The Racketeer Influenced and Corrupt Organizations (RICO) Act is a
United States federal law
The law of the United States comprises many levels of codified and uncodified forms of law, of which the most important is the nation's Constitution, which prescribes the foundation of the federal government of the United States, as well as va ...
that provides for extended criminal penalties and a civil
cause of action
A cause of action or right of action, in law, is a set of facts sufficient to justify suing to obtain money or property, or to justify the enforcement of a legal right against another party. The term also refers to the legal theory upon which a p ...
for acts performed as part of an ongoing
criminal organization
Organized crime (or organised crime) is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally th ...
.
RICO was enacted by section 901(a) of the
Organized Crime Control Act
The Organized Crime Control Act of 1970 (, October 15, 1970), was an Act of Congress sponsored by Democratic Senator John L. McClellan and signed into law by U.S. President Richard Nixon.
The Act was the product of two sets of hearings in th ...
of 1970 () and is codified at as .
G. Robert Blakey
George Robert Blakey (born January 7, 1936) is an United States, American Attorneys in the United States, attorney and law professor. He is best known for his work in connection with drafting the Racketeer Influenced and Corrupt Organizations Ac ...
, an adviser to the
United States Senate Government Operations Committee, drafted the law under the close supervision of the committee's chairman, Senator
John Little McClellan
John Little McClellan (February 25, 1896 – November 28, 1977) was an American lawyer and a segregationist politician. A member of the Democratic Party, he served as a U.S. Representative (1935–1939) and a U.S. Senator (1943–1977) from ...
. It was enacted as Title IX of the Organized Crime Control Act of 1970, and signed into law by US President
Richard M. Nixon
Richard Milhous Nixon (January 9, 1913April 22, 1994) was the 37th president of the United States, serving from 1969 to 1974. A member of the Republican Party, he previously served as a representative and senator from California and was t ...
. While its original use in the 1970s was to prosecute the
Mafia
"Mafia" is an informal term that is used to describe criminal organizations that bear a strong similarity to the original “Mafia”, the Sicilian Mafia and Italian Mafia. The central activity of such an organization would be the arbitration of d ...
as well as others who were actively engaged in organized crime, its later application has been more widespread.
Beginning in 1972, thirty-three states adopted state RICO laws to be able to prosecute similar conduct.
Summary
Under RICO, a person who has committed "at least two acts of
racketeering
Racketeering is a type of organized crime in which the perpetrators set up a coercive, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation (a "racket") to repeatedly or consistently collect a profit.
Originally and of ...
activity" drawn from a list of 35 crimes (27
federal crimes
In the United States, a federal crime or federal offense is an act that is made illegal by U.S. federal legislation enacted by both the United States Senate and United States House of Representatives and signed into law by the president. Prosec ...
and eight
state crimes) within a 10-year period can be charged with racketeering if such acts are related in one of four specified ways to an "enterprise." Those found guilty of racketeering can be fined up to $25,000 and sentenced to 20 years in prison per racketeering count. In addition, the racketeer must forfeit all ill-gotten gains and interest in any business gained through a pattern of "racketeering activity."
A
US Attorney
United States attorneys are officials of the U.S. Department of Justice who serve as the chief federal law enforcement officers in each of the 94 U.S. federal judicial districts. Each U.S. attorney serves as the United States' chief federal c ...
who decides to indict someone under RICO has the option of seeking a pre-trial
restraining order
A restraining order or protective order, is an order used by a court to protect a person in a situation involving alleged domestic violence, child abuse, assault, harassment, stalking, or sexual assault.
Restraining and personal protection or ...
or injunction to temporarily seize a defendant's assets and prevent the transfer of potentially forfeitable property and to require the defendant to put up a
performance bond
A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. The term is also used to denote a collateral deposit of good faith mon ...
. That provision was placed in the law because the owners of
Mafia
"Mafia" is an informal term that is used to describe criminal organizations that bear a strong similarity to the original “Mafia”, the Sicilian Mafia and Italian Mafia. The central activity of such an organization would be the arbitration of d ...
-related
shell corporation
A shell corporation is a company or corporation that exists only on paper and has no office and no employees, but may have a bank account or may hold passive investments or be the registered owner of assets, such as intellectual property, or s ...
s often absconded with the assets. An injunction or performance bond ensures that there is something to seize in the event of a guilty verdict.
In many cases, the threat of a RICO indictment can force defendants to plead guilty to lesser charges, in part because the seizure of assets would make it difficult to pay a defense
attorney
Attorney may refer to:
* Lawyer
** Attorney at law, in some jurisdictions
* Attorney, one who has power of attorney
* ''The Attorney'', a 2013 South Korean film
See also
* Attorney general, the principal legal officer of (or advisor to) a gove ...
. Despite its harsh provisions, a RICO-related charge is considered easy to prove in court since it focuses on patterns of behavior, as opposed to criminal acts.
RICO also permits a private individual "damaged in his business or property" by a "racketeer" to file a
civil suit
-
A lawsuit is a proceeding by a party or parties against another in the Civil law (common law), civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today. The term "lawsuit" is used in re ...
. The plaintiff must prove the existence of an "enterprise." The defendant(s) are not the enterprise; in other words, the defendant(s) and the enterprise are not one and the same. There must be one of four specified relationships between the defendant(s) and the enterprise: either the defendant(s) invested the proceeds of the pattern of racketeering activity into the enterprise (18 U.S.C. § 1962(a)); or the defendant(s) acquired or maintained an interest in, or control of, the enterprise through the pattern of racketeering activity (subsection (b)); or the defendant(s) conducted or participated in the affairs of the enterprise "through" the pattern of racketeering activity (subsection (c)); or the defendant(s) conspired to do one of the above (subsection (d)). In essence, the enterprise is either the 'prize', 'instrument', 'victim', or 'perpetrator' of the racketeers. A civil RICO action can be filed in state or
federal court.
Both the criminal and the civil components allow the recovery of
treble damages
In United States law, treble damages is a term that indicates that a statute permits a court to triple the amount of the actual/compensatory damages to be awarded to a prevailing plaintiff. Treble damages are a multiple of, and not an addition to ...
(triple the amount of actual/compensatory damages).
Although its primary intent was to deal with
organized crime
Organized crime (or organised crime) is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally th ...
, Blakey said that Congress never intended it merely to apply to
the Mob. He once told ''
Time
Time is the continued sequence of existence and events that occurs in an apparently irreversible succession from the past, through the present, into the future. It is a component quantity of various measurements used to sequence events, to ...
'', "We don't want one set of rules for people whose collars are blue or whose names end in vowels, and another set for those whose collars are white and have
Ivy League
The Ivy League is an American collegiate athletic conference comprising eight private research universities in the Northeastern United States. The term ''Ivy League'' is typically used beyond the sports context to refer to the eight schools ...
diplomas."
