WEEK 8 CASE STUDY 2

Carefully read the Melzer and Shelley article. This week you will focus on the second case study discussed in the article. In the abstract to the article, the authors’ state that the second case study involves:

“…a Hezbollah cell operating out of Charlotte, North Carolina. The cell trafficked cigarettes from North Carolina to Michigan, reaping significant profits by exploiting the difference in cigarette tax rates between the two states.”

Carefully read the Hezbollah case study and, in an essay of between 1,300-1,600 words, address each of the following issues:

1. Evaluate whether Hezbollah was functionally an organized criminal organization or a terrorist organization. Be sure to offer support for your position drawing from the article, textbook, and any other sources you deem necessary.
2. Address whether, in this instance, it is even useful to evaluate whether Hezbollah is an organized criminal organization or a terrorist group. Assess whether drawing this distinction is relevant as far as the investigation of their illicit activities is concerned.
3. In evaluating the R.J. Reynolds and the Hezbollah cases, assess which case falls more squarely within your understanding of organized crime. Offer support for your assessment with relevant examples drawn from the article, the text, and your other course materials.

During the week, please read:

• Chapters 12, 13 and 14 in the textbook.
• Melzer, Sharon A., Shelley, Louise I. (2008). The nexus of organized crime and terrorism: two case studies in cigarette smuggling. International Journal of Comparative and Applied Criminal Justice, 32, No. 1.
• • http://traccc.gmu.edu/pdfs/publications/illicit_trade_publications/Shelley_Melzer.pdf
• Financial Action Task Force (FATF) Report
• • http://www.fatf-gafi.org/media/fatf/documents/brochuresannualreports/Introduction%20to%20the%20FATF.pdf
  • The FATF is an international body composed of countries devoted to eradicating money laundering.
• Financial Crimes Enforcement Network (FinCEN)
• • http://www.fincen.gov/
  • FinCEN is the United States government’s financial intelligence unit. FinCEN serves as a resource for law enforcement as well as banks and other financial institutions in combating money laundering.
• The Egmont Group of Financial Intelligence Units
• • http://www.egmontgroup.org/
  • The Egmont Group is an international association of cooperating state financial intelligence units. FinCEN is a member of the Egmont Group.