The Racketeer Influenced and Corrupt Organizations Act, or RICO, is a federal criminal law that specifically targets organizations that engage in a pattern of illegal activity. The law, passed in 1970, was originally meant to target organized crime. By working to eliminate illicit organizations before they become entrenched, RICO attempted to reduce the impact of criminal behavior across the United States.
Under RICO, criminal charges can be brought against an organization’s “leaders, managers, and supervisors.” Additionally, individuals associated with an organization can also face federal criminal charges for engaging in any activity which furthers the organization’s criminal goals. This includes both organizations with a formal structure (like corporations) and less formalized criminal groups.
RICO covers a large variety of criminal activities, including fraud, racketeering, bribery, obstruction of justice, money laundering, kidnapping, murder, counterfeiting, and other criminal activity. It also creates civil remedies that allow victims of the organization’s actions to sue for damages. For example, if an individual was a victim of fraud caused by an organization, they may be able to seek punitive damages.
Modern Examples of RICO Cases
One modern example of RICO in action saw two executives of a travel website indicted for allegedly conspiring to deny wages to their employees. It was also alleged that the two men used the power of their positions to silence employees, blocking them from coming forward with complaints and reporting false information to law enforcement.
Another recent example of a RICO case saw a drug distribution network pay a civil settlement of $67 million. The group had been engaging in a variety of activities, including money laundering, tax fraud, and drug distribution. The criminal charges filed against the organization saw several of its leaders facing up to 20 years in prison.
Final Thoughts
The Racketeer Influenced and Corrupt Organizations Act is a powerful tool for law enforcement to target criminal organizations. By taking away the ability to hide behind a corporate veil and target individuals associated with the organization regardless of their involvement, the Act levels the playing field for those affected by criminal organizations. As these examples demonstrate, RICO is taken seriously and has real-world implications in the fight against organized crime.