1 00:00:11,554 --> 00:00:14,348 By following the playbook's opening lessons, 2 00:00:14,432 --> 00:00:16,809 you've maneuvered your way from the ground floor 3 00:00:16,893 --> 00:00:18,853 to the mob boss penthouse. 4 00:00:19,437 --> 00:00:22,023 Now it's time to focus on your bottom line. 5 00:00:22,565 --> 00:00:23,941 Vice is commerce. 6 00:00:25,401 --> 00:00:27,528 It's not about morally, "Oh, it's wrong to deal drugs." 7 00:00:27,612 --> 00:00:29,613 Morally, "It's wrong to run a brothel." 8 00:00:29,697 --> 00:00:33,283 It's business. It's about grabbing money with both fists. 9 00:00:33,367 --> 00:00:35,494 Reaching your full earning potential 10 00:00:35,578 --> 00:00:37,121 won't happen on its own. 11 00:00:37,205 --> 00:00:41,417 It is absolutely critical that a mob boss has a business plan. 12 00:00:41,501 --> 00:00:44,337 If there's no plan, the structure will fall. 13 00:00:45,379 --> 00:00:49,008 But by putting your intellect to work along with your muscle, 14 00:00:49,717 --> 00:00:51,552 you can outfox your competition 15 00:00:51,636 --> 00:00:54,722 and become the underworld CEO of your dreams. 16 00:00:56,349 --> 00:00:57,433 Just like this guy. 17 00:00:58,518 --> 00:01:02,647 Harlem's superfly heroin tycoon, Frank Lucas. 18 00:01:04,023 --> 00:01:08,110 Lucas's revolutionary strategy upended New York's drug trade 19 00:01:08,194 --> 00:01:09,862 creating his own supply chain 20 00:01:09,946 --> 00:01:12,490 that banked more than a million dollars a day. 21 00:01:13,074 --> 00:01:15,117 I used to sleep in the bed, in the cold. 22 00:01:15,201 --> 00:01:17,870 And then I was in the big time, and I started rolling. 23 00:01:18,454 --> 00:01:20,873 Follow Frank's cutting-edge business plan, 24 00:01:20,957 --> 00:01:24,877 and you, too, can make sure that your crimes do pay. 25 00:01:35,012 --> 00:01:37,181 Frank Lucas built a multimillion-dollar 26 00:01:37,265 --> 00:01:40,059 international heroin empire from the ground up. 27 00:01:41,310 --> 00:01:43,354 All before his 40th birthday. 28 00:01:44,105 --> 00:01:47,524 His goal was to make money selling heroin, 29 00:01:47,608 --> 00:01:50,652 and so he made a lot of money selling heroin. 30 00:01:50,736 --> 00:01:54,406 But before you follow Frank's path to the C-suite, 31 00:01:54,490 --> 00:01:56,701 here's what you can learn from his rise. 32 00:02:02,665 --> 00:02:03,749 Frank Lucas was born 33 00:02:03,833 --> 00:02:06,335 in rural North Carolina during the Great Depression. 34 00:02:06,836 --> 00:02:10,798 We have no, no opportunity there in, uh, segregated North Carolina. 35 00:02:10,882 --> 00:02:14,260 You won't make a good life for yourself and be able to take care of your family. 36 00:02:15,219 --> 00:02:20,600 He did see his cousin murdered by a member of the KKK. 37 00:02:21,517 --> 00:02:23,185 They came and blew his brains out. 38 00:02:23,269 --> 00:02:25,395 They stuck the shotgun in his mouth, pulled the trigger. 39 00:02:27,481 --> 00:02:30,609 Sometimes certain things happen in your life, and it change it. 40 00:02:30,693 --> 00:02:32,153 You know, it change it. 41 00:02:32,987 --> 00:02:34,864 And he left, and he came to New York. 42 00:02:35,489 --> 00:02:38,826 Now, the problem was he was illiterate. 43 00:02:38,910 --> 00:02:40,911 He couldn't get a job delivering a newspaper. 44 00:02:40,995 --> 00:02:41,954 He couldn't do anything. 45 00:02:42,038 --> 00:02:44,248 The only way he could survive 46 00:02:44,332 --> 00:02:48,585 was to get into something illegal where he would be accepted. 47 00:02:48,669 --> 00:02:50,796 So he started selling drugs. 48 00:02:56,344 --> 00:03:00,305 Bumpy Johnson was the baddest Black gangster probably ever lived. 49 00:03:00,389 --> 00:03:03,267 Bumpy was like a, um... like a dad to him. 50 00:03:04,435 --> 00:03:06,520 I worked with Bumpy for that many years. 51 00:03:07,021 --> 00:03:09,273 Thirteen years, nine months and eight days. 52 00:03:10,441 --> 00:03:13,694 And, uh, every dime I made, I credit him for it. 53 00:03:14,612 --> 00:03:16,239 You know, I credit him for it. 54 00:03:16,739 --> 00:03:21,077 When Bumpy died, Frank got the drug business. 55 00:03:21,786 --> 00:03:23,120 Frank wanted the drugs 56 00:03:23,204 --> 00:03:26,582 because he thought that that was where he would make the most money. 