What Is RICO Law?

What are RICO Laws?

The Racketeer Influenced and Corrupt Organizations Act is one of the main provisions (Title IX) of the Organized Crime Control Act of 1970. Per Wikipedia, "The Organized Crime Control Act of 1970 was a major crime reform bill. Its main purpose was to create new tools and legislation that the federal government could utilize to eradicate organized crime."¹.

This article provides an overview of the RICO provision within the Racketeer Influenced and Corrupt Organizations Act.

Targeting Organized Crime & Corruption

The Racketeer Influenced and Corrupt Organizations Act targets prosecution for specific types of racketeering activity within an ongoing criminal enterprise.

What is a Racketeering Activity?

Racketeering covers acts demonstrating a pattern of illegal activities. This includes crimes such as bribery, fraud, money laundering, drug trafficking, counterfeiting (money or goods), embezzlement, and even election interference.

This is often done through shell companies such as car washes, day care centers, and restaurants. It may be done by legal businesses that manipulate their books to launder money. Criminals utilize sophisticated schemes to receive and redistribute money or goods. Disguising transactions as normal business functions makes these crimes difficult to uncover.

An article on the FindLaw website states that the United States Department of Justice has this to say about racketeering: "It is unlawful for anyone employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity or collection of unlawful debt."²

What Constitutes a Criminal Enterprise?

A criminal enterprise can be as simple as two or more people creating and managing a organized criminal system

Five Key Requirements for RICO Charges

RICO prosecution may apply if an investigation identifies at least two predicate crimes, within 10 years. To be charged under RICO laws, the government must prove beyond a reasonable doubt:

1. That an enterprise existed;
2. That the enterprise affected interstate commerce;
3. That the accused was associated with or employed by the enterprise;
4. That the accused engaged in a pattern of racketeering activity;
5. That the accused conducted or participated in the conduct of the enterprise through that pattern of racketeering activity through the commission of at least two acts of racketeering activity (predicate crimes) as outlined in the indictment.

What Are RICO Predicate Crimes?

These charges can come from any of 35 offenses of illegal activities, known as predicate crimes. To be prosecuted under RICO law, a person must have committed at least two predicate offenses within a 10-year period. Examples of predicate crimes for RICO charges are:

• Crimes Against People: Murder, kidnapping, extortion, bribery, blackmail, robbery, identity theft, human trafficking, sex trafficking, slavery.
• Financial Crimes: Money laundering, embezzlement, bank fraud, bankruptcy fraud, mortgage fraud, securities fraud, mail fraud.
• Drug Crimes: Trafficking or distribution of marijuana, illegal drugs (heroin, cocaine), controlled substances (prescription drugs), etc.
• More Crimes: Terrorism, election interference, collusion, theft (many forms), counterfeiting, and gambling.

Common Targets for RICO Charges

RICO charges are commonly used to prosecute Mafia members, cartel members, gang members, and others who employ a controlled system to commit ongoing crimes.

Although less common, there have been politicians convicted of racketeering, CEO’s, and entertainers (i.e., R. Kelly, Sean Combs).

RICO Charges in Georgia

Georgia RICO laws were written based on the existing federal RICO Act of 1970; however, the Georgia act was written to be broader and easier to apply. Georgia’s RICO Act can be applied to just one individual alleged to be operating a criminal enterprise who is accused of committing only two interrelated crimes.

Georgia RICO Charge Conviction Rates

What is the conviction rate for RICO charges? The state of Georgia has no official RICO conviction rate. However, it is well established that state prosecutors achieve a high RICO Act conviction rate. An informal estimate is a RICO conviction rate hovering around 97-99%.

Georgia RICO Conviction Penalties

A RICO conviction in Georgia can result in 5–20 years in prison; a fine up to three times the amount of the financial gain (but not less than $25,000), or both. Convictions on multiple charges can greatly increase the punishment.