The first-ever RICO trial was conducted in May 1979 in ''United States v. Sam Bailey Gang'' by Prosecutor Mark L. Webb in San Francisco, California, Northern District of California. The case was tried successfully by use of the RICO statute in alleging that a gang of postal burglars and a Nevada
fence
A fence is a structure that encloses an area, typically outdoors, and is usually constructed from posts that are connected by boards, wire, rails or netting. A fence differs from a wall in not having a solid foundation along its whole length.
...
collaborated criminally in an organized crime fashion. The case did not involve a Mafia crime family. Subsequently, the RICO Act was first used by the US Attorney's Office in the Southern District of New York on September 18, 1979, in ''United States v. Scotto''. Scotto, who was convicted on charges of racketeering, accepting unlawful labor payments, and income tax evasion, headed the
International Longshoremen's Association
The International Longshoremen's Association (ILA) is a North American labor union representing longshore workers along the East Coast of the United States and Canada, the Gulf Coast, the Great Lakes, Puerto Rico, and inland waterways. The ILA h ...
. During the 1980s and the 1990s, federal prosecutors used the law to bring charges against several Mafia figures. The second major success was the
Mafia Commission Trial
The Mafia Commission Trial (in full, ''United States v. Anthony Salerno, et al'') was a criminal trial before the United States District Court for the Southern District of New York in New York City, United States, that lasted from February 25, 19 ...
, which ran from February 25, 1985, through November 19, 1986.
Rudy Giuliani
Rudolph William Louis Giuliani (, ; born May 28, 1944) is an American politician and lawyer who served as the 107th Mayor of New York City from 1994 to 2001. He previously served as the United States Associate Attorney General from 1981 to 198 ...
indicted 11
organized crime
Organized crime (or organised crime) is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally th ...
figures, including the heads of New York's so-called "
Five Families
The Five Families refers to five major New York City organized crime families of the Italian American Mafia formed in 1931 by Salvatore Maranzano following his victory in the Castellammarese War.
Maranzano reorganized the Italian American gangs ...
," under the RICO Act on charges including
extortion
Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offence; the bulk of this article deals with such cases. Robbery is the simplest and most common form of extortion, ...
, labor racketeering, and
murder for hire
Contract killing is a form of murder or assassination in which one party hires another party to kill a targeted person or persons. It involves an illegal agreement which includes some form of payment, monetary or otherwise. Either party may be ...
. ''Time'' magazine called the "Case of Cases" possibly "the most significant assault on the infrastructure of organized crime since the high command of the
Chicago Mafia
The Chicago Outfit (also known as the Outfit, the Chicago Mafia, the Chicago Mob, the Chicago crime family, the South Side Gang or The Organization) is an Italian-American organized crime syndicate or crime family based in Chicago, Illinois, tha ...
was swept away in 1943" and quoted Giuliani's stated intention: "Our approach is to wipe out the five families."
The
Gambino crime family
The Gambino crime family (pronounced ) is an Italian-American Mafia crime family and one of the "Five Families" that dominate organized crime activities in New York City, United States, within the nationwide criminal phenomenon known as the Ame ...
boss
Paul Castellano
Constantino Paul Castellano (; June 26, 1915 – December 16, 1985), was an American crime boss who succeeded Carlo Gambino as head of the Gambino crime family. Castellano was killed in an unsanctioned hit on December 16, 1985.
Early life
Cast ...
evaded conviction when he and his
underboss
Underboss ( it, sottocapo) is a position within the leadership structure of certain organized crime groups, particularly in Sicilian, Greek, and Italian-American Mafia crime families. The underboss is second in command to the boss. The underbo ...
,
Thomas Bilotti
Thomas "Tommy" Bilotti (March 23, 1940 – December 16, 1985) was an American mobster with the Gambino crime family who served as underboss for two weeks. It was this promotion that helped trigger the 1985 assassination of Gambino boss Paul Caste ...
, were murdered on the streets of
Midtown Manhattan
Midtown Manhattan is the central portion of the New York City borough of Manhattan and serves as the city's primary central business district. Midtown is home to some of the city's most prominent buildings, including the Empire State Buildin ...
on December 16, 1985. However, three heads of the Five Families were sentenced to 100 years in prison on January 13, 1987. The
Genovese
Genovese is an Italian surname meaning, properly, someone from Genoa. Its Italian plural form '' Genovesi'' has also developed into a surname.
People
* Alfred Genovese (1931–2011), American oboist
* Alfredo Genovese (born 1964), Argentine ar ...
and
Colombo
Colombo ( ; si, කොළඹ, translit=Koḷam̆ba, ; ta, கொழும்பு, translit=Koḻumpu, ) is the executive and judicial capital and largest city of Sri Lanka by population. According to the Brookings Institution, Colombo me ...
leaders,
Tony Salerno and
Carmine Persico
Carmine John Persico Jr. (; August 8, 1933 – March 7, 2019), also known as "Junior", "The Snake" and "Immortal", was an American mobster and the longtime boss of the Colombo crime family in New York City from 1973 until his death in 2019. He ha ...
received additional sentences in separate trials, with 70-year and 39-year sentences to run consecutively. He was assisted by three Assistant United States Attorneys:
Michael Chertoff
Michael Chertoff (born November 28, 1953) is an American attorney who was the second United States Secretary of Homeland Security to serve under President George W. Bush. Chertoff also served for one additional day under President Barack Obama. H ...
, the eventual second
United States Secretary of Homeland Security
The United States secretary of homeland security is the head of the United States Department of Homeland Security, the federal department tasked with ensuring public safety in the United States. The secretary is a member of the Cabinet of the U ...
and co-author of the
Patriot Act
The USA PATRIOT Act (commonly known as the Patriot Act) was a landmark Act of the United States Congress, signed into law by President George W. Bush. The formal name of the statute is the Uniting and Strengthening America by Providing Appropr ...
; John Savarese, later a partner at
Wachtell Lipton Rosen & Katz; and Gil Childers, a later deputy chief of the criminal division for the
Southern District of New York
The United States District Court for the Southern District of New York (in case citations, S.D.N.Y.) is a federal trial court whose geographic jurisdiction encompasses eight counties of New York State. Two of these are in New York City: New Y ...
and later managing director in the legal department at
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
.
State laws
Beginning in 1972, thirty-three states, as well as Puerto Rico and the United States Virgin Islands, adopted state RICO laws to cover additional state offenses under a similar scheme.
RICO predicate offenses
Under the law, the meaning of racketeering activity is set out at . As currently amended it includes:
*Any violation of state statutes against
gambling
Gambling (also known as betting or gaming) is the wagering of something of value ("the stakes") on a random event with the intent of winning something else of value, where instances of strategy are discounted. Gambling thus requires three el ...
