Criminal Extortion

Abstract: This paper investigates the organization of criminal enterprise by examining extortion of non-incarcerated criminals by incarcerated ones. Despite high information costs and the constraints of imprisonment prison gangs often have substantial control over the operations of street gangs, including "taxing" their illicit earnings and even, at times, directing narcotics distribution. Extortion from behind bars depends on the inmates' ability to establish power in prison, the characteristics of the victim, and the nature of the illegal activity, if any, conducted by the extortion victim. The paper provides evidence on the Mexican Mafia's criminal enterprise by drawing on the gang's written constitution, gang informants, and law enforcement documents.