Federal RICO Charges

Federal RICO laws provide that a person can be prosecuted under RICO if they have committed at least two acts of racketeering activity within 10 years. The criminal acts must be somehow related (in one of four specified ways) to a criminal enterprise.

Federal RICO Conviction Rates

What is the conviction rate for federal RICO charges? The Federal government boasts of a 97-99% RICO conviction rate. This is attributed to prosecutorial selectivity and overwhelming evidence. Many federal RICO cases are prosecuted after years of the FBI investigating and documenting crimes.

Federal RICO Conviction Penalties

Federal RICO convictions can result in 5–20 years in prison; a fine up to three times the amount of the financial gain from the crimes (but not less than $25,000), or both.

In addition, provisions for forfeiture of assets are usually enforced. Conviction on RICO charges requires forfeiture of all financial gains acquired by acts of racketeering. Convictions on multiple RICO charges can enhance the punishments.

Civil RICO Lawsuits: Justice for Victims

A civil RICO claim empowers victims (businesses or individuals) to demand fair compensation for harm caused by the criminal enterprise. The Office of Justice Programs website states that, "Civil litigation under RICO can usually be brought in the following general case classes: securities fraud, bankruptcy fraud, commercial bribery, and frauds that violate RICO mail and wire fraud provisions."⁴

Per the Cornell Law School, "RICO allows for a private individual who was injured by a violation of the law to recover treble damages suffered by the wrongful activity of the offender. A criminal conviction under RICO against the defendant will estop them from defending the allegations if they are brought to civil court."⁵

The Best RICO Defense Strategies

Can you get out of RICO charges? It’s possible, but very challenging. You will need a very good law firm to get the best possible outcome. Prosecution by the Federal government has nearly a 100% conviction rate. State cases are almost as challenging to win.

A successful defense against racketeering charges usually requires upsetting the core requirements for bringing racketeering charges. If the defense can show the absence of legal requirements for racketeering charges your situation is vastly improved. The prosecution could still try to prosecute you for a particular crime. If convicted of the crime your sentence will be far better than suffering a RICO sentence.

What are the areas a defense lawyer can attack? Here are examples:

• Proving that a criminal enterprise did exist, and that you were part of that criminal enterprise.
• Invalidating allegations that a pattern of criminal activity occured within a set period of time.
• Showing lack of continuity, meaning that alleged crimes were spontaneous, random, not related.
• Proving that the Statute of Limitations has expired.

Beneficial Ownership Information Reporting

An example of a tool used to detect RICO offenses is The Corporate Transparency Act (CTA). The Act was passed by Congress specifically to identify and prosecute businesses involved in money laundering and terrorist financing. The CTA requires business ownership information reporting requirements for corporations, limited liability companies, and similar entities created and operating in the United States.

Companies are required to report information about the individuals who ultimately own or control the business. Using this information, federal investigators search for unusual connections between companies. Being based on assumptions, an owner of multiple (legitimate) businesses could be under scrutiny for RICO charges. Even if you are totally innocent, you should hire an experienced RICO lawyer.

The RICO defense experts at Grisham & Poole can represent you to fight any federal RICO charges or state RICO charges in Georgia.

Are you facing RICO charges? Contact an experienced RICO defense lawyer by calling 678-880-9360.

CREDITS and FOOTNOTES

• ¹ Various Contributors, “Organized Crime Control Act of 1970”, Last Edited January 8, 2026. Available from Wikipedia
• ² John Mascolo, “Racketeering/RICO”, December 06, 2023, Available from FindLaw
• ³ W.MCotham and R.G. Campbell, "Civil Actions Under the Racketeer Influenced and Corrupt Organizations Act (RICO)", April 20, 1983, Available from U.S. DoJ
• ⁴ DoJ Staff, “RICO Charges”, January 22, 2020, Available from U.S. Department of Justice
• ⁵Wex Definitions Team, "RICO", August 7, 2023, Available from Cornell Law School
• Photo RDNE Stock project at Pexels.