,
murder
Murder is the unlawful killing of another human without justification (jurisprudence), justification or valid excuse (legal), excuse, especially the unlawful killing of another human with malice aforethought. ("The killing of another person wit ...
,
kidnapping
In criminal law, kidnapping is the unlawful confinement of a person against their will, often including transportation/asportation. The asportation and abduction element is typically but not necessarily conducted by means of force or fear: the p ...
,
extortion
Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offence; the bulk of this article deals with such cases. Robbery is the simplest and most common form of extortion, ...
,
arson
Arson is the crime of willfully and deliberately setting fire to or charring property. Although the act of arson typically involves buildings, the term can also refer to the intentional burning of other things, such as motor vehicles, wat ...
,
robbery
Robbery is the crime of taking or attempting to take anything of value by force, threat of force, or by use of fear. According to common law, robbery is defined as taking the property of another, with the intent to permanently deprive the perso ...
,
bribery
Bribery is the Offer and acceptance, offering, Gift, giving, Offer and acceptance, receiving, or Solicitation, soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With reg ...
, dealing in
obscene matter, or dealing in a controlled substance or listed chemical (as defined in the
Controlled Substances Act
The Controlled Substances Act (CSA) is the statute establishing federal government of the United States, federal drug policy of the United States, U.S. drug policy under which the manufacture, importation, possession, use, and distribution of ...
);
*Any act of
bribery
Bribery is the Offer and acceptance, offering, Gift, giving, Offer and acceptance, receiving, or Solicitation, soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With reg ...
,
counterfeiting
To counterfeit means to imitate something authentic, with the intent to steal, destroy, or replace the original, for use in illegal transactions, or otherwise to deceive individuals into believing that the fake is of equal or greater value tha ...
,
theft
Theft is the act of taking another person's property or services without that person's permission or consent with the intent to deprive the rightful owner of it. The word ''theft'' is also used as a synonym or informal shorthand term for some ...
,
embezzlement
Embezzlement is a crime that consists of withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type ...
,
fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
, dealing in obscene matter,
obstruction of justice
Obstruction of justice, in United States jurisdictions, is an act that involves unduly influencing, impeding, or otherwise interfering with the justice system, especially the legal and procedural tasks of prosecutors, investigators, or other gov ...
,
slavery
Slavery and enslavement are both the state and the condition of being a slave—someone forbidden to quit one's service for an enslaver, and who is treated by the enslaver as property. Slavery typically involves slaves being made to perf ...
,
racketeering
Racketeering is a type of organized crime in which the perpetrators set up a coercive, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation (a "racket") to repeatedly or consistently collect a profit.
Originally and of ...
,
gambling
Gambling (also known as betting or gaming) is the wagering of something of value ("the stakes") on a random event with the intent of winning something else of value, where instances of strategy are discounted. Gambling thus requires three el ...
,
money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
, commission of
murder-for-hire
Contract killing is a form of murder or assassination in which one party hires another party to kill a targeted person or persons. It involves an illegal agreement which includes some form of payment, monetary or otherwise. Either party may be ...
, and many other offenses covered under the Federal criminal code (
Title 18);
*
Embezzlement
Embezzlement is a crime that consists of withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type ...
of
union
Union commonly refers to:
* Trade union, an organization of workers
* Union (set theory), in mathematics, a fundamental operation on sets
Union may also refer to:
Arts and entertainment
Music
* Union (band), an American rock group
** ''Un ...
funds;
*
Bankruptcy
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...
fraud or
securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in los ...
;
*
Drug trafficking
A drug is any chemical substance that causes a change in an organism's physiology or psychology when consumed. Drugs are typically distinguished from food and substances that provide nutritional support. Consumption of drugs can be via insuffla ...
; long-term and elaborate drug networks can also be prosecuted using the
Continuing Criminal Enterprise Statute
The Continuing Criminal Enterprise Statute (commonly referred to as CCE Statute or Kingpin Statute) is a United States federal law that targets large-scale drug traffickers who are responsible for long-term and elaborate drug conspiracies. Unlike t ...
;
*Criminal
copyright infringement
Copyright infringement (at times referred to as piracy) is the use of works protected by copyright without permission for a usage where such permission is required, thereby infringing certain exclusive rights granted to the copyright holder, s ...
;
*
Money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
and related offenses;
*Bringing in, aiding or assisting
aliens
Alien primarily refers to:
* Alien (law), a person in a country who is not a national of that country
** Enemy alien, the above in times of war
* Extraterrestrial life, life which does not originate from Earth
** Specifically, intelligent extrate ...
in illegally entering the country (if the action was for financial gain);
*Acts of
terrorism
Terrorism, in its broadest sense, is the use of criminal violence to provoke a state of terror or fear, mostly with the intention to achieve political or religious aims. The term is used in this regard primarily to refer to intentional violen ...
.
Pattern of racketeering activity requires at least two acts of racketeering activity, one of which occurred after the effective date of this chapter and the last of which occurred within ten years (excluding any period of imprisonment) after the commission of a prior act of racketeering activity. The
US Supreme Court
The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point of ...
has instructed federal courts to follow the continuity-plus-relationship test in order to determine whether the facts of a specific case give rise to an established pattern. The illegal acts comprising a pattern are called "predicate" offenses. Predicate acts are related if they "have the same or similar purposes, results, participants, victims, or methods of commission, or otherwise are interrelated by distinguishing characteristics and are not isolated events." Continuity is both a closed and open ended concept, referring to either a closed period of conduct, or to past conduct that by its nature projects into the future with a threat of repetition.
Application of RICO laws
Although some of the RICO predicate acts are
extortion
Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offence; the bulk of this article deals with such cases. Robbery is the simplest and most common form of extortion, ...
and
blackmail
Blackmail is an act of coercion using the threat of revealing or publicizing either substantially true or false information about a person or people unless certain demands are met. It is often damaging information, and it may be revealed to fa ...
, one of the most successful applications of the RICO laws has been the ability to indict and or sanction individuals for their behavior and actions committed against witnesses and victims in alleged retaliation or retribution for cooperating with federal law enforcement or intelligence agencies.
Violations of the RICO laws can be alleged in civil lawsuit cases or for criminal charges. In these instances, charges can be brought against individuals or corporations in retaliation for said individuals or corporations working with law enforcement. Further, charges can also be brought against individuals or corporations who have sued or filed criminal charges against a defendant.
Anti-SLAPP (
strategic lawsuit against public participation
Strategic lawsuits against public participation (also known as SLAPP suits or intimidation lawsuits), or strategic litigation against public participation, are lawsuits intended to censor, intimidate, and silence critics by burdening them with t ...
