The Racketeer Influenced and Corrupt Organizations Act (commonly referred to as RICO Act or RICO) is a United States federal law that provides for extended penalties for criminal acts performed as part of an ongoing criminal organization. RICO was enacted by section 901(a) of the Organized Crime Control Act of 1970, Pub. L. No. 91-452, 84 Stat. 922 (15 October 1970). RICO is codified as Chapter 96 of Title 18 of the United States Code, 18 U.S.C. § 1961 through 18 U.S.C. § 1968.
It has been speculated that the name and acronym were selected in a sly reference to the movie Little Caesar, which featured a notorious gangster named Rico. The original drafter of the bill, G. Robert Blakey, refused to confirm or deny this.[1]
Summary
Under RICO, a person or group who commits any two of 35 crimes—27 federal crimes and 8 state crimes—within a 10-year period and, in the opinion of the United States Attorney bringing the case, has committed those crimes with similar purpose or results can be charged with racketeering. Those found guilty of racketeering can be fined up to $25,000 and/or sentenced to 20 years in prison. In addition, the racketeer must forfeit all ill-gotten gains and interest in any business gained through a pattern of "racketeering activity."
When the U.S. Attorney decides to indict someone under RICO, he has the option of seeking a pre-trial restraining order or injunction to prevent the transfer of potentially forfeitable property, as well as require the defendant to put up a performance bond. This provision was placed in the law because the owners of Mafia-related shell corporations often absconded with the assets. An injunction and/or performance bond ensures that there is something to seize in the event of a guilty verdict.
There is also a provision for private parties to sue. A "person damaged in his business or property" can sue one or more "racketeers." There must also be an "enterprise." The defendant(s) are not the enterprise, in other words, the defendant(s) and the enterprise are not one and the same. There must be one of four specified relationships between the defendant(s) and the enterprise. This lawsuit, like most Federal civil lawsuits, can take place in either Federal or State court. [1]
Both the federal and civil components allow for the recovery of treble damages (damages in triple the amount of actual/compensatory damages).
RICO offenses and definitions
Racketeering activity means:
Any act or threat involving gambling, murder, kidnapping, arson, robbery, bribery, extortion, dealing in obscene matter, or dealing in a controlled substance or listed chemical (as defined in section 102 of the Controlled Substances Act), which is chargeable under State law and punishable by imprisonment for more than one year;
Any act which is indictable under a wide variety of specific provisions of title 18 of the United States Code relating to bribery, counterfeiting, theft, embezzlement, fraud, obscene matter, obstruction of justice, slavery, racketeering, gambling, money laundering, commission of murder-for-hire, etc.
Any act which is indictable under title 29, United States Code, section 186 (dealing with restrictions on payments and loans to labor organizations) or section 501 © (relating to embezzlement from union funds),
Any offense involving fraud connected with a case under title 11 (except a case under section 157 of this title), fraud in the sale of securities, or the felonious manufacture, importation, receiving, concealment, buying, selling, or otherwise dealing in a controlled substance or listed chemical (as defined in section 102 of the Controlled Substances Act), punishable under any law of the United States,
Any act which is indictable under the Currency and Foreign Transactions Reporting Act,
Any act which is indictable under the Immigration and Nationality Act, section 274 (relating to bringing in and harboring certain aliens), section 277 (relating to aiding or assisting certain aliens to enter the United States), or section 278 (relating to importation of alien for immoral purpose) if the act indictable under such section of such Act was committed for the purpose of financial gain, or
Any act that is indictable under any provision listed in section 2332b (g)(5)(B);
Pattern of racketeering activity requires at least two acts of racketeering activity, one of which occurred after the effective date of this chapter and the last of which occurred within ten years (excluding any period of imprisonment) after the commission of a prior act of racketeering activity; The Supreme Court has instructed federal courts to follow the continuity plus relationship test in order to determine whether the facts of a specific case give rise to an established pattern. Predicate acts are related if they "have the same or similar purposes, results, participants, victims, or methods of commission, or otherwise are interrelated by distinguishing characteristics and are not isolated events." H.J. Inc. v. Northwestern Bell Telephone Co. Continuity is both a closed and open ended concept, referring to either a closed period of conduct, or to past conduct that by its nature projects into the future with a threat of repetition.
