Racketeering

Definition

Racketeering refers to the act of operating an illegal business or scheme (referred to as a “racket”) in order to make a profit, often through acts of extortion or coercion. The Racketeer Influenced and Corrupt Organizations (RICO) Act, passed by Congress in 1970, significantly expanded the definition of racketeering to include a wide range of criminal activities associated with organized crime.

Initial Definition:

Originally seen as an organized conspiracy to commit extortion.

Modern Scope:

Legislation, most notably the RICO Act, now includes various punishable offenses aimed at eradicating organized crime, providing enhanced sanctions and legal remedies.

Examples

Loan Sharking: Offering loans at extremely high-interest rates typically backed by threats of violence if repayment is not made.
Protection Rackets: Demanding money from businesses or individuals in exchange for protection against potential threats or violence, often perpetrated by the racketeer themselves.
Drug Trafficking: Engaging in the production, distribution, and sale of illegal drugs.
Money Laundering: The process of concealing the origins of illegally obtained money, typically through a complex sequence of banking transfers or commercial transactions.
Bribery: Offering, giving, receiving, or soliciting something of value as a means of influencing the action of an official in the discharge of their public or legal duties.

Frequently Asked Questions (FAQs)

What is the RICO Act?

The Racketeer Influenced and Corrupt Organizations (RICO) Act is a United States federal law enacted in 1970 that allows for the prosecution of individuals involved in organized crime by expanding the scope of punishable activities and providing for enhanced sanctions.

What are common crimes associated with racketeering?

Common crimes include bribery, money laundering, drug trafficking, illegal gambling, and extortion.

Who enforces racketeering laws?

Racketeering laws are enforced by various law enforcement agencies, including the Federal Bureau of Investigation (FBI) and state law enforcement agencies.

How does racketeering affect businesses?

Businesses may suffer from financial loss, reputational damage, and even closure if they are either victims of or implicated in racketeering activities.

Can individuals be prosecuted for racketeering or just organizations?

Both individuals and organizations can be prosecuted under racketeering laws if they engage in or conspire to engage in illegal activities outlined by the RICO Act.

Extortion

The practice of obtaining something, especially money, through force or threats.

Money Laundering

The illegal process of making large amounts of money generated by a criminal activity appearing to be earned legitimately.

Bribery

The act of offering, giving, receiving, or soliciting something of value to influence the actions of an official or other person.

Organized Crime

Criminal organizations or enterprises structured to run illegal activities as a sustainable business.

RICO Act

A federal law designed to combat organized crime in the United States, establishing extensive penalties for criminal acts performed as part of a criminal organization.

Online References to Resources

Suggested Books for Further Studies

“The RICO Act: A Guide to the Racketeer Influenced and Corrupt Organizations Act” by Evan Frisch
“Organized Crime: From the Mob to Transnational Organized Crime” by Michael Woodiwiss
“Dirty Money: The Rise and Fall of an International Organized Crime Ring” by Robert Mazur

Fundamentals of Racketeering: Criminal Law Basics Quiz

### What activity did racketeering originally involve? - [x] Extortion - [ ] Money laundering - [ ] Counterfeiting - [ ] Tax evasion > **Explanation:** Racketeering was originally an organized conspiracy to commit extortion, though its scope has expanded over time. ### What legislation primarily targets racketeering today? - [x] The RICO Act - [ ] The Patriot Act - [ ] The Cybersecurity Act - [ ] The Organized Crime Control Act > **Explanation:** The Racketeer Influenced and Corrupt Organizations (RICO) Act, passed in 1970, is the primary legislation targeting racketeering. ### Which is NOT a common crime under racketeering? - [ ] Money Laundering - [ ] Drug Trafficking - [ ] Bribery - [x] Patent infringement > **Explanation:** While money laundering, drug trafficking, and bribery are common racketeering crimes, patent infringement typically isn't associated with racketeering. ### What does RICO stand for? - [ ] Racketeer Investigation and Crime Organization - [x] Racketeer Influenced and Corrupt Organizations - [ ] Racketeer Involving Covert Operations - [ ] Racketeer International Crime Operations > **Explanation:** RICO stands for Racketeer Influenced and Corrupt Organizations. ### Can individuals be prosecuted under the RICO Act? - [x] Yes - [ ] No > **Explanation:** Both individuals and organizations can be prosecuted under the RICO Act if they engage in illegal activities defined by the law. ### What is the purpose of the RICO Act? - [ ] To regulate financial markets - [ ] To support online privacy - [x] To combat organized crime - [ ] To control pollution > **Explanation:** The RICO Act was designed to combat organized crime by expanding the scope of punishable activities and providing for enhanced sanctions. ### Who typically enforces RICO laws? - [ ] Securities and Exchange Commission (SEC) - [ ] Environmental Protection Agency (EPA) - [x] Federal Bureau of Investigation (FBI) - [ ] Federal Communications Commission (FCC) > **Explanation:** Racketeering laws, including those related to the RICO Act, are typically enforced by the FBI. ### What is a Protection Racket? - [ ] A type of insurance - [x] Demanding money for protection against threats - [ ] Legal gambling operation - [ ] A type of laundering > **Explanation:** A protection racket involves demanding money from businesses or individuals in exchange for protection against potential threats or violence, which is often perpetrated by the racketeers themselves. ### What sector is most commonly affected by racketeering? - [ ] Technology - [ ] Agriculture - [x] Businesses - [ ] Education > **Explanation:** Businesses are most commonly affected by racketeering activities, including extortion, bribery, and money laundering. ### Why might small business owners be particularly vulnerable to racketeering? - [x] Limited resources to resist or report - [ ] They all engage in illegal activities - [ ] They are isolated - [ ] They seek protection willingly > **Explanation:** Small business owners may have limited resources to resist or report racketeering activities, making them particularly vulnerable.

Thank you for studying our comprehensive coverage of racketeering and engaging with our quiz. Stay informed to combat organized crime effectively!