Federal RICO Charges Under 18 USC 1962: The Ultimate Prosecutorial Hammer
So your probably staring at this indictment charging you with RICO violations and your completely overwhelmed by the complexity. Maybe your business is being called a “criminal enterprise.” Maybe there’s allegations of a “pattern of racketeering activity.” Or maybe your just associated with people who committed crimes and now prosecutors are claiming your part of organized crime. Look, we get it. Your ABSOLUTELY CONFUSED how regular business becomes RICO. And you should be TERRIFIED! Because RICO carries 20 YEARS in federal prison and prosecutors use it to pile on charges and seize ALL your assets!
What Is the RICO Act Under 18 USC 1962?
Let me explain the nuclear weapon prosecutors are using against you. Racketeer Influenced and Corrupt Organizations Act was designed to fight organized crime but now applied to EVERYTHING from street gangs to corporations!
The statute has multiple subsections but most prosecutions use Section 1962(c)! Requires: (1) conduct (2) of an enterprise (3) through a pattern (4) of racketeering activity! Each element broadly defined to capture maximum defendants!
Here’s what’s really scary – RICO allows prosecution for being ASSOCIATED with crimes even if you didn’t personally commit them! Enterprise member liable for all enterprise crimes! Your role could be completely legal but still RICO if enterprise committed predicate acts!
“Racketeering activity” includes over 50 federal and state crimes! Murder, kidnapping, gambling, arson, robbery, bribery, extortion, fraud, drug offenses, money laundering! List keeps EXPANDING – Patriot Act added terrorism! We’ve seen white collar businesses charged under statute meant for mob!
What Constitutes a “Criminal Enterprise”?
Enterprise definition is SHOCKINGLY broad!
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(212) 300-5196“Enterprise” includes any legal entity OR any group associated in fact – corporations, partnerships, LLCs, informal associations, even groups without names or structure!
Legitimate businesses can be enterprises! Your construction company, law firm, auto dealership becomes “criminal enterprise” if used for pattern of racketeering! One department commits fraud regularly? Entire company is RICO enterprise!
“Association-in-fact” enterprises are even vaguer! Just need common purpose and continuing structure – doesn’t need hierarchy or formal organization! Friends who commit crimes together? Enterprise! Business relationships involving occasional crimes? Enterprise!
Todd Spodek
Lead Attorney & Founder
Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.
You ran a chain of used car dealerships and federal prosecutors are now claiming your business was a criminal enterprise under RICO, alleging that several employees engaged in odometer fraud and title washing across state lines over a five-year period. They're holding you personally liable for the entire operation even though you claim you had no knowledge of what individual employees were doing at separate locations.
How can they charge me with running a criminal enterprise when I didn't personally commit any of the alleged fraudulent acts?
Under 18 USC 1962(c), prosecutors don't need to prove you personally committed the predicate acts — they only need to show you conducted or participated in the conduct of an enterprise's affairs through a pattern of racketeering activity. The 'pattern' requirement under 18 USC 1961(5) means they must establish at least two related predicate offenses within a ten-year period, and courts look at whether there was continuity and relationship between those acts. However, the Supreme Court's decision in Reves v. Ernst & Young established that you must have participated in the 'operation or management' of the enterprise, which gives us a strong defense if your role was purely legitimate oversight. We would also challenge whether the alleged acts truly constitute an 'enterprise' under the statute or whether prosecutors are simply bundling ordinary fraud charges into a RICO case to increase pressure for a plea deal.
This is general information only. Contact us for advice specific to your situation.
Must show enterprise has existence separate from pattern of racketeering! But prosecutors argue ANY ongoing association satisfies this! We’ve seen courts find “enterprise” based on phone call patterns alone!
The enterprise can be legitimate organization used for illegal purposes OR entirely illegal organization! Political campaign that accepts bribes? Enterprise! Charity that launders money? Enterprise! Your book club that occasionally discusses tax evasion? Potentially enterprise!
