Title 18 U.S.C. § 1961 - Federal Racketeering (RICO)
RICO is a federal law, short for the Racketeering Influenced and Corrupt Organizations Act, part of the Organized Crime Control Act of 1970.
Before RICO, only individual members who committed crimes could be arrested, indicted, and convicted.
This meant that leaders and those in authority, who planned or directed the crimes, could not be prosecuted.
Now, federal prosecutors have the authority to indict anyone involved in the organization or participating in criminal activities related to racketeering.
Racketeering is a federal offense under 18 U.S.C. § 1961 and is typically part of organized crime. It involves groups such as gangs, gambling rings, and the mafia.
Criminal Organizations
In simple terms, RICO enables authorities to charge members of these criminal organizations with racketeering. If any member commits specific federal or state crimes within ten years, the RICO Act can be invoked.
Originally, federal prosecutors used RICO as a powerful tool to target organized crime groups engaged in widespread illegal activities as a unified enterprise.
The federal RICO Act is frequently employed to address a wider spectrum of criminal conduct involving extortion and coercion.
Originally, the RICO Act concentrated on racketeering, enabling the targeting of organized illegal activities that profit from group efforts. Additionally, it permits prosecutors to file charges against businesses involved in fraud and extortion.
Components of the Federal Racketeering Offense
In the United States, it is illegal for anyone to receive payments stemming from racketeering or unlawful debt collection and then use that money to fund operations affecting interstate or foreign commerce.
To qualify as a pattern of racketeering, there must be at least two racketeering acts within ten years. A "racketeering activity" refers to any act or threat involving:
- Murder,
- Kidnapping,
- Gambling,
- Robbery,
- Bribery,
- Extortion,
- Controlled substances,
- Drug trafficking,
- Money laundering,
- Violent crimes.
Any action considered criminal under other federal laws, including but not limited to the following:
- Wire fraud,
- Mail fraud,
- Bank fraud,
- Securities fraud,
- Counterfeiting,
- Embezzlement,
- Obstruction of justice, or
- Misuse of a passport.
Currency and Foreign Transactions Reporting Act
Any act involving restrictions on payments and loans to labor organizations, or related to embezzlement from union funds.
It also includes offenses involving fraud linked to cases under title 11, securities fraud, and crimes such as manufacturing, importing, receiving, concealing, buying, selling, or dealing in controlled substances or listed chemicals in a felonious manner.
Any action can be prosecuted under the Currency and Foreign Transactions Reporting Act.
If the act is committed for financial gain, it can also be penalized under the Immigration and Nationality Act. Acts punishable under section 2332b of the U.S.C. involve acts of terrorism that cross international borders.
An "unlawful debt" refers to a debt incurred through gambling in violation of State or Federal law and related to the gambling or lending business. Furthermore, the applicable value rate is at least double the enforceable rate.
Federal Racketeering and Conspiracy
Additionally, defendants can face charges of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act ("RICO"), even if they were not involved in running or managing the racketeering activities.
If they knew about the scheme and agreed to assist in its execution so that it would breach RICO once completed, they could be prosecuted under this law.
Penalties for Racketeering
Federal racketeering convictions carry a maximum sentence of 20 years, or life if the activity's maximum penalty includes it. The defendant must also surrender to the U.S. government.
- Any interest they have gained or kept through racketeering activity, proceeds, or illegal debt.
- Any interest in, security of, claim against, or property or contractual right related to any business or operation that was established, controlled, or conducted using proceeds from racketeering activity or unlawful debt.
- Any property obtained from the proceeds of racketeering activities or unlawful debt collection.
In simple terms, a conviction under the RICO Act can result in asset forfeiture, in which the government seizes money or property linked to racketeering.
However, the prosecutor must demonstrate that you acquired the assets through illegal means, used them in the commission of the crime, or purchased them with money obtained from criminal activities.
It should also be noted that if a defendant is charged with multiple underlying racketeering activities at the same time, courts may treat each offense as a separate conviction, potentially resulting in a higher penalty.
Additionally, the severity of the penalty may vary based on the defendant's role in the crime. For example, organizers or leaders of the offense would face harsher penalties than minor participants.
What Must Be Proven to Convict?
To win their case, the prosecution must prove beyond a reasonable doubt that the defendant committed all the elements of the racketeering crime, including:
- A criminal enterprise that impacted commerce,
- That the defendant was associated with the enterprise,
- The defendant participated in racketeering activities.
- The defendant engaged in a racketeering scheme by committing at least two criminal acts.
The key element in a RICO case is establishing a "pattern" of criminal conduct. There must be at least two acts of racketeering within ten years for the RICO law to be applicable.
It's important to recognize that federal RICO investigations are conducted by highly skilled law enforcement agents and prosecutors.
Consequently, defending against RICO charges necessitates a lawyer with significant federal criminal defense experience. While there are various common defenses, a thorough review of the case details is essential first.
Legal Defenses Against Federal Racketeering Charges
Common strategies by a federal criminal defense lawyer against RICO charges include the following:
- You did not conspire to commit the crimes.
- Your acts were not criminal,
- Mistaken identity,
- Demonstrating the absence of any pattern of racketeering activity.
- Indicating the criminal organization was in charge of the illegal activity.
- You did not intentionally participate in any criminal activity.
- If multiple defendants face federal racketeering charges, demonstrate that they are not a criminal enterprise but rather a loose group of individuals.
We might also argue that you weren't acting on behalf of a criminal enterprise, or that the evidence used against you was obtained through an illegal search and seizure.
If the prosecution cannot prove beyond a reasonable doubt that a criminal enterprise ordered or directed illegal activities, federal racketeering charges cannot be applied to your case.
If you are under investigation or facing federal RICO charges, early intervention by our law firm can be vital to the success of your case.
We may be able to negotiate with the federal prosecutor for a better outcome, but prompt action is essential to strengthen your defense. Contact Cron, Israels & Stark for a case review.