What is RICO Law? Understanding the Racketeer Influenced and Corrupt Organizations Act

The Racketeer Influenced and Corrupt Organizations Act (RICO) is a powerful federal law that aims to combat organized crime and corruption. Enacted in 1970 as part of the Organized Crime Control Act, RICO was initially designed to dismantle the operations of mafia groups and other criminal organizations. However, its scope has expanded significantly over the years, and it’s now used in a variety of cases involving criminal enterprises and even some white-collar crimes.

In this blog, we’ll explore what RICO law is, how it works, and how it impacts individuals and businesses.

What is RICO Law?

RICO allows federal prosecutors to charge individuals or groups involved in patterns of illegal activity tied to an organization. The law targets not just those committing crimes but also the leaders or organizations directing the criminal activity.

Under RICO, a person or group can be prosecuted if they:

Participate in an enterprise: The activity is linked to an organization, business, or other structured group.

Commit a pattern of racketeering activity: At least two predicate crimes (or “racketeering acts”) must be committed within a 10-year period.

The goal of RICO is to target and dismantle the structures that allow organized crime to flourish, rather than focusing on isolated criminal acts.

What Constitutes Racketeering Activity?

Racketeering activity refers to a wide range of criminal offenses, including but not limited to:

Violent Crimes: Murder, kidnapping, arson

Financial Crimes: Fraud, embezzlement, money laundering

Drug-Related Crimes: Drug trafficking

Bribery and Corruption: Public corruption, bribery, and extortion

Other Offenses: Obstruction of justice, witness tampering, and human trafficking

There are 35 crimes listed as predicate offenses under RICO, ranging from street-level crimes to sophisticated financial schemes.

How RICO Law Works

RICO cases are complex and require proving certain elements. Federal prosecutors must demonstrate:

Existence of an Enterprise

The “enterprise” can be any group of individuals associated together for a common purpose, whether it’s a legitimate business, a criminal organization, or even an informal group.

Pattern of Racketeering Activity

Prosecutors must prove at least two predicate crimes occurred within a 10-year span and were related to the enterprise.

Participation or Leadership

The accused must have knowingly participated in or directed the criminal activities of the enterprise.

RICO charges allow prosecutors to connect crimes to larger criminal enterprises, holding leaders accountable even if they didn’t commit the crimes directly.

Civil and Criminal Applications of RICO

RICO law is unique because it has both criminal and civil applications:

• Criminal Cases: Federal prosecutors use RICO to target criminal enterprises, often seeking harsh penalties, including long prison sentences and asset forfeiture.
• Civil Cases: Private parties can file civil RICO lawsuits if they’ve been harmed by racketeering activity. For example, businesses may sue competitors for fraudulent practices under RICO.

In civil cases, plaintiffs can seek triple the amount of damages caused by the racketeering activity, known as treble damages, as well as attorney’s fees.

High-Profile RICO Cases

RICO has been used in many high-profile cases, including:

The Mafia: RICO was instrumental in prosecuting organized crime families in the 1980s, including the Gambino and Genovese crime families.

Enron Scandal: RICO charges were considered during the investigation into the Enron corporate fraud case.

Hells Angels and Other Gangs: Prosecutors have used RICO to target street gangs and biker gangs involved in drug trafficking and violent crime.

Political Corruption: RICO has been applied in cases of public corruption, such as the conviction of corrupt government officials.

Defenses Against RICO Charges

RICO charges are serious, and those accused must mount a robust defense. Common defenses include:

• Lack of Evidence: Challenging the existence of an enterprise or a pattern of racketeering activity.
• Insufficient Connection: Arguing that the defendant did not participate in or benefit from the criminal enterprise.
• Violation of Due Process: Asserting that the prosecution misused RICO’s broad scope.
• Statute of Limitations: RICO cases must generally be filed within a specific timeframe after the last predicate act.

Penalties Under RICO

Penalties for RICO violations are severe and include:

• Up to 20 years in prison per count (or life imprisonment in some cases, such as murder-related charges)
• Significant fines
• Forfeiture of property and assets obtained through illegal activity
• Restitution to victims

In civil cases, defendants may be required to pay treble damages and attorney’s fees.

Why RICO Law is Controversial

RICO’s broad language and wide scope have led to criticism and concerns about its misuse. Critics argue that:

• It can be applied too broadly, including in cases where the connection to organized crime is tenuous.
• It allows for severe penalties that may be disproportionate to the crimes committed.
• Civil RICO lawsuits can be misused to target businesses in disputes unrelated to traditional racketeering activity.

Proponents, however, argue that RICO remains an essential tool for dismantling complex criminal enterprises.

Conclusion

The Racketeer Influenced and Corrupt Organizations (RICO) Act is a powerful legal tool designed to combat organized crime and corruption. While its roots are in targeting the mafia, RICO has expanded to address a wide range of criminal enterprises, from street gangs to white-collar crime.

Whether you’re facing RICO charges or considering a civil RICO lawsuit, it’s essential to understand the law’s complexities. Consulting with an experienced attorney can help you navigate the legal process and protect your rights.

If you believe you’ve been harmed by racketeering activity or are accused under RICO, seek legal representation immediately to ensure you’re prepared to address the serious implications of this law.