) laws can be applied in an attempt to curb alleged
abuses of the legal system by individuals or corporations who use the courts as a weapon to retaliate against
whistle blowers
A whistleblower (also written as whistle-blower or whistle blower) is a person, often an employee, who reveals information about activity within a private or public organization that is deemed illegal, immoral, illicit, unsafe or fraudulent. Whi ...
or victims or to silence another's speech. RICO could be alleged if it can be shown that lawyers or their clients conspired and collaborated to concoct fictitious legal complaints solely in retribution and retaliation for themselves having been brought before the courts.
Although the RICO laws may cover drug trafficking crimes in addition to other more traditional RICO predicate acts such as extortion, blackmail, and racketeering, large-scale and organized drug networks are now commonly prosecuted under the
Continuing Criminal Enterprise Statute
The Continuing Criminal Enterprise Statute (commonly referred to as CCE Statute or Kingpin Statute) is a United States federal law that targets large-scale drug traffickers who are responsible for long-term and elaborate drug conspiracies. Unlike t ...
, also known as the "Kingpin Statute". The CCE laws target only traffickers who are responsible for long-term and elaborate conspiracies, whereas the RICO law covers a variety of organized criminal behaviors.
Civil provisions
The RICO statute contains a provision that allows for the commencement of a
civil action
-
A lawsuit is a proceeding by a party or parties against another in the civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today. The term "lawsuit" is used in reference to a civil actio ...
by a private party to recover damages sustained as a result of the commission of a RICO predicate offense.
Famous cases
The Cowboy Mafia
RICO was instrumental in indicting members of The Cowboy Mafia from Texas, Tennessee and Florida. During 1977 and 1978, this group imported over 106 tons of marijuana. Using the shrimp boats ''Agnes Pauline'', ''Monkey'', ''Jubilee'', and ''Bayou Blues'', the group made six trips from Colombia to Texas. The group was arrested in 1978 after the federal government seized the ''Agnes Pauline'' when they were unloading their cargo in
Port Arthur, Texas
Port Arthur is a city in Jefferson County within the Beaumont–Port Arthur metropolitan area of the U.S. state of Texas. A small, uninhabited portion extends into Orange County; it is east of Houston. The largest oil refinery in the United Sta ...
. In 1979, twenty-six members of the smuggling ring were convicted. Charles "Muscles" Foster, a ranch foreman and the head of the operation, pleaded
innocent by reason of insanity and was acquitted in 1980. In August 1981, Rex Cauble was indicted by a grand jury, as the government believed he was the financial backer of the smugglers. Foster was the foreman for his ranches, and the drugs were transported to Cauble's ranches throughout Texas. Cauble was a multi-millionaire, the former chairman of the Texas Aeronautics Commission, and an honorary
Texas Ranger. He was also the owner of Cutter Bill, a famous cutting horse. Cauble was convicted in January 1982 on ten counts: two counts of violating the Racketeer Influenced and Corrupt Organizations Act statute (RICO), conspiracy to violate RICO, three violations of the
Interstate Commerce Travel Act, and four counts of misapplication of bank funds. He was sentenced to ten concurrent terms of five years. He completed his prison term, and was released in September 1987, and died in 2003.
Three books about the group were published: ''The Cowboy Mafia'' (2003) by Cauble's personal jet pilot Roy Graham; ''Catching the Katy'' (2017) by Barker Milford; and ''A Conspiracy Revealed'' by
DEA agent Daniel Wedeman, Sr.
As a result of the RICO conviction, Cauble forfeited his 31% interest in Cauble Enterprises, including two Cutter Bill Western World stores, three Texas banks (Western State Bank in Denton, Dallas International Bank and South Main Bank of Houston), six ranches, a welding supply company, and oil and gas holdings. The company's worth was estimated at $80 million. However, the government sold their interest back to the other partners (Cauble's wife and son) for an estimated $12 million.
Hells Angels Motorcycle Club
In 1979, the United States Federal Government went after
Sonny Barger
Ralph Hubert "Sonny" Barger, Jr. (October 8, 1938 – June 29, 2022) was an American outlaw biker, author and actor who was a founding member of the Oakland, California chapter of the Hells Angels Motorcycle Club in 1957. After forming the O ...
and several members and associates of the
Oakland
Oakland is the largest city and the county seat of Alameda County, California, United States. A major West Coast port, Oakland is the largest city in the East Bay region of the San Francisco Bay Area, the third largest city overall in the Bay A ...
chapter of the
Hells Angels
The Hells Angels Motorcycle Club (HAMC) is a worldwide outlaw motorcycle club whose members typically ride Harley-Davidson motorcycles. In the United States and Canada, the Hells Angels are incorporated as the Hells Angels Motorcycle Corporatio ...
using RICO. In ''United States vs. Barger'', the prosecution team attempted to demonstrate a pattern of behavior to convict Barger and other members of the club of RICO offenses related to guns and illegal drugs. The jury acquitted Barger on the RICO charges with a
hung jury
A hung jury, also called a deadlocked jury, is a judicial jury that cannot agree upon a verdict after extended deliberation and is unable to reach the required unanimity or supermajority. Hung jury usually results in the case being tried again.
...
on the predicate acts: "There was no proof it was part of club policy, and as much as they tried, the government could not come up with any incriminating minutes from any of our meetings mentioning drugs and guns."
Latin Kings
Several members of the
Latin Kings have been convicted of RICO offenses.
Gil Dozier
Louisiana Commissioner of Agriculture and Forestry Gil Dozier
Gilbert Lynel "Gil" Dozier (March 19, 1934 – September 23, 2013), was an attorney, businessman, farmer, and rancher who served from 1976 to 1980 as the Louisiana Commissioner of Agriculture and Forestry. A Democrat, Dozier's political ...
, in office from 1976 to 1980, faced
indictment
An indictment ( ) is a formal accusation that a legal person, person has committed a crime. In jurisdictions that use the concept of felony, felonies, the most serious criminal offence is a felony; jurisdictions that do not use the felonies concep ...
with violations of both the
Hobbs and the RICO laws. He was accused of compelling companies doing business with his department to make campaign contributions on his behalf. On September 23, 1980, the
Baton Rouge
Baton Rouge ( ; ) is a city in and the capital of the U.S. state of Louisiana
Louisiana , group=pronunciation (French: ''La Louisiane'') is a state in the Deep South and South Central regions of the United States. It is the 20th-sma ...
-based
convicted Dozier of five counts of
extortion
Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offence; the bulk of this article deals with such cases. Robbery is the simplest and most common form of extortion, ...
and
racketeering
Racketeering is a type of organized crime in which the perpetrators set up a coercive, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation (a "racket") to repeatedly or consistently collect a profit.
