Federal Racketeering Laws – A Complex Web of Organized Crime Statutes
Federal racketeering laws, including the Racketeer Influenced and Corrupt Organizations (RICO) Act, were designed to combat organized crime syndicates like the mafia. However, over time these statutes have been used more broadly against various criminal enterprises. Understanding racketeering requires looking at its complex history and legal interpretations.
What is Racketeering?
Racketeering refers to organized criminal activity conducted by an ongoing criminal enterprise. The term “racket” originally referred to extortion schemes perpetrated by mobsters. Racketeering crimes include illegal gambling, bribery, murder, arson, drug trafficking, kidnapping, counterfeiting, embezzlement, and other offenses.
The Racketeer Influenced and Corrupt Organizations (RICO) Act is a key federal anti-racketeering statute passed in 1970. RICO provides enhanced criminal penalties and civil causes of action to combat organized crime syndicates. Under RICO, it is unlawful for anyone employed by or associated with an enterprise to conduct or participate in the enterprise through a pattern of racketeering activity.
Key Elements of Racketeering
There are three key concepts that prosecutors must establish to convict under federal racketeering laws:
1. Enterprise
An enterprise can be any individual, partnership, corporation, association, or other legal entity, as well as any union or group of individuals associated for a common purpose. This includes legitimate organizations as well as criminal syndicates.
2. Pattern of Racketeering Activity
This refers to at least two criminal acts within 10 years involving offenses listed in the RICO statute. This pattern demonstrates the ongoing and continuous nature of the criminal activity.
3. Nexus
There must be a connection between the enterprise, the defendant, and the pattern of racketeering activity. The defendant must have some role in directing the affairs of the enterprise through the pattern of racketeering.
Racketeering vs. Conspiracy
Racketeering charges are broader than criminal conspiracy charges in several ways:
- Racketeering does not require an agreement between co-conspirators, just participation in the enterprise.
- Racketeering encompasses many types of predicate crimes as part of the pattern of activity.
- Racketeering requires involvement with an ongoing enterprise over time, not just a temporary conspiracy.
Expansion Beyond Organized Crime
Although originally aimed at mob syndicates, racketeering laws have been applied more broadly to other criminal enterprises like street gangs, drug cartels, and even corrupt organizations like police departments. Civil RICO lawsuits have also targeted legitimate businesses like tobacco companies and abortion protest groups, alleging they engaged in a pattern of criminal activity.
This expansion has been controversial, with critics arguing RICO has exceeded its intended scope. However, courts have largely upheld the application of racketeering laws beyond traditional organized crime. The “enterprise” concept is construed broadly, and the pattern of activity can encompass many different types of predicate crimes.
Severe Criminal Penalties
Racketeering carry some of the most severe criminal penalties under federal law. RICO violations are punishable by:
- Up to 20 years in prison per racketeering count
- Up to life in prison if the crime is punishable by life under applicable laws
- Forfeiture of business interests and proceeds from racketeering activity
In addition, RICO predicates that are committed as part of the pattern of racketeering can be charged as separate substantive crimes. This allows defendants to be punished separately for the racketeering offense and the individual predicate crimes.
Available Defenses
Like other complex federal statutes, racketeering cases can be difficult for prosecutors to prove. Common racketeering defenses include:
- Challenging existence of an enterprise or insufficient evidence of pattern of activity
- Disputing involvement or control over the enterprise
- Arguing the defendant did not knowingly participate or had intent to defraud
- Claiming the association is a loose group rather than a unified criminal enterprise
- Attacking predicate crimes for lack of evidence or invalid legal theory
Because racketeering involves many different elements and potential predicate acts, there are multiple ways for defense attorneys to undermine the prosecution’s case.
An Evolving Area of Law
Racketeering and RICO remain controversial and rapidly evolving areas of federal criminal law. The broad application of these statutes will continue to be litigated and interpreted in the courts. But racketeering will likely remain a powerful tool for prosecutors to dismantle organized criminal enterprises and impose severe penalties on these organizations and their members.
Conclusion
Federal racketeering laws have a complex history beginning with efforts to combat organized crime syndicates. RICO and related statutes impose harsh penalties for participating in criminal enterprises through patterns of illegal activity. Although initially aimed at the mafia, these laws have expanded to target many other criminal organizations. However, racketeering cases can be difficult to prove, and experienced defense counsel can raise many challenges to the prosecution’s legal theories and evidence. The breadth of these laws will continue to be debated in courts, Congress, and the legal community.