Everything about The Racketeer Influenced And Corrupt Organizations Act totally explained
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 . RICO is codified as Chapter 96 of
Title 18 of the United States Code, . It was intended to make it easier to prosecute
organized crime figures, but has been applied in several other cases as well.
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.
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 per racketeering count. 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's the option of seeking a pre-trial
restraining order or injunction to temporarily seize a defendant's assets and 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's something to seize in the event of a guilty verdict.
In many cases, the threat of a RICO indictment can force defendants to plead guilty to lesser charges, in part because the seizure of assets would make it difficult to pay a defense attorney. Despite its harsh provisions, a RICO-related charge is considered easy to prove in court, as it focuses on patterns of behavior as opposed to criminal acts.
There is also a provision for private parties to sue. A "person damaged in his business or property" can sue one or more "racketeers." The plaintiff must prove the existence of a "criminal 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.
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Both the federal and civil components allow for the recovery of
treble damages (damages in triple the amount of actual/compensatory damages).
Although its primary intent was to deal with organized crime, Blakey said that Congress never intended it to merely apply to the Mob. He once told
Time, "We don't want one set of rules for people whose collars are blue or whose names end in vowels, and another set for those whose collars are white and have Ivy League diplomas.".
Frank Tieri
On
November 21,
1980,
Genovese crime family boss
Frank "Funzi" Tieri was the first
Mafia boss to be convicted under the RICO Act.
Key West PD
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. At
trial, a witness testified he routinely delivered bags of
cocaine to the Deputy Chief's office at City Hall.
Michael Milken
On March 29, 1989, financier
Michael Milken was indicted on 98 counts of racketeering and fraud relating to an investigation into
insider trading and other offenses. Milken was accused of using a wide-ranging network of contacts to manipulate stock and bond prices. It was one of the first occasions that a RICO indictment was brought against an individual with no ties to organized crime. Milken plead guilty to six lesser offenses rather than face spending the rest of his life in prison.
On September 7, 1988, Milken's employer,
Drexel Burnham Lambert, was also threatened with a RICO indictment under the legal doctrine that corporations are responsible for their employees' crimes. Drexel avoided RICO charges by pleading guilty to lesser felonies; a RICO indictment would have almost certainly put Drexel out of business since its capital would have been tied up in its defense,
and banks won't extend credit to securities firms under RICO indictments.
Major League Baseball
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.
Pro Life Activists
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.
vs. RIAA
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.
Mohawk Industries
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.
Latin Kings
On August 20, 2006 in
Tampa, Florida most of the state leadership members of the
street gang, the
Latin Kings, were arrested in connection with RICO conspiracy charges to engage in racketeering and currently await trial. The operation, called "Down Crown," targeted statewide leadership of the Latin Kings. The raid occurred at the Caribbean American Club. Along with Tampa sheriff’s deputies, agents with the Tampa PD, the State Attorney’s Office, the FBI, Immigration and Customs Enforcement and the federal Bureau of Alcohol, Tobacco and Firearms were involved in the operation. 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.
Gambino Crime Family
Also, in Tampa, on October 16, 2006, four members of the
Gambino Crime Family (Terry Scaglione, Ronald Trucchio, Steven Catallono and associate Kevin McMahon) were tried under RICO statutes, found guilty and sentenced to
life in prison.
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