I. OVERVIEW, RICO LEGISLATIVE HISTORY AND DEPARTMENT OF
JUSTICE APPROVAL PROCESS
A. Overview of Criminal RICO
The Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1961-
1968, was enacted October 15, 1970, as Title IX of the Organized Crime Control Act of 1970.1
RICO provides for civil remedies as well as criminal penalties.
This Manual focuses exclusively on RICO’s criminal provisions.
RICO provides powerful criminal penalties for persons who engage in a “pattern of
racketeering activity” or “collection of an unlawful debt” and who have a specified relationship to an “enterprise” that affects interstate or foreign commerce.
Under the RICO statute, “racketeering activity” includes state offenses involving murder, robbery, extortion, and several other serious offenses, punishable by imprisonment for more than one year, and more than one hundred serious federal offenses including extortion, interstate theft, narcotics violations, mail fraud, securities fraud, currency reporting violations, certain immigration offenses, and terrorism related offenses.
A “pattern” may be comprised of any combination of two or more of these state
or federal crimes committed within a statutorily prescribed time period. Moreover, the predicate acts must be related and amount to, or pose a threat of, continued criminal activity.
An “unlawful debt” is a debt that arises from illegal gambling or loansharking activities. An
“enterprise” includes any individual, partnership, corporation, association, or other legal entity, and any group of individuals associated in fact although not a legal entity. For example, an arson ring can be a RICO enterprise, as can a small business or government agency.
Three different substantive criminal violations, and RICO conspiracy, are proscribed by
RICO. Section 1962(a) makes it a crime to invest the proceeds of a pattern of racketeering
activity or from collection of an unlawful debt in an enterprise affecting interstate or foreign
commerce. For example, a narcotics trafficker violates this provision by purchasing a legitimate business with the proceeds of a pattern of multiple drug transactions.
Section 1962(b) makes it a crime to acquire or maintain an interest in an enterprise
affecting interstate or foreign commerce through a pattern of racketeering activity or collection of an unlawful debt. For example, an organized crime figure violates this provision by taking over a legitimate business through a pattern of extortionate acts or arsons designed to intimidate the owners into selling the business to him.
Section 1962(c) makes it a crime to conduct the affairs of an enterprise affecting
interstate or foreign commerce “through” a pattern of racketeering activity or through the
alternative theory of collection of an unlawful debt. For example, an automobile dealer violates this provision by using the dealership’s facilities to operate a stolen car ring through a pattern of predicate violations.
Section 1962(d) makes it a crime to conspire to commit any of the three substantive
RICO offenses. Depending on the underlying racketeering activity, Section 1963(a) provides criminal penalties ranging from a maximum life sentence, or any term of years up to life imprisonment and/or a fine under Title 18.6
See Section IV(A) below. In addition, Sections 1963(a)(1)
through (a)(3) provide for forfeiture of the defendant’s interest in the enterprise connected to the offense, and his interests acquired through or proceeds derived from racketeering activity or unlawful debt collection. Section 1963 also permits the government to seek pre-trial and, in some cases, pre-indictment restraining orders to prevent the dissipation of assets subject to forfeiture.
Dynastic Successions Book 