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So your probably facing federal RICO charges and your ABSOLUTELY SHOCKED because you thought RICO was only for mafia bosses and organized crime families. Maybe you operated business that prosecutors claim was criminal enterprise. Maybe there’s allegations you committed multiple crimes as part of ongoing organization. Or maybe prosecutors are charging you with racketeering for conduct you thought was just regular fraud or theft. Look, we get it. Your COMPLETELY TERRIFIED by RICO charges. And you should be! Because RICO under 18 USC 1962 carries 20 YEARS or LIFE in federal prison and MANDATORY forfeiture of ALL property connected to enterprise – and prosecutors use RICO far beyond traditional organized crime to target street gangs, businesses, and even protest groups!
Let me explain the statute designed to dismantle organized crime that now targets wide range of conduct. RICO stands for Racketeer Influenced and Corrupt Organizations Act passed in 1970 to combat mafia’s infiltration of legitimate businesses! Four separate ways to violate RICO under subsections (a) through (d)!
The statute requires ENTERPRISE plus PATTERN OF RACKETEERING ACTIVITY! Enterprise is any group of individuals associated in fact – doesn’t need to be formal organization! Pattern means at least TWO predicate acts of racketeering within ten years!
Here’s what’s really scary – RICO applies to activities of enterprises affecting interstate or foreign commerce! Since almost ALL businesses affect interstate commerce, RICO has nationwide application! Local street gang? Federal RICO jurisdiction! Small business fraud? RICO applies!
Predicate acts are specific federal and state crimes listed in statute! Murder, kidnapping, gambling, arson, robbery, bribery, extortion, drug dealing, fraud, obstruction of justice – list of over 30 federal offenses plus certain state crimes! Commit two of these within ten years as part of enterprise? That’s RICO!
Section 1962 has FOUR subsections creating different RICO violations!
Section 1962(a): Investing proceeds of racketeering in enterprise! Using money derived from pattern of racketeering to acquire interest in, establish, or operate enterprise affecting interstate commerce! Classic mafia tactic of using drug money to buy legitimate businesses!
Section 1962(b): Acquiring or maintaining interest in enterprise through racketeering! Using extortion, violence, or other racketeering acts to take control of business or organization! Forcing business owners to sell through threats!
Section 1962(c): Conducting affairs of enterprise through pattern of racketeering! Being employed by or associated with enterprise and conducting its affairs through pattern of racketeering activity! MOST commonly charged RICO violation! Running business by committing crimes!
Section 1962(d): Conspiring to violate 1962(a), (b), or (c)! Agreeing to invest racketeering proceeds, acquire enterprise through racketeering, or conduct enterprise through racketeering! RICO conspiracy charge! Don’t need to prove pattern was completed – just agreement!
Prosecutors LOVE 1962(c) and (d)! Section (c) is substantive RICO violation requiring proof of enterprise and pattern! Section (d) is RICO conspiracy requiring only agreement! Often charge both – substantive RICO plus RICO conspiracy as separate counts!
Broadly defined to include almost any group or organization!
Enterprise includes “any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact”! Two types: legal entities (corporations, partnerships) and associated-in-fact enterprises (informal groups)!
Associated-in-fact enterprise is “group of persons associated together for common purpose of engaging in course of conduct”! Doesn’t need formal structure, charter, or hierarchy – just ongoing organization with common purpose! Street gang? Enterprise! Group of people committing fraud together? Enterprise!
Enterprise must have existence separate from pattern of racketeering! Can’t just be group committing crimes – must have some organizational structure or common goal beyond just criminal activity! Evidence of ongoing organization and functioning as continuing unit proves enterprise!
But courts interpret this VERY loosely! Small loose-knit groups qualify as enterprises! Five people working together to commit fraud with minimal coordination can be enterprise! Don’t need bosses, lieutenants, formal meetings!
Enterprise need NOT be criminal organization! Legitimate businesses can be enterprises for RICO purposes if operated through pattern of racketeering! Corporation engaging in mail fraud? Corporation is enterprise, fraud is racketeering activity!
Requires TWO elements: at least two predicate acts PLUS continuity and relatedness!
Must prove at least TWO acts of racketeering within ten years! Pattern means at least two acts of racketeering activity, one after RICO’s effective date and last within ten years of prior act! Excluding periods of imprisonment from ten-year calculation!
But two acts alone aren’t enough! Supreme Court held pattern requires acts be RELATED and show CONTINUITY! Related means acts have same or similar purposes, results, participants, victims, or methods! Continuity means substantial period of criminal activity or threat of future repetition!
Relatedness requirement: Predicate acts must be interrelated by distinguishing characteristics and not isolated events! Same victims? Related! Same scheme? Related! Similar methods? Related! Completely unconnected crimes? Not related!
Continuity has TWO forms: closed-ended and open-ended! Closed-ended continuity: series of related acts over substantial time period (usually one year minimum)! Open-ended continuity: past conduct that by its nature projects into future with threat of repetition!
Two predicate acts committed weeks apart with no ongoing scheme? Probably insufficient for pattern! Pattern requires either multiple acts over time OR acts suggesting ongoing criminal enterprise!
Specific crimes listed in 18 USC 1961(1) that qualify as racketeering!
Federal crimes: Murder, kidnapping, gambling, arson, robbery, bribery, extortion, dealing in obscene matter, dealing in controlled substances! Any act indictable under these federal statutes!
Fraud offenses: Wire fraud, mail fraud, fraud in sale of securities, embezzlement from pension funds, embezzlement from union funds! Most common predicates in white-collar RICO cases!
