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So your probably facing federal extortion charges under Hobbs Act and your ABSOLUTELY CONFUSED because you thought extortion was state crime. Maybe you threatened someone to get payment. Maybe there’s allegations you obtained property through fear. Or maybe your a public official accused of taking payments “under color of official right.” Look, we get it. Your COMPLETELY OVERWHELMED by federal charges. And you should be! Because Hobbs Act extortion under 18 USC 1951 carries 20 YEARS in federal prison and prosecutors use statute to charge everything from street robberies to public corruption!
Let me explain the federal extortion weapon with incredibly broad reach. Hobbs Act enacted in 1946 to combat racketeering in labor-management disputes but now used for robberies, extortion, public corruption, street gangs! Originally targeted organized crime but evolved into general federal robbery and extortion statute!
The statute prohibits TWO main crimes: extortion and robbery! Both must affect interstate or foreign commerce – but this requirement is INCREDIBLY easy to satisfy! Any effect on commerce, however slight, gives federal jurisdiction!
Here’s what’s really scary – extortion includes obtaining property with consent induced by wrongful use of force, violence, or fear OR under color of official right! Two completely different types of extortion with different elements!
Penalties are HARSH! 20 years maximum per count, fines reaching hundreds of thousands, mandatory restitution! Multiple victims? Multiple 20-year counts! We’ve seen street robbers facing life under Hobbs Act!
Hobbs Act defines both crimes with DIFFERENT elements!
Robbery is unlawful taking of property from person or presence of another against their will by force, violence, or fear! Classic stickup – “give me your money or I’ll hurt you”! Victim doesn’t consent! Property taken by force!
Extortion is obtaining property from another WITH THEIR CONSENT induced by wrongful use of force, violence, or fear! Key difference: victim “consents” to give property because of threat! “Pay me $10,000 or I’ll burn your business” – that’s extortion not robbery!
Robbery is immediate – happens during confrontation! Extortion involves future threat – “pay me next week or else”! If threat is of immediate harm during encounter, robbery! If threat is of future harm, extortion!
Both carry same 20-year maximum! Prosecutors charge whichever fits facts! Sometimes charge BOTH for same conduct! Defense must distinguish which crime actually occurred!
Attempted robbery and attempted extortion are also crimes under Hobbs Act! Don’t need to succeed in taking property! Just attempting to obtain property through force or fear satisfies statute!
Second type of extortion targeting PUBLIC OFFICIALS!
Public official commits extortion under color of official right when obtains payment to which not entitled knowing it was made in exchange for official acts! Don’t need threats or fear – just public official obtaining payment for doing job!
This is MOST common Hobbs Act prosecution of public corruption! Mayor taking bribes? Hobbs Act extortion under color of official right! Police officer demanding payments? Extortion under color of official right! Any public official at any level – federal, state, local – can be prosecuted!
Critical difference from bribery statute! For Hobbs Act, government need NOT prove official induced or solicited payment! Just need to prove official accepted payment knowing it was for official acts! Easier to prove than traditional bribery!
“Stream of benefits” theory allows prosecution without specific quid pro quo! Official accepts ongoing payments with understanding of generally doing favors as opportunities arise! Don’t need to prove specific payment for specific act!
But Supreme Court requires quid pro quo when payment disguised as campaign contribution! If corpus of contribution doesn’t personally benefit official, must prove explicit quid pro quo! Can’t just infer corruption from contributions followed by favorable actions!
Every Hobbs Act prosecution requires effect on interstate commerce!
Commerce element seems like high bar but courts interpret INCREDIBLY broadly! Any interference with commerce, whether slight, subtle, or potential, is sufficient! Don’t need substantial effect – minimal impact satisfies element!
Supreme Court in Taylor v. United States (2016) held robbing drug dealers affects interstate commerce! Targeting marijuana and marijuana proceeds satisfies commerce element even though illegal drugs! Depletion of dealer’s assets affects their ability to engage in interstate drug trafficking!
Robbing businesses almost always satisfies commerce! Stores that buy products from out of state, restaurants serving food from other states, gas stations selling fuel transported across state lines! Nearly every business engages in interstate commerce!
Depletion of business assets theory! When business robbed, reduces their inventory and ability to purchase goods from interstate suppliers! Courts recognize this indirect effect on commerce satisfies Hobbs Act!
But robbing INDIVIDUALS generally doesn’t satisfy commerce element! Person’s personal money doesn’t affect interstate commerce unless can show they use it for business! Courts distinguish between business and personal assets for commerce requirement!
Important Supreme Court decisions limiting Hobbs Act scope!
Scheidler v. NOW (2003) held property must be transferable! Can include intangible property but must be something that can be transferred to defendant! Right to operate clinic isn’t transferable property! Physical violence without obtaining property doesn’t violate Hobbs Act!