Originally and of ...
. The sentence of ten years imprisonment, later upgraded to eighteen when other offenses were determined, and a $25,000 fine was suspended pending appeal, and Dozier remained free on
bail
Bail is a set of pre-trial restrictions that are imposed on a suspect to ensure that they will not hamper the judicial process. Bail is the conditional release of a defendant with the promise to appear in court when required.
In some countries ...
.
He eventually served nearly four years until a presidential
commutation
Commute, commutation or commutative may refer to:
* Commuting, the process of travelling between a place of residence and a place of work
Mathematics
* Commutative property, a property of a mathematical operation whose result is insensitive to th ...
freed him in 1986.
Key West Police Department
Around June 1984, the
Key West Police Department
The Key West Police Department (KWPD) is a law enforcement agency servicing a population of 25,031 and 7.243 square miles within the municipality of Key West, Florida.
History
Law enforcement within the city of Key West originated with the inco ...
located in
Monroe County Monroe County may refer to seventeen counties in the United States, all named for James Monroe:
* Monroe County, Alabama
*Monroe County, Arkansas
* Monroe County, Florida
* Monroe County, Georgia
*Monroe County, Illinois
*Monroe County, Indian ...
, Florida, was declared a criminal enterprise under the
federal
Federal or foederal (archaic) may refer to:
Politics
General
*Federal monarchy, a federation of monarchies
*Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...
RICO statutes after a lengthy
United States Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
investigation. Several high-ranking officers of the department, including Deputy Police Chief Raymond Cassamayor, were arrested on federal charges of running a
protection racket
A protection racket is a type of racket and a scheme of organized crime perpetrated by a potentially hazardous organized crime group that generally guarantees protection outside the sanction of the law to another entity or individual from viol ...
for illegal
cocaine
Cocaine (from , from , ultimately from Quechuan languages, Quechua: ''kúka'') is a central nervous system (CNS) stimulant mainly recreational drug use, used recreationally for its euphoria, euphoric effects. It is primarily obtained from t ...
smugglers. At
trial
In law, a trial is a coming together of Party (law), parties to a :wikt:dispute, dispute, to present information (in the form of evidence (law), evidence) in a tribunal, a formal setting with the authority to Adjudication, adjudicate claims or d ...
, a witness testified he routinely delivered bags of cocaine to the Deputy Chief's office at City Hall.
Michael Milken
On March 29, 1989,
American
American(s) may refer to:
* American, something of, from, or related to the United States of America, commonly known as the "United States" or "America"
** Americans, citizens and nationals of the United States of America
** American ancestry, pe ...
financier
Michael Milken
Michael Robert Milken (born July 4, 1946) is an American financier. He is known for his role in the development of the market for high-yield bonds ("junk bonds"), and his conviction and sentence following a guilty plea on felony charges for vio ...
was indicted on 98 counts of racketeering and fraud relating to an investigation into an allegation of
insider trading
Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information ...
and other offenses. Milken was accused of using a wide-ranging network of contacts to manipulate stock and bond prices. It was one of the first occasions that a RICO indictment was brought against an individual with no ties to organized crime. Milken pleaded guilty to six lesser felonies of securities fraud and tax evasion, rather than risk spending the rest of his life in prison and ended up serving 22 months in prison. Milken was also ordered banned for life from the securities industry.
On September 7, 1988, Milken's employer,
Drexel Burnham Lambert
Drexel Burnham Lambert was an American multinational investment bank that was forced into bankruptcy in 1990 due to its involvement in illegal activities in the junk bond market, driven by senior executive Michael Milken. At its height, it was a ...
, was threatened with RICO charges under ''
respondeat superior
''Respondeat superior'' (Latin: "let the master answer"; plural: ''respondeant superiores'') is a doctrine that a party is responsible for (has vicarious liability for) acts of their agents.''Criminal Law - Cases and Materials'', 7th ed. 2012, W ...
'', the legal doctrine that corporations are responsible for their employees' crimes. Drexel avoided RICO charges by entering an
Alford plea
In United States law, an Alford plea, also called a Kennedy plea in West Virginia, an Alford guilty plea, and the Alford doctrine, is a guilty plea in criminal court, whereby a defendant in a criminal case does not admit to the criminal act and ...
to lesser felonies of stock parking and
stock manipulation
In economics and finance, market manipulation is a type of market abuse where there is a deliberate attempt to interfere with the free and fair operation of the market; the most blatant of cases involve creating false or misleading appearances ...
. In a carefully worded plea, Drexel said it was "not in a position to dispute the allegations" made by the Government. If Drexel had been indicted under RICO statutes, it would have had to post a performance bond of up to $1 billion to avoid having its assets frozen. That would have taken precedence over all of the firm's other obligations, including the loans that provided 96 percent of its capital base. If the bond ever had to be paid, its shareholders would have been practically wiped out. Since banks will not extend credit to a firm indicted under RICO, an indictment would have likely put Drexel out of business.
By at least one estimate, a RICO indictment would have destroyed the firm within a month.
Years later, Drexel President and CEO
Fred Joseph
Frederick H. "Fred" Joseph (1937—2009) was the former president and chief executive officer of the investment bank Drexel Burnham Lambert during the 1980s.
Biography
''The Wall Street Journal'' noted that he was, "The son of an orthodox Jewish ...
said that Drexel had no choice but to plead guilty because "a financial institution cannot survive a RICO indictment."
Major League Baseball
In 2001,
Major League Baseball
Major League Baseball (MLB) is a professional baseball organization and the oldest major professional sports league in the world. MLB is composed of 30 total teams, divided equally between the National League (NL) and the American League (AL), ...
team owners voted to
eliminate two teams, presumably the
Minnesota Twins
The Minnesota Twins are an American professional baseball team based in Minneapolis. The Twins compete in Major League Baseball (MLB) as a member club of the American League (AL) Central Division. The team is named after the Twin Cities area w ...
and
Montreal Expos
The Montreal Expos (french: link=no, Les Expos de Montréal) were a Canadian professional baseball team based in Montreal, Quebec. The Expos were the first Major League Baseball (MLB) franchise located outside the United States. They played in t ...
. In 2002, the former minority owners of the Expos filed charges under the RICO Act against MLB commissioner
Bud Selig
Allan Huber "Bud" Selig
(; born July 30, 1934) is an American baseball executive who currently serves as the Commissioner Emeritus of Baseball. Previously, he served as the ninth Commissioner of Baseball from 1998 to 2015. He initially served as ...
and former Expos owner
Jeffrey Loria
Jeffrey Harold Loria (born November 20, 1940) is an American art dealer, author, and the former owner of the Montreal Expos (now the Washington Nationals) and Miami Marlins of Major League Baseball.