57 00:03:30,336 --> 00:03:33,839 Out of seven boys, Frank was the oldest. He was like my hero. 58 00:03:33,923 --> 00:03:36,634 He'd ask us to do something, we would do it. 59 00:03:37,218 --> 00:03:41,346 He was able to maintain his control through his brothers. 60 00:03:41,430 --> 00:03:45,101 He trusted his brothers and made them rich. 61 00:03:45,685 --> 00:03:49,271 Always talks about family, you know. He just drills it in your head. 62 00:03:49,355 --> 00:03:50,690 "You stick with your family." 63 00:03:51,649 --> 00:03:53,400 Frank had a promising career path 64 00:03:53,484 --> 00:03:56,987 and a loyal inner circle to help him build his business. 65 00:03:57,071 --> 00:04:00,408 But that didn't mean everyone respected his authority. 66 00:04:00,908 --> 00:04:05,370 As you launch your enterprise, how do you prove you've got what it takes? 67 00:04:05,454 --> 00:04:08,124 Nobody fools with a guy from Harlem, you dig? 68 00:04:16,799 --> 00:04:21,553 As a mob boss, the only way to ensure your operation's success 69 00:04:21,637 --> 00:04:25,557 is to immediately show the consequences of getting in your way. 70 00:04:25,641 --> 00:04:28,519 First, I'm gonna bash his head to a pulp. 71 00:04:29,478 --> 00:04:32,439 You have to establish yourself as a killer. 72 00:04:32,523 --> 00:04:34,358 It's a real tough industry 73 00:04:34,442 --> 00:04:38,362 where reputation and street cred is critical. 74 00:04:38,446 --> 00:04:39,363 Yeah! 75 00:04:39,989 --> 00:04:43,367 If you show weakness as a mob boss, you're not gonna be alive very long. 76 00:04:47,371 --> 00:04:51,083 These guys knew how to flex their muscles right out of the gate. 77 00:04:52,168 --> 00:04:54,962 Shortly after taking over Boston's Winter Hill Gang, 78 00:04:55,046 --> 00:04:58,924 Whitey Bulger reportedly sent a message by killing Louis Litif, 79 00:04:59,008 --> 00:05:02,261 a longtime associate who disobeyed Whitey's orders. 80 00:05:02,345 --> 00:05:05,764 His body was found mutilated in the trunk of a car. 81 00:05:05,848 --> 00:05:08,141 Albert Anastasia kicked off his reign 82 00:05:08,225 --> 00:05:11,728 by allegedly ordering the murder of salesman Arnold Schuster, 83 00:05:11,812 --> 00:05:13,188 who got on the boss's hit list 84 00:05:13,272 --> 00:05:16,108 for helping police track down a known fugitive. 85 00:05:16,984 --> 00:05:20,153 And when Griselda Blanco began ruling the Miami cocaine trade, 86 00:05:20,237 --> 00:05:23,949 she invented a tactic to keep her adversaries in line, 87 00:05:24,033 --> 00:05:27,327 enlisting motorcycle hit men called sicarios, 88 00:05:27,411 --> 00:05:30,122 who would perform drive-by assassinations, 89 00:05:30,206 --> 00:05:31,832 usually in broad daylight. 90 00:05:35,127 --> 00:05:38,588 It wasn't long after Frank Lucas took over Harlem's heroin business 91 00:05:38,672 --> 00:05:40,466 that his reign was tested. 92 00:05:41,092 --> 00:05:44,594 When you're at the top, there's always eagles, okay? 93 00:05:44,678 --> 00:05:46,263 There's always maybe somebody, 94 00:05:46,347 --> 00:05:48,181 they start looking at you and figure, 95 00:05:48,265 --> 00:05:51,310 "You know something? I could do this a little bit better than this person." 96 00:05:51,394 --> 00:05:53,061 "Maybe I should be the leader." 97 00:05:53,145 --> 00:05:57,024 You can't afford to let that sort of insubordination go unanswered. 98 00:05:59,777 --> 00:06:04,532 In 1960s Harlem, the baddest guy around is Tango. 99 00:06:05,991 --> 00:06:09,453 Tango was a big bully. Six-foot-five, six-foot-six. 100 00:06:09,537 --> 00:06:11,288 People in Harlem were kind of fearful of him. 101 00:06:13,624 --> 00:06:15,835 Tango is a freelance heroin dealer... 102 00:06:19,004 --> 00:06:21,674 known for shortchanging his suppliers. 103 00:06:26,178 --> 00:06:29,265 It's something new boss Frank Lucas can't allow. 104 00:06:30,808 --> 00:06:32,434 Frank senses an opportunity 105 00:06:32,518 --> 00:06:37,189 to show who's really in charge and cut the giant down to size. 106 00:06:38,566 --> 00:06:40,860 When he hears Tango is looking for more product, 107 00:06:41,360 --> 00:06:43,404 Frank supplies him with a kilo of heroin, 108 00:06:43,904 --> 00:06:46,991 knowing Tango will ultimately try to stiff him too. 109 00:06:48,868 --> 00:06:51,578 And when Frank comes to collect two weeks later, 110 00:06:51,662 --> 00:06:53,164 Tango doesn't disappoint. 