One of the foremost experts on Japanese organized crime is Jake Adelstein, who grew up on a farm in Missouri, worked as the only American on the crime beat for Japan’s largest newspaper, and currently lives in central Tokyo under police protection. Japanese police protection means that the cops make daily visits to Adelstein’s home, where they leave yellow notes that say, “There was nothing out of the ordinary.” The notes feature the Tokyo police mascot, Pipo-kun, a smiling cartoon figure with big mouse ears and an antenna jutting out of its forehead. Some people in town have trouble taking Adelstein seriously. They dismiss him as a crank, a paranoid foreigner who talks obsessively about death threats from the gangsters known as yakuza. Others react with suspicion; a number of people in Japan claim that his journalism is a front for C.I.A. work. Adelstein does little to dismiss such rumors, apart from maintaining an image so flamboyant that it would shame any actual agency man. He’s in his early forties, and he wears a trenchcoat and a porkpie hat, and he chain-smokes clove cigarettes from Indonesia. For a while, he dyed his hair bright red, claiming that this disguise would foil would-be assassins. He employs a bodyguard who doubles as a chauffeur, an ex-yakuza who cut off his pinkie finger years ago as a gesture of apology to a gang superior. Adelstein says he needs a car and a nine-fingered driver in order to avoid the subway, where a hit man might shove him in front of a train.
Japan is not a dangerous country. Each year, approximately one murder is committed for every two hundred thousand people. This is among the lowest rates in the world, on a par with Iceland and Switzerland; the odds of being murdered in the United States are ten times higher. In Japan, it’s a crime to own a gun, another crime to own a bullet, and a third crime to pull the trigger: three charges before you even think about a target. Yakuza are notoriously bad shots, because practice is hard to come by, but somehow they have gained enormous influence. The police estimate that there are nearly eighty thousand members of yakuza organizations, whereas in America the Mafia had only five thousand in its heyday. The economic collapse of the nineteen-nineties is sometimes called “the yakuza recession,” because organized crime played such a significant role.
“I can’t think of a similar major civilized country where you have this kind of criminal influence,” an American lawyer who handles risk assessment on behalf of a major financial firm told me recently, in Tokyo. He has a background in intelligence, and extensive experience reviewing potential investments to make sure they aren’t connected to organized crime. “Every month, we turn away about a dozen companies that want to do business with us, because they have ties to the yakuza,” he said. He told me that during the crash of 2008 Lehman Brothers lost three hundred and fifty million dollars in bad loans to yakuza front companies, while Citibank lost more than seven hundred million.
The lawyer didn’t want me to use his name or identify his firm. He was familiar with Adelstein’s work, and he noted that Adelstein took a completely different approach. “Jake has got a high profile,” he said. “That’s his style.” He laughed about the clove cigarettes and the porkpie hat, but then he said, “If I were to learn that he was murdered this evening, it wouldn’t surprise me.”
Adelstein and I both grew up in Columbia, Missouri, and although I met him only a few times, he was the kind of kid that you don’t forget. Back then, his name was Josh, and he was tall and thin, with a spindly frame. He was so cross-eyed that he had to have corrective surgery. Even after the procedure, his expression remained slightly off-kilter, and you could never tell exactly what he was looking at. Years later, he was given a diagnosis of Marfan syndrome, a rare disorder of connective tissue that often causes serious problems for the eyes, the heart, and other major organs. But as a boy he simply seemed odd. His vision and coördination were so poor that he didn’t get a driver’s license, an essential possession for any high-school male in mid-Missouri, and he had to have classmates chauffeur him around town. He loved theatre, which also qualified as a rare disorder in a sports-mad school. The jocks teased and bullied him, until a teacher suggested that he take up martial arts. Karate led to a freshman-year course in Japanese at the University of Missouri, which went well until Josh fell down an elevator shaft while working at a local bookstore. Even this was a sort of distinction—there aren’t all that many elevators in Columbia, Missouri. Josh spent a week in the hospital with a bad head injury, and although he recovered, he couldn’t remember any Japanese. But the head trauma also erased many memories of high school, so it may have been a good trade. He could always learn the Japanese again.
He spent his sophomore year in Tokyo and never came back. He transferred to a Japanese university, and as a student he lived in a Zen Buddhist temple for three years. Somewhere along the way, he abandoned plans to become an actor, and he changed his name to Jake, for reasons that seemed to vary depending on when you asked him about it. He learned Japanese so quickly that within five years of studying the language he had passed the three-part exam to become a police reporter for Tokyo’s Yomiuri Shimbun. Adelstein is believed to be the first American ever to make it through the newspaper’s rigorous exam system.
