The Racketeer Influenced and Corrupt Organizations Act: The Broad Fight Against Organized Crime
The Racketeer Influenced and Corrupt Organizations Act, referred to as RICO, is codified in 18 U.S.C §§1961-1968. RICO’s sections comprehensively define in detail the prohibited activities covered by the act, as well as the associated civil and criminal penalties.
Notably, the first section of RICO, §1961, defines “racketeering activity,” which encompasses a wide array of offenses. Under the definition, any act or threat involving arson, bribery, dealing in obscene matter or controlled substances, extortion, gambling, robbery, kidnapping, or murder can be “racketeering activity,” so long as State law provides a charge for the act or threat, and the act or threat is punishable by more than one year in prison. RICO also includes any act indictable under the Currency and Foreign Transactions Reporting Act; acts of terrorism indictable under 18 U.S.C. §2332b(g)(5)(B); acts indictable under the Immigration and Nationality Act, particularly §274, §277, and §278; restricted financial transactions under 29 U.S.C. §186; embezzlement of union funds under 29 U.S.C. §501(c); Fraud under title 11; securities fraud; and felonious acts involving the manufacture, sale, receipt, importation, or concealment of controlled substances.
The definition also lists a myriad of federal crimes under title 18 of the United States Code that are included in RICO. These federal statutes include bribery of public officials and witnesses under §201; sports bribery under §224; counterfeiting under §§471-473; theft from interstate shipment under §659; embezzlement from pension and welfare funds under §664; extortionate credit transactions under §§891-894; straw purchasing under §932; trafficking of firearms under §933; fraud in connection with identification documents under §1028; fraud in connection with access devices under §1029; transmission of gambling information under §1084; mail fraud under §1341; wire fraud under §1343; financial institution fraud under §1344; foreign labor contracting fraud under §1351; unlawful procurement of citizenship, reproduction of citizenship papers, or sale of citizenship papers under §§1425-1427; obscene matter offenses under §§1461-1465; obstruction of justice under §1503; obstruction of criminal investigations under §1510; obstruction of State or local law enforcement under §1511; tampering or retaliating against a witness or victim under §§1512-1513; fraud involving passports under §§1542-1544; fraud and misuse of visas, permits, and other documents under §1546; peonage, slavery, and human trafficking under §§1581-1592; economic espionage and theft of trade secrets under §§1831-1832; interference with commerce under §1951; interstate and foreign travel in aid of racketeering enterprises under §1952; interstate transportation of wagering paraphernalia under §195; unlawful welfare fund payments under §1954; illegal gambling businesses under §1955; money laundering under §1956; engaging in monetary transactions in property derived from specified unlawful activity under §1957; use of interstate commerce in the commission of murder-for-hire under §1958; illegal money transmitting businesses under §1960; sexual exploitation of children under §§2251, 2251A, 2252, and 2260; interstate transport of stolen motor vehicles or stolen property under §§2312-2315; trafficking counterfeit labels for computer programs, motion pictures, and other works under §2318; criminal copyright infringement under §2319; unauthorized fixation of and trafficking of sound recordings under 2319A; trafficking of goods or services bearing counterfeit marks under §2320; trafficking in certain motor vehicles or parts under §2321; trafficking contraband cigarettes under §§2341-2346; white slave trafficking under §§2421-2424; biological weapons under §§175-178; chemical weapons under §§229-229F; and nuclear materials offenses under §831.
While §1961 defines the broad scope of “racketeering activity” under RICO, §1962 lists the prohibited activities which, in connection with the offenses falling under the umbrella of racketeering activities, constitute RICO violations. First, the section prohibits the use of any income derived, either directly or indirectly, from racketeering activities. More specifically, §1962 outlaws using a pattern of racketeering activity in the interest in or control of any enterprise involved in interstate or foreign commerce. Conversely, anyone connected with an enterprise involved in interstate or foreign commerce is prohibited from conducting or participating in any racketeering activity through the enterprise. Conspiracy to violate any of the §1962 prohibitions is also illegal under the section.
RICO violations are subject to both criminal penalties under §1963 and civil penalties under §1964. Generally, criminal penalties for violations of §1962 include up to 20 years’ imprisonment. When the racketeering activity stems from offenses that independently carry a maximum of a life sentence, the associated RICO penalty also rises to a maximum of a life sentence. Additionally, once convicted, the offender must forfeit any interest acquired through the §1962 violation, and any interest in, security of, claim against, or right over an enterprise used in a §1962 violation, as well as any property obtained from the racketeering activity. Importantly, when a defendant is convicted in any criminal proceeding for violating §1962, the defendant is estopped from denying the essential allegations of the offense in civil proceedings. §1964 creates a civil cause of action for any person injured due to a §1962 violation. §1964 also grants authority to United States district courts to order divestment of interests in any enterprise, restrict future activities or investments of a person, and dissolve or reorganize any enterprise, with respect to the rights of innocent persons. This double-sided penalty structure emphasizes the serious approach to RICO violations, subjecting offenders to both financial and confinement-based penalties.
The Eleventh Circuit recently affirmed a RICO conviction in United States v. Wall, 116 F.4th 1285 (11th Cir. 2024). In Wall, the Court clarified the requirements to establish a RICO conspiracy, finding that agreement to participate can be proven in two ways: either by showing an agreement to an overall objective, or by showing that the defendant agreed to personally commit two predicate acts. The Court found that, when the evidence on the record indicated that the defendant was a gang leader who personally participated in managing and packaging cocaine shipments, the evidence was sufficient to support a conviction for a RICO conspiracy, therefore affirming the conviction.
The Eleventh Circuit has also addressed the civil side of RICO. In Blevins v. Aksut, 849 F.3d 1016 (11th Cir. 2017), the Court held that plaintiffs had properly alleged injuries for a RICO violation. In Belvins, the plaintiffs alleged that defendants operated a medical service enterprise that falsely represented certain procedures as medically necessary. Additionally, the plaintiffs argued that the defendants committed mail and wire fraud by billing the plaintiffs for the unnecessary procedures. The Court found that the costs of the medically unnecessary procedures were economic injuries, and therefore sufficiently alleged injure arising from a RICO violation that created a civil cause of action under §1964(c).
These cases combine to illustrate the wide array of offenses encompassed by RICO. Racketeering merely requires organized illegal activities aimed at commercial profits, which can take a wide variety of forms, from gangs trafficking drugs to organized medical fraud. The breadth of RICO allows law enforcement to target fraudulent and criminal enterprises in a variety of forms. The severe criminal penalties, and subsequent civil penalties, arising from RICO make it imperative for anyone facing a RICO charge to enlist the assistance of an experienced and knowledgeable attorney.
If you have a Federal Criminal case, a State Criminal case, a Municipal Case or a Family Law case in the Northern District of Alabama, Middle District of Alabama, Southern District of Alabama, or any federal jurisdiction in the Eleventh Circuit, including Alabama, Florida, and Georgia, contact Joe Ingram or Ingram Law LLC at 205-335-2640. Get Relief * Get Results.