What Is Racketeering?
Racketeering is a form of extortion and is usually conducted by organized crime groups. The crime organization will create a problem and then charge a fee to solve the problem. For example, organized crime groups charging for their protection against “thugs” in their control. However, racketeering applies to any extortion through the use of certain criminal acts.
The RICO Act in the US seeks to cut organizations involved in racketeering off at the head. Under the RICO Act, it is not just the people carrying out racketeering who can be charged, but those who give the orders too. This prevents the people higher up in crime organizations from “keeping their hands clean.” The following types of racketeering are addressed in the RICO Act:
- Gambling offenses
- Bribery
- Murder for hire
- Kidnapping
- Arson
- Sexual exploitation of children
- Fraud
- Money laundering
- Robbery
- Extortion
- Drug crimes
- Obstruction of criminal investigations or obstruction of justice
- Murder
- Financial and economic crimes
- Dealing in obscene matter
What Is the RICO Act?
The RICO Act is the Racketeer Influenced and Corrupt Organizations Act. It was created in 1970 to deal with racketeering by crime organizations such as the Mafia and gangs. The RICO Act’s creation of racketeering charges was a way to ensure that people higher up in the organization were being held accountable for the crimes they were ordering. If law enforcement were able to prove that the criminal they arrested were acting on behalf of the crime organization, then they could charge other people in the organization with racketeering.
The RICO Act is controversial, as it can mean that enterprises can be held accountable for unendorsed radicals. This can see religious leaders and even politicians facing racketeering charges even if they are unaware of the actions of the criminals.
The RICO Act and Racketeering?
While many different types of crime fit the definition of racketeering, the RICO Act only applies to enterprises and organizations. This applies to criminal organizations as much as it applies to politicians, churches, businesses, and even non-profits. Any enterprise or organization engaging in criminal acts may be charged with racketeering under the RICO Act.
The list of crimes covered by the RICO Act has grown since it was implemented in 1970, and now it covers the following crimes:
- Acts of terrorism
- Arson
- Bankruptcy fraud or securities fraud
- Bribery
- Bribery
- Commission of murder-for-hire
- Counterfeiting
- Criminal copyright infringement
- Dealing in obscene matter
- Dealing or trafficking a controlled substance or chemical
- Embezzlement
- Embezzlement of union funds
- Extortion
- Fraud
- Gambling
- Human smuggling
- Kidnapping
- Money laundering
- Murder
- Obstruction of justice
- Robbery
- Slavery
- Theft
That means any of the above crimes can be charged as racketeering if they are conducted by an enterprise or organization.
Elements of a Racketeering Charge
In order to charge you with racketeering under the RICO Act, the prosecutor must prove the following racketeering elements exist:
- The enterprise or organization exists
- The organization or enterprise was involved in interstate or foreign commerce
- The defendant was associated with or employed by the organization or enterprise
- The defendant was involved in a pattern of racketeering
- The defendant’s pattern of racketeering was a part of their participation in the organization, and that there were at least two acts of racketeering committed in their association with the enterprise.
You will note that in order to face RICO racketeering charges, there must be a pattern of racketeering activities, not just an isolated incident. The law provides really loose guidelines for this; even two acts of racketeering within 10 years counts as a pattern of racketeering.
Racketeering activity is investigated by federal law enforcement as the RICO Act only deals with enterprises and organizations involved in interstate and foreign commerce. A racketeering charge will be tried in federal court and can result in severe penalties. If you are facing racketeering charges, you need to seek legal assistance from a criminal defense attorney that specializes in federal crimes.
Racketeering Penalties
The maximum penalty for the majority of racketeering crimes is fines of up to $250,000 and 20 years in state prison. However, because there is a wide range of racketeering crimes, all with differing levels of severity, crimes that can result in life sentences normally, like murder or drug trafficking, may face life sentences as racketeering charges.
A defendant can also be charged with the racketeering crime they committed on top of their racketeering charge. So, they may be charged with kidnapping and racketeering and face the penalties for both crimes.
In addition to fines and prison time, the federal government may also seize any property that was acquired through the racketeering activity. Also, any interest or proceeds acquired as a result of the activity may be seized. For example, a house bought with money obtained through racketeering counterfeiting may be seized by law enforcement.
Legal Defenses to Racketeering Charges
If you have been charged with racketeering, your criminal defense lawyer will examine your case and the evidence against you before deciding on the best legal defense. In every criminal lawsuit, the defendant is innocent until proven guilty, so the prosecutor has the burden of proof to provide evidence for all of the elements of racketeering. One of the best ways to defend yourself against racketeering charges is to show evidence that casts doubt on one of the elements of racketeering. For example:
- You were not acting for a criminal organization or enterprise
- There was no pattern of racketeering behavior; it was a one-off crime
- The racketeering crimes were unrelated
- The evidence the prosecution has presented does not meet the burden of proof
Your criminal defense attorney may try to get the case dismissed if your rights were violated. For example:
- You were charged with racketeering as a result of evidence seized in an illegal search and seizure
- Your confession was coerced or you were not informed of your Miranda Rights before interrogation
In some cases, you may have been charged with racketeering when you are completely innocent. This does not mean you should not take the racketeering charges seriously. Your criminal defense attorney will amass evidence to prove one of the following:
- There is a case of mistaken identity, and you were not involved in the crime in question at all or associated with the criminal enterprise
- That you did not conspire to commit the racketeering crimes nor commit them
- That the actions you took were not criminal at all
- That your intention was not to participate in criminal activities, or you did not act knowingly