Early life
Loria was born and raised in a Americ ...
, claiming that Selig and Loria deliberately conspired to
devalue
In macroeconomics and modern monetary policy, a devaluation is an official lowering of the value of a country's currency within a fixed exchange-rate system, in which a monetary authority formally sets a lower exchange rate of the national curr ...
the team for personal benefit in preparation for a move. If found liable, Major League Baseball could have been responsible for up to $300 million in
punitive damages
Punitive damages, or exemplary damages, are damages assessed in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit. ...
. The case lasted two years, successfully stalling the Expos' move to
Washington
Washington commonly refers to:
* Washington (state), United States
* Washington, D.C., the capital of the United States
** A metonym for the federal government of the United States
** Washington metropolitan area, the metropolitan area centered on ...
or contraction during that time. It was eventually sent to
arbitration
Arbitration is a form of alternative dispute resolution (ADR) that resolves disputes outside the judiciary courts. The dispute will be decided by one or more persons (the 'arbitrators', 'arbiters' or 'arbitral tribunal'), which renders the ' ...
, where the arbiters ruled in favor of Major League Baseball, permitting the move to Washington to take place.
Los Angeles Police Department
In April 2000, federal judge William J. Rea in Los Angeles, ruling in one
Rampart scandal
The Rampart scandal involved widespread police corruption in the Community Resources Against Street Hoodlums (CRASH) anti-gang unit of the Los Angeles Police Department's Rampart Division in the late 1990s. More than 70 police officers either a ...
case, said that the plaintiffs could pursue RICO claims against the LAPD, an unprecedented finding. In July 2001, US District Judge Gary A. Feess said that the plaintiffs did not have standing to sue the LAPD under RICO, because they were alleging personal injuries rather than economic or property damage.
Mohawk Industries
On April 26, 2006, the
Supreme Court
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
heard ''Mohawk Industries, Inc. v. Williams'', , which concerned what sort of corporations fell under the scope of RICO. Mohawk Industries had allegedly hired
illegal aliens
Illegal immigration is the migration of people into a country in violation of the immigration laws of that country or the continued residence without the legal right to live in that country. Illegal immigration tends to be financially upwar ...
, in violation of RICO. The court was asked to decide whether Mohawk Industries, along with recruiting agencies, constituted an "enterprise" that could be prosecuted under RICO. However, in June of that year, the court dismissed the case and remanded it to the US Court of Appeals.
Gambino crime family
John Gotti
John Joseph Gotti Jr.Capeci, Mustain (1996), pp. 25–26 (, ; October 27, 1940 – June 10, 2002) was an American gangster and boss of the Gambino crime family in New York City. He ordered and helped to orchestrate the murder of Gambino boss ...
and
Frank Locascio
Frank "Frankie Loc" LoCascio (September 24, 1932 – October 1, 2021) was an American mobster in New York who became the Consigliere to the Gambino crime family boss John Gotti.
Biography
LoCascio was born to Italian immigrants from Baucina, Sic ...
were convicted on April 2, 1992, under the RICO Act and later sentenced to life in prison.
In Tampa, on October 16, 2006, four members of the
Gambino crime family
The Gambino crime family (pronounced ) is an Italian-American Mafia crime family and one of the "Five Families" that dominate organized crime activities in New York City, United States, within the nationwide criminal phenomenon known as the Ame ...
(
Capo Ronald Trucchio, Terry Scaglione, Steven Catallono, and Anthony Mucciarone and associate Kevin McMahon) were tried under RICO statutes, found guilty, and sentenced to
life in prison
Life imprisonment is any sentence of imprisonment for a crime under which convicted people are to remain in prison for the rest of their natural lives or indefinitely until pardoned, paroled, or otherwise commuted to a fixed term. Crimes for ...
.
Lucchese crime family
In the mid-1990s, prosecuting attorneys
Gregory O'Connell
Gregory may refer to:
People and fictional characters
* Gregory (given name), including a list of people and fictional characters with the given name
* Gregory (surname), a surname
Places Australia
*Gregory, Queensland, a town in the Shire of ...
and Charles Rose used RICO charges to bring down the
Lucchese family
The Lucchese crime family (pronounced ) is an Italian-American Mafia crime family and one of the "Five Families" that dominate organized crime activities in New York City, in the United States, within the nationwide criminal phenomenon known as ...
within an 18-month period. Dismantling the Lucchese family had a profound financial impact on previously Mafia held businesses such as construction, garment, and garbage hauling. Here they dominated and extorted money through taxes, dues, and fees. An example of this extortion was through the garbage business. Hauling of garbage from the
World Trade Center
World Trade Centers are sites recognized by the World Trade Centers Association.
World Trade Center may refer to:
Buildings
* List of World Trade Centers
* World Trade Center (2001–present), a building complex that includes five skyscrapers, a ...
cost the building owners $1.2 million per year to be removed when the Mafia monopolized the business, as compared to $150,000 per year when competitive bids could be sought.
Bonanno crime family
Bonanno crime family
The Bonanno crime family (pronounced ) is an Italian-American Mafia crime family and one of the "Five Families" that dominate organized crime activities in New York City, and in the United States, as part of the criminal phenomenon known as the A ...
boss
Joseph Massino
Joseph Charles Massino (born January 10, 1943) is an American former mobster. He was a member of the Mafia and boss of the Bonanno crime family from 1991 until 2004, when he became the first boss of one of the Five Families in New York City to tu ...
's trial began on May 24, 2004, with judge
Nicholas Garaufis
Nicholas George Garaufis (born September 28, 1948) is a Senior United States district judge of the United States District Court for the Eastern District of New York.
Early life and education
Garaufis was born in Paterson, New Jersey, to Demetr ...
presiding and Greg D. Andres and Robert Henoch heading the prosecution. He now faced 11 RICO counts for seven murders (due to the prospect of prosecutors seeking the death penalty for the Sciascia murder, that case was severed to be tried separately), arson, extortion, loansharking, illegal gambling, and money laundering. After deliberating for five days, the jury found Massino guilty of all 11 counts on July 30, 2004. His sentencing was initially scheduled for October 12, and he was expected to receive a sentence of
life imprisonment
Life imprisonment is any sentence of imprisonment for a crime under which convicted people are to remain in prison for the rest of their natural lives or indefinitely until pardoned, paroled, or otherwise commuted to a fixed term. Crimes for ...
with no possibility of parole.
The jury also approved the prosecutors' recommended $10 million
forfeiture of the proceeds of his reign as Bonanno boss on the day of the verdict.
Immediately after his July 30 conviction, as court was adjourned, Massino requested a meeting with Judge Garaufis, where he made his first offer to cooperate.
