Federal Extortion Laws: What You Need to Know

Extortion is a serious crime that involves obtaining money, property, or services from someone through coercion, threats, or intimidation. Unlike robbery, which involves taking by force, extortion relies on making threats to induce cooperation.

While extortion is generally prosecuted at the state level, there are also several federal statutes that prohibit various forms of extortionate conduct. Understanding the basics of federal extortion laws can help you identify potential violations and know your rights if you become a victim or target.

What is Extortion Under Federal Law?

The federal extortion statutes prohibit making threats to harm a person or their property or reputation in order to obtain money, property or “any other thing of value” from them.

Some of the key federal extortion laws include:

• 18 U.S.C. § 873 – Blackmail/Extortion – Makes it illegal to make threats to harm someone’s property or reputation in order to obtain money or something else of value. Maximum sentence is 1 year in prison.
• 18 U.S.C. § 875 – Interstate Communications – Prohibits making extortionate threats through interstate communications like phone calls, emails, or online messages. Punishable by up to 20 years in prison.
• 18 U.S.C. § 876 – Mailing Threatening Communications – Makes it illegal to send extortionate threats through the U.S. mail. Up to 20 years in prison.
• 18 U.S.C. § 880 – Receiving Proceeds of Extortion – Prohibits receiving money or property obtained through extortion. Up to 10 years imprisonment.
• 18 U.S.C. § 1951 – Interference with Commerce by Threats or Violence (Hobbs Act) – Broadly prohibits actual or attempted robbery or extortion affecting interstate or foreign commerce. Up to 20 years imprisonment.
• 18 U.S.C. § 892 – Making Extortionate Extension of Credit – Covers threats made in connection with collecting an extension of credit. Up to 20 years imprisonment.

The key element of these federal extortion statutes is a threat made with the intent to obtain money, property, or something else of value from the victim. The threat does not actually have to be carried out. Just making the threat is enough to violate the law.

Examples of Federal Extortion

Federal extortion charges can arise in many different contexts. Here are some examples:

• A company manager threatens to fire an employee unless they give him $5,000 in cash.
• A person sends a letter through the mail threatening to reveal damaging information about a celebrity unless they are paid $10,000.
• A gang member threatens violence against a business owner’s family unless they pay monthly “protection” money.
• A financial advisor threatens to ruin a client’s credit and finances by calling in loans unless they pay an extra “fee.”
• A public official demands bribes and kickbacks in exchange for awarding contracts and licenses.
• A debt collector threatens to break a person’s legs unless they immediately pay a disputed debt.

In each of these examples, the perpetrator uses threats and coercion to induce the victim to hand over money or something else of value, rather than simply asking or negotiating. Almost any threat made to extract money or property from an unwilling victim can potentially be charged as federal extortion.

Defenses to Federal Extortion Charges

If you’ve been accused of extortion, there may be defenses an experienced attorney can raise on your behalf, such as:

• Lack of intent – You had no intention of actually carrying out the threat when it was made.
• Intoxication – You were under the influence of drugs or alcohol and were unable to form the intent required.
• Duress – You were coerced into making the threat by threats against you or your family.
• Entrapment – The threat was made only after you were improperly induced or encouraged by government agents.
• First Amendment – The statement cannot reasonably be interpreted as a threat, and is protected free speech.
• Statute of limitations – Too much time has passed between the threat and the charges being filed.
• Self-defense – You made the threat only to deter an imminent threat against you.
• Lack of interstate nexus – The threat did not involve interstate communications or commerce.

Raising a successful defense will depend heavily on the specific facts and circumstances of your case. An attorney experienced in federal criminal defense can advise you on whether any defenses may apply.

Penalties for Federal Extortion Convictions

The penalties for a federal extortion conviction can be severe, depending on the specific charges. As noted above, maximum sentences range from 1-20 years in federal prison. Most federal extortion statutes also authorize fines up to $250,000 for individuals or twice the amount obtained through extortion.

Sentences are determined based on the U.S. Sentencing Guidelines, which take into account factors like:

• The amount of loss caused
• Whether a weapon was involved
• Whether the victim suffered bodily injury
• The number of victims
• Your criminal history

First-time offenders with no criminal history will generally receive sentences on the lower end of the range, while repeat offenders can expect much harsher sentences. Probation may be available for very minor cases with no criminal history.

Reporting Federal Extortion

If you are the victim of any type of extortion scheme, it’s important to report it to the appropriate authorities.

For threats involving interstate communications like phone calls, emails, or mail, you can contact your local FBI office or file a complaint with the FBI’s Internet Crime Complaint Center.

Threats made in person can be reported to your local police department and/or the FBI. The U.S. Department of Justice also has a National Extortion Task Force that prosecutes major extortion cases involving organized crime.

It’s also a good idea to consult an attorney to understand your rights and options as a victim, and to assist with reporting the crime. An attorney can also advise you on steps to preserve evidence and protect yourself from further threats.

Avoiding Extortion Charges

To avoid finding yourself facing federal extortion charges:

• Never make threats to expose information, cause harm, or damage a person’s reputation in order to receive money, favors, or anything else of value from them.
• Do not threaten violence or make demands backed by threats.
• Never send threatening communications through the mail, by phone, email, social media or any other means involving interstate communications.
• Do not use threats, intimidation or demands to pressure someone to pay a debt or provide property or services.
• Avoid vague statements that could be interpreted as threats, especially when demanding payment or compensation.

Making any type of threat intended to coerce someone into giving up their money or property can potentially lead to prosecution. Consult an attorney anytime you are dealing with accusations of extortion.

The Bottom Line

Federal extortion laws impose serious penalties for using threats, intimidation, or coercion to obtain money or anything else of value from a victim. Charges can arise from threats made in person, on social media, through interstate phone calls or emails, or via the U.S. mail.

If you are being victimized by an extortionist, save evidence and contact law enforcement or an attorney right away. Anyone facing accusations of extortion should retain experienced legal counsel to preserve their rights and explore all possible defenses. Handled properly by a skilled attorney, many extortion cases can ultimately result in reduced or dismissed charges.