When the FBI Comes Calling…®
RICO CRIMES
RICO stands for "Racketeer Influenced and Corrupt Organizations." It is a law that is "designed to attack organized criminal activity and preserve marketplace integrity by investigating, controlling, and prosecuting persons who participate or conspire to participate in racketeering." Black's Law Dictionary 1286 (8th ed. 2005). The RICO Act was enacted in 1970, and applies only to activity involving interstate or foreign commerce. Id. "Racketeering" is defined in a couple of ways. In one way it is "a system of organized crime traditionally involving the extortion of money from businesses by intimidation, violence, or other illegal methods." Id. In a second sense, it is a "pattern of illegal activity (such as bribery, extortion, fraud, and murder) carried out as part of an enterprise (such as a crime syndicate) that is owned or controlled by those engaged in the illegal activity." Id. at 1287; see also 18 U.S.C. § 1961(1) (2007). This second sense is derived from the RICO statutes, found at 18 U.S.C. §§ 1961 et seq., and it has greatly broadened the term's original understanding to include such violations as mail fraud, securities fraud, and the collection of illegal gambling debts." Id. Because the RICO statutes are drawn so broadly, they have been applied in ways that Congress may not have intended. See Joseph Berger, Prosecutors to Present Clinic Doctor's Slaying to Grand Jury, N.Y. TIMES (Apr. 20, 1999) at B5 (United States Attorney discussed that potential charges that could be brought in the case of an attack on an abortion clinic doctor could include RICO if the suspect's act was tied to an organization); Clinic bomb victim speaks against bill to curb RICO, FORT WORTH STAR-TELEGRAM Jul 18, 1998 at 7 (Representative from Florida stated, in response to a successful civil lawsuit against anti-abortion protestors, "It was never the intention that the law be used against advocacy groups."). Furthermore, the RICO statutes "provide for enforcement not only by criminal prosecution also by civil lawsuit, in which the plaintiff can sue for treble damages," Id. at 1286, so there is great incentive to link as much activity to the RICO statutes as possible.
The Crime
18 U.S.C. § 1962 (2007).
Under this section, there are three different crimes that can be committed, plus an additional conspiracy provision.
Under section 1962(a), it is a crime for any person who has received any income derived from a pattern of racketeering activity or through collection of an unlawful debt in which such person has participated as a principal, to
- use or invest, directly or indirectly, any part of such income, or the proceeds of such income,
- in acquisition of any interest in, or the establishment or operation of, any enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce. 18 U.S.C. § 1961(a).
Under section 1962(b), it is a crime for a person, through a pattern of racketeering activity or through collection of an unlawful debt,
- to acquire or maintain, directly or indirectly, any interest in or control of any enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce. Id. § 1962(b)
Under section 1962(c), it is a crime for a person 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. Id. § 1962(c)
Under section 1962(d), it is a crime for any person to conspire to violate any of the provisions of section 1962. Id. § 1962(d).
Exception
Section 1962(a) generally does not apply to a purchase of securities on the open market for purposes of investment, and without the intention of controlling or participating in the control of the issuer, if the securities of the issuer held do not amount in the aggregate to one percent of the outstanding securities of any one class, and do not confer, either in law or in fact, the power to elect one or more directors of the issuer.) 18 U.S.C. § 1962(a).
The Punishment
18 U.S.C. § 1963 (2007).
A violation of section 1962 can be punished by
- a fine,
- imprisonment for not more than 20 years, or
- both. 18 U.S.C. § 1963(a).
If the violation is based on a racketeering activity for which the maximum penalty includes life imprisonment, then the violation can be punished by
- a fine,
- imprisonment for up to life, or
- any interest the person has acquired or maintained in violation of section 1962. 18 U.S.C. § 1963(a)(1).
- any-
- interest in any enterprise which the person has established, operated, controlled, conducted, or participated in the conduct of, in violation of section 1962; Id. § 1963(a)(2)(A);
- security of any enterprise which the person has established, operated, controlled, conducted, or participated in the conduct of, in violation of section 1962; Id. § 1963(a)(2)(B);
- claim against any enterprise which the person has established, operated, controlled, conducted, or participated in the conduct of, in violation of section 1962; Id. § 1963(a)(2)(C); or
- property or contractual right of any kind affording a source of influence over any enterprise which the person has established, operated, controlled, conducted, or participated in the conduct of, in violation of section 1962; Id. § 1963(a)(2)(D); and
- any property constituting, or derived from, any proceeds which the person obtained, directly or indirectly, from racketeering activity or unlawful debt collection in violation of section 1962. 18 U.S.C. § 1963(a)(3)
- both. Id.
Furthermore, the violation will result in the forfeiture to the United States of
Furthermore, in lieu of a fine otherwise authorized by this section, a defendant who derives profits or other proceeds from an offense may be fined not more than twice the gross profits or other proceeds. 18 U.S.C. § 1963(a).
The remaining provisions of section 1963 concern forfeiture procedures.