[DeStefano 2007, pp. 314–315] He did so in hopes of sparing his life; he was facing the death penalty if found guilty of Sciascia's murder. Indeed, one of
John Ashcroft
John David Ashcroft (born May 9, 1942) is an American lawyer, lobbyist and former politician who served as the 79th U.S. Attorney General in the George W. Bush administration from 2001 to 2005. A former U.S. Senator from Missouri and the 50th ...
's final acts as Attorney General was to order federal prosecutors to seek the death penalty for Massino. Massino thus stood to be the first Mafia boss to be executed for his crimes, and the first mob boss to face the death penalty since
Lepke Buchalter
Louis Buchalter, known as Louis Lepke or Lepke Buchalter, (February 6, 1897March 4, 1944) was an American mobster and head of the Mafia hit squad Murder, Inc., during the 1930s. Buchalter was one of the premier labor racketeers in New York Cit ...
was executed in 1944. Massino was the first sitting boss of a New York crime family to turn state's evidence, and the second in the history of the American Mafia to do so
[Raab, p. 688.] (
Philadelphia crime family
The Philadelphia crime family, also known as the Philadelphia Mafia, the Philly Mob or Philly Mafia, the Philadelphia-South Jersey Mafia, or Bruno-Scarfo family is an Italian-American Mafia family based in Philadelphia, Pennsylvania. Formed and ...
boss
Ralph Natale
Ralph Samuel Natale (March 6, 1935 – January 22, 2022) was an American mobster. He was the boss of the Philadelphia crime family from 1995 until 1999, when he became the first American Mafia boss to turn state's evidence. Natale helped sentenc ...
had flipped in 1999 when facing drug charges).
Chicago Outfit
In 2005, the
US Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
's
Operation Family Secrets
Operation Family Secrets was an investigation by the Federal Bureau of Investigation (FBI) into mob-related crimes in Chicago. The FBI called it one of the most successful investigations of organized crime that it had ever conducted.[indicted
An indictment ( ) is a formal accusation that a person has committed a crime. In jurisdictions that use the concept of felonies, the most serious criminal offence is a felony; jurisdictions that do not use the felonies concept often use that of an ...]
14
Chicago Outfit
The Chicago Outfit (also known as the Outfit, the Chicago Mafia, the Chicago Mob, the Chicago crime family, the South Side Gang or The Organization) is an Italian-American organized crime syndicate or crime family based in Chicago, Illinois, tha ...
(also known as the Outfit, the Chicago Mafia, the Chicago Mob, or the Organization) members and associates under RICO predicates. Five defendants were convicted of RICO violations and other crimes. Six pleaded guilty, two died before trial, and one was too sick to be tried.
["Family Secrets of the Murderous Kind"](_blank)
, FBI, October 1, 2007
Michael Conahan and Mark Ciavarella
A federal grand jury in the Middle District of Pennsylvania handed down a 48-count indictment against former
Luzerne County
Luzerne County is a county in the U.S. state of Pennsylvania. According to the U.S. Census Bureau, the county has a total area of , of which is land and is water. It is Northeastern Pennsylvania's second-largest county by total area. As of ...
Court of Common Pleas Judges
Michael Conahan
Michael T. Conahan (born April 21, 1952) is an American convicted felon and former judge. He received a J.D. degree from Temple University and went on to serve from 1994 to 2007 as Judge on the Court of Common Pleas in Luzerne County, Pennsylvan ...
and
Mark Ciavarella
Mark Arthur Ciavarella Jr. (born March 3, 1950) is an American convicted felon and former President Judge of the Luzerne County Court of Common Pleas in Wilkes-Barre, Pennsylvania, who was involved, along with fellow judge Michael Conahan, in t ...
. The judges were charged with RICO after allegedly committing acts of
mail and wire fraud
Mail fraud and wire fraud are terms used in the United States to describe the use of a physical or electronic mail system to defraud another, and are federal crimes there. Jurisdiction is claimed by the federal government if the illegal activit ...
,
tax evasion
Tax evasion is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to reduce the taxp ...
,
money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
, and
honest services fraud
Honest services fraud is a crime defined in (the federal mail and wire fraud statute), added by the United States Congress in 1988, which states "For the purposes of this chapter, the term ''scheme or artifice to defraud'' includes a scheme or ...
. The judges were accused of taking
kickbacks for housing juveniles, that the judges convicted of mostly petty crimes, at a private detention center. The incident was dubbed by many local and national newspapers as the "
kids for cash scandal
The "kids for cash" scandal centered on judicial kickbacks to two judges at the Luzerne County Court of Common Pleas in Wilkes-Barre, Pennsylvania, US. In 2008, judges Michael Conahan and Mark Ciavarella were convicted of accepting money in ret ...
". On February 18, 2011, a federal jury found Mark Ciavarella guilty of racketeering because of his involvement in accepting illegal payments from Robert Mericle, the developer of PA Child Care, and Attorney Robert Powell, a co-owner of the facility. Ciavarella is facing 38 other counts in federal court.
Scott W. Rothstein
Scott W. Rothstein
Scott W. Rothstein (born June 10, 1962) is an American disbarred lawyer, convicted felon, and the former managing shareholder, chairman, and chief executive officer of the now-defunct Rothstein Rosenfeldt Adler law firm. He funded an extravag ...
is a disbarred lawyer and the former managing shareholder, chairman, and
chief executive officer
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
of the now-defunct Rothstein Rosenfeldt Adler law firm. He was accused of funding his philanthropy, political contributions, law firm salaries, and an extravagant lifestyle with a massive 1.2 billion dollar
Ponzi scheme
A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...
. On December 1, 2009, Rothstein turned himself in to federal authorities and was subsequently arrested on charges related to RICO. Although his arraignment plea was not guilty, Rothstein cooperated with the government and reversed his plea to guilty of five federal crimes on January 27, 2010. Bond was denied by US Magistrate Judge Robin Rosenbaum, who ruled that due to his ability to forge documents, he was considered a flight risk. On June 9, 2010, Rothstein received a 50-year prison sentence after a hearing in federal court in Fort Lauderdale.
AccessHealthSource
Eleven defendants were indicted on RICO charges for allegedly assisting AccessHealthSource, a local health care provider, in obtaining and maintaining lucrative contracts with local and state government entities in the city of El Paso, Texas, "through bribery of and kickbacks to elected officials or himself and others, extortion under color of authority, fraudulent schemes and artifices, false pretenses, promises and representations and deprivation of the right of citizens to the honest services of their elected local officials" (see indictment).
