Criminals demanding $150,000 ‘security tax’ from businesses

BUSINESSES are being plagued by criminals demanding exorbitant sums of money, labelled as a “security tax”.

Neal Boodoosingh, a director of the Greater Tunapuna Chamber of Industry and Commerce (GTCIC) and president of the Tunapuna Police Station Community Council, said these demands can escalate to as much as a $150,000 lump sum payment.

And as extortion cases rise, Police Commissioner Erla Christopher earlier this month announced the creation of an Extortion Unit, to be led by ACP Richard Smith.

“We know there is a challenge and fear in reporting, but know that if you call Mr Smith, you will have that direct communication and confidentiality in your reports. We have identified persons in each division so there will be a coordinated approach by Mr Smith,” explained Christopher.

Speaking to Express Business, Boodoosingh said Smith had effectively addressed the issue even before his official appointment, and there have already been noticeable improvements in Tunapuna.

A 2023 report from the International Labour Organisation revealed that 11% of businesses in Trinidad and Tobago listed corruption, crime, extortion and theft as dangers to their operation. Almost 4% of respondents identified crime, extortion and theft as the most significant business hazards.

During the September 6 press conference, Smith noted that reports of extortion have surged by 912% between 2022 and last year.

Smith said in 2022, there were 16 reports of extortion, seven of which were solved, while in 2023, there were 162 reports.

Smith said of these, 134 charges were laid against a “husband-and-wife team” for extorting one person.

However, Smith noted that this year there have been 19 reports of extortion.

He said as of September 2, two individuals had been charged, bringing the total number of resolved extortion cases to nine, which accounts for a detection rate of 47%.

Despite Smith’s announced successes, Boodoosingh pointed out that there is still a significant issue with business owners not reporting extortion cases.

“Now that it is in the open and in the public view, a lot of people who had instances and were threatened are now coming forward and meeting with senior officers of the stations and from the Extortion Unit. So far, we have had about 20 reports,” Boodoosingh said.

He added that in Tunapuna the most targeted areas are Pasea and the market.

“We have information that some businesses did pay but are realising that paying these people is like taking a mortgage on their business and it’s something that you have to service every week, day or month. So, they are now coming forward because the economy is down and people don’t really have the money to pay and they shouldn’t be paying it to begin with,” Boodoosingh said.

Boodoosingh added that the Eagle Eye project launched by the GTCIC in Tunapuna has been growing and has surpassed the six-month threshold in terms of the area having one of the highest detection rates in the country.

“Because we have Tunapuna covered, it is now a hard target but the elements are going in neighbouring areas, so one of the areas which is Pasea South, we have had a lot of extortion and home invasion activities. We are now rolling out from (today) the Eagle Eye project in that entire neighbourhood and business district,” he said.

He also urged the Government to support the financing of the Eagle Eye project in areas that cannot afford it, despite it being a private sector initiative. He proposed that the Government consider partnerships to extend help to underprivileged regions.

Need to build trust

Chaguanas Chamber of Industry and Commerce president Baldath Maharaj expressed support for the new TTPS unit to combat extortion, and said this is crucial, particularly when it comes to building trust with victims who may have been reluctant to engage with law enforcement in the past.

“By providing a specialised unit, a critical gap in the current system—encouraging victims to come forward with the confidence that their cases will be taken seriously and handled effectively. Victims speaking to me, do so because of the perceived fear of going directly to the police,” Maharaj said.

In June, at Maharaj’s re-election, he revealed that about 10% of Chaguanas business owners left their physical locations and turned to remote operations.

In response to the Express Business questions, he said, “We do not have reports of larger businesses being affected. It’s alarming to see that even small contractors are taxed and that the payment demands are pegged to ATM (automated teller machine) withdrawal limits ($5,000) indicating how calculated and organised these criminals are. Some criminals demand more protection money. For small businesses that are already operating on thin margins, these extortion payments can be devastating, especially if it forces them to scale back operations just to stay out of sight.”

Maharaj suggested that tracking the unit’s success through measurable tools will also be key in reducing extortion instances in the business community. He said some ideas for this include tracking the number of reports made, cases successfully investigated, and the decrease in extortion-related complaints over time.

“We suggest that policing of these criminals should be increased with regular raids, stop and search etc. Law enforcement needs to adopt a more assertive stance, monitoring and targeting criminal elements aggressively so that criminals feel the heat rather than businesses. Combining this with stiffer penalties for convicted extortionists through legislative changes could help deter future criminal activity,” Maharaj said.

While the multifaceted approach may improve the extortion issue in Chaguanas, Maharaj said that “tackling it is not enough” and expressed a preference for complete eradication of extortion.

President of the Fyzabad Chamber of Commerce, Angie Jairam, acknowledged that while extortion is a significant concern, there have been no reported cases from her members.

“Even though we have not had any reports from our members about extortion, it’s a trend that we condemn, and the penalties need to reflect the seriousness of the crime. As per the Extortion Unit, we would like some insight into how this unit conducts the activity to curb the acts of extortion, what the manpower of this unit is, the charges and how will they protect business owners after the arrest and/or charges,” Jairam said.

She added that the unit should also invite the leaders of the various business chambers to meet with them and hear their concerns.

Call for harsher penalties

for extortion

President of the Greater San Fernando Chamber of Industry and Commerce Kiran Singh said he has also been fortunate enough not to receive any reports of extortion but still shares the concerns of his colleagues.

“Extortion is becoming a serious threat to business operations in our country. It appears that some areas in central and the east-west corridor have higher incidents. The implementation of a unit dedicated to this type of crime will aid the TTPS in its fight against extortion. It will also bring a level of comfort to business owners and if effective, will ensure business survivability,” Singh said.

Singh added that it is very disheartening to hear of people closing their businesses, going into hiding or even migrating.

“To reduce extortion, the chamber suggests; examining the legal framework for extortion-related crimes and making penalties as harsh as possible; adequately resource the unit and implement a system to anonymously report all crimes of extortion,” he said.

According to Section 31 of the Larceny Act, anyone guilty of “demanding money etc with menace” is liable to imprisonment for up to 15 years.

Additionally, Section 33 stipulates that anyone who threatens to publish libellous information with the intent to extort is liable to two years imprisonment.

President of the Couva/Point Lisas Chamber of Commerce, Deoraj Mahase, believes a dedicated team will positively impact the business community, particularly if it leverages available technology, the Cybercrime Unit, and its officers.

Mahase suggested that utilizing technology for phone and digital transactions should be considered, as it can provide valuable traceability.