Key Takeaways

  • RICO law targets patterns of racketeering within organizations, with at least two qualifying acts committed within 10 years.
  • The law covers crimes such as extortion, fraud, bribery, embezzlement, and money laundering.
  • Both civil and criminal cases can be brought under RICO law, with penalties including asset forfeiture and long prison terms.
  • The burden of proof is higher in criminal RICO cases but still substantial in civil actions.
  • Legal entities, corporations, and unions—not just crime syndicates—can be prosecuted under RICO law today.

What does RICO stand for in law? RICO law, or Racketeer Influenced and Corrupt Organizations Act law, is a law in place to fight against organized crime within the United States.

What Is Racketeer Influenced and Corrupt Organizations Act (RICO) Law?

The RICO Act was enacted in 1970. Under RICO law, racketeering activities can to be prosecuted with civil penalties when they are practiced by a criminal organization. Offenses defined as racketeering when committed within an organization include:

  • Murder
  • Gambling
  • Kidnapping
  • Dealing drugs
  • Mail fraud
  • Bribery
  • Wire fraud
  • Arson

Most of the 35 offenses considered as types of racketeering are also criminal offenses in their own right. Racketeering becomes a part of the offense when it's committed as an organized crime. The following activities are considered organized crime:

  • Illegal action that three or more individuals commit.
  • Illegal action that a group of people commits.
  • Illegal action committed to profit a specific group.

RICO law does not apply to the punishment for a criminal act that is isolated from a group. Groups of individuals who have formed a pattern of illegal activities and a criminal organization should be punished under the harsh consequences of RICO law. This pattern of illegal activity has to include two or more illegal acts committed within 10 years of each other that fall into the racketeering category according to the definition included in the RICO Act.

This well-known act has been instrumental in the prosecutions of mafia members and members of other organized crime groups like Hells Angels. Recently, the RICO act has been used more in cases against many different types of enterprises that are both illegally and legally operating.

Crimes and Enterprises Covered Under RICO

RICO law applies to a wide range of criminal activities when conducted as part of an enterprise engaging in a pattern of racketeering. The law defines "enterprise" broadly—it can include any group of individuals or entities associated in fact, whether legally or illegally organized. This includes legitimate businesses, labor unions, political groups, and loosely affiliated criminal networks.

Common predicate offenses under RICO include:

  • Bribery
  • Embezzlement
  • Counterfeiting
  • Drug trafficking
  • Human trafficking
  • Witness tampering
  • Bank fraud
  • Securities fraud
  • Tax evasion
  • Extortion
  • Obstruction of justice

The “pattern” requirement is key: two or more acts of racketeering must be related and show continuity, occurring within 10 years of each other. Importantly, RICO can also apply to white-collar crimes committed by individuals in corporate or political contexts—not just traditional organized crime.

What Are the Penalties Provided by RICO Law?

Before the RICO Act was passed, mob bosses were very difficult to try and convict because they frequently did not commit illegal acts themselves. Under RICO law, a person can be convicted of a crime because they ordered another person to commit that crime. RICO law allows for criminal and civil cases, so a claim can be brought against another by the government or an individual.

Violations of RICO law can be punished as severely as a 20-year prison sentence and can even be turned into a life sentence if the underlying crime authorizes that. Convicted criminals will also be required to pay a $250,000 fine or twice as much as they profited from the illegal activity.

In order to help the government continue to dismantle criminal organizations, a convicted criminal under RICO law must also forfeit all of their interest in the enterprise to the government. This hurts the criminal organization and gives the government more information on the enterprise. This forfeiture doesn't wait for a guilty verdict, because the property might become too hard to find after that point. A defendant in a RICO prosecution will have their personal assets frozen before the trial even begins.

Civil RICO Actions and Private Lawsuits

RICO law is unique in that it allows both criminal prosecution and civil lawsuits. In civil RICO cases, private individuals and entities can sue for triple damages (treble damages) and attorneys' fees if they are harmed by a RICO violation. For example, a competitor harmed by a rival’s fraudulent business practices may sue under civil RICO.

To succeed in a civil RICO case, a plaintiff must prove:

  • The existence of a RICO enterprise,
  • A pattern of racketeering activity,
  • A direct injury to their business or property caused by the racketeering conduct.

Civil RICO lawsuits are especially common in complex commercial disputes, corporate whistleblower cases, and investor fraud claims. While they carry a lower burden of proof than criminal cases, they still require substantial evidence and are expensive to litigate.

How Are RICO Charges Proven?

In the case of a criminal tried under RICO law, the defendant must be found guilty beyond a reasonable doubt by the jury in order to be convicted of the crime. This is also called the highest burden of proof within the United States court system.

The prosecution has to show that the defendant engaged in illegal acts while knowing that they were doing so on behalf of or for the profit of a criminal organization. They need to prove that the defendant's goals in the crime line up with those of the organization. Sometimes, the defense will argue that the defendant was unaware of their involvement with a crime group or was tricked or coerced into working with the group. The defense might also try to show that the defendant only committed minor offenses.

Civil cases tried under RICO law have a slightly lower burden of proof. This helps prevent criminal organizations from victimizing private parties. The jury in a RICO civil case have to decide that it is somewhat likely that the racketeering activities took place according to the allegations. Even though these types of cases offer a lower burden of proof, they are still quite expensive and difficult to pursue for a private individual.

Prosecuting and Defending RICO Cases

Prosecutors building a RICO case must show that the defendant committed at least two predicate crimes within 10 years and that these crimes furthered the goals of a larger criminal enterprise. Evidence often includes wiretaps, financial records, testimonies from cooperating witnesses, and surveillance.

Defending against a RICO charge typically involves:

  • Arguing the acts were isolated and not part of a pattern,
  • Challenging the existence of an "enterprise,"
  • Disputing the defendant's intent or role in the organization,
  • Asserting entrapment or lack of knowledge.

Because RICO law applies to both structured criminal networks and legitimate entities that act unlawfully, it is frequently used in white-collar crime investigations, including those involving CEOs, political operatives, and large corporations.

Frequently Asked Questions

  1. What types of crimes fall under RICO law?
    RICO law covers a broad range of offenses, including fraud, bribery, extortion, drug trafficking, embezzlement, and more—provided they’re part of an ongoing criminal enterprise.
  2. Can a legitimate business be charged under RICO?
    Yes. RICO law applies not just to street gangs or mob organizations but also to corporations, unions, and other legitimate entities that engage in illegal activities.
  3. What is a "pattern of racketeering activity"?
    This refers to at least two related acts of racketeering committed within a 10-year period, indicating continuity of criminal behavior.
  4. What penalties can result from a RICO conviction?
    Criminal penalties can include up to 20 years or more in prison, asset forfeiture, and fines. Civil penalties include treble damages and attorney fees.
  5. Can private individuals file RICO lawsuits?
    Yes. RICO allows individuals to file civil suits for damages if they are directly harmed by a RICO violation.

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