111 00:06:54,748 --> 00:07:00,129 He refuses to pay Frank a dime and lashes out, challenging Frank's honor. 112 00:07:01,338 --> 00:07:02,964 And his mother's. 113 00:07:05,468 --> 00:07:08,678 A crowd forms, just as Frank knew it would. 114 00:07:18,939 --> 00:07:20,566 The message is clear. 115 00:07:21,567 --> 00:07:24,736 Frank knew to let people know when you are the boss, 116 00:07:24,820 --> 00:07:27,739 that not only is your finger on the trigger, 117 00:07:27,823 --> 00:07:29,157 but you know how to pull it. 118 00:07:29,241 --> 00:07:32,369 That's the sort of reputation you need to succeed. 119 00:07:33,120 --> 00:07:37,040 But as a mob boss, your brawn may kick open the door, 120 00:07:37,124 --> 00:07:39,460 but it's your brain that'll bring in the cash. 121 00:07:40,169 --> 00:07:44,048 Start with this mantra any wise businessman must follow, 122 00:07:44,798 --> 00:07:46,300 never pay retail. 123 00:07:51,555 --> 00:07:56,310 Kids dream of becoming athletes, astronauts, or movie stars. 124 00:07:56,810 --> 00:07:59,522 No one ever aspires to become a middleman. 125 00:08:00,105 --> 00:08:02,650 Too bad, because that's where the money is. 126 00:08:03,943 --> 00:08:07,362 In the heroin business, the supply chain, it's international. 127 00:08:07,446 --> 00:08:10,198 The middleman is making a tremendous amount of money 128 00:08:10,282 --> 00:08:12,034 because he's going right to the source. 129 00:08:13,118 --> 00:08:15,412 And that's coming out of your profits. 130 00:08:15,496 --> 00:08:16,497 Let me explain. 131 00:08:17,831 --> 00:08:19,666 While Frank was getting started, 132 00:08:19,750 --> 00:08:21,042 heroin came to the US 133 00:08:21,126 --> 00:08:23,503 through what was called "The French Connection." 134 00:08:25,839 --> 00:08:27,841 It started with poppies grown in Turkey. 135 00:08:29,677 --> 00:08:32,846 When the plants matured, they were harvested for opium sap. 136 00:08:34,682 --> 00:08:37,810 The sap was boiled with lime to separate the morphine. 137 00:08:39,979 --> 00:08:41,730 Then it was off to France, 138 00:08:41,814 --> 00:08:44,816 where industrious chemists turned the morphine into heroin. 139 00:08:44,900 --> 00:08:47,486 It's a precise and smelly process. 140 00:08:48,862 --> 00:08:51,740 Next, it was up to the middlemen from the Corsican Mafia 141 00:08:51,824 --> 00:08:55,202 to move the refined heroin across the Atlantic to America, 142 00:08:56,412 --> 00:08:58,289 hiding it any way they could. 143 00:09:00,124 --> 00:09:02,251 Now, that's an expensive toaster. 144 00:09:03,335 --> 00:09:05,170 Once the heroin made landfall, 145 00:09:05,254 --> 00:09:08,799 the American mob sold it at a markup of up to 400%. 146 00:09:10,634 --> 00:09:12,052 Then it hit the streets, 147 00:09:12,553 --> 00:09:15,472 courtesy of domestic dealers like Frank Lucas. 148 00:09:18,017 --> 00:09:21,686 For the Mafia, this arrangement made them countless millions. 149 00:09:21,770 --> 00:09:23,939 But for hustlers like Frank, 150 00:09:24,023 --> 00:09:26,775 it was a painfully inefficient proposition. 151 00:09:27,443 --> 00:09:30,529 Frank wanted to try to figure out, "How do I cut out the middleman 152 00:09:30,613 --> 00:09:32,447 to maximize my profits?" 153 00:09:32,531 --> 00:09:35,408 And also reduce the opportunity for law enforcement 154 00:09:35,492 --> 00:09:36,994 to penetrate his organization. 155 00:09:37,745 --> 00:09:40,121 Lucas needed a big idea, 156 00:09:40,205 --> 00:09:42,040 which he got from the same place 157 00:09:42,124 --> 00:09:45,336 you're probably getting this essential content, 158 00:09:45,961 --> 00:09:46,795 television. 159 00:09:47,880 --> 00:09:50,298 There used to be a news broadcast come on. 160 00:09:50,382 --> 00:09:53,260 They used to tell you about those guys in Vietnam getting high. 161 00:09:53,344 --> 00:09:54,844 Washington now admits 162 00:09:54,928 --> 00:09:58,848 there is a serious drug problem among its servicemen in Vietnam. 163 00:09:58,932 --> 00:10:01,185 And while some might only see a crisis, 164 00:10:01,769 --> 00:10:04,187 Frank's mind went to a different place. 165 00:10:04,271 --> 00:10:08,942 Frank saw an opportunity to bring the heroin in from Asia. 166 00:10:09,026 --> 00:10:11,194 Frank's master plan? 167 00:10:11,278 --> 00:10:12,737 Bypass the French Connection 168 00:10:12,821 --> 00:10:15,658 and create his own heroin pipeline from the Far East. 169 00:10:16,742 --> 00:10:19,411 And luckily, he already had a hookup. 