The Racketeer Influenced and Corrupt Organizations Act (the “RICO Act”), established by Title IX of the Organized Crime Control Act of 1970 (18 U.S.C. §§ 1961-1968), is a powerful tool for addressing organized crime and racketeering activities. Originally aimed at combating organized crime, RICO is now applied to a broad range of illegal activities, including white-collar crime and business fraud. Below is an overview of the federal RICO Act and how RICO charges work when suspects are prosecuted in New York City (NYC), or anywhere else in the U.S., with reference to the relevant statutory provisions.
Recent Cases
Use of the RICO Act is common in criminal cases targeting rap and hip-hop musicians. Recently, Eugene Henley, known by the moniker “Big U,” was arrested and charged under the RICO Act for, amongst other things, murder. Sean Combs, whose aliases are P Diddy, Diddy, and Puffy, is in federal custody and awaiting trial on charges, which include a RICO Act violation.
RICO Act Overview
The RICO
The RICO Act criminalizes acts, described in greater detail below, relating to racketeering activity and unlawful debts. Racketeering activity has a lengthy definition under section 18 U.S. Code § 1961 that includes, but is not limited to, for example, murder, kidnapping, gambling, arson, robbery, bribery, extortion, sports bribery, and misuse of a passport.
In addition, under this section, the phrase unlawful debt means either of the following: a financial commitment owed pursuant to gambling activity which is illegal under state or federal legislation, or laws relating to a political subdivision of either (together “US Law”); or the business of lending money or something of value at a usurious rate which is twice or more of the enforceable interest rate under state or federal law ( either one an “Unlawful Debt”).
Bearing the above definitions in mind, The RICO Act prohibits four acts:
- receiving any income derived from racketeering activity or collection of an unlawful debt and acting as a principal using income obtained from those schemes to acquire or establish an association or a gang that is not legal entity (an “Enterprise”), affecting interstate or foreign commerce (but this proscription does not, however, include the investing of securities on the open market which do not amount to more than 1% of the outstanding shares of that issuer unless you have power to elect a director of that company);
- conducting more than one of the criminal acts listed in 18 U.S. Code § 1961 in a 10-year period (“Racketeering Activity”) or collecting an Unlawful Debt to invest in or control any Enterprise affecting interstate or foreign commerce;
- participation in the affairs of an Enterprise involved in interstate or foreign commerce through a pattern of Racketeering Activity or collection of Unlawful Debt by that entity’s employee or associate; or
- conspiring to commit any of the crimes in the foregoing three paragraphs listed above.
How RICO Charges Work in NYC
RICO charges typically begin with a federal or state investigation, which may involve wiretaps, looking at financial records, and undercover operations. Prosecutors must prove that the defendant engaged in a pattern of illegal activities that benefited a criminal enterprise. In contrast to standalone charges for specific crimes, RICO allows multiple crimes and defendants to be grouped into one case.
Penalties for RICO Convictions
The penalties for a RICO conviction in NYC can be severe, as outlined in 18 U.S.C. § 1963. These penalties may include:
- Up to 20 years in prison per RICO count.
- Life imprisonment may apply in cases involving violent crimes like murder.
- Asset forfeiture, where the government can seize property and financial assets gained from illegal activities.
Defenses Against RICO Charges
Successfully defending against RICO charges requires a thorough understanding of both federal and state laws. Common defense strategies include:
- Arguing the prosecution cannot prove a pattern of racketeering.
- Demonstrating that the defendant was not part of the criminal enterprise.
Conclusion
Facing RICO charges in NYC is a serious matter that requires immediate legal representation. Whether you are accused of involvement in organized crime, fraud, or other predicate offenses, having a skilled defense attorney can make a critical difference in your case.
If you or a loved one is under investigation or facing RICO charges, contact a knowledgeable white-collar defense attorney today. With the right legal strategy, you can fight the charges and protect your rights against aggressive prosecution.
Contributions to this blog by Kennedy McKinney.
