Racketeering is a serious and broad term used to describe any criminal or criminal-like activity carried out through fraud, force, bribery, or threats of violence. The purpose of racketeering is to coerce or extort money, goods, services, or other personal gains. Racketeering has been around since Colonial times, but has found new relevance in today’s global economy due to its popularity in organized crime and terrorist groups.
To business professionals, racketeering should be of particular concern as it can be used to influence individuals, intimidate competitors, or scam customers. While the most common type of racketeering offense involves intimidation and extortion, other violations often include illegal gambling, bribery, drug trafficking, loan sharking, money laundering, bribery, and cybercrime.
The profile of a typical racketeer is someone who isn’t well-educated, but is willing to engage in criminal activity for financial gain. Many times, a racketeer will link up with organized crime or terrorist groups to find the necessary resources to commit fraud or extortion. They rely on threats, physical violence, or bribery to force people to fulfill their demands, and often use intimidation tactics to discourage anyone from coming forward with evidence of their crimes.
Business professionals should be aware of racketeering activities, because of the serious consequences that can follow. Not only can racketeering lead to financial loss and potential jail time for the perpetrators, but it can also destroy a business’s reputation. Companies that do not take the proper precautions to protect themselves from racketeering are at risk of financial losses, civil lawsuits, and government prosecution.
If you suspect that you or your business are the victims of racketeering activities, it is important to take immediate action. Such action can include filing a report with the police or FBI, consulting with a lawyer regarding your legal rights, or seeking assistance from a private security consultant. Though it is important to remain vigilant when it comes to racketeering, it is also important to recognize the legal implications of these charges–as it can have legal and financial effects.
The Bottom Line
Racketeering is a serious crime that should not be taken lightly. It is important for business professionals to understand the risks and consequences associated with this criminal activity, and to know the appropriate steps to take should they become the target of a racketeering scheme.