The Yomiuri is the largest daily in the world. It prints two editions every day, and the total circulation is thirteen and a half million, more than ten times higher than that of the Times. Most stories are covered by teams of journalists. At the Yomiuri, rookie police reporters are assigned to cover high-school baseball, because the sport is supposed to be good training for crime journalists—the teamwork, the statistics, the attention to detail. Adelstein told me that he spent his training period longing for a major crime to be committed. “In the middle of the high-school baseball season, we were saved by the murder of this really beautiful girl who was killed and her body was found in a barrel,” he said. “It’s terrible to say, but I was happy to be doing something different.”
In 2004, when I was living in China, I made a trip to Tokyo and contacted Adelstein. One evening, he gave me a tour of the red-light district in Kabukicho, telling outlandish stories about yakuza pimps. As part of his job, the Yomiuri provided a car and a full-time driver. Adelstein sat in back, dressed in a suit and tie; periodically, he instructed the chauffeur to stop so he could meet a contact at a pachinko parlor or a dodgy massage joint. The last time I had seen him, a high-school buddy was driving him around mid-Missouri in a station wagon, because his vision was so bad, but now he had transformed back-seat status into a mark of prestige. A Missouri friend named Willoughby Johnson once said that Adelstein was still essentially an actor. “There’s a degree to which anybody who becomes a character does so through self-fashioning,” Johnson told me recently. He had been Adelstein’s most faithful chauffeur in high school, and he still called him Josh. “I think of Josh in this way,” he continued. “He decided that he wanted to become this international man of mystery.”
In Japan, yakuza sometimes speak of themselves in terms of acting. “It’s an atmosphere, a presence,” an ex-gang member once told me. As a young criminal, he had been given valuable advice by his oyabun, the “foster parent” within his gang. “My oyabun told me that when you’re a yakuza people are always watching you,” he said. “Think of yourself as being onstage all the time. It’s a performance. If you’re bad at playing the role of a yakuza, then you’re a bad yakuza.”
The name refers to an unlucky hand at cards—yakuza means “eight-nine-three”—and bluffing has always been part of the image. Many gangsters are Korean-Japanese or members of other minority groups that traditionally have been scorned. These outsiders proved to be nimble after Japan’s defeat in the Second World War, an era that is explored in “Tokyo Underworld,” by Robert Whiting. During this period, organized-crime groups established black markets where citizens could acquire necessities, and they were skilled at dealing with the occupying Americans. As Japan rebuilt, the yakuza got involved in real estate and in public-works projects.
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For the most part, the yakuza eschewed violence against civilians, because the image of criminality was effective enough in an orderly society. Gangsters decorated their backs and arms with elaborate tattoos, and they permed their hair in tight curls that stood out among the Japanese. If a yakuza displeased a superior, he chopped off his own pinkie finger as a sign of apology. Gang members excelled at loan-sharking, extortion, and blackmail, and they found creative ways to terrorize banks. A few months ago, I accompanied Adelstein on a visit to the home of an aging mid-level gang member, who, along with a former colleague, reminisced about extorting banks in the nineteen-eighties.
“Sometimes we’d send three guys with cats, and they would twirl the cats around by the tail in front of the bank,” one said, with Adelstein translating. “They’d do that until the bank finally gave them a loan. Or we’d have a hundred yakuza line up outside a bank. Each would go in and open an account for one yen, which was the lowest amount allowed. It would take all day, until finally the bank would agree to give some loans, to get rid of us.” He said they wouldn’t pay the loans back. “But we’d give the bank some protection, as well as help with collecting other bad loans,” he said. “So it wasn’t a terrible deal for them.”
Both men were heavyset, with broad noses that looked to have been broken in the past. Their eyes were incredibly expressive—they had high arched brows, as fine as manga brushstrokes, that fluttered whenever they got excited. One had had his shoulders and arms tattooed with chrysanthemums, a patriotic symbol of imperial Japan. The men believed that true yakuza do honorable work: they go after deadbeats who don’t repay loans, and they allow people to solve problems without wasting money on lawyers. Yakuza groups also engage in charity, especially after earthquakes or other disasters.
