Racketeer Influenced and Corrupt Organizations Act (RICO)
Definition
The Racketeer Influenced and Corrupt Organizations Act (RICO) is a United States federal law that was enacted on October 15, 1970, as part of the Organized Crime Control Act. RICO provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization. It allows the leaders of a syndicate to be tried for the crimes which they ordered or assisted in, closing a loophole that allowed individuals to insulate themselves from the criminal activities they orchestrated.
Examples
1. Mafia Prosecutions
RICO has been extensively used to prosecute members of the Mafia in the United States. High-profile cases include the conviction of John Gotti, the head of the Gambino crime family, and members of the Lucchese crime family.
2. Corporate Fraud
Enron’s corporate scandal is an example where RICO charges were considered for the fraudulent accounting practices that led to the company’s collapse and significant financial losses for its employees and investors.
3. Human Trafficking Rings
RICO laws have been used to dismantle extensive human trafficking operations, allowing for the prosecution of all individuals involved in the ring, from the traffickers to those providing false documentation.
Frequently Asked Questions (FAQs)
Q: What types of crimes fall under RICO?
A: RICO covers a wide range of criminal activities, including bribery, counterfeiting, embezzlement, drug trafficking, and many forms of fraud, among others. Essentially, any act that can be part of an ongoing criminal enterprise can be prosecuted under RICO.
Q: Can RICO be used against legitimate businesses?
A: Yes, if a legitimate business is involved in a pattern of criminal activity, it can be prosecuted under RICO. This includes activities like securities fraud or money laundering.
Q: What is a “pattern of racketeering activity”?
A: A pattern of racketeering requires at least two acts of racketeering activity, within ten years. These acts must be related and amount to or pose a threat of continued criminal activity.
Q: What are the penalties under RICO?
A: Penalties include up to 20 years in prison for each racketeering count, the forfeiture of all assets gained or maintained from the criminal enterprise, and substantial fines.
Q: Can victims of racketeering sue under RICO?
A: Yes, RICO allows for civil lawsuits where victims can recover triple the amount of damages sustained, plus attorney fees.
Related Terms and Definitions
Racketeering
Illegal activities, such as extortion and drug dealing, that are systematically carried out by an organized group.
Organized Crime
A category of transnational, national, or local groupings of highly centralized enterprises run by criminals, who intend to engage in illegal activity.
Online References
Suggested Books for Further Studies
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“RICO: Civil and Criminal Law and Strategy” by Jed S. Rakoff This comprehensive guide provides in-depth commentary and analysis of RICO laws and their applications.
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“Racketeering in American Business: A History of Political Corruption and Crime” by Burr W. Kelly This book provides historical perspectives on how racketeering has infiltrated American businesses and politics over decades.
Fundamentals of Racketeer Influenced and Corrupt Organizations Act (RICO): Business Law Basics Quiz
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