170 00:10:19,495 --> 00:10:22,872 His cousin, a gentleman named Ike Atkinson, 171 00:10:22,956 --> 00:10:25,834 was a retired Army sergeant in Asia 172 00:10:25,918 --> 00:10:31,339 who was able to make contact with those who were growing the poppies. 173 00:10:31,423 --> 00:10:34,217 But when you're considering a new business venture, 174 00:10:34,301 --> 00:10:36,679 you need to look before you leap. 175 00:10:41,100 --> 00:10:43,018 Frank travels to Bangkok, Thailand, 176 00:10:43,102 --> 00:10:47,356 to meet with cousin Ike who introduces him to his local supplier. 177 00:10:49,608 --> 00:10:54,071 A man Frank dubs 007 for obvious reasons. 178 00:10:58,867 --> 00:11:03,414 007 is willing to sell Frank over 200 kilos of heroin on the spot 179 00:11:04,206 --> 00:11:08,836 for around a million dollars, one-tenth of what the Mafia would charge. 180 00:11:09,920 --> 00:11:12,131 Frank eagerly agrees, 181 00:11:12,840 --> 00:11:15,884 and finds a helpful service man to bring the haul stateside. 182 00:11:18,887 --> 00:11:21,765 This could be the start of a beautiful relationship. 183 00:11:22,641 --> 00:11:27,104 But Frank needs to make sure 007's operation is up to the challenge. 184 00:11:28,897 --> 00:11:31,191 So he heads into the Thai jungle himself, 185 00:11:31,900 --> 00:11:34,111 hiking for days in the sweltering heat... 186 00:11:36,238 --> 00:11:39,324 until finally he reaches the Promised Land. 187 00:11:46,957 --> 00:11:50,210 Frank is so impressed, he buys more product on the spot. 188 00:11:53,672 --> 00:11:56,258 But the return trip hits a snag. 189 00:11:57,718 --> 00:11:58,844 Bandits. 190 00:12:03,348 --> 00:12:05,350 Frank fights alongside the guides. 191 00:12:10,314 --> 00:12:13,233 When the smoke clears, the bandits are dead. 192 00:12:14,985 --> 00:12:18,030 While Frank's goal of securing a direct heroin supply, 193 00:12:18,530 --> 00:12:20,157 that's alive and well. 194 00:12:24,745 --> 00:12:26,330 I went in. I got the load. 195 00:12:27,539 --> 00:12:31,460 And came back, and the rest is history. 196 00:12:32,044 --> 00:12:35,005 But even if you secure a direct hookup for your product, 197 00:12:35,589 --> 00:12:38,967 you won't become a top boss without mastering sales. 198 00:12:39,635 --> 00:12:43,263 How do you keep your merchandise flying off the shelves? 199 00:12:48,685 --> 00:12:53,982 Anytime your sales volume isn't up to your full market potential, 200 00:12:54,066 --> 00:12:56,527 whatever the reason, you've got a problem. 201 00:12:57,110 --> 00:12:59,988 The playbook solution to this common dilemma? 202 00:13:00,072 --> 00:13:02,074 Become the only game in town. 203 00:13:03,909 --> 00:13:07,620 If you corner the market, you have control over the market. 204 00:13:07,704 --> 00:13:10,749 You can charge whatever the hell you want. 205 00:13:11,375 --> 00:13:13,710 It certainly worked for these guys. 206 00:13:14,837 --> 00:13:18,423 Crime boss Enoch "Nucky" Johnson used his political connections 207 00:13:18,507 --> 00:13:21,844 to control all of Atlantic City's rackets during Prohibition, 208 00:13:22,344 --> 00:13:24,721 making half a million dollars a year, 209 00:13:24,805 --> 00:13:26,431 nine million today, 210 00:13:26,515 --> 00:13:29,476 off of illegal booze, prostitution, and gambling. 211 00:13:30,853 --> 00:13:35,190 Philadelphia mob boss Nicodemo Scarfo cornered the methamphetamine market 212 00:13:35,274 --> 00:13:39,403 by importing and distributing more than 100 gallons of P2P. 213 00:13:39,987 --> 00:13:41,446 Enough of this key ingredient 214 00:13:41,530 --> 00:13:44,032 to make half a ton of the highly addictive drug. 215 00:13:44,908 --> 00:13:47,994 And Cheng Chui Ping, known as Sister Ping, 216 00:13:48,078 --> 00:13:50,872 made $40 million over two decades 217 00:13:50,956 --> 00:13:54,042 by becoming the go-to provider for smuggling migrants 218 00:13:54,126 --> 00:13:56,294 from China to the United States, 219 00:13:56,378 --> 00:13:59,923 earning her the nickname "The Mother of all Snakeheads." 