Second Scheidler decision (2006) held Hobbs Act doesn’t create freestanding physical violence offense! Violence must be to obtain property through extortion or robbery! Can’t charge Hobbs Act just for interfering with business through violence!
This HELPS defendants charged with interference but no property taking! Protesters blocking clinic entrances? Not Hobbs Act if no property obtained! Threats of violence without demanding property? Not extortion!
But prosecutors still charge Hobbs Act for most confrontational property crimes! Extortion letters demanding payment? Property (money) is transferable! Shakedowns of businesses? Property obtained! Scheidler only eliminates pure violence cases without property element!
Prosecutions cover WIDE range of conduct!
Street gang robberies and extortions! Robbing drug dealers, extorting protection money from businesses, carjackings! Federal prosecutors use Hobbs Act to charge violent gang members with 20-year felonies!
Public corruption by officials! Mayors, police officers, building inspectors, judges taking bribes! Accepting payments for permits, contracts, favorable decisions! Hobbs Act easier to prove than traditional bribery!
Labor-management extortion! Union officials demanding payments from employers! Original purpose of Hobbs Act was combating labor racketeering! Still used for corrupt union officials!
Commercial extortion! Business competitors threatening to destroy reputation unless paid! Demanding money to not file lawsuits, to not report violations, to not disclose damaging information!
Attempted extortion through threats! Sending threatening letters demanding payment! Making phone calls threatening harm! Don’t need to receive payment – attempt is crime!
Elements vary depending on type of extortion!
For robbery: (1) unlawful taking of property (2) from person or presence of another (3) against their will (4) by force, violence, or fear (5) affecting interstate commerce! All five required!
For extortion by fear: (1) obtaining property (2) from another (3) with consent (4) induced by wrongful use of force, violence, or fear (5) affecting commerce! Key is consent induced by fear of future harm!
For extortion under color of official right: (1) public official (2) obtained property (3) not entitled to (4) knowing it was given for official acts (5) affecting commerce! NO need to prove threats or inducement!
“Wrongful” use of force or fear is critical! Lawful threats aren’t extortion! “Pay your debt or I’ll sue you” is lawful! “Pay or I’ll falsely accuse you of crime” is wrongful!
We challenge by showing fear wasn’t wrongfully induced! Debt collection? Lawful business negotiation? No wrongful threat of harm!
Several defenses exist but commerce element is often key!
No effect on interstate commerce! If victim was individual with personal assets not used in commerce, federal jurisdiction lacking! Robbing person’s personal money from home? May not affect commerce! We show victim wasn’t engaged in interstate business!
No property obtained! After Scheidler, must prove transferable property was taken! Violence alone without obtaining property isn’t Hobbs Act! We show defendant never obtained or attempted to obtain property!
Lawful threats not wrongful! Threatening to exercise legal rights isn’t extortion! Threatening to sue for debt, to report violations to authorities, to file criminal complaint – all lawful! Must be wrongful threat to be extortion!
No quid pro quo for official right extortion! When payments disguised as campaign contributions, must prove explicit agreement! Contributions followed by favorable actions aren’t enough without quid pro quo proof!
Lack of intent! If believed you had right to property or threats were lawful, no criminal intent! Good faith belief in entitlement to money negates extortion intent!
Entrapment! If government induced conduct you wouldn’t otherwise commit, entrapment defense! We’ve won cases where undercover operations created entire extortion scheme!
Look, we’re not your typical lawyers who don’t understand Hobbs Act’s complexity. We’re former federal prosecutors who CHARGED Hobbs Act cases and know EXACTLY how to challenge commerce element and wrongful threat theories!
We understand how to prove threats were lawful not wrongful! We know when commerce element isn’t satisfied! We can establish lack of quid pro quo in official right cases! Most importantly, we use Scheidler to challenge property element!
Other lawyers don’t challenge commerce jurisdiction! They accept government’s characterization of lawful debt collection as extortion! Their ignorance leads to convictions for legitimate business conduct!
Call us RIGHT NOW at 212-300-5196
Hobbs Act investigations involve wiretaps and undercover operations!
Former federal prosecutors – Hobbs Act specialists – Available 24/7!
Don’t speak to FBI about alleged threats or payments without experienced Hobbs Act counsel! They’re recording conversations! Building extortion case! Every statement about your intent becomes evidence! Assert your rights and call us IMMEDIATELY!
Remember – federal Hobbs Act charges aren’t just about violent criminals, there about prosecutors interpreting business disputes and debt collection as extortion. One threatening letter, one demand for payment, one acceptance of contribution can mean 20 years in federal prison. You need someone who understands both commerce element AND extortion defenses. Call us NOW before business dispute becomes Hobbs Act prosecution!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS