yakuza

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Review by Rocky Swift Nov. 25 (Bloomberg) — For the opening scene of a book, it’s hard to beat a hardened gangster calmly threatening to liquidate the main character, who’s furiously smoking clove cigarettes as he ponders his strategy. That’s how Jake Adelstein starts “ Tokyo Vice ,” his memoir of working as a police reporter for Japan’s Yomiuri Shimbun , the world’s largest newspaper, and how his snooping landed him in hot water with a particularly violent faction of the yakuza. The story follows Adelstein through 12 years covering everything from roadside shakedowns to serial murder as the only American member of the Tokyo Metropolitan Police Department’s press club. “Tokyo Vice” is bookended by Adelstein’s investigations into how a sickly crime boss named Tadamasa Goto and three other yakuza managed to get lifesaving liver transplants in the U.S., abetted by U.S. authorities. This story turned out to be the reporter’s savior, since once he published it Adelstein became too high profile to kill. Before he was “pissing off yakuza,” Adelstein was a student at Sophia University , a Jesuit-affiliated school in the center of Tokyo. On a whim, the Missouri native took a battery of tests to join the Yomiuri, a media leviathan that also owns a television network, a theme park and the Giants baseball team, Japan’s equivalent to the New York Yankees. Very Organized Crime Adelstein’s first glimpse into the world of organized crime comes from a mob boss worried that the local police won’t drink tea at his offices anymore. “Tokyo Vice” is a primer on such complicated relationships between Japan’s cops and criminals. The yakuza emphasize the “organized” in organized crime, earning toleration from the authorities and public by keeping violence low and providing the prostitution and drugs that some parts of society secretly desire. In the years Adelstein worked the crime beat, the yakuza evolved from extortion, prostitution and drugs to high finance, orchestrating real estate scams and manipulation of the stock market. Even now, the Tokyo Stock Exchange obliquely acknowledges the yakuza’s meddling in markets, calling them “antisocial” forces in official documents. The most famous case detailed in the book is that of Lucie Blackman , a British citizen found partially dismembered near the home of a man later convicted of multiple rapes. She had come to Tokyo to work as a hostess in Tokyo’s Roppongi entertainment district, and investigating the case drew Adelstein deep into the rabbit hole of Japan’s sex industry. Through it all, Adelstein was able to use his otherness as an advantage. Fear among the yakuza that a crackdown might result from wiping out an American probably saved his life, he writes, as did the mistaken suspicion that he was an undercover agent for the CIA or — because of his Jewish heritage — Israel’s Mossad. Backhanded Compliments Much of the book is made up of reconstructed, movie-like dialogue, with a jarring number of backhanded compliments for Adelstein, as when a thug says the American is “stupid, obtuse, stubborn and reckless,” but “I guess that’s what makes a good journo.” While his tale is gripping, it shows the strain of a writer rushing to the finish line. The Goto transplant saga, the most compelling part of the book, is teased in the beginning and doesn’t return for some 250 pages. Goto’s priest says the gangster has renounced his former ways to study Buddhism, Adelstein reports with skepticism. Still, that might be enough to rest a little easier in Tokyo. “Tokyo Vice: An American Reporter on the Police Beat in Japan” is published by Pantheon (335 pages, $26). It will be published by Kodansha in the U.K. on Jan. 1. To buy this book in North America, click here . ( Rocky Swift writes for Bloomberg News. The opinions expressed are his own.) To contact the writer on the story: Rocky Swift in Tokyo at rswift5@bloomberg.net .

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Yakuza Bosses Sell Sex, Drugs, Finagle U.S. Liver Transplants: Book Review

