RICO Charges | What is RICO
Racketeer Influenced and Corrupt Organizations Act
This article discusses RICO charges for Federal and Georgia racketeering related crimes. Find information on penalties, sentences, predicate crimes prosecuted under RICO laws, and racketeering defense strategies.
What is the RICO Act in Simple Terms?
The Racketeer Influenced and Corrupt Organizations Act was implemented in 1970 as a key component of the Organized Crime Control Act. These laws were created specifically to fight and dismantle sophisticated criminal enterprises. This article provides information on key aspects of RICO Law. This includes its origins, use by law enforcement, and what a person will face when prosecuted under this Act.
The Racketeer Influenced and Corrupt Organizations Act (RICO) was created to fight organized crime. Basically, if two or more people create and actively manage a criminal enterprise they can be prosecuted via provisions in the RICO Act. RICO charges are commonly used to prosecute Mafia members, gang members, cartels, and others that employ a controlled system to commit ongoing crimes. There have even been numerous politicians convicted of racketeering.
What is a RICO Charge?
A RICO charge is a criminal charge (federal or state) that stems from racketeering activity. What is racketeering? Racketeering refers to an organized and persistent criminal manner, aka running a racket, to illegally generate income. The FindLaw website contains an article that states, the U.S. Department of Justice (DOJ) summarizes the crime of racketeering as follows: "It is unlawful for anyone employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity or collection of unlawful debt."1
List of RICO Predicate Crimes
These charges can come from any of 35 offenses of illegal activities, known as predicate crimes. To be prosecuted under RICO law, a person must have committed at least two predicate offenses within a 10 year period.
- Crimes Against People: Murder, kidnapping, extortion, robbery, arson, bribery, dealing in obscene matter, human trafficking, sex trafficking, slavery, involuntary servitude.
- Financial Crimes: Money laundering, bankruptcy fraud, securities fraud, embezzlement, mail fraud.
- Drug Crimes: Trafficking or distribution of illegal drugs, controlled substances, marijuana, etc.
- Other Crimes: Collusion, terrorism, counterfeiting, theft, obstruction, gambling, intellectual property infringement.
Meeting the Key Requirements
Per the Justice.gov website, "… in order to be found guilty of violating the RICO statute, the government must prove beyond a reasonable doubt: (1) that an enterprise existed; (2) that the enterprise affected interstate commerce; (3) that the defendant was associated with or employed by the enterprise; (4) that the defendant engaged in a pattern of racketeering activity; and (5) that 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."2
RICO Charges in Georgia
Georgia RICO laws were written based on the existing federal RICO Act of 1970; however, the Georgia act was written to be broader and easier to apply. Georgia’s RICO act can be applied to just one individual alleged to be operating a criminal enterprise who is accused of committing only two inter-related crimes.
Georgia Criminal Penalties
Georgia RICO convictions can result in a prison term of 5–20 years; a fine up to three times the amount of the financial gain from the crimes, but not less than $25,000; or both. Convictions on multiple charges can greatly increase the time of incarceration.
Federal RICO Charges
Federal RICO laws provide that a person can be prosecuted under RICO if they have committed at least two acts of racketeering activity within a 10-year period. The criminal acts must be somehow related (in one of four specified ways) to a criminal enterprise.
Federal Criminal Penalties
Federal RICO convictions can result in a prison term of 5–20 years; a fine up to three times the amount of the financial gain from the crimes, but not less than $25,000; or both. Additionally, asset forfeiture will be applied. Anyone convicted of RICO crimes must forfeit financial gains acquired through acts of racketeering. Convictions on multiple charges can lengthen prison time.
Civil RICO Lawsuits
A civil RICO claim allows legal recourse for individuals or businesses to seek compensation for harm caused by a criminal enterprise. The Office of Justice Programs website states that, "Civil litigation under RICO can usually be brought in the following general case classes: securities fraud, bankruptcy fraud, commercial bribery, and frauds that violate RICO mail and wire fraud provisions."3
Per the Cornell Law School, "RICO allows for a private individual that was injured by a violation of the law to recover treble damages suffered by the wrongful activity of the offender. A criminal conviction under RICO against the defendant will estop them from defending the allegations if they are brought to civil court."4
Defense Strategies: Is It Possible to Beat Charges?
Can you get out of RICO charges? It’s possible, but very challenging. You will need a very good law firm to get the best possible outcome. Prosecution by the Federal government has nearly a 100% conviction rate. State cases are almost as challenging to win.
A successful defense against racketeering charges usually requires upsetting the core requirements for bringing racketeering charges. If the defense can show the absence of legal requirements for racketeering charges your situation is vastly improved. The prosecution could still try to prosecute you for a particular crime. If convicted of the crime your sentence will be far better than suffering a RICO sentence. What are the areas a defense lawyer can attack? Here are examples:
- Proving that a criminal enterprise did exist, and that you were part of that criminal enterprise.
- Invalidating allegations that a pattern of criminal activity occured within a set period of time.
- Showing lack of continuity, meaning that alleged crimes were spontaneous, random, not related.
- Proving that the Statute of Limitations has expired.
Statute of Limitations
Criminal RICO Cases
Regarding federal criminal RICO charges, Title 18, section 3282 of the U.S. Code is the default statute of limitation. This part of U.S. Code specifies, "no one can be prosecuted for a non-capital offense unless an indictment is found or an information is instituted within five years of the offense."
Regarding Georgia criminal RICO charges, the statute of limitations for criminal charges related to Racketeer Influenced and Corrupt Organizations is five years.
Civil RICO Lawsuits
The statute of limitations for federal civil RICO charges is five years from the date of the last alleged criminal act.
Georgia Statute of Limitations for a civil RICO lawsuit is five years. Federal Statute of Limitations for a federal civil RICO lawsuit is five years.
Beyond the Statute of Limitations
The aforementioned Statutes of Limitation are not absolute. In certain cases and circumstances, the statute of limitations may be extended.
Beneficial Ownership Information Reporting
An example of a tool used to detect RICO offenses is The Corporate Transparency Act (CTA). The Act was passed by Congress specifically to identify and prosecute businesses involved in money laundering and terrorist financing. The CTA requires business ownership information reporting requirement for corporations, limited liability companies, and similar entities created and operating in the United States.
Companies are required to report information about the individuals who ultimately own or control the business. Using this information, federal investigators look for unusual connections between companies. Being based on assumptions, an owner of multiple (legitimate) businesses could be under scrutiny for RICO charges. Even if you are totally innocent, you should hire an experienced RICO lawyer.
If you hire a top RICO law firm the RICO lawyers can leverage proven strategies affect beating RICO charges.
Do you need an attorney who understands RICO charges and defenses? Call our law firm at 770-956-1400.
CREDITS and FOOTNOTES
- 1 John Mascolo, "Racketeering/RICO", December 06, 2023, Available from FindLaw
- 2 DoJ Staff, "RICO Charges", January 22, 2020, Available from U.S. Department of Justice
- 3 W.MCotham and R.G. Campbell, "Civil Actions Under the Racketeer Influenced and Corrupt Organizations Act (RICO)", April 20, 1983, Available from U.S. DoJ
- 4Wex Definitions Team, "RICO", August 7, 2023, Available from Cornell Law School
- Photo by CottonBro Studio, available at Pexels
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