What is Racketeering?

Racketeering is like a bully going after your lunch money…

A schoolyard bully may force their intended target to pay them so that they won't beat them up. As in the case of a gang forcing a business owner to pay him for the promise of not getting robbed. Racketeers create or threaten to create the problem and then readily provide a solution for a hefty fee.

Racketeering can take on many forms, from physical altercations and white-collar crimes to those involving the 'hijacking' of your personal computer.

A racketeer will typically attempt to get property or money from someone else, through force or intimidation.

What are some examples of racketeering crimes?

Arson is when someone intentionally sets a property on fire. Sometimes the arsonist's motive is to commit insurance fraud by setting fire to his own property.

Kidnapping is unlawfully holding a person against their will. The abductor generally continues to detain them for a monetary ransom or some other desired benefit.

Bribery takes place when someone pays for a special favor — Like when a contractor pays the inspector to overlook code violations in the building they constructed. Another example is when a drug manufacturer bribes a doctor to over-prescribe a medication, therefore, committing insurance fraud to boost their profits.

Extortion is the practice of getting money by making threats or force. Although the victim consents to the crime, the consent is illegally obtained.

A fencing racket is where a group or individual will act as the middleman and purchase stolen property from thieves at a low rate and profit by reselling the items at a higher cost to unsuspecting buyers.

Murder is taking someone's life without a valid reason or justification, particularly the killing of another human with malice or the desire to do evil and cause harm.

Drug trafficking involves the cultivation, manufacture, distribution, and sale of illicit substances that are subject to laws prohibiting these acts.

Robbery means to take or attempt to take something of value by putting the victim in fear of their life, by force or threat of force.

Cybercrime relates to any crime conducted via computer networks or devices to advance other goals, such as identity theft and fraud. Phishing is a type of email scam; the criminal sends an email that looks genuine and appears to come from a real company and asks you to click on a link. The link takes you to a form where you're asked to provide sensitive information. It's called a phishing scam because the criminals use fake bait, an email that looks legit, hoping to find users to take the bait.

White-collar crimes are nonviolent and typically committed for financial gain. People who commit white-collar crimes are typically motivated by gaining a business or personal advantage and are possibly afraid of losing money or property

Examples of white-collar crime include:

• Corporate fraud: This takes place when fraudulent activities are committed by a company or individuals to gain an unfair advantage for the perpetrating company or individual.
• Securities and Commodities Fraud: This takes place when corporate information is falsified.

-Money laundering: This is concealing the true origin of money obtained illegally involving the transfer of money through legitimate businesses or foreign banks, like using a mechanic shop as a front for drug dealing.

• Embezzlement: This is the dishonest use of money by someone who has been entrusted by their employer, like when an accountant uses company funds for a luxury vacation or when an attorney uses money in an escrow account for themself.

Anyone involved in a pattern of racketeering activity connected to an enterprise is subject to being charged with violating the RICO law. To find a person guilty of racketeering, the government has to prove beyond a reasonable doubt that an enterprise existed —and that defendant engaged in a pattern of racketeering.

It takes at least two acts of racketeering within a 10-year period before a prosecutor can file formal racketeering charges against an individual or a mob syndicate. Of the 35 RICO offenses, 27 are classified as federal crimes, and 8 are state crimes.

For many years organized crime held a strong influence in many parts of the American economy. Because a different individual committed each crime, the government could only prosecute each criminal instead of taking down the whole criminal organization.

The original, declared purpose of the RICOAct of 1970 was to stop organized crime. The law gives prosecutors the ability to link perpetrators, such as a mob boss, to crimes, even though they were not physically present where the crime was committed.

The landmark law has also been used against non-organized crime defendants, because of the broad language of the statute.

RICO makes it a federal crime to get or maintain an interest in, use the money from, or participate in the business of an enterprise through the habit of racketeering activity. The statute's enterprise definition includes the government, a corporation, sole proprietorship, or other business or organization.

Racketeering is a federal crime with severe consequences. Anyone found guilty of violating the RICO law can be fined up to $25,000 per incident, serve 20 years in prison, or both. Individually, each convicted person is subject to the forfeiture of any business interests or property assets, even interests in a legitimate business.

This provision also gives the government the authority to take dividends from investments made with money from racketeering activities. Anyone convicted of racketeering is also subject to civil penalties, such as injunctions, reorganization of business, and orders to shut down their business.

RICO is a crucial business law because it penalizes civil and criminal activities.

Anyone that's been injured by a RICO violation can file a civil lawsuit. Upon winning their case, the plaintiff qualifies to receive treble damages (three times the amount of their actual damages.)

During the 1980s, civil attorneys attempted to make many claims under RICO. However, in the 1990s, the federal courts implemented several conditions that have to be met prior to considering civil lawsuits under RICO. To succeed, the plaintiff must show:

• Criminal Activity: You need to show that the defendant committed one of the RICO crimes, including wire or mail fraud. However, fraud charges are highly scrutinized.
• A Pattern of Criminal Activity: You must establish a pattern of at least two crimes, and that pattern has to be somehow related by the same methods, same participants, same victim, or a combination of all three.
• Within the Statute of Limitations: The U.S. Supreme Court determined that a person only has four years from the time the victim discovers their damages to file the civil suit.