Rough Diplomacy

Rico Act

The Racketeer Influenced and Corrupt Organizations Act, commonly referred to as the RICO Act or simply RICO, is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization.

It also refers to the prosecution and defense of individuals who engage in organized crime. In 1970, Congress passed the Racketeer Influenced and Corrupt Organizations (RICO) Act in an effort to combat Mafia groups.

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Racketeering is when organized groups run illegal businesses, known as “rackets,” or when an organized crime ring uses legitimate organizations to embezzle funds. Such activities can have devastating consequences for both public and private institutions.

PX 65-105:263 May 1957 Hearing of the Senate Select Committee to Investigate Improper Activities in Labor-Management Relations. Chief Counsel Robert F. Kennedy and Senator John F. Kennedy listen as Senator Karl E. Mundt of South Dakota questions a witness. Photograph by Douglas Jones

It is the hammer by the United States to crush organized crime. It was enacted as Title IX of the Organized Crime Control Act of 1970, and signed into law by Richard M. Nixon.  While its original use in the was to prosecute the Mafia as well as others who were actively engaged in organized crime, its later application has been more widespread.

The RICO Act focuses specifically on racketeering, and it allows the leaders of a syndicate to be tried for the crimes which they ordered others to do or assisted them in doing, closing a perceived loophole that allowed a person who instructed someone else to, for example, murder, to be exempt from the trial because they did not actually commit the crime personally.

Also, prior to the RICO act, in the United States the law only allowed prosecution for singular liability.

For example, if you committed armed robbery , you would be charged for that armed robbery , and to to trial  for armed robbery. That’s all you would go to prison for if you were convicted. If you conspired with somebody else to do the armed robbery, you may have a conspiracy charge , they ran together .

All of a sudden with the Rico Act they have  a different tactic which is called multiple liabilty, which means if prosecutors now find the underlying elements of of these acts and you have conspiricy on top of it , then each and every charge against you is  seperate and runs consecutively .

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For example if you were charged with drug trafficking and conspiracy that charge may have led to 10-15 years in prison in the old days , now under RICO, those found guilty of racketeering can be fined up to $25,000 and  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.”

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Racketeering and RICO-related crimes are grave and require skilled defense that is prepared to face the government-assembled legal teams in federal court.

Essentially,  it means the convicted would never see the light of day again, they are never getting out. .”

When the U.S. Attorney decides to indict someone under RICO, they have the option of seeking a pre-trial restraining order or injunction to temporarily seize a defendant’s assets and prevent the transfer of potentially forfeitable property, as well as require the defendant to put up a performance bond.

This provision was placed in the law because the owners of Mafia-related shell corporations often absconded with the assets. An injunction and/or performance bond ensures that there is something to seize in the event of a guilty verdict.

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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. Despite its harsh provisions, a RICO-related charge is considered easy to prove in court, as 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. 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.

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Trump fights racketeering claim in Trump University suit

 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 or the defendant(s) acquired or maintained an interest in, or control of, the enterprise through the pattern of racketeering activity or the defendant(s) conducted or participated in the affairs of the enterprise “through” the pattern of racketeering activity ; or the defendant(s) conspired to do one of the above crimes.

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14 members of the Black Guerilla Family indicted on racketeering charges

In essence, the enterprise is either the ‘prize,’ ‘instrument,’ ‘victim,’ or ‘perpetrator’ of the racketeersA civil RICO action can be filed in state or federal court.Both the criminal and civil components allow the recovery of treble damages (damages in triple the amount of actual/compensatory damages).

Although its primary intent was to deal with organized crime, Blakey said that Congress never intended it to merely apply to the Mob. Initially, prosecutors were skeptical of using RICO, mainly because it was unproven. The RICO Act was first used by the U.S. Attorney’s Office in the Southern District of New York on September 18, 1979, in the United States v. Scotto. Scotto, who was convicted on charges of racketeering, accepting unlawful labor payments, and income tax evasion, headed the International Longshoreman’s Association.

The Cosa Nostra men (l. to r.) Attorney Jack Wasserman, Carlos Marcello, Santo Trafficante, Frank Ragano, Attorney Anthony Carollo, Frank Cagliano and John Marcello at La Stella Restaurant after appearing before the Queens Grand Jury.

The day America found out about La Cosa Nostra The Cosa Nostra men (l. to r.) Attorney Jack Wasserman, Carlos Marcello, Santo Trafficante, Frank Ragano, Attorney Anthony Carollo, Frank Cagliano and John Marcello at La Stella Restaurant after appearing before the Queens Grand Jury.


Charles “Lucky” Luciano convicted of vice charges, is leaving court on June 18, 1936 handcuffed to two detectives after a hearing in New York. Luciano, Meyer Lansky and Carlo Gambino are long gone.

The second major success was the Mafia Commission Trial, which resulted in several top leaders of New York City’s Five Families getting what amounted to life sentences. By the turn of the century, RICO cases resulted in virtually all of the top leaders of the New York Mafia being sent to prison.

Other high  profile crime cases that used the Rico Act were :

Hells Angels Motorcycle Club

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In 1979 the United States Federal Government went after Sonny Barger and several members and associates of the Oakland chapter of the Hells Angels 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.

On November 21, 1980, Genovese crime family boss Frank “Funzi” Tieri was the first Mafia boss to be convicted under the RICO Act.In some jurisdictions, RICO suits have been filed again

Catholic Sex Abuse cases and Catholic dioceses, using anti-racketeering laws to prosecute the highers-up in the episcopacy for abuses committed by those under their authority. E.g. a Cleveland grand jury cleared two bishops of racketeering charges, finding that their mishandling of sex abuse claims did not amount to criminal racketeering.

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Notably, a similar suit was not filed against Cardinal Bernard Law, then Archbishop/Emeritus of Boston, prior to his assignment to Vatican CityIn 2016, RICO charges were considered for cover-ups in Pennsylvania.Image result for Montreal Expos baseball team

In 2002, the former minority owners of the Montreal Expos baseball team filed charges under the RICO Act against Major League Baseball commissioner Bud Selig and former Expos owner Jeffrey Loria, claiming that Selig and Loria deliberately conspired to devalue the team for personal benefit in preparation for a move.

In April 2000, federal judge William J. Rea in Los Angeles, ruling in one Rampart scandal case, said that the plaintiffs could pursue RICO claims against the LAPD, an unprecedented finding. The idea that a police organization could be characterized as a racketeering enterprise shook up City Hall and further damaged the already-tarnished image of the LAPD.

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A Latin King Gang Member Arrested After Murdering A 17-Year-Old

On August 20, 2006, in Tampa, Florida, most of the state leadership members of the street gang, the Latin Kings, were arrested in connection with RICO conspiracy charges to engage in racketeering and currently await trial.

The operation, called “Broken Crown“, targeted statewide leadership of the Latin Kings. The raid occurred at the Caribbean American Club. Along with Hillsborough County Sheriff’s OfficeTampa Police Department, the State Attorney’s Office, the FBI, Immigration and Customs Enforcement, and the federal Bureau of Alcohol, Tobacco and Firearms were involved in the operation.

Scott W. Rothstein is a disbarred lawyer and the former managing shareholder, chairman, and chief executive officer 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.

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Current chicago outfit members

In 2005, the U.S. Department of Justice’s Operation Family Secrets indicted 15 Chicago Outfit (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 plead guilty, two died before trial and one was too sick to be tried.

Fourteen F IFA defendantswere 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.

Art Cohen vs. Donald J. Trump was a civil RICOclass action suit filed October 18, 2013, accusing Donald Trump of misrepresenting Trump University “to make tens of millions of dollars” but delivering “neither Donald Trump nor a university.

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