The RICO Act (Racketeer Influenced and Corrupt Organizations Act) is a U.S. federal law enacted in 1970 designed to combat organized crime, such as the Mafia, by allowing for the prosecution of individuals involved in ongoing criminal enterprises.
But what is covered by the RICO Act? And what is racketeering? Racketeering is associated with illegal activities such as extortion, money laundering, bribery, loan sharking and so much more. Understanding the full range of criminal activity that may be covered by this act is really important.
It’s hard to believe that it also applies to a person who is doing something illegal on a regular basis. But what must a person do to be held accountable under this act?
Below is a detailed explanation to help you understand more about this act.
Overview of the RICO Act
The Racketeer Influenced and Corrupt Organizations Act (RICO) attacked organized crime in America federally. It was created in 1970 to allow the government to target racketeers.
This much bigger part of the crime would help you show that the business and all the illegal things that went along with it, like drug dealing and bribery, were really just parts of a bigger crime.
In fact, a violation of the RICO Act could occur if one has been engaged in two or more racketeering incidents within 10 years. It provides for civil suits, thus allowing individuals and businesses victimized by racketeering to recover damages.
All RICO Act cases are heard in federal court because it is a federal statute. This means different procedures and harsher penalties than state criminal court.
A RICO lawyer from New South Law LLC, a defendant convicted of RICO Act violations, may face years in federal prison, heavy fines, and other penalties. A RICO lawyer can help a defendant choose the best defenses and dismantle the prosecution’s case. The prosecution may lack sufficient evidence or use illegally obtained evidence against the defendant. You can maximize your defenses with the right lawyer.
Definition of Racketeering
Racketeering involves illegal business endeavors as part of a larger criminal enterprise. It might encompass hundreds of illicit schemes. Racketeering evokes organized crime. It also applies to individuals or smaller groups who commit crimes repeatedly.
By providing for prosecution and civil sanctions for racketeering, the RICO Act was created to address such behaviors. You are accountable if your gang conducts two racketeering activities in ten years.
Understanding racketeering can be beneficial, as it links various criminal enterprises together. An act can be very crime-specific yet part of a pattern of organized illegal acts. That was less conceived as a single crime.
Types of Criminal Activities
When they commit crimes, people and organizations are subject to the RICO Act. The Act covers a wide range of illegal conduct, but it targets organized crime. RICO applies to drug trafficking, extortion, and money laundering. These racketeering actions frequently include multiple criminal acts over time.
Aside from that, RICO actually covers other crimes such as bribery, embezzlement, and fraud when they are part of a larger scheme. If your organization engages in these activities in a repetitive fashion, it will find itself facing the severe consequences that RICO entails.
Less common crimes like human trafficking or gambling may be brought under RICO if they are committed in a systemic way. One should know that the law is not only directed at individuals perpetrating the acts but also at the organizations that promote or profit from them.
Civil and Criminal Penalties
RICO violations can result in severe civil and criminal penalties. If convicted of RICO, you may face substantial penalties or jail time. Depending on the offense, each count might result in 20 years in prison. Because the law deters organized crime, courts regard these violations seriously.
Civilly, you could be liable to act for damages to any person injured by your acts. You will probably have to pay triple damages under the RICO Act’s treble damages provision. In addition, you may also lose whatever profits you earned because of your illegal acts. It can also give you or your organization a significant hit financially.
It may ruin your reputation and business relations while being a participant in a RICO enterprise. It might get difficult for you to get loans, partnerships, or even employment in the future.
Key Legal Cases
RICO Act interpretation and enforcement have been established by historic cases. In *United States v. Turkette*, the Supreme Court expanded RICO to include informal or unstructured groups participating in racketeering. RICO was broadened to make it more available to organized crime prosecutors.
*H.J. Inc. v. Northwestern Bell Telephone Co.*, which defined the “pattern” of racketeering activity, is another important case. The Court in fact held that the establishment of a pattern requires, by its continuity and relationship, at least two acts of racketeering. The ruling serves to define a standard that prosecutors have to meet to prove RICO violations.
In *Sedima, S.P.R.L. v. Imrex Co.*, the Supreme Court explained that civil RICO claims do not need to require proof of the criminal intent of an enterprise, thus broadening the avenues for civil actions under RICO.
The aforementioned instances show how courts interpret key RICO Act provisions, which affect how you create organized crime or racketeering prosecutions. Understanding these precedents helps explain RICO’s law.
Impact on Organized Crime
The RICO Act has dramatically changed the face of organized crime in the United States. It is used by law enforcement to dismantle organizations rather than just individual members, which makes it more powerful.
As you can see, under RICO, the authorities can prosecute leaders held responsible for the crimes done by their subordinates, and thus it makes it difficult for organized crime syndicates to operate without being detected.
Some of the broad definitions of racketeering under the act include a multitude of illegal activities, thus allowing prosecutors to make quick cases on some that might not be challenged otherwise. This has led to some significant convictions among some of the most notorious crime families and gangs.
You might wonder that, as a result, most of the organized crime groups change their strategies and become more secretive and cautious at the fear of legal penalties that arise as a result of RICO indictments.
Conclusion
The real value of RICO is how well it fights all kinds of organized crime. It spells out what drug and people trafficking is, how to punish offenders, and who they are responsible to. Knowing what racketeering is and how bad it is can help you understand why this law stops illegal businesses.