220 00:14:02,843 --> 00:14:04,677 But Frank Lucas was looking to serve 221 00:14:04,761 --> 00:14:08,724 an even larger and faster-growing consumer base. 222 00:14:09,266 --> 00:14:12,727 About 50% of the heroin addicts live in New York City, 223 00:14:12,811 --> 00:14:17,774 and an estimated 80% of the known addicts in New York City live here, in Harlem. 224 00:14:17,858 --> 00:14:19,568 Demand was clearly not a problem, 225 00:14:20,444 --> 00:14:24,197 but how do you make sure customers come to you to get their fix? 226 00:14:24,781 --> 00:14:26,783 It starts with marketing. 227 00:14:27,826 --> 00:14:28,993 Like most organizations, 228 00:14:29,077 --> 00:14:30,954 you have a product, you give it a brand name. 229 00:14:31,038 --> 00:14:35,375 So you want people to look for your brand. You have to make sure your brand is good. 230 00:14:36,460 --> 00:14:39,420 And that its name grabs people's attention. 231 00:14:39,504 --> 00:14:41,465 Here's some of Frank's competition. 232 00:14:41,965 --> 00:14:45,052 Some of these I recognize. You want me to read all of them? 233 00:14:45,844 --> 00:14:46,719 Okay. 234 00:14:46,803 --> 00:14:47,720 Mean Machine. 235 00:14:47,804 --> 00:14:48,847 Could Be Fatal. 236 00:14:48,931 --> 00:14:49,806 Taster's Choice. 237 00:14:49,890 --> 00:14:51,099 Harlem Hijack. Joint. 238 00:14:51,183 --> 00:14:52,350 Fuck Me, Fuck You. 239 00:14:52,434 --> 00:14:53,309 Dick Down. 240 00:14:53,393 --> 00:14:55,395 Oh, Can't Get Enough of That Funky Stuff. 241 00:14:55,479 --> 00:14:56,771 - Payback. - Tragic Magic. 242 00:14:56,855 --> 00:14:58,106 Nice To Be Nice. 243 00:14:58,190 --> 00:14:59,107 Ding Dong. 244 00:14:59,191 --> 00:15:01,109 OD Correct. Official Correct. 245 00:15:01,193 --> 00:15:02,026 Past Due. 246 00:15:02,110 --> 00:15:03,278 Payback Revenge. 247 00:15:03,362 --> 00:15:05,280 Green Tape. Red Tape. Rush. 248 00:15:05,364 --> 00:15:08,325 They didn't lack for imagination. 249 00:15:09,534 --> 00:15:12,787 But clever branding only goes so far. 250 00:15:12,871 --> 00:15:15,791 It's what's in the package that counts. 251 00:15:16,375 --> 00:15:18,668 Frank stamped his "Blue Magic," 252 00:15:18,752 --> 00:15:21,630 and it was the best dope you could buy. 253 00:15:22,923 --> 00:15:24,674 Frank's secret sauce? 254 00:15:24,758 --> 00:15:26,801 Most heroin that dealers sold at the time 255 00:15:26,885 --> 00:15:29,596 had purity levels of just one to three percent. 256 00:15:30,180 --> 00:15:32,682 But Lucas put his customers first, 257 00:15:32,766 --> 00:15:35,811 upping the purity level to five to seven percent. 258 00:15:37,187 --> 00:15:38,229 They got a better high. 259 00:15:38,313 --> 00:15:41,858 I mean, you know, you can buy a Ford or you can buy a Cadillac. 260 00:15:41,942 --> 00:15:43,192 I'd rather buy the Cadillac, 261 00:15:43,276 --> 00:15:45,070 and that's what Frank was selling these people. 262 00:15:45,654 --> 00:15:49,490 And when you're selling a premium and potentially deadly product, 263 00:15:49,574 --> 00:15:51,827 quality control is essential. 264 00:15:53,954 --> 00:15:57,916 Frank made sure his production line was in the hands of a true expert. 265 00:15:58,834 --> 00:16:02,212 The manufacturing genius he called Red Top. 266 00:16:03,505 --> 00:16:06,466 Each time Frank receives a heroin shipment from Asia, 267 00:16:06,550 --> 00:16:08,301 he delivers it to Red Top 268 00:16:08,927 --> 00:16:11,095 who cuts the heroin with additional substances 269 00:16:11,179 --> 00:16:12,431 to get it street ready. 270 00:16:13,807 --> 00:16:16,768 As demand increases, Frank hires more staff 271 00:16:17,394 --> 00:16:22,774 and makes these new employees wear a specific uniform for transparency. 272 00:16:23,650 --> 00:16:25,068 To avoid detection, 273 00:16:25,152 --> 00:16:29,072 Lucas has Red Top frequently shift the operation around the city. 274 00:16:33,869 --> 00:16:38,373 Sometimes he even reportedly pays off cops to do the work inside their homes. 275 00:16:39,583 --> 00:16:43,462 But to truly corner the market, Frank needed something else. 276 00:16:44,755 --> 00:16:46,798 A solid retail strategy. 277 00:16:48,467 --> 00:16:52,637 Studying police behavior, Frank notices a key pattern. 278 00:16:54,598 --> 00:16:57,934 At 4:00 p.m. daily, cops on the early shift leave their posts. 279 00:16:59,936 --> 00:17:02,689 But the night shift doesn't take over until 5:00. 