The Hogosha are not a criminal group in Kusari. They are a society of nationalists, looking out for the best interests of Kusari (in their opinion). They are firmly entrenched in Kusari society and are a fact of life. They are very influential, and have members in the highest ranks of every Kusari organization (Yes, even Kishiro).
And yes, there are those wayward low-level Hogosha that flaunt their name and go around defying the laws and whatnot. That's when the police arrest them and toss 'em in a jail cell for a couple months to think about what they've done. This information all comes from infocards by the way.
It's not that the KNF and KSP don't know that the Hogosha are engaging in criminal activities. It's that they know the Hogosha are looking out for Kusari first, and waging a black war against foreign threats, especially those of a criminal nature. And you must remember that it is not a noe-way relationship. The Kusari organizations have some influence on the Hogosha as well, and use the Hogosha for their own benefit. Notably, the KNF and KSP rely on them to keep the borders of Kusari from being penetrated by outside criminals, not to mention cardamine.
After all, it is far better to have "criminals" that share pretty much all your ideas, and whose bosses you can sit down to a nice dinner with and say "You know, your movement of black market ammunition is really up lately, we would appreciate it is you toned it down a bit, or at least told your freighters to be more discreet."
And the response? "Of course, we wouldn't want hard questions to be asked by those who might be watching. I will speak to my people. Oh, and don't worry about the dinner bill, I've got it covered."
