009 6:38 AM PDT

if anyone know someone in the russian mob please contact me !!!

Reply to this comment

by amnestynomore April 10, 2009 11:06 PM PDT

To Josh Stone who would like to know someone who knew the russian mob well I unfortunately had the pleasure of meeting them and to this day do not know what they look like or who it was that terrorized me since Dec 2008 until April 2009.
I have since fled the state of where I lived and will remain vague on certain facts about myself.

Before I begin to anyone who glorifies them is in need of a reality check. They are infilitrating our nicest and most unsuspecting neighborhoods of NYC. Apparently they are infiltrating their mob ways from Brighton Beach, Brooklyn into oh heck I'll just say it Forest Hills, Queens.

What they do and god I learned A LOT over the last few months before I was forced to flee my neighborhood which I loved and lived in for the past 10 years. And all because I happened to be in their way when they invaded my building in FH and pretended to be working under the umbrella of another business while setting up shop making counterfeit money.

I started seeing tons of cars in my lot and very expensive ones at that with the driver looking either very young or very immigrantly illegal. Things were not making sense!
I thought they must be part of that company that was near me.

I started smelling the fumes that are associated (according to research) with making counterfeit. I also would not be able to sleep because of the assembly line of machines that made this distinct noise of money counting machines.

Oh yea and to noaanhc who wrote they make the Italian mafia look time he is absolutely right. These people are ruthless and cold so cold they WILL GO AT ANY MEANS to get what is not rightfully theirs in our country.

I will not get into the HORROR they caused me in my own home all because "i was apparently in the way" and in my own country. I just can't believe the corruption that trickles down from organized crime from russia into our own government. I found that out the hard way during my horrors I tried to get help from the FBI, local precints and even other avenues and no one and I mean no one (because there all getting a piece of the pie or threatened in some way) would help me with the ...i told you would not go into the horrors...let's put it this way I am not scared of too much and don't get intimidated very easily and perhaps that's stupid and nieve on my part but they got me running to somewhere i never thought I'd live but hey I'm alive aren't I?

If you ask me it all comes down to GREED!! They know it, we know it and they love it because they found the one thing we have in common. That's there in and until that changes it's only going to get worse - trust me when you look around in your so called nice, safe all american neighborhood really pay attention to what could possibly be happening right next door and you won't even know it...but when you find out - WATCH OUT, THEY WILL MAKE SURE TO GET YOU OUT and they don't work alone - what I mean is don't bother calling 911 or FBI when you start noticing people have been in your apartment or you find spyware on your cell and Yes even cameras in lightbulbs..oops said I wasn't going to talk about it.

Take care and remember just pay attention to your surroundings you'll be surprised what you might see.

Reply to this comment

by concit June 8, 2009 2:35 PM PDT

Illegal organizations thrive because they "buy off "those in power or in law inforcement to "look the other way" or "grease the way" for their activities. Our own CIA was and still is involved in illegal arms trading and drug trafficking. Do you think once the Vietnam War was over"Air America" or its counterpart ceased to exist here or around the world? During the Vietnam War there was a "soda pop" factory in Vientienne, Laos, but they didn't produce one single bottle of pop----it was a heroine processing plant run by the CIA. Where do you think some of the money for their black bag ops comes from? In a similar vein, what nations do you think train "death squads" in the third world countries? Don't be shocked----I think you know the answer.

Concit

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[vinzenzo-2009]

The big guy, Z or Thick I believe is his name, is he the agent you featured last month for infiltrating the Gambinos and the one who was proposed for membership into the mob like Donny Brasco? They certainly look the part of wiseguys. I liked this story. these guys should be in the Sopranos.

[juniper97]

I believe any report on the "New Mafia" is incomplete without in-depth invesigation of this Mafia''s central role in global human trafficing. I recommend that CBS explore and further expose global human trafficing and its impact on human rights.

[edwardl4]

Very good story on the Russian Mafia. If you check Florida, especially South Beach. They have brought in many ex-communist block women. They work the motels, restaurants. Many new blonde women everywhere. Some say tha Mafia is behind it, but also has made the streets safer. Check the condo buyers in Naples area, Russians. Thay also bought towing companies in Detroit and Miami. New World everywhere and they have the money.

[noaanhc]

When it comes to the Russian mafia and their brutal and murderous ways of doing business,the Italian mafia looks tame compared to them.

[avenger09123]

Trading one evil for another is no better. The mafia may make the streets safer, but they''re not called the mafia for no reason. The real mafia keep their hands clean of the human trafficking, keeps them from going down should someone bust into the circle like this one. This way their network can just dissappate until the boss gets out of jail or theres a new leader. Unfortunately, with gas prices driving the price of everything up, funding for stuff like the police is going down....which means its going to get worse before it gets better...the question is...do you believe in the right to bear arms?