Many yakuza became rich during the bubble economy of the eighties and nineties, and they developed extensive corporate structures. (There’s never been a law that bans the gangs, which are fully registered.) Nowadays, yakuza run hedge funds. They speculate in real estate. The Inagawa-kai, one of the three biggest gangs, keeps its main office across the street from the Ritz-Carlton Hotel in midtown Tokyo. At least one Japanese Prime Minister has been documented socializing with yakuza, and politicians have the kind of contact with criminal groups that would destroy a career elsewhere. In the mid-nineties, Shizuka Kamei, who was the minister of exports, admitted that he had accepted substantial donations from a yakuza front company, though he denied being aware of the criminal links. This did so little damage to his reputation that he eventually became minister of the agency that regulates Japan’s finance industry.
As a foreigner, Adelstein moves easily between the yakuza and the police, playing the flamboyant outsider with both. Yet he follows strict rules: Information that comes from cops can be taken to other law-enforcement officials, but it cannot be passed to yakuza. In contrast, if a yakuza tells Adelstein something, the goal is usually to expose a rival group, so this information can be passed on to the cops. Adelstein says that the key to his work is the Japanese concept of giri, or reciprocity. His typical routine involves exchanging small favors with contacts, collecting bits of information that can be leveraged elsewhere.
One afternoon last spring, I accompanied Adelstein to a Mexican restaurant in the neighborhood of Roppongi, to meet with a gangster who had a favor to ask. He was around forty years old—I’ll call him Miyamoto—and he was college-educated, with perfect English. During his pre-yakuza days, he had worked for a public-relations firm in Tokyo. Back then, one of the agency’s clients was an American auto manufacturer that regularly sent high-level management to Japan. In the evenings, it was Miyamoto’s task to escort the gaijin to the massage parlors known as “soapland,” where customers can enjoy a bath, a massage, and sex. Eventually, some yakuza extorted the public-relations firm, threatening to go to the tabloids with stories about American auto execs at soapland. Miyamoto handled the payoff, and then the next shakedown, and soon he became the firm’s de-facto yakuza liaison. The gangsters liked what they saw and recruited him away from the agency.
Since then, Miyamoto had become a full gang member, although his oyabun had told him to avoid tattoos, because they would be a liability in the corporate world. He had kept all his fingers for the same reason. Nowadays, he helped his gang manage three hedge funds. At the restaurant, he handed Adelstein a new business card. “Be really careful with this card, because it’s my legitimate business,” he said, in English. “If this gets out, we won’t get listed on the stock market.”
The favor he needed was personal. His wife had left him after he became a yakuza, and he hadn’t seen his child for years. The recent tsunami, which had occurred less than two months earlier, made him want to get back in touch. He asked Adelstein to contact his estranged wife and tell her that he wasn’t a yakuza anymore.
“I can’t lie to her,” Adelstein said. “I can say you’re doing legitimate business. But I can’t say you’re not a yakuza.”
Miyamoto agreed, and then he talked about other corporate gangsters, mentioning a well-known gang. “They now have a guy who worked for Deutsche Bank,” he said.
Adelstein remarked that Miyamoto had posted his gang symbol online, and he warned him to be careful. “You need to back off on Twitter.”
“Man, I’ve got a thousand followers!”
“You shouldn’t say that stuff on Twitter about your bitches giving you money.”
“The police won’t read it. People think it’s fake, anyway.”
“Well, there’s a new law going on the books in October, and if you’re talking about taking protection money you could get arrested,” Adelstein said.
There was never any mention of what Miyamoto might do in exchange for Adelstein’s contacting his wife. But after a while the yakuza leaned forward and spoke in a low voice about the Tokyo Electric Power Company, or TEPCO, which owns and manages the Fukushima nuclear reactors that had been damaged by the tsunami. There had been accusations of mismanagement, and Miyamoto suggested that Adelstein research potential links between TEPCO and the Matsuba-kai, a criminal organization. “You know what’s really interesting?” he said. “The Matsuba-kai guys play golf with the waste-disposal guys for TEPCO. That’s what you need to look into.” He also named a yakuza from another gang who had supposedly made a million-dollar profit from supplying workers and construction materials to the reactors.
During the following weeks, Adelstein took pieces of information about the reactors to various contacts. Over the summer, he published a number of articles in The Atlantic online, the London Independent, and some Japanese publications, exposing criminal links at TEPCO. He described how yakuza front companies had supplied equipment and contract workers, and he quoted an engineer who had noticed something strange when he saw some cleanup crews change clothes: beneath the white hazmat suits, their bodies were covered with tattoos.
