The Racketeer Influenced and Corrupt Organizations Act (RICO) is a crucial element of U.S. federal law designed to combat organized crime. Enacted in 1970 as part of the Organized Crime Control Act, RICO aims to eradicate the infiltration of legitimate businesses by organized crime elements.
Legal Framework of RICO
RICO’s legal framework is outlined under 18 U.S.C. §§ 1961-1968. It provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization.
Key Components
- Predicate Offenses: RICO predicates include crimes such as bribery, fraud, theft, drug trafficking, and more.
- Pattern of Racketeering: To establish a pattern, at least two acts of racketeering activity, occurring within a 10-year period, are required.
- Enterprise: Defined as any individual, partnership, corporation, association, or other legal entity.
Provisions & Penalties
RICO allows for both criminal and civil penalties. Violators of RICO can face up to 20 years in prison per racketeering count and substantial fines. Civil remedies include treble damages and attorney’s fees.
Historical Context of RICO
RICO emerged in the wake of the 1960s’ heightened public awareness of organized crime’s pervasive influence. Targeting not just mob figures but also legitimate business and political corruption, it addressed widespread criminal schemes, especially those of the Mafia.
Major Cases
- United States v. Turkette (1981): Affirmed that RICO applies to both legitimate and illegitimate enterprises.
- Operation Family Secrets (2007): Major trial that weakened the Chicago Outfit’s influence.
Applicability of RICO
Organized Crime
RICO is primarily used to dismantle organized crime syndicates, including mob families and street gangs.
Corporate Crime and Politics
RICO’s broad scope also extends to corporate misconduct and political corruption, involving entities like major corporations and public officials.
Application in Non-Criminal Contexts
Civil RICO actions have been employed in cases where traditional criminal statutes may not adequately address large scale fraud.
Comparisons to Related Terms
Wire Fraud
While wire fraud (18 U.S.C. § 1343) deals with fraudulent use of communications, RICO covers a broader spectrum of criminal conduct.
Money Laundering
Money laundering (18 U.S.C. §§ 1956-1957) specifically targets the financial operations of criminal enterprises, often intertwined with RICO cases.
Examples and Case Studies
- Hells Angels: The motorcycle club faced RICO charges for criminal activities including drug trafficking and violence.
- Enron: Allegations tied the company’s downfall to RICO violations, although not ultimately charged under RICO.
FAQs
What is required to prove a RICO charge?
Can RICO be applied to legitimate businesses?
How does RICO impact civil litigation?
References
- U.S. Code Title 18, Sections 1961-1968. Link to Official Text
- Blakey, G. R. (1989). “The RICO Civil Fraud Action in Context: Reflections on Bennett v. Berg.” Notre Dame Law Review, 64(5), 837-890.
- Jacobs, J. B. (1994). “Gotham Unbound: How New York City Was Liberated from the Grip of Organized Crime.” NYU Press.
Summary
The Racketeer Influenced and Corrupt Organizations Act (RICO) fundamentally restructured the battle against organized crime in the United States. Encompassing a wide array of criminal actions, it enables both criminal prosecution and civil litigation to dismantle criminal enterprises. Its broad scope has far-reaching implications, influencing legal strategy in cases ranging from mob figures to corporate fraud. Understanding RICO is essential for comprehending modern crime law frameworks.
