The Evolution Of Rico Statutes: Lawmaking Process

The Racketeer Influenced and Corrupt Organizations (RICO) Act was passed by the US Congress in 1970 as part of the Organized Crime Control Act. The RICO Act was designed to tackle organised crime in the US by strengthening legal tools for evidence gathering and providing enhanced sanctions and remedies for dealing with unlawful activities. The Act makes it a crime for anyone employed by or associated with any enterprise to conduct or participate in the enterprise's affairs through a pattern of racketeering activity or collection of unlawful debt. A violation of the RICO Act requires conduct, an enterprise, a pattern, and racketeering activity.

The Racketeer Influenced and Corrupt Organizations (RICO) Act's history

The Racketeer Influenced and Corrupt Organizations (RICO) Act was passed by the US Congress in 1970 as part of the Organized Crime Control Act. The primary purpose of the law was to tackle organized crime and racketeering, which had previously been difficult to prosecute due to the disconnected structure of criminal organizations.

Before RICO, prosecutors could only try individual members of criminal organizations for specific crimes. With RICO, prosecutors were given the power to target entire criminal organizations. The law established new penal prohibitions, enhanced sanctions, and new remedies for dealing with the unlawful activities of those engaged in organized crime. It also allowed for the tying together of apparently unrelated crimes with a common objective into a prosecutable pattern of racketeering.

Under RICO, a person who has committed at least two acts of racketeering activity from a list of 35 crimes (27 federal and eight state crimes) within a 10-year period can be charged with racketeering if such acts are related in one of four specified ways to an "enterprise." These enterprises can be legal or illegal entities, such as a corporation or a mob.

RICO also created a civil cause of action, allowing private individuals "damaged in their business or property" by racketeering to file civil suits. Both the criminal and civil components of RICO allow for the recovery of treble damages.

While RICO was initially used to target the Mafia and other organized crime groups, its application has broadened over the years. It has been used to prosecute street gangs, politicians, labor unions, and various other individuals and organizations.

RICO's definition of an enterprise

The Racketeer Influenced and Corrupt Organizations (RICO) Act defines an "enterprise" as:

> any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity.

This definition is intentionally broad, as Congress mandated a liberal construction of the RICO statute to effectively target organized crime. Notably, the defendant(s) are not the enterprise; in other words, the defendant(s) and the enterprise are not one and the same.

To be found guilty of violating the RICO statute, the government must prove beyond a reasonable doubt that:

• An enterprise existed.
• The enterprise affected interstate commerce.
• The defendant was associated with or employed by the enterprise.
• The defendant engaged in a pattern of racketeering activity.
• The defendant conducted or participated in the conduct of the enterprise through that pattern of racketeering activity through the commission of at least two acts of racketeering activity as set forth in the indictment.

A "pattern of racketeering activity" requires at least two acts of racketeering activity committed within ten years of each other. The government must show that the racketeering predicates are related and that they amount to or pose a threat of continued criminal activity. Racketeering predicates are related if they have the same or similar purposes, results, participants, victims, or methods of commission, or are otherwise interrelated by distinguishing characteristics and are not isolated events.

The power of RICO lies in its conspiracy provision, which allows for tying together apparently unrelated crimes with a common objective into a prosecutable pattern of racketeering.

RICO's impact on labor unions

The Racketeer Influenced and Corrupt Organizations (RICO) Act was enacted in 1970 to strengthen legal tools for evidence gathering and provide enhanced sanctions and new remedies for dealing with the unlawful activities of those engaged in organized crime. The law's impact on labor unions is significant, as it allows for the prosecution of union officials engaged in racketeering and other unlawful activities.

RICO's conspiracy provision is a powerful tool that enables prosecutors to tie together seemingly unrelated crimes with a common objective, forming a prosecutable pattern of racketeering. This is particularly relevant in the context of labor unions, where corruption or unlawful activities may involve multiple individuals or entities working together towards a common goal. By establishing a pattern of racketeering, prosecutors can build a strong case against union officials engaged in unlawful activities.

Furthermore, RICO provides for severe penalties, including fines of up to $25,000 and 20-year prison sentences per racketeering count. This serves as a strong deterrent against union officials considering engaging in unlawful activities. Additionally, RICO permits the forfeiture of all ill-gotten gains and interest in any business gained through a pattern of racketeering activity. This ensures that those convicted of racketeering do not benefit from their criminal activities.

The Act also allows for injunctive relief provisions, prohibiting convicted racketeers from further involvement with the labor organization. This provision ensures that corrupt union officials are removed from positions of leadership and helps to promote a more democratic union leadership structure over time.

