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The crime-organization founders, having originated from Warsaw , legally registered as the Varsovia Jewish Mutual Aid Society , which facilitated easy operations. The Zwi Migdal organization operated from the s to After the First World War , it had four hundred members in Argentina. Its annual turnover was fifty million dollars at the turn of the century. The Zwi Migdal Organization reached its peak in the s: ruffians, or pimps , controlled 2, brothels with 4, women in Argentina alone.
The organization lured girls and young women from Europe in several ways. For instance, a well-mannered and elegant-looking man would appear in a poor Jewish village in Poland or Russia. Fearful of pogroms and often in desperate economic circumstances, the parents would send their daughters away with these men, hoping to give them a fresh start. Another popular ruse was to find pretty girls and marry them, usually in a ceremony known as a "shtille chupah" Yiddish expression meaning a quick wedding ceremony.
Their period of training as sex slaves often started on the ship. Some of them were married off to local men so that they could obtain entry visas. Prostitutes who failed to satisfy their clients were beaten, fined or sent to work in provincial houses. Every business transaction was logged. The rufianes held a "meat market" in which newly arrived girls were paraded naked in front of traders in places such as Hotel Palestina and Cafe Parisienne. These activities went on undisturbed because the brothels were frequented by government officials, judges and journalists.
City officials, politicians and police officers were bribed. The pimps had powerful connections everywhere. The largest brothels in Buenos Aires housed as many as 60 to 80 sex slaves.
The organization had arms in several countries, and was a controversial presence in South America 's Jewish community. It was a supporter of Yiddish theatre in Brazil , but was attacked by Jews in Rio de Janeiro for presenting Torah scrolls. A great number of Jews who had come to Brazil did so as families , and viewed prostitution as immoral and "impure" influences. Zwi Migdal's attempt to relocate to Rio, after events in Buenos Aires discussed below , caused an increased battle against the group among Brazilian Jews.