CHICAGO GANGS MOVE TO SUBURBS, STUDY FINDS

CHICAGO -- Faced with the demolition of public housing projects used
as hideouts and a crackdown by city police, Chicago street gangs are
increasingly setting up shop in the suburbs, according to a report by
the Chicago Crime Commission.

The 272-page report, released Monday, also found that Chicago area
gangs were engaging in more white-collar crime and increasingly
working with instead of against each other to make more money.

"It's a huge, significant problem which I would classify as our enemy
within," said James W. Wagner, president of the commission, a
nonprofit public safety organization that conducted the study as a
training tool for law enforcement agencies and the public.

Mr. Wagner said he thought the report, titled "The Gang Book," was
the first in the nation to comprehensively survey police departments
about gang activity.

The report profiles 56 of the more than 70 gangs that have a total of
more than 70,000 members in the Chicago area. It includes photographs
of gang leaders, drawings of gang graffiti, maps of gang territory
and a glossary of gang terms with more than 300 words and expressions.

Gang activity in the suburbs has been rising in some areas, the
report found. Out of 81 suburban police departments that submitted
responses for the report, 31 reported an increase in gang crime in
the past three years.

The commission attributes this shift to the demise of inner city
housing projects where gangs once operated, the gentrification of
neighborhoods where gang activity was common and a crackdown on gangs
by the Chicago police.

Suburban police departments frequently reported a lack of resources
as being a main obstacle to tackling gang activity. "Most of the
local departments are becoming frustrated," Mr. Wagner said.

But one suburban police chief questioned that claim and said he and
his community had received a lot of support from local government,
the state's attorney and a congressman to fight gangs.

"For my officers, I'm insulted because they are working their tails
off and doing everything humanly possible and have been very, very
successful," said William Biang, chief of police in Waukegan, a
northern suburb. "These are the kinds of things that we work on
tirelessly, and we get complete support from the community."

Mr. Biang also said he had seen a decrease in gang activity and crime
in the past 10 years and said the report published inaccurate
information about the number of gang members in his city. He said
Waukegan had 1,488 known gang members, not 3,000 as the report listed.

Jeannette P. Tamayo, general counsel for the commission, said the
Waukegan Police Department's gang unit reported the number in the
survey submitted last year.

The report also found that while gangs still made most of their money
from drugs, they were increasingly delving into money laundering,
mortgage and real estate fraud, and identity theft.

For example, two gangs were involved in $70 million and $80 million
mortgage fraud cases, and the Chicago police reported that several
known gang members conducted fraud or money laundering activities
from their own companies.

Gangs are also willing to work with each other for individual
financial gain, the report found.

"In the past, loyalties amongst the members was stronger," Mr. Wagner
said. "That loyalty no longer exists, and it's all about making money."