You’ve probably heard of the Racketeer Influenced and Corrupt Organizations Act (RICO), but do you know what it is? RICO is a federal law that was enacted in 1970 to combat organized crime. The law allows prosecutors to pursue criminal charges against individuals or organizations who are involved in a pattern of criminal activity. In this blog post, we will discuss the basics of RICO and how it can be used to prosecute criminals.
RICO Act
RICO is a federal law that was enacted in 1970 to combat organized crime. The law makes it a crime to engage in a pattern of criminal activity, or to participate in the affairs of an enterprise that engages in such activity.
To be convicted under RICO, the government must prove that the defendant committed two or more predicate crimes, and that those crimes were part of a pattern of criminal activity. The law also requires that the defendant committed the predicate crimes for the purpose of furthering the affairs of an enterprise.
What are the 4 elements of the RICO Act?
There are four elements of RICO:
- a pattern;
- of racketeering activity;
- an enterprise that the defendant participated in; and
- proof that the defendant committed the predicate crimes for the purpose of furthering the affairs of the enterprise.
Participating in the affairs of an enterprise:
To be convicted of a RICO violation, the government must prove that the defendant participated in the affairs of an enterprise. The term “enterprise” includes any individual, partnership, corporation, association, or other legal entity.
An individual can be convicted of participating in the affairs of an enterprise even if he or she was not a member of the enterprise. For example, an individual who provides services to an enterprise can be convicted of participating in the affairs of that enterprise.
The government does not have to prove that the defendant knew that he or she was participating in the affairs of an enterprise.
The government must prove all four elements to convict a defendant under RICO.
A pattern of criminal activity:
To be convicted of a RICO violation, the government must prove that the defendant committed two or more predicate crimes. Predicate crimes include any criminal offense that is punishable by imprisonment for more than one year.
The government does not have to prove that the defendant was convicted of the predicate crimes. It is enough if the defendant committed the crimes and there is a reasonable likelihood that he or she will be convicted.
The two predicate crimes must be part of a pattern of criminal activity. A pattern of criminal activity is a series of two or more related crimes that are committed over a period of time. The crimes can be committed in different jurisdictions, but they must be connected to each other in some way.
For example, a pattern of criminal activity can include crimes that are part of the same scheme or plan. It can also include crimes that are committed by the same group of people.
The government does not have to prove that the defendant intended to commit a crime. It is enough if the defendant knew that his or her actions could lead to a crime.
#acquiring or maintaining an interest in or control of the enterprise:
The third element of RICO is that the defendant must have acquired or maintained an interest in or control of the enterprise. This element is known as the “acquisition” prong of RICO.
An individual can be convicted of violating this prong even if he or she did not acquire an interest in or control of the enterprise. For example, an individual can be convicted of violating this prong if he or she inherited an interest in or control of the enterprise.
The government does not have to prove that the defendant intended to acquire or maintain an interest in or control of the enterprise. It is enough if the defendant knew that his or her actions could lead to the acquisition or maintenance of an interest in or control of the enterprise.
The Defendant Must Have Engaged in Conduct Constituting the Enterprise
The fourth element of RICO is that the defendant must have engaged in conduct constituting the enterprise. This element is known as the “conduct” prong of RICO.
To be convicted of violating this prong, the government must prove that the defendant committed at least one predicate crime in furtherance of the enterprise. The government does not have to prove that the defendant intended to further the enterprise. It is enough if the defendant knew that his or her actions could lead to the furtherance of the enterprise.
The defendant must have committed the predicate crimes for the purpose of furthering the affairs of an enterprise.
The government does not have to prove that the defendant had a specific intent to further the affairs of an enterprise. It is enough if the defendant’s actions were part of a plan or scheme to further the affairs of an enterprise.
For example, a defendant who commits a crime in order to get paid by an enterprise is guilty of participating in the affairs of that enterprise.
The first two elements—participation in the affairs of an enterprise and racketeering activity—are known as the “associational” prongs of RICO. The last two elements—acquiring or maintaining an interest in or control of the enterprise, and engaging in conduct constituting the enterprise—are known as the “conduct” prongs of RICO.
A RICO conspiracy:
To be convicted of a RICO conspiracy, the government must prove that the defendant agreed to participate in the affairs of an enterprise. The agreement can be verbal or written, and it does not have to be express. An implied agreement is enough.
The government does not have to prove that the defendant knew that he or she was participating in the affairs of an enterprise. It is enough if the defendant knew that his or her actions could lead to a crime.
The government does not have to prove that the defendant intended to commit a crime. It is enough if the defendant knew that his or her actions could lead to a crime.
Definition of Enterprise under RICO
The term “enterprise” is broadly defined under RICO, and can include legitimate businesses, as well as illegal enterprises. An enterprise can be any group of individuals or organizations that are associated in some way, including through family relationships, friendships, or a shared criminal enterprise.
The RICO statute specifically lists several types of enterprises that can be prosecuted under the law, including:
- Any individual, partnership, corporation, association, or other legal entity;
- Any union or group of individuals associated in fact; or
- Any collection of individuals associated together for a common purpose of engaging in a course of conduct.
What is a “pattern of racketeering activity”?
The statute defines “racketeering activity” to include a wide range of federal and state crimes, including bribery, counterfeiting, extortion, money laundering, mail fraud, wire fraud, and obstruction of justice.
To be considered part of a “pattern,” the racketeering activity must be related to the enterprise and must occur on two or more occasions.
Proving a Pattern of Criminal Activity under RICO
In order to be convicted under RICO, the government must prove that the defendant committed two or more predicate crimes, and that those crimes were part of a pattern of criminal activity.
The term “pattern of criminal activity” is defined as two or more predicate crimes that are related to each other, and that show a continuity of criminal conduct. The continuity can be either continuous or intermittent, and can span a period of time as short as two years.
There are several ways to establish continuity, including:
- Showing that the defendant committed the predicate crimes on a regular basis;
- Showing that the defendant committed the predicate crimes in furtherance of the affairs of an enterprise; or
- Showing that the defendant was convicted of two or more predicate crimes.
What Are Predicate Crimes?
Predicate crimes are criminal acts that are enumerated in the RICO statute. The statute lists a wide variety of predicate crimes, including:
- Mail fraud;
- Wire fraud;
- Bank fraud;
- Securities fraud;
- Money laundering;
- Extortion;
Racketeering activity also includes any act that is indictable under several other federal statutes, including the Hobbs Act, the Travel Act, and the Federal Housing Enterprises Financial Safety and Soundness Act.
Penalties for Violating RICO
RICO provides for both civil and criminal penalties.
Criminal Penalties
Criminal penalties for violating RICO can include up to 20 years in prison, as well as fines and asset forfeiture.
In addition, individuals who are convicted of racketeering activity under RICO can be forced to give up any property that was obtained through their criminal activities.
Civil Penalties
RICO also provides for civil penalties, which can include treble damages (triple the amount of damages that the plaintiff would otherwise be entitled to).
RICO also allows for private individuals to file suit against defendants who have violated the law. These suits are known as “private actions.”
Private actions can be brought by:
- Any person who has been injured by a RICO violation;
- Any business that has been injured by a RICO violation; or
- The family members of a person who has been killed as a result of a RICO violation.
Conclusion
The Racketeer Influenced and Corrupt Organizations Act is a powerful tool that can be used to prosecute criminals who are involved in a pattern of criminal activity. If you have been charged with racketeering, it is important to speak with an experienced criminal defense attorney who can help you navigate the complex legal issues involved in your case.
Do you have questions about RICO or other federal crimes? Contact us today for a free consultation. Our experienced criminal defense attorneys are here to help.