Understanding the RICO Act and Federal Racketeering Charges in California

Understanding the RICO Act and Federal Racketeering Charges in California

The Racketeer Influenced and Corrupt Organizations Act (RICO) is a complex federal law that can lead to serious criminal penalties here in California. But what exactly does it mean to face RICO charges? And how does this law work in practice? This article aims to provide a helpful overview of RICO and racketeering for regular folks trying to understand these laws better.

What is the RICO Act?

Congress passed RICO back in 1970—it was designed to combat organized crime operations like the mafia. The law basically makes it a crime to engage in a “pattern of racketeering activity” as part of an ongoing criminal enterprise. This includes crimes like bribery, money laundering, and mail fraud.

RICO cases can be complex because they often involve networks of people working together in criminal conspiracies. Prosecutors use RICO to go after the leaders who orchestrate schemes by linking them to crimes they ordered others to commit.

How Do RICO Charges Work?

For a RICO charge to stick, prosecutors need to prove a few key things:

• There was an “enterprise”—like a company or gang
• The enterprise engaged in or affected interstate commerce
• The defendant was associated with or employed by the enterprise
• The defendant engaged in at least two racketeering acts as part of the enterprise over a 10 year period

Racketeering acts under RICO include things like bribery, embezzlement, money laundering, bankruptcy fraud, illegal gambling, and mail/wire fraud. So prosecutors look for a pattern of those crimes tied to an enterprise.

RICO also allows private citizens to file civil lawsuits against racketeers to recover damages. Plaintiffs need to prove the defendants engaged in two or more instances of criminal activity.

Penalties for RICO Convictions

Since they’re federal crimes, RICO convictions mean potentially hefty punishments. Exact penalties vary case-by-case, but can include:

• Up to 20 years in federal prison per racketeering count
• Fines up to $25,000 per count
• Forfeiture of any assets linked to criminal activity

Given the complexity of most RICO cases, it’s common for defendants to face multiple racketeering counts—so they’re looking at decades behind bars if convicted.

Using RICO to Target Street Gangs

While created to combat organized crime, prosecutors also use RICO to go after violent street gangs today. Police can charge gangs as criminal enterprises and then link members to various crimes to show a pattern of racketeering activity.

Federal prosecutors have had success using RICO to dismantle major gangs like MS-13 this way. But there’s also controversy around using such heavy-handed laws against street gangs, with critics saying it goes too far.

Famous RICO Cases

Some of the most famous uses of RICO include prosecutions against:

• Mafia bosses like John Gotti and Tony Salerno in the 1980s
• The Hell’s Angels motorcycle gang
• Major Wall Street players like Michael Milken in the 1980s insider trading scandals
• The Key West Police Department for corruption in the 1980s
• The Los Angeles Police Department’s anti-gang unit for corruption in the late 1990s

As you can see, RICO cases run the gamut from traditional mob prosecutions to major public corruption scandals.

Defending Against RICO Charges

Fighting RICO charges in California requires experienced criminal defense attorneys. Possible strategies include:

• Attacking technical elements prosecutors must prove, like the existence of an “enterprise”
• Arguing the defendant wasn’t actually associated with the criminal enterprise
• Disputing whether crimes amount to racketeering versus isolated incidents
• Demonstrating crimes didn’t actually affect interstate commerce
• Seeking to sever defendants into separate trials

Given the steep penalties, the risks of going to trial are high. But skilled lawyers may be able to get charges dismissed or negotiate plea deals in some cases.

Get Help Fighting Racketeering Charges from Experienced Attorneys

RICO cases are challenging for defendants, but the right legal strategy can help achieve the best possible outcome. If you’re facing racketeering or other federal charges, contact experienced criminal defense attorneys immediately. An attorney can evaluate the evidence against you and advise you on the pros and cons of options like going to trial versus seeking a plea bargain.