FIFA
Fourteen defendants affiliated with
FIFA
FIFA (; stands for ''Fédération Internationale de Football Association'' ( French), meaning International Association Football Federation ) is the international governing body of association football, beach football and futsal. It was found ...
were indicted under the RICO act on 47 counts for "racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with the defendants' participation in a 24-year scheme to enrich themselves through the corruption of international soccer". The defendants include many current and former high-ranking officers of FIFA and its affiliate
CONCACAF
The Confederation of North, Central America and Caribbean Association Football,, ; french: Confédération de football d'Amérique du Nord, d'Amérique centrale et des Caraïbes, . Dutch uses the English name. abbreviated as CONCACAF ( ; typese ...
. The defendants had allegedly used the enterprise as a front to collect millions of dollars in bribes, which may have influenced Russia and Qatar's winning bids to host the
FIFA World Cup
The FIFA World Cup, often simply called the World Cup, is an international association football competition contested by the senior men's national teams of the members of the ' ( FIFA), the sport's global governing body. The tournament ha ...
in
2018
File:2018 Events Collage.png, From top left, clockwise: The 2018 Winter Olympics opening ceremony in PyeongChang, South Korea; Protests erupt following the Assassination of Jamal Khashoggi; March for Our Lives protests take place across the United ...
and
2022
File:2022 collage V1.png, Clockwise, from top left: Road junction at Yamato-Saidaiji Station several hours after the assassination of Shinzo Abe; 2022 Sri Lankan protests, Anti-government protest in Sri Lanka in front of the Presidential Secretari ...
, respectively.
Drummond Company
In 2015, the Drummond Company sued attorneys Terrence P. Collingsworth and William R. Scherer, the advocacy group International Rights Advocates (IRAdvocates), and Dutch businessman
Albert van Bilderbeek
Albert may refer to:
Companies
* Albert (supermarket), a supermarket chain in the Czech Republic
* Albert Heijn, a supermarket chain in the Netherlands
* Albert Market, a street market in The Gambia
* Albert Productions, a record label
* Albert ...
, one of the owners of
Llanos Oil
The Llanos (Spanish ''Los Llanos'', "The Plains"; ) is a vast tropical grassland plain situated to the east of the Andes in Colombia and Venezuela, in northwestern South America. It is an ecoregion of the tropical and subtropical grasslands, sa ...
, accusing them of violating RICO by alleging that Drummond had worked alongside
Autodefensas Unidas de Colombia
The United Self-Defences of Colombia (''Autodefensas Unidas de Colombia'', or AUC, in Spanish) was a Colombian far-right paramilitary and drug trafficking group which was an active belligerent in the Colombian armed conflict during the period ...
to murder labor union leaders within proximity of their Colombian coal mines, which Drummond denies.
[Kent Faulk, "Drummond sues those claiming coal company involved in Colombian deaths", ''The Birmingham News'', April 8, 2015]
Connecticut Senator Len Fasano
In 2005, a federal jury ordered Fasano to pay $500,000 under RICO for illegally helping a client hide their assets in a bankruptcy case.
''Lechter v. Aprio''
In the North Georgia case ''Lechter v. Aprio'', an
Atlanta, Georgia
Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...
accounting firm named Aprio, LLP was sued by clients for involving them in a tax avoidance scheme using
conservation easement
In the United States, a conservation easement (also called conservation covenant, conservation restriction or conservation servitude) is a power invested in a qualified private land conservation organization (often called a "land trust") or gove ...
s.
In the complaint, David Deary, an attorney for the plaintiff, stated, "This is the exact kind of conduct that the civil RICO statute was designed to remedy, where you have a bunch of professional advisers that put together a scheme in secret manipulating a bunch of technical rules that laymen don't understand to deprive people of their money." Specifically, the claim cites violations of the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. §§1961–1968, violations of the Georgia RICO statute, O.C.G.A. § 16-4-1, et seq.
The case is being followed for its implications regarding the use of conservation easements as
tax shelter
Tax shelters are any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. The methodology can vary depending on local and international tax laws.
Types of ...
s. An article in Bloomberg Tax states: "A class-action claiming that the promoters of syndicated conservation easements knew from the outset that their deals violated tax laws is a new legal avenue for aggrieved investors as the Internal Revenue Service and the Justice Department grind through their own crackdowns."
''YSL Records''
On May 9, 2022, rappers
Young Thug
Jeffery Lamar Williams (born August 16, 1991), known professionally as Young Thug, is an American rapper, singer, and songwriter. He is considered to be an influential figure of his generation, with his music impacting the modern sound of hip ...
,
Gunna, and 28 other people were arrested on RICO charges stemming from a grand jury indictment filed in Georgia's Fulton County Courts. On May 14, 2022, only a few days later, a YSL member, Lil Keed died due to kidney and liver failure.
See also
*
Continuing Criminal Enterprise
The Continuing Criminal Enterprise Statute (commonly referred to as CCE Statute or Kingpin Statute) is a United States federal law that targets large-scale drug traffickers who are responsible for long-term and elaborate drug conspiracies. Unlike t ...
*
Criminal Tribes Act
Since the 1870s, various pieces of colonial legislation in India during British rule were collectively called the Criminal Tribes Act (CTA), which criminalized entire communities by designating them as habitual criminals. Under these acts, ethni ...
*
Patriot Act
The USA PATRIOT Act (commonly known as the Patriot Act) was a landmark Act of the United States Congress, signed into law by President George W. Bush. The formal name of the statute is the Uniting and Strengthening America by Providing Appropr ...
References
Bagchi, Aysha. Bloomberg Tax. "Participants in IRS-Targeted Land Deals Sue Alleged Promoters". March 27, 2020.
Further reading
* ''Criminal RICO: 18 U.S.C. 1961–1968: A Manual for Federal Prosecutors''. Washington, D.C.: U.S. Dept. of Justice, Criminal Division, Organized Crime and Racketeering Section,
009 009 may refer to:
* OO9, gauge model railways
* O09, FAA identifier for Round Valley Airport
* 0O9, FAA identifier for Ward Field, see List of airports in California
* British secret agent 009, see 00 Agent
* BA 009, see British Airways Flight 9
* ...
* United States. Congress. House. Committee on the Judiciary. Subcommittee No. 5. ''Organized Crime Control. Hearings ... Ninety-first Congress, Second Session on S.30, and Related Proposals, Relating to the Control of Organized Crime in the U.S.
eldMay 20, 21, 27; June 10, 11, 17; July 23, and August 5, 1970.'' Washington, D.C.: U.S. Government Printing Office, 1970.
External links
Deadlnk RICO Act from Cornell University's U. S. Code database
{{DEFAULTSORT:Racketeer Influenced And Corrupt Organizations Act
1970 in law
91st United States Congress
Organized crime terminology
Organized crime in the United States
United States federal criminal legislation
American Mafia events
Inchoate offenses
United States federal public corruption crime
Acts related to organized crime