RICO Act

The Racketeer Influenced and Corrupt Organizations Act (RICO) is a United States federal law that was enacted in 1970 as part of the Organized Crime Control Act. Its primary purpose is to combat organized crime in the United States by allowing for the prosecution and civil penalties for acts performed as part of an ongoing criminal organization. This article explores the historical context, key provisions, applications, and criticisms of the RICO Act, as well as its impact on American law enforcement and organized crime.

Historical Context of the RICO Act

The inception of the RICO Act was largely a response to the growing concern over organized crime in the United States during the mid-20th century. The Mafia, along with other organized crime syndicates, was increasingly involved in various illegal activities, including drug trafficking, extortion, gambling, and money laundering. Law enforcement agencies found it challenging to dismantle these organizations due to the complexities of their operations and the ability of leaders to distance themselves from criminal acts.

In the years leading up to the enactment of RICO, several high-profile investigations and trials exposed the pervasive influence of organized crime in American society. The inability to effectively prosecute key figures in organized crime prompted Congress to craft legislation that would address these challenges. RICO was designed to provide law enforcement with tools to target not only the individuals committing crimes but also the organizations facilitating these activities.

Key Provisions of the RICO Act

The RICO Act is codified in Title IX of the Organized Crime Control Act of 1970, found in Title 18 of the United States Code (U.S.C. § 1961-1968). The law consists of several key provisions that define its scope and application:

1. Definition of Racketeering Activity

RICO defines “racketeering activity” broadly, encompassing a wide range of criminal offenses. These include, but are not limited to:

• Gambling
• Drug trafficking
• Bribery
• Extortion
• Fraud
• Money laundering

This broad definition allows prosecutors to charge individuals and organizations for a variety of illegal activities, regardless of whether they are directly involved in the underlying crimes.

2. Pattern of Racketeering Activity

To establish a RICO violation, prosecutors must demonstrate the existence of a “pattern of racketeering activity.” This requires showing that the defendant engaged in at least two acts of racketeering activity within a ten-year period. The acts must be related and have a continuity that indicates ongoing criminal behavior.

3. Criminal and Civil Enforcement

RICO provides for both criminal penalties and civil remedies. Criminal offenses under RICO can result in significant prison time, with penalties of up to 20 years for each violation. In addition to imprisonment, convicted individuals may face substantial fines.

On the civil side, RICO allows private individuals and organizations to file lawsuits against those engaged in racketeering. Successful plaintiffs can recover treble damages (triple the amount of actual damages) and attorney fees, creating a powerful incentive for civil suits.

4. Enterprise Definition

RICO targets “enterprises,” which can be defined in a broad sense. An enterprise can include any individual, partnership, corporation, association, or other legal entity, as well as informal associations of individuals. This expansive definition allows law enforcement to target not only traditional organized crime groups but also legitimate businesses engaged in illegal activities.

Applications of the RICO Act

Since its enactment, the RICO Act has been employed in a variety of contexts beyond traditional organized crime. Its applications have extended to various criminal enterprises and even white-collar crime. Some notable applications include:

1. Organized Crime Prosecutions

The RICO Act has been instrumental in prosecuting high-profile organized crime figures and dismantling their networks. Notable cases include:

• The prosecution of the Genovese crime family in the 1980s, which resulted in the conviction of numerous mob leaders.
• The successful use of RICO to prosecute members of the Gambino crime family, including the infamous John Gotti.

2. Political Corruption

RICO has also been used to combat political corruption, targeting corrupt politicians and their associates. For instance, several cases have involved city officials and construction companies engaged in bribery and kickbacks.

3. White-Collar Crime

The application of RICO has extended to corporate entities involved in fraudulent schemes. Cases against corporations and their executives for securities fraud, mail fraud, and other white-collar offenses have successfully utilized RICO to hold individuals accountable.

4. Gang Violence

In recent years, law enforcement has increasingly turned to RICO to combat gang violence. Prosecutors have used the Act to target gang leaders and their organizations, seeking to disrupt their operations through coordinated efforts.

Criticisms of the RICO Act

While the RICO Act has proven effective in addressing organized crime and related activities, it has also faced criticism on various grounds:

1. Broad Scope and Potential for Abuse

Critics argue that the broad definitions of racketeering activity and enterprise can lead to overreach and abuse of power by law enforcement. There are concerns that the Act could be applied to legitimate businesses or individuals engaging in lawful activities.

2. Due Process Issues

Some legal experts believe that RICO’s provisions may infringe upon the due process rights of defendants. The requirement to prove a “pattern of racketeering” can create challenges in ensuring fair trials, particularly for those accused of being part of a larger organization.

3. Complexity and Resource Allocation

The complex nature of RICO cases often requires significant resources from law enforcement and the judicial system. Critics argue that this can divert attention from other pressing criminal matters and place an undue burden on courts.

Impact on American Law Enforcement and Organized Crime

The enactment of the RICO Act has had a profound impact on how law enforcement agencies approach organized crime. RICO has allowed for more coordinated efforts among federal, state, and local law enforcement agencies, fostering collaboration in tackling organized crime.

Additionally, RICO has reshaped the landscape of organized crime in the United States. Its application has led to the dismantling of numerous criminal enterprises, resulting in significant disruptions to their operations. By targeting the entire organization rather than just individual actors, RICO has altered the calculus for organized crime groups, prompting them to adopt new strategies and structures.

Conclusion

The RICO Act represents a significant legal tool in the fight against organized crime in the United States. Its comprehensive approach to defining racketeering activity and targeting criminal enterprises has enabled law enforcement to address complex criminal organizations effectively. Despite criticisms regarding its broad scope and potential for abuse, RICO’s impact on American law enforcement and its role in dismantling organized crime remain undeniable.

Sources & References

• Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961-1968.
• Blakey, George, and Daniel F. Waggoner. “RICO: The Newest Tool for the Prosecutor.” Journal of Criminal Law and Criminology, vol. 67, no. 4, 1977, pp. 423-442.
• United States v. Turkette, 452 U.S. 576 (1981).
• Jacobs, James B. “The RICO Revolution: The Rise of the New Federalism.” Harvard Law Review, vol. 95, no. 4, 1982, pp. 1025-1055.
• RICO: A Comprehensive Overview. American Bar Association, 2015.