When Adelstein worked for the Yomiuri, he says there was a tacit understanding that investigative reporting on the yakuza shouldn’t go too far. Media companies, like many big Japanese corporations, often had links to criminal groups, and even the police tried not to be too combative. For one thing, tools were limited: Japanese authorities can’t engage in plea bargaining or witness relocation, and wiretapping is almost never allowed. In the past, yakuza were rarely violent, and if they did attack somebody it was usually another gang member, which wasn’t considered a problem. One officer in the organized-crime-prevention unit told me that, in the nineteen-eighties, if a yakuza killed a rival he often turned himself in. “The guilty person would appear the next day at the police station with the gun and say, ‘I did it,’ ” the cop said. “He’d be in jail for only two or three years. It wasn’t like killing a real person.”
Even the police officer believed that yakuza serve some useful functions. “Japanese society doesn’t really have any place for juvenile delinquents,” he said. “That’s one role the yakuza play. Traditionally, it’s a place where people can send juvenile delinquents.” The fact that these delinquents are subsequently raised to become yakuza didn’t seem to bother the cop too much. When I asked if he had ever fired his gun, he said that he hadn’t even used his nightstick. His business card identified his specialty as “Violent Crime Investigation,” and it featured the smiling Pipo-kun with his antenna, which symbolized how police can sense things happening everywhere in society. The officer explained that until recently the cops would notify yakuza before making a bust, out of respect, which allowed gangsters to hide any particularly damning evidence. “Now we don’t do that anymore,” he said.
He lamented a loss of civility among a new generation of yakuza. “It used to be that they didn’t do theft or robbery,” he said. “It was considered shameful.” He blamed greed: when the bubble economy collapsed, in the nineties, many wealthy yakuza had trouble adjusting. After years of adopting the façade of dangerous sociopaths, some began to live up to the image. The officer identified a gangster named Tadamasa Goto as an example of the new breed. “He’s much more ruthless than yakuza were in the past,” he said. “He’ll go after civilians. Unfortunately, more yakuza have become like that.”
Six days before our conversation, one of Goto’s former underlings had been shot dead in Thailand. For years, he had been on the run, a suspect in the murder of a man who had stood in Goto’s way in a real-estate deal. The cop said that Goto was cleaning up potential witnesses, and he reminded me that the gangster had also issued death threats against Adelstein. The most recent had been made last year, when Goto published his autobiography. “We suspect Goto of being involved in the killing of seventeen people,” the cop said.
The criminal autobiography is a perverse genre anywhere, but this is especially true in Japan, where Goto’s book appeared with the title “Habakarinagara,” a polite phrase that means “with all due respect.” At the time of publication, the author announced that all royalties would be dedicated to a charity for the disabled in Cambodia and to a Buddhist temple in Burma. The book begins in a David Copperfield vein: As a boy, Goto lacked shoes, and he ate barley instead of rice. (“Those years were extremely tough, with an alcoholic bum for a father.”) He describes the rise from juvenile delinquency to the yakuza with a nice baseball metaphor. (“I felt as though we had been playing neighborhood baseball in a weedy field then suddenly got scouted to play in the major leagues.”) Crimes are mentioned breezily, with few details, although even the offhand ones tend to be memorable. (“My third brother, Yasutaka, was one of the guys who threw leaflets and excrement around Suruga Bank, and he went to prison for that.”) Goto emphasizes his sense of honor; if nothing else, he has the courage of his convictions. (“I couldn’t go apologize and beg forgiveness. I am not cut out that way. I have pride. So instead I chopped off one of my fingers and brought it to Kawauchi.”)
For years, this auto-amputee was one of the largest shareholders of Japan Airlines. According to police estimates, Goto’s assets are worth about a billion dollars, and he controlled his own faction within the Yamaguchi-gumi, the top criminal organization in the country. He is notorious for an attack on Juzo Itami, one of Japan’s greatest filmmakers. In May of 1992, Itami released “Minbo, or the Gentle Art of Japanese Extortion,” a movie that portrayed yakuza as fakes who don’t live up to their tough-guy image. Days later, five members of Goto’s organization attacked the filmmaker in front of his home, slashing his face and neck with knives.
Afterward, Itami became even more outspoken. Five years later, he apparently committed suicide, leaping from the roof of his office building. He left a note explaining that he was distraught over an alleged love affair. But Adelstein, citing an unnamed yakuza source, subsequently reported that the filmmaker had been forced to sign the note and jump, and the police have treated the case as a possible homicide. The American lawyer who researches organized crime told me that some yakuza groups specialize in murders that look like suicide. “I used to think they committed suicide out of shame, because the Japanese do that, culturally,” he said. “But nowadays when I hear that somebody killed himself I often doubt that’s what happened.”