RICO

RICO — the Racketeer Influenced and Corrupt Organizations Act — is a US federal statute codified at 18 U.S.C. chapter 96, and since its enactment in 1970 it has formed the principal legal basis for combating organized crime in the United States. The central provision, 18 U.S.C. § 1962, prohibits four categories of conduct: investing income derived from so-called racketeering activity in an enterprise, acquiring control of an enterprise through racketeering, participating in the operation of an enterprise through racketeering, and conspiring to do any of the above.

A key concept in RICO is the "pattern of racketeering activity" — a pattern of specified criminal acts. A single offense is not sufficient; the prosecution must be able to show at least two related criminal acts within a ten-year period. The acts that qualify as racketeering include fraud, extortion, money laundering, drug trafficking and certain violent crimes.

RICO is notable for targeting entire organizations rather than only individuals. A leader may be convicted for an organization's criminal activity even if he or she did not personally carry out the specific offenses, provided that the person participated in the operation of the organization.

The statute has both a criminal and a civil dimension. On the criminal side, a violation can carry up to 20 years' imprisonment per count, as well as forfeiture of assets acquired through criminal activity. The civil dimension allows private parties to sue and, upon judgment, to recover treble damages for documented losses caused by a violation of § 1962.

In practice, RICO has been used in cases against biker and mafia organizations, corrupt businesses and political organizations, and the broad wording of the statute has produced a far-reaching body of case law that continues to develop in the American courts.