Wednesday, October 6, 2010

Drug Smuggling and stock fraud by NY/NJ Longshoremen

From The New York Times

8 Longshoremen Charged With Smuggling Cocaine

In exchange for cash, drugs and other benefits, the longshoremen would secretly unload cocaine hidden among the everyday merchandise shipped to the six berths that make up the ports of New York and New Jersey, the busiest on the East Coast, prosecutors said. The longshoremen were paid $50,000 to $100,000 for unloading a single duffle bag of cocaine, Mr. Bharara said.

To unload the narcotics, prosecutors said, the longshoremen placed the containers where authorities could not see them. After breaking customs seals to remove the drugs, the longshoremen would replace them with new ones, prosecutors said.

During the inquiry, prosecutors said, they also uncovered an illegal stock-trading scheme after learning that a longshoreman received money from others to put toward a penny stock. Investigators discovered a “pump-and-dump” scheme in which people were promoting stocks on Facebook and Twitter to create excitement and get people to purchase them.

The stocks were actually weak, prosecutors said, and after the participants in the scheme sold them off, they quickly lost value. While the participants in the plot earned more than $3 million, the subsequent investors lost $7 million, prosecutors said.

I guess what's shocking, is this is not shocking.

It's business as usual on the NY Waterfront. The only difference since the movie "On The Waterfront" is, the docks are mainly in NJ, and the cargo comes inside containers.

click here for link to NY Times article

1 comment:

Tirbid said...

Shocking..!! Shipping is a very good business these days but shipping companies should know what they are going to ship.