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Commentary by William Pesek Oct. 7 (Bloomberg) — Japan’s underworld can tell you a lot about what’s happening in the legitimate economy. Gangsters are on the run as growth wanes and deflation worsens. Yet the oddest development by far involves yakuza members sitting for exams covering key aspects of their work. If you think this is just a law-enforcement issue, think again. It’s a sign Japan’s funk will be longer than economists predict. That may surprise those betting Japan is recovering. Oddly, though, the plight of gangsters tells the story. Huddled over legal texts and documents isn’t the popular image of Japan’s storied mobsters. When they aren’t collecting debts, shaking down shop owners, overseeing prostitution rings or rigging stocks, members of Japan’s biggest organized crime group, Yamaguchi-gumi, are studying for 12-page tests. Surreal? Yes, but also a telltale sign of the seriousness of Japan’s deflationary cycle. The yakuza are having to work harder than ever to get by and are stepping up education efforts. This column isn’t meant to convey sympathy for them. It’s that the advent of a yakuza version of the Series 7 exam that stockbrokers take is a bad omen — very bad. “The yakuza are a real barometer,” says Jake Adelstein , a blogger and the author of a new book, “Tokyo Vice.” “When the yakuza are doing poorly, the economy is doing poorly.” All this hints at the harsh environment facing even the most industrious of gangsters, never mind average households. And it says lots about the need for growth opportunities. And Japan has a disturbing paucity of them at the moment. Mob Crackdown News of all this first appeared last month in the Mainichi newspaper. Police found the exam during a mob investigation in western Japan. Its timing coincides with the fallout from organized-crime laws that went into effect in late 2008. Gangster groups can be held responsible for actions of even the lowest street-level associates. Kobe, Japan-based Yamaguchi-gumi alone has about 40,000 members. Areas of study include everything from phone fraud to dumping of industrial waste to auto theft to securities laws. The exercise is aimed at avoiding lawsuits as stagnation eats into profits from real estate, construction and stock trading. This latter category has kept authorities extraordinarily busy. The yakuza invasion of Japan’s financial industry has been amazing and rapid. And intimate observers joke about feeling nostalgic for the days when the yakuza were simply thugs wearing bad suits and sporting full-body tattoos. Yakuza as Investors A decade ago, it wasn’t hard to spot who they were and what they might be up to. Now, they are diversified investors in Tokyo’s stock market. Observers are learning finance and forensic accounting to keep up with them. If you don’t understand Japan’s system of stock trading, issuance and manipulation, you can’t understand the modern yakuza. That diversification often makes the yakuza a more useful economic gauge than one finds elsewhere — and explains why their plight says more about Japan’s outlook than many realize. In late 2008, Adelstein said there might be 600 “yakuza- connected companies.” There’s no sanitizing the yakuza’s influence — it’s huge. Hence the keen focus on training members on trends in financial markets and key industries. Think of Yamaguchi-gumi’s education push as an M.B.A. for gangsters. What’s fascinating about the yakuza is how nimble they can be. The shift from old-fashioned crime such as prostitution and drugs to finance has accelerated. Gangsters were quick to exploit a crackdown on consumer-finance companies. The government’s bungling sent more business their way, making organized crime an early beneficiary of the credit crisis. Signs of Weakness That was then. The economic signs are getting worse. The strong yen is weighing on Japan’s export-driven economy as the jobless rate hovers near a record high. Japan will remain in deflation until 2012 because of “significant slack” in the economy, the International Monetary Fund said last week. Proving the point, consumer prices tumbled 2.4 percent in August, the fastest decline on record. The other dilemma is politics. Gangsters long enjoyed getting a piece of multibillion-dollar public-works projects. That gravy train ended when Yukio Hatoyama’s Democratic Party of Japan took over last month. The prime minister’s government is actually halting projects, never mind devising new ones. Business opportunities are evaporating, faster than many economists say. The bar owners that members pressure for protection money can’t pay much these days. Prostitutes aren’t raking in customers the way they did two years ago. Households are reluctant to take on fresh debt, especially at extortionate rates. Stock trading and real estate are languishing. Have no doubt gang members are brainstorming on how to survive the recession. Crime probably still pays well enough to keep some yakuza in the style they are accustomed to. The tension among Japan’s 80,000 or so yakuza is palpable, though, as evidenced by violent altercations between rival groups. Just don’t be fooled into thinking this isn’t about the economy. It absolutely is. Gangsters studying for exams are a clear sign of where the underworld finds itself today. That goes for Japan’s broader population, too. ( William Pesek is a Bloomberg News columnist. The opinions expressed are his own.) To contact the writer of this column: William Pesek in Tokyo at wpesek@bloomberg.net

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Yakuza’s Series 7 Exam Is Harbinger for Economy: William Pesek

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