The criminal gangs of Pell's Hold all have their roots in perfectly legal mercenary companies which were started in recent years with backing allegedly from the nobility. Although it was not uncommon for mercenary companies to have noble patrons these new companies never revealed who their individual patrons were. They were originally known by their symbols:
Basilisk, Fox, Sword, Warhorse, Dragon and Hound. Although their members no longer display these symbols they are still known by their nicknames: Bazzers, Foxmen, Nailers, Naggers, Teeth and Dogs.
Within a year of their formation it became apparent that they were involved in illegal activities and there were numerous street wars between the gangs which also involved the Thieves Guild.
The Guild itself became the biggest loser in these wars and eventually the gangs recognised an uneasy truce. The biggest source of income for these gangs is the drugs trade and all the gangs seem to have adopted the same business model. They all have a rather upmarket 'tavern' where drugs can be imbibed safely (as in no one will mug you) and in comfort. These premises are never raided by the Watch because of the status of their clientele and therefore also act as storage and distribution centres for the drugs.
In addition to these centres there are numerous smaller places where drugs can be bought (sometimes the gangs force perfectly respectable businesses to sell drugs under the counter). These are the places the Watch raid when they get permission from the council. The Foxmen never get raided and indeed actually own most of the businesses they distribute from. On the other hand the Naggers (who used to get raided most often) have given up on this model and distribute their drugs almost entirely through street dealers.
There are two other components of the City crime scene that are worth mentioning. Firstly the Ragmen who used to be a conventional mercenary company and don't have a noble patron as far as anybody knows. They have, however, become sucked into the City crime culture and operate by supplying personnel on short term contracts to the other gangs. They do get paid well but have a short life expectancy. The Ragmen also suppy temporary security staff to the nobles on less well paid but less
risky contracts. The second component is run by a crime boss known as Xarn. They tend to operate in the shadows and nobody messes with Xarn or his people. Nobody has ever seen Xarn even Grak the brute who is his chief lieutenant. The exact relationship between Xarn and the gangs is unknown: the gangs don't don't work for him but sometimes he asks them to do his dirty work.