[allanwat]

This article is grossly misleading and insulting to my intelligence having worked for law enforcement.
Using the term "Russian Mafia" does not make sence. Ive even noticed a Minority of Journalists have described Criminals from All over Eastern Europe and at times who mostly act as individual Specialists as "Russian Mafia" and this article is a prime example. Viktor Bout is not Russian, he is Tajik.
Thirdly,this incorrect term "Russian Mafia" is no longer used by Law enforcemnt and this will back me up 100%:
%u201CRussian mafia%u201D gave place to %u201CEurasian criminality%u201D 13.12.2006
The new tendency was reported by the head of the Russian National central bureau, Timur Lakhonin at a press-conference held in Moscow on December 12.
According to his report, it can be now said for sure that the term "Russian mafia" has almost disappeared from lexicon of international police organizations. "Our partners we closely interact with mark nowadays that the term "Russian mafia" has started to disappear from lexicon giving place to another expression %u2013 "Eurasian criminality", which is closer to modern realities". By this expression it is meant criminality from Eastern Europe and countries of the former USSR, - as the head the Russian Interpol bureau commented. Timur Lakhonin also adds that the term "Russian mafia" has now been almost out of usage amongst the Interpol professionals.

[bigot3]

And the Russian General who offered to sell submarines, etc.? Is he now a private or even still alive? I doubt Putin would like that kind of publicity and would certainly take immediate steps to make this guy "go away" as an example to others.

[vinzenzo-2009]

What the heck is "%u2013" allanwat????????????? and eurasian criminality? Give me a break....A rose by any other name.......

[intnatnlwise_guy]

After a long bout of laughing at the comment posted by bigot3, I couldn't help but post myself. Those comments and poor spelling are indicative of how ignorant the American public, and low level law enforcement really is and chooses to remain. Law enforcers need to get out of the office a little bit and take a good look around the streets. Those comments, sir, are indicative of a police clerk manning the evidence room. Call it what you want, the Russian Mafia still owns Port Newark, Port Elizabeth, Secaucus, the Canadian Border, the Russian made subs delivering narcotics from Colombia to Miami, and the trade of AK 47s from Europe, China, and Africa to the US continent. The level they conduct business at has been beyond the comprehension and grasp of US law enforcement since the "Russian Missile Crisis" of 1962. On the other hand, denying they exist will make them just go away. Apparently, American law enforcement needs to make the peephole of reality a little bit larger.

[joshrstone]

if anyone know someone in the russian mob please contact me !!!

[amnestynomore]

To Josh Stone who would like to know someone who knew the russian mob well I unfortunately had the pleasure of meeting them and to this day do not know what they look like or who it was that terrorized me since Dec 2008 until April 2009.
I have since fled the state of where I lived and will remain vague on certain facts about myself.

Before I begin to anyone who glorifies them is in need of a reality check. They are infilitrating our nicest and most unsuspecting neighborhoods of NYC. Apparently they are infiltrating their mob ways from Brighton Beach, Brooklyn into oh heck I'll just say it Forest Hills, Queens.

What they do and god I learned A LOT over the last few months before I was forced to flee my neighborhood which I loved and lived in for the past 10 years. And all because I happened to be in their way when they invaded my building in FH and pretended to be working under the umbrella of another business while setting up shop making counterfeit money.

I started seeing tons of cars in my lot and very expensive ones at that with the driver looking either very young or very immigrantly illegal. Things were not making sense!
I thought they must be part of that company that was near me.

I started smelling the fumes that are associated (according to research) with making counterfeit. I also would not be able to sleep because of the assembly line of machines that made this distinct noise of money counting machines.

Oh yea and to noaanhc who wrote they make the Italian mafia look time he is absolutely right. These people are ruthless and cold so cold they WILL GO AT ANY MEANS to get what is not rightfully theirs in our country.

I will not get into the HORROR they caused me in my own home all because "i was apparently in the way" and in my own country. I just can't believe the corruption that trickles down from organized crime from russia into our own government. I found that out the hard way during my horrors I tried to get help from the FBI, local precints and even other avenues and no one and I mean no one (because there all getting a piece of the pie or threatened in some way) would help me with the ...i told you would not go into the horrors...let's put it this way I am not scared of too much and don't get intimidated very easily and perhaps that's stupid and nieve on my part but they got me running to somewhere i never thought I'd live but hey I'm alive aren't I?

If you ask me it all comes down to GREED!! They know it, we know it and they love it because they found the one thing we have in common. That's there in and until that changes it's only going to get worse - trust me when you look around in your so called nice, safe all american neighborhood really pay attention to what could possibly be happening right next door and you won't even know it...but when you find out - WATCH OUT, THEY WILL MAKE SURE TO GET YOU OUT and they don't work alone - what I mean is don't bother calling 911 or FBI when you start noticing people have been in your apartment or you find spyware on your cell and Yes even cameras in lightbulbs..oops said I wasn't going to talk about it.

Take care and remember just pay attention to your surroundings you'll be surprised what you might see.

[concit]

Illegal organizations thrive because they "buy off "those in power or in law inforcement to "look the other way" or "grease the way" for their activities. Our own CIA was and still is involved in illegal arms trading and drug trafficking. Do you think once the Vietnam War was over"Air America" or its counterpart ceased to exist here or around the world? During the Vietnam War there was a "soda pop" factory in Vientienne, Laos, but they didn't produce one single bottle of pop----it was a heroine processing plant run by the CIA. Where do you think some of the money for their black bag ops comes from? In a similar vein, what nations do you think train "death squads" in the third world countries? Don't be shocked----I think you know the answer.

Concit