Violent crimes: Murder for hire, kidnapping, arson, robbery, extortion involving threats of violence! Traditional mafia crimes!
Drug trafficking: Any felony drug violation under Controlled Substances Act! Drug distribution, manufacturing, importation – all qualify as predicate acts!
Money laundering: Transactions involving proceeds of specified unlawful activity! Laundering drug money or fraud proceeds!
State crimes: Certain state offenses chargeable as felonies including murder, kidnapping, gambling, arson, robbery, bribery, extortion, drug dealing! State law violations can be RICO predicates if chargeable as felonies and punishable by more than one year!
Obstruction of justice: Witness tampering, destruction of evidence, obstruction of criminal investigations! Common predicates when enterprise tries to cover up crimes!
Sentences are CRUSHING with mandatory asset forfeiture!
Prison: 20 years maximum OR LIFE if any predicate act carries life sentence! If violation based on racketeering activity with maximum penalty of life imprisonment, RICO violation also carries life! RICO based on drug trafficking with life exposure? Life sentence available!
Fines: Up to $250,000 OR twice the gross gain or loss from racketeering activity! If enterprise made $10 million, fine can be $20 million! Tied to financial scope of racketeering!
Mandatory forfeiture: MUST forfeit ALL interest in enterprise AND all property derived from racketeering! Court shall order forfeiture to United States of any interest in enterprise person established, operated, controlled, or participated in conducting! Lose EVERYTHING connected to enterprise!
Forfeiture reaches assets obtained directly or indirectly from racketeering! Money, property, businesses, investments purchased with racketeering proceeds – all subject to forfeiture! Government seizes houses, cars, bank accounts, business interests!
Pre-trial asset restraint: Government can seek restraining order BEFORE trial freezing assets likely to be forfeited upon conviction! Prevents defendants from hiding or spending assets! Can’t access your own money for legal defense!
Restitution to victims: Beyond forfeiture, must pay restitution to victims harmed by racketeering! If fraud victims lost money, drug trafficking destroyed communities, extortion harmed businesses – ordered to compensate!
RICO used far beyond traditional organized crime!
Traditional organized crime families! Mafia families engaging in gambling, loansharking, extortion, murder! Original RICO target – Italian-American organized crime syndicates infiltrating legitimate businesses!
Street gangs! MS-13, Bloods, Crips, Latin Kings prosecuted under RICO for drug trafficking, murder, robbery! Gang viewed as enterprise, crimes committed as gang members are racketeering acts!
White-collar fraud schemes! Business enterprises committing mail fraud, wire fraud, securities fraud as ongoing operations! Ponzi schemes, mortgage fraud rings, healthcare fraud operations!
Public corruption! Political machines where officials accept bribes, extort contractors, embezzle public funds! City governments operated through bribery and kickbacks!
Financial institutions! Banks, investment firms engaging in money laundering, fraud, or racketeering! Officers using bank as vehicle for criminal activity!
Police corruption! Corrupt police departments where officers engage in drug trafficking, extortion, civil rights violations as ongoing enterprise!
Several defenses exist but RICO is hard to beat!
No enterprise defense! If alleged group lacks common purpose or organizational structure, not enterprise! Must show no ongoing organization or continuing unit! Just individuals committing separate crimes without coordination!
Acts not related defense! If predicate acts don’t have similar purposes, victims, methods, or results, not pattern! Isolated unconnected crimes don’t satisfy relatedness requirement! Each act involved different victims, different schemes, different time periods!
No continuity defense! If acts occurred briefly with no threat of future repetition, lacks continuity! Short-term scheme with definite ending doesn’t show pattern! Single fraud lasting weeks doesn’t establish RICO pattern!
Fewer than two predicate acts! If government can’t prove at least two qualifying racketeering acts, no pattern! Challenge whether alleged acts actually qualify as statutory predicates!
Not conducting enterprise’s affairs! For 1962(c) violations, must prove defendant conducted or participated in conducting enterprise through pattern! If merely employee following orders without decision-making role, may not be conducting affairs!
Statute of limitations! RICO prosecution must begin within 5 years of last predicate act! If all alleged racketeering activity ended more than 5 years before indictment, time-barred!
Withdrawal from conspiracy! For RICO conspiracy charges, if affirmatively withdrew before other members committed acts in furtherance, may avoid liability!
Look, we’re not your typical lawyers who are intimidated by RICO charges. We’re former federal prosecutors who CHARGED RICO cases and know EXACTLY how to challenge enterprise element and continuity requirements!
We understand how to prove acts weren’t related! We know when alleged enterprise lacks organizational structure! We can establish insufficient continuity! Most importantly, we fight asset seizures and pre-trial restraining orders!
Other lawyers don’t recognize pattern defenses! They miss enterprise challenges! Their ignorance leads to convictions and total forfeiture that shouldn’t occur!
Call us RIGHT NOW at 212-300-5196
RICO investigations mean wiretaps and informants penetrating organizations!
Former federal prosecutors – RICO defense specialists – Available 24/7!
Don’t speak to FBI about alleged criminal enterprise without experienced RICO counsel! They’re building enterprise evidence from organizational charts, phone records, surveillance! Every statement about your role becomes evidence of conducting enterprise’s affairs! Assert your rights and call us IMMEDIATELY!
Remember – federal RICO charges aren’t just about organized crime families, there about prosecutors using enterprise and pattern theories to enhance sentences and seize assets. Two fraud schemes, two drug sales, two extortions can mean 20 years plus forfeiture of everything you own. You need someone who understands both continuity requirements AND forfeiture defense. Call us NOW before RICO charge destroys your life and takes your assets!
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