280 00:17:04,775 --> 00:17:07,235 Frank instructs his lieutenants to hit the streets hard 281 00:17:07,319 --> 00:17:09,237 during this golden hour. 282 00:17:11,782 --> 00:17:15,284 While Frank monitors his crew's customer service 283 00:17:15,368 --> 00:17:17,829 by cruising through Harlem undercover. 284 00:17:19,915 --> 00:17:23,043 If anybody slips up, there's hell to pay. 285 00:17:27,464 --> 00:17:29,591 But when your product sells this well, 286 00:17:30,092 --> 00:17:33,637 sometimes all you have to do is sit back and enjoy. 287 00:17:35,639 --> 00:17:40,309 By creating a premium product and mastering distribution, 288 00:17:40,393 --> 00:17:43,730 Frank had Harlem's heroin market in the palm of his hand. 289 00:17:45,190 --> 00:17:48,360 At this point, who wouldn't want to enjoy the fruits of their labors? 290 00:17:49,402 --> 00:17:51,947 But before you start throwing your money around, 291 00:17:52,447 --> 00:17:56,201 pay close attention to the playbook's next lesson. 292 00:18:01,414 --> 00:18:03,791 When you're pushing drugs on the street, 293 00:18:03,875 --> 00:18:06,795 you don't exactly get paid with direct deposit. 294 00:18:07,546 --> 00:18:10,339 Cash money is preferred when you're dealing in illegal activity 295 00:18:10,423 --> 00:18:11,591 because there's no record. 296 00:18:12,300 --> 00:18:15,386 But being flush with cash can create some problems. 297 00:18:15,470 --> 00:18:18,265 They were making so much money in the street, it was crazy. 298 00:18:19,307 --> 00:18:20,892 Guys like Frank Lucas, 299 00:18:20,976 --> 00:18:24,270 they had hundreds of thousands of dollars of twenties and fifties 300 00:18:24,354 --> 00:18:25,980 and tens and fives. 301 00:18:26,064 --> 00:18:30,151 It's bulky to carry. It's difficult to count. 302 00:18:30,235 --> 00:18:31,194 And you know, 303 00:18:31,278 --> 00:18:35,364 the bank will be a little suspicious about why do you have all this cash money 304 00:18:35,448 --> 00:18:37,117 when most people get paid in checks? 305 00:18:37,868 --> 00:18:39,911 Those aren't the only issues. 306 00:18:39,995 --> 00:18:42,371 Ultimately, everybody, including mobsters, 307 00:18:42,455 --> 00:18:44,707 have to give some accounting of their money, 308 00:18:44,791 --> 00:18:48,419 and if you're living in a mansion in Howard Beach, and you've got a Porsche, 309 00:18:48,503 --> 00:18:50,755 and then when it comes time for your income taxes 310 00:18:50,839 --> 00:18:53,716 you claim that you make $12,000 a year as a mailman, 311 00:18:53,800 --> 00:18:55,135 it's not gonna add up. 312 00:18:56,261 --> 00:18:58,680 This is why the crime gods invented... 313 00:19:00,056 --> 00:19:01,349 money laundering. 314 00:19:02,058 --> 00:19:06,021 Ready to turn dirty money into clean cash? 315 00:19:07,939 --> 00:19:11,818 While techniques vary, they mostly follow the same basic steps. 316 00:19:12,652 --> 00:19:15,071 Step one. Placement. 317 00:19:17,199 --> 00:19:18,491 Create a legitimate business 318 00:19:18,575 --> 00:19:21,578 with a bank account where you can park your illicit profits, 319 00:19:22,495 --> 00:19:25,290 like a car wash or a strip club. 320 00:19:25,957 --> 00:19:28,376 Step two. Layering. 321 00:19:29,419 --> 00:19:33,589 Use complex transactions to separate the money from its illegal source. 322 00:19:33,673 --> 00:19:36,092 For example, buy gold. 323 00:19:36,927 --> 00:19:37,761 Cash it in. 324 00:19:38,303 --> 00:19:39,262 Then send that money 325 00:19:39,346 --> 00:19:42,265 from one international bank account to another 326 00:19:42,349 --> 00:19:44,559 to make it even harder to trace. 327 00:19:45,852 --> 00:19:52,275 Or sink the proceeds into assets like luxury cars, jewelry, or real estate. 328 00:19:52,817 --> 00:19:58,114 Then sell them again. Bringing us to step three. Integration. 329 00:19:59,783 --> 00:20:03,453 Invest your freshly-laundered dough into the legitimate financial system 330 00:20:04,079 --> 00:20:06,748 to keep the taxman off your trail. 331 00:20:07,791 --> 00:20:12,462 Voilà! Your dirty drug money is now clean as a whistle. 332 00:20:15,215 --> 00:20:16,132 Sounds easy, 333 00:20:16,800 --> 00:20:19,260 but the tricky thing about money laundering, 334 00:20:19,344 --> 00:20:20,804 you can't do it alone. 335 00:20:22,138 --> 00:20:24,307 In New York, Frank knew everybody, 336 00:20:24,391 --> 00:20:28,060 so he had a nice connection cleaning the money up for him. 337 00:20:28,144 --> 00:20:31,772 He had a connection at Chemical Bank at the executive level. 