In addition to its impact on labor unions, RICO has been applied broadly to prosecute various types of organized crime, including Mafia families, street gangs, and white-collar criminals. The law's focus on patterns of behavior, rather than isolated criminal acts, makes it a versatile tool for law enforcement in their efforts to combat organized crime.

RICO's application beyond the Mafia

The Racketeer Influenced and Corrupt Organizations (RICO) Act is a United States federal law that was enacted in 1970 to combat organised crime and corrupt activities. While it was originally aimed at the Mafia, prosecutors have since applied it more broadly to target other forms of organised crime, including street gangs, cartels, corrupt police departments, and corrupt politicians.

Postal Burglars and Fencers

In May 1979, the RICO statute was used to allege that a gang of postal burglars and a Nevada fence were collaborating in an organised crime fashion. This case, United States v. Sam Bailey Gang, did not involve a Mafia crime family.

Laborers International Union of North America

In October 1978, the RICO Act was used to indict officers of Local 1292 of the Laborers International Union of North America. The defendants were convicted of conspiracy, murder for hire, perjury, and embezzlement of union property.

Hells Angels Motorcycle Club

In 1979, the United States Federal Government used RICO to go after several members and associates of the Oakland chapter of the Hells Angels. The prosecution team attempted to demonstrate a pattern of behaviour to convict the defendants of RICO offenses related to guns and illegal drugs.

Key West Police Department

In 1984, the Key West Police Department was declared a criminal enterprise under the federal RICO statutes after a lengthy investigation by the United States Department of Justice. Several high-ranking officers, including Deputy Police Chief Raymond Cassamayor, were arrested on federal charges of running a protection racket for illegal cocaine smugglers.

The Order

The Order was an American far-right terrorist group active from 1983 to 1984, intending to precipitate the collapse of the federal government. To fund their activities, they turned to armoured car robbery and a counterfeiting and laundering operation. The FBI used RICO to bring 10 members to trial and achieved convictions for racketeering and conspiracy charges.

Michael Milken

In 1989, American financier Michael Milken was indicted on 98 counts of racketeering and fraud. It was one of the first occasions that a RICO indictment was brought against an individual with no ties to organised crime.

Los Angeles Police Department

In 2000, Federal District Judge William Rea ruled that the RICO statute could be used to name the entire LAPD as a criminal enterprise for individuals suing it over police brutality and misconduct. Over 140 civil RICO lawsuits were filed against the department.

Major League Baseball

In 2002, the former minority owners of the Expos filed charges under the RICO Act against MLB commissioner Bud Selig and former Expos owner Jeffrey Loria. They claimed that Selig and Loria conspired to devalue the team for personal benefit in preparation for a move.

Trump University

In 2013, a civil RICO class action suit was filed against Donald Trump, accusing him of misrepresenting Trump University. The case was settled in 2016 for a total of $25 million, without any admission of wrongdoing by Trump.

RICO's penalties

The Racketeer Influenced and Corrupt Organizations (RICO) Act was enacted in 1970 to strengthen legal tools for evidence gathering and to establish new penal prohibitions and remedies for dealing with the unlawful activities of those engaged in organized crime. The RICO statute provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization.

RICO Penalties

RICO allows prosecutors to bring all of an organization or enterprise's different criminal acts together in a single prosecution. The law permits both criminal prosecutions, which can include penalties of prison, fines, and forfeiture, as well as civil lawsuits, which involve monetary damages.

Each count of racketeering is punishable by up to 20 years of incarceration and a fine of up to $25,000. However, racketeering is punishable by life imprisonment if the predicate crime is punishable by life imprisonment (such as murder). The court can also impose a fine of up to twice the defendant's illegal profits.

RICO also permits criminal forfeiture of any assets earned or maintained through racketeering. This means that the government obtains legal title to the assets. For example, property such as land, cars, and equipment owned by a criminal enterprise can become the property of the federal government.

In addition to criminal prosecutions, RICO also permits civil suits by private citizens (plaintiffs) who have suffered financial harm to their business or property because of racketeering. For example, a private nightclub owner whose business was being undercut by a competitor who engaged in illegal businesses, such as gambling and prostitution, could sue for damages.

In a civil lawsuit, the plaintiff must prove that a RICO violation occurred and that the violation caused injury to the plaintiff in the form of economic harm. If the plaintiff can prove a RICO violation and resulting injury, the federal court can order the defendant to:

• Pay treble (triple) damages to the plaintiff
• Pay the plaintiff's attorneys' fees
• Stop engaging in certain activities or businesses (an injunction)
• Dissolve an organization (called equitable relief)

Federal RICO prosecutions or civil lawsuits associated with them can be extremely serious and include prison time, forfeiture of assets, and treble damages.

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