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The Iotian Outfit developed in the 24th century when Iotians scavenged the means for interstellar spaceflight and began exploring and exploiting other less-developed worlds. Iotian gangs worked mainly in smuggling, with a focus in bootlegging Romulan ale into the Federation, and also selling their own liquor and weapons. They also took over existing organized crime rackets on other planets, while the more aggressive and stubborn Iotian gangs set up operations on nearby primitive worlds, with themselves as bosses. Sigma Iotia became the center of a decent-sized smuggling network.
They became a small but ambitious new player in the interstellar underworld. Over several decades, the Iotian Outfit came into contact with other criminal organizations, such as the Orion Syndicate, the Andorian Volna Vrinia, and Ferengi groups, and even once hosted an interstellar gang conference on Iotia. At its outermost edges to spinward, the Iotian Outfit had significant contacts with the Orion Syndicate, while it also many contacts with the Romulan underworld.
The Iotian Outfit was loudly patriotic to the Federation. Starfleet Intelligence was interested in turning the Outfit to their ends and exploiting their links with the Romulans, but was concerned about the growing potential for gang warfare across the quadrant. (Decipher RPG module: Worlds)