Where RICO laws might be applied
Although some of the RICO predicate acts are extortion and blackmail, one of the most successful applications of the RICO laws has been the ability to indict or sanction individuals for their behavior and actions committed against witnesses and victims in alleged retaliation or retribution for cooperating with law enforcement or intelligence agencies.
The RICO laws can be alleged in cases where civil lawsuits or criminal charges are brought against individuals or corporations in retaliation for said individuals or corporations working with law enforcement, or against individuals or corporations who have sued or filed criminal charges against a defendant.
Anti-SLAPP (strategic lawsuit against public participation) laws can be applied in an attempt to curb alleged abuses of the legal system by individuals or corporations who utilize the courts as a weapon to retaliate against whistle blowers, victims, or to silence another's speech. RICO could be alleged if it can be shown that lawyers and/or their clients conspired and collaborated to concoct fictitious legal complaints solely in retribution and retaliation for themselves having been brought before the courts.
Famous cases
On November 21, 1980, Frank "Funzi" Tieri was the first Mafia boss to be convicted under the RICO Act.
In June 1984, the Key West Police Department in Monroe County, FL was declared a criminal Enterprise under the Federal RICO statutes after a lengthy United States Department of Justice investigation. Several high-ranking officers of the department, including Deputy Police Chief Raymond Cassamayor, were arrested on federal charges of running a protection racket for illegal cocaine smugglers. Source At trial, a witness testified he routinely delivered bags of cocaine to the Deputy Chief's office at City Hall. Source
In 2002, the former minority owners of the Montreal Expos baseball team filed charges under the RICO Act against Major League Baseball commissioner Bud Selig and former Expos owner Jeffrey Loria, claiming that Selig and Loria deliberately conspired to devalue the team for personal benefit in preparation for a move. If found guilty, Major League Baseball could have been found liable for up to $300 million in punitive damages. The case lasted for two years, successfully stalling the Expos' move to Washington or contraction during that time. It was eventually sent to arbitration and settled for an undisclosed sum, permitting the move to Washington to take place.
RICO laws were unsuccessfully cited in NOW v. Scheidler, a suit in which certain parties sought damages and an injunction against pro life activists who physically block access to abortion clinics.
(Gee Bob, guess you did not know that, do I need to define unsuccessfully to you?)
In 2005, Tanya Andersen of Oregon responded to a lawsuit on behalf of Atlantic Records by in turn suing them under the RICO laws. Her suit alleges that RIAA members, in this particular case Atlantic, engaged in illegal computer trespass, extortion, and unfair trade practices under Oregon state law.
On April 26, 2006 the Supreme Court heard Mohawk Industries, Inc. v. Williams, which concerned what sort of corporations fell under the scope of RICO. Mohawk Industries had allegedly hired illegal aliens, in violation of RICO. The court will decide whether or not Mohawk Industries, along with recruiting agencies, constitutes an 'enterprise' that can be prosecuted under RICO.
On August 8, 2006 in Tampa, Florida several members of the street gang the Latin Kings were arrested in connection with RICO conspiracy charges and currently await trial, included in the arrest were Luis Hernandez, Celina Hernandez, Michael Rocca, Jessica Ramirez, Reinaldo Arroyo, Samual Alvarado, Omari Tolbert, Edwin DeLeon, and many others, totalling 39.
Also, in Tampa, on October 16, 2006, four members of the Gambino Crime Family (Terry Scaglione, Ronald Trucchio, Kevin McMahon, and Steven Catallono) were tried under RICO statues, found guilty and sentenced to life in prison.