338 00:20:31,856 --> 00:20:34,526 He would direct the tellers to take care of Frank when he came in. 339 00:20:35,527 --> 00:20:37,820 And take care of him they did. 340 00:20:37,904 --> 00:20:40,531 They would count hundreds of thousands of dollars 341 00:20:40,615 --> 00:20:42,825 in fives, tens, ones, and twenties. 342 00:20:42,909 --> 00:20:46,120 And the bank person he was working with would ask no questions 343 00:20:46,204 --> 00:20:48,957 and just change that money into $100 bills. 344 00:20:51,084 --> 00:20:54,086 Like a true boss, Lucas invested his clean cash 345 00:20:54,170 --> 00:20:56,756 in legitimate tax-generating businesses. 346 00:20:57,841 --> 00:21:01,011 He practically controlled an entire block in Harlem. 347 00:21:01,511 --> 00:21:05,390 He had a club there. He had a couple of stores. 348 00:21:06,057 --> 00:21:09,435 He had office buildings in places like Detroit 349 00:21:09,519 --> 00:21:11,562 and other parts of New York City. 350 00:21:11,646 --> 00:21:13,398 A ranch in North Carolina. 351 00:21:16,401 --> 00:21:19,987 He bought 4,000 acres of land. Three hundred heads of cattle. 352 00:21:20,071 --> 00:21:23,282 He had, like, a $100,000 prize bull down there. 353 00:21:23,366 --> 00:21:25,618 It was a big-ass bull. 354 00:21:28,079 --> 00:21:29,789 This sucker was huge. 355 00:21:31,791 --> 00:21:36,379 Frank's diversified portfolio paved his way into high society. 356 00:21:37,297 --> 00:21:43,928 Frank knew the celebrities of the day. Boxers, Joe Louis. Entertainers. 357 00:21:44,012 --> 00:21:46,389 He was a celebrity of his day 358 00:21:46,473 --> 00:21:51,811 even though he was, you know, doing something very illegal and wrong. 359 00:21:53,146 --> 00:21:54,689 One time I'm sitting in the bar, 360 00:21:54,773 --> 00:21:57,609 he's like, "Boy, you like James Brown?" I'm like, "Yeah." 361 00:21:58,401 --> 00:22:01,404 And then the music started playing, and James Brown came over, 362 00:22:01,488 --> 00:22:05,950 grabbed my hand and tried to get me to dance, and I'm like, "Whoa!" 363 00:22:06,576 --> 00:22:09,662 Thanks to Frank's money laundering expertise, 364 00:22:09,746 --> 00:22:13,124 he and his brothers were able to live it up as Harlem royalty. 365 00:22:14,959 --> 00:22:17,920 Everything's money. This is America. 366 00:22:18,004 --> 00:22:19,422 Everything's money. 367 00:22:19,506 --> 00:22:23,009 But when your core product is high-grade heroin, 368 00:22:23,093 --> 00:22:26,304 the happy days probably won't last forever. 369 00:22:27,389 --> 00:22:31,684 A lot of people started dying, and the government started waking up. 370 00:22:32,560 --> 00:22:38,233 America's Public Enemy Number One in the United States is drug abuse. 371 00:22:39,442 --> 00:22:41,152 At times like these, 372 00:22:41,236 --> 00:22:43,321 how do you keep your business plan on course? 373 00:22:43,405 --> 00:22:47,659 The company has suffered serious damage both to productivity and human relations. 374 00:22:48,576 --> 00:22:51,579 Both must be repaired as quickly and completely as possible. 375 00:22:56,543 --> 00:22:59,254 If you want to build your business to last, 376 00:22:59,754 --> 00:23:03,550 you need a strategy that can adapt to all market conditions. 377 00:23:04,259 --> 00:23:09,638 In 1971, President Nixon coined the term "War on Drugs," 378 00:23:09,722 --> 00:23:12,308 and in New York City, this war was raging, 379 00:23:12,892 --> 00:23:17,563 and so it was critical for New York City Police Department 380 00:23:17,647 --> 00:23:22,986 to show that they could get things done by taking on these guys. 381 00:23:23,653 --> 00:23:25,446 Frank used a multipronged approach 382 00:23:25,530 --> 00:23:26,781 to address this problem. 383 00:23:27,574 --> 00:23:29,742 Starting with a PR campaign. 384 00:23:29,826 --> 00:23:32,578 He thought doing things for the community 385 00:23:32,662 --> 00:23:37,083 would be an effective way of protecting himself and his enterprise. 386 00:23:37,167 --> 00:23:38,542 Loaning money to people. 387 00:23:38,626 --> 00:23:40,544 Not worrying about if you got it paid back. 388 00:23:40,628 --> 00:23:42,463 Taking care of people. 389 00:23:42,547 --> 00:23:46,759 So he kept a community on his side. 390 00:23:47,510 --> 00:23:51,389 He also made sure to take care of an even more important demographic. 