Twice Burned

The level of sophistication the Wo Hop To brought to San Francisco surpassed anything local law enforcement officials had ever seen before. This was no mere street gang; it was an organization on par with the Italian Mafia's La Cosa Nostra. Now that Chong is in the hands of the United States government, the inner workings of this organization may finally come to light, and the public will get its first look at the man who reportedly tried to establish headquarters for a global crime ring in San Francisco, only to trip over his own ambitions.

Though officially illegal, triads maintain a stronger -- and more public -- presence in Hong Kong today than any form of organized crime in the United States. The criminal fraternities began as patriotic organizations in mainland China centuries ago, formed to overthrow the Ching Dynasty and restore the Ming Dynasty to power. The British coined the term "triad," based on the triangular symbol worn by members, representing the three essential elements of heaven, Earth, and mankind.

But over time, these organizations migrated to Hong Kong, where they degenerated into secret societies, wielding tremendous influence over the country's public life. The triads control the standard gambling and extortion rackets, and have branched out considerably from there. They are part of the fabric of the country's booming film industry. They control segments of the country's public transportation system by demanding fees from the private bus lines for permission to drive down city streets. They also have a hold on Hong Kong's tight housing market, not to mention the city's currency exchanges, courtrooms, and, of course, politicians.

Hong Kong law enforcement officials estimate there are 15 triads in Hong Kong, the largest numbering 35,000 people. With approximately 2,000 members, the Wo Hop To, translated as "Harmoniously United Association," is not anywhere close to the largest triad in Hong Kong, but it carries a lot of prestige. Based in the Wan Chai neighborhood, Hong Kong's nightclub district made famous in the novel The World of Suzi Wong, the Wo Hop To manages large-scale gambling operations, as well as a thriving prostitution market.

In anticipation of the impending Communist takeover of Hong Kong in July 1997, triads such as the Wo Hop To began expanding their networks worldwide in the late 1980s, starting in countries with big Chinese immigrant communities, such as Australia, the Netherlands, and Canada. But the crown jewel was the United States, and sometime around 1989, the Wo Hop To sent Peter Chong to San Francisco to gain a foothold for the organization.

Chong had worked directly under the Wo Hop To's suspected top official, or Dragon Head, for years, according to statements made by federal law enforcement officials. He had been around the business all his life, and learned over time that it was best to keep a low profile.

A thin man now nearing 60, with a long face and closely cropped gray hair, Chong knew how to blend in with a crowd. Those who knew him describe him as soft-spoken and low-key, a leader whose talent lay in his ability to bring people together. Disguising his wealth, he dressed comfortably in clothes off the rack, often wearing slacks and a collared shirt without a tie.

"He has soft hands," says a jewelry store owner in Chinatown. "He looks like the owner of a restaurant, or a video store."

Chong's inconspicuous demeanor, local investigators say, hid a seasoned veteran from the Hong Kong criminal underworld with an acute business sense. And as he quietly landed in the Bay Area in 1989, he was likely aware that San Francisco was a city of lightweights, the ideal market for a hostile takeover.

The modern history of Asian organized crime in San Francisco officially began on Sept. 4, 1977, when three young men entered the Golden Dragon restaurant on Washington Street and sprayed the room with bullets, killing five innocent people and severely wounding 11 others. The intended targets of the fusillade escaped without a scratch.

The Golden Dragon Massacre was the worst mass slaying in the city's history at the time. It effectively changed the relationship between the people of Chinatown and the San Francisco Police Department, which had been marked by mutual hostility up to that point. Police had never attempted to understand the neighborhood's culture. Chinatown denizens distrusted the police and kept their mouths shut whenever there was trouble.

"This is a tragedy we're constantly faced with," Police Chief Charles Gain told reporters after the shooting. "Chinese persons will not talk [to police]." Gain accused Chinese-American citizens of an "absolute abdication of responsibility," and blamed their reticence on a "subculture of fear" in Chinatown.

The Golden Dragon incident was a wake-up call, prompting police to form a gang task force to make inroads in the community. That meant cops going into the neighborhood to build relationships not only with merchants and residents, but with the people they were arresting. The Police Department began gathering intelligence in Chinatown, and slowly, over time, nurtured at least a small amount of trust.