Laserfiche WebLink
<br /> , '~/~G I <br /> , <br /> , <br /> I <br /> I <br /> I The Attorney General's Working Group believes that regulatory strategies designed el <br /> to reduce the concentration of sexually oriented businesses. insulate residential areas <br /> I from them, and reduce the likelihood of associated criminal activity would constitute a - <br /> [ <br /> rational res'ponse to evidence of the impacts which these businesses have upon local I <br /> I communities. <br /> f I <br /> SEXUALLY ORIENTED BUSINESSES AND ORGANIZED CRIME <br /> i I <br /> Infiltration of organized crime into sexually oriented businesses reinforces the need <br /> for prosecution of obscenity and requires specific regulatory or law enforcement tools. I <br /> . The Working Group attempted to assess both the present and potential relationship <br /> between organized crime and sexually oriented businesses. I <br /> . <br /> The Working Group heard testimony from a witness who had been prosecuting <br /> I <br /> . obscenity cases for the past thirteen years that many sexually oriented businesses have <br /> out-of-town absentee owners. If the manager of a local business is prosecuted on an <br /> . Clbscenity charge, his testimony may make it possible to pierce the corporate veil and -. <br /> identify the true owners. <br /> ~ The Working Group heard testimony that an organized crime entity may operate I <br /> somewhat like a franchisor. In order to stay in business, the local manager of a . <br /> ~ sexually oriented business may have to pay fees to organized crime. The makers and <br /> wholesalers of pornographic materials are also likely to be involved with organized <br /> crime. I <br /> The Working Group conducted additional research to assess the relationship I <br /> between sexually oriented businesses and organized crime. The Working Group was <br /> informed by prosecutors of obscenity that there were many ways in which organized I <br /> crirne entities could derive a benefit from sexually oriented businesses. There is a large <br /> , profrt margin in pornography. The presence of coin-operated peep booths provides an <br /> ~ opportunity to launder money. Cash obtained from illegal activities, such as I <br /> I prostitution or narcotics, can be explained as the income of peep booths. Cash <br /> . income can also escape taxation, in violation of law. I <br /> -I <br /> M -14- <br /> tI I <br />