391 00:23:53,099 --> 00:23:53,975 Cops. 392 00:23:54,517 --> 00:23:57,854 Frank spent a lot of money paying off police. 393 00:23:58,813 --> 00:24:01,023 Having the police on the take means 394 00:24:01,107 --> 00:24:05,069 being able to walk down the street and not worry about being locked up. 395 00:24:05,153 --> 00:24:10,783 It means knowing that you're gonna have a supply of drugs coming in safely 396 00:24:10,867 --> 00:24:13,620 without being interdicted by the police. 397 00:24:14,996 --> 00:24:17,164 But as many mob bosses discover, 398 00:24:17,248 --> 00:24:21,377 acts of generosity can leave some men in blue wanting more. 399 00:24:23,838 --> 00:24:25,131 By the early '70s, 400 00:24:25,215 --> 00:24:28,801 Frank Lucas has moved his family to a quiet house in the suburbs. 401 00:24:29,302 --> 00:24:34,098 But when you inhabit the criminal life, business has a way of following you home. 402 00:24:36,142 --> 00:24:38,436 Today, Frank is met by an unwanted visitor, 403 00:24:39,229 --> 00:24:43,399 a corrupt NYPD detective he comes to call Babyface. 404 00:24:44,859 --> 00:24:47,529 He orders Frank to pay him 10,000 cash a month. 405 00:24:49,030 --> 00:24:51,699 Or he'll shut down Frank's operation for good. 406 00:24:56,496 --> 00:24:58,706 Frank doesn't see any real options. 407 00:24:59,874 --> 00:25:01,000 So he pays up. 408 00:25:03,378 --> 00:25:06,756 But while Frank scrambles to keep Babyface off his back, 409 00:25:07,257 --> 00:25:12,011 an even greater threat is amassing against him from the DEA. 410 00:25:13,513 --> 00:25:17,850 Agents have been working around the clock to gather intel on Frank's operation. 411 00:25:19,227 --> 00:25:21,563 And when a mob informant steps forward... 412 00:25:23,982 --> 00:25:25,567 ...they hit hard. 413 00:25:28,528 --> 00:25:29,820 I can tell you 414 00:25:29,904 --> 00:25:32,740 when the agents and the police officers came to arrest him, 415 00:25:32,824 --> 00:25:37,703 his wife threw several gym bags out of the window. 416 00:25:37,787 --> 00:25:42,541 And there was over $500,000 in cash, small bills. 417 00:25:42,625 --> 00:25:45,127 And this was money that he was collecting 418 00:25:45,211 --> 00:25:48,131 to go to Thailand to buy 100 kilos of heroin. 419 00:25:51,134 --> 00:25:53,720 Sadly, he'd never make that trip. 420 00:25:56,681 --> 00:26:00,602 Frank goes to trial on both federal and state drug trafficking charges. 421 00:26:01,102 --> 00:26:04,981 He's found guilty and sentenced to 70 years in prison. 422 00:26:06,149 --> 00:26:10,903 But then Harlem's top drug boss makes one last transaction. 423 00:26:12,238 --> 00:26:15,783 Frank joined America's team and made a business decision 424 00:26:16,367 --> 00:26:18,577 to cooperate to reduce that jail time. 425 00:26:18,661 --> 00:26:22,122 As a businessperson looking out for himself, 426 00:26:22,206 --> 00:26:24,792 he made the right decision for himself. 427 00:26:26,002 --> 00:26:28,713 Even if it meant turning on his own brother. 428 00:26:30,256 --> 00:26:31,382 You never tell. 429 00:26:31,966 --> 00:26:32,884 And he flipped! 430 00:26:33,885 --> 00:26:37,763 That type of betrayal is... it's hard to deal with sometimes. 431 00:26:37,847 --> 00:26:39,766 It is. You know, somebody else, 432 00:26:40,266 --> 00:26:44,103 you can deal with a little better, but your brother, your own family members? 433 00:26:45,104 --> 00:26:46,356 Cuts you to the core. 434 00:26:47,732 --> 00:26:49,692 Still hurts to today. Still hurts. 435 00:26:50,276 --> 00:26:52,945 What can I say? It's just business. 436 00:26:54,489 --> 00:26:58,242 Frank Lucas's profit-maximizing genius earned him millions, 437 00:26:58,326 --> 00:27:01,454 but his time on top lasted just seven years. 438 00:27:02,747 --> 00:27:06,458 If you want your flame to burn both bright and long, 439 00:27:06,542 --> 00:27:09,003 you need to dig deeper into the playbook 440 00:27:09,087 --> 00:27:11,464 and follow our next criminal titan, 441 00:27:12,215 --> 00:27:16,969 Sicilian boss of bosses, Salvatore "The Beast" Riina. 442 00:27:17,887 --> 00:27:21,641 The secret to his legendary run of underworld domination, 443 00:27:22,975 --> 00:27:25,353 total disregard for human life. 444 00:27:26,145 --> 00:27:29,399 Are you ready to unleash the beast inside of you?