Federal criminal cases involving RICO charges are among the most complex and high-stakes proceedings in the U.S. legal system. Originally enacted to combat organized crime, the Racketeer Influenced and Corrupt Organizations Act (RICO) has evolved into a powerful prosecutorial tool that extends far beyond its mob origins. RICO charges can be used for everything from financial fraud and drug trafficking to cybercrime and political corruption.
Understanding how RICO charges work and what defenses may be available is crucial for anyone caught in the federal crosshairs.
What Is the RICO Act?
The RICO Act, passed in 1970, is codified under 18 U.S. Code § 1961–1968. It was designed to dismantle criminal enterprises by targeting not only individuals who commit specific illegal acts, but also those who participate in or benefit from an ongoing criminal organization.
At its core, RICO makes it illegal to:
- Invest in an enterprise through racketeering activity
- Acquire or maintain control of an enterprise through racketeering
- Conduct the affairs of an enterprise through a pattern of racketeering activity
- Conspire to do any of the above
What sets RICO apart is its ability to connect multiple crimes under a single charge by proving they were part of a broader pattern. This makes it possible for prosecutors to tie together seemingly unrelated actions if they serve the same purpose or benefit the same enterprise.
What Qualifies as Racketeering Activity?
The law outlines over 30 predicate offenses that may be used to build a RICO case. These include both state and federal crimes, such as:
- Mail and wire fraud
- Money laundering
- Bribery and extortion
- Embezzlement
- Drug trafficking
- Counterfeiting
- Human trafficking
- Murder and arson
To secure a RICO conviction, the government must show that the defendant committed at least two predicate acts within 10 years as part of a continuing criminal enterprise.
What Makes RICO Charges So Serious?
The consequences of a RICO conviction are severe. Penalties may include:
- Up to 20 years in federal prison per racketeering count
- Fines of up to $250,000 or twice the amount gained/lost
- Forfeiture of assets gained through or used in the commission of racketeering activity
- Civil lawsuits brought by victims can triple the damages awarded
Because RICO allows for the aggregation of multiple criminal acts, defendants often face long prison sentences and massive financial exposure. Additionally, being labeled a “racketeer” can tarnish reputations, careers, and businesses.
Who Can Be Charged Under RICO?
While RICO was created to target the Mafia and other organized crime groups, federal prosecutors now routinely apply it to corporate executives, gang members, political figures, and even loosely connected groups of individuals.
You don’t need to be in the inner circle of a crime ring to be swept up in a RICO investigation. Simply participating in any part of a coordinated effort to commit predicate crimes may be enough to trigger federal charges.
For example, someone involved in a business fraud scheme who never handled the money directly may still be charged if they helped facilitate the operation.
Common Defenses Against RICO Charges
Due to the law’s broad scope, defending against RICO allegations necessitates a sophisticated legal strategy tailored to the details of the case. Some of the most common defenses include:
Lack of a Pattern of Racketeering
RICO requires proof of a pattern, not just isolated crimes. If the government can’t demonstrate an ongoing enterprise or repeated criminal conduct, the charge may not be upheld.
No Criminal Enterprise
The prosecution must show that the defendant was part of an enterprise engaged in illegal activity. A defense attorney may argue that the alleged “enterprise” was simply a group of individuals acting independently, or that it was a legitimate business without criminal intent.
Withdrawal or Lack of Knowledge
If the defendant can prove they withdrew from the enterprise or had no knowledge of the broader scheme, this may undercut the “knowing participation” element required for conviction.
Insufficient Evidence
Like all criminal charges, RICO cases must be proven beyond a reasonable doubt. A strong defense may challenge the credibility of witnesses, the reliability of evidence, or the legality of wiretaps and surveillance used in the investigation.
In many cases, the government relies heavily on cooperating witnesses, some of whom may have criminal backgrounds or incentives to testify. By exposing inconsistencies or biases in their testimony, a defense attorney can weaken the prosecution’s case.
Statute of Limitations
Generally, the statute of limitations for RICO prosecutions is five years. If the alleged criminal conduct occurred outside that window, the case could be dismissed. However, determining when the clock starts can be complex, especially in cases involving ongoing conspiracies or multiple predicate acts.
In some instances, the statute may be tolled, or paused, if the government can show that the conduct was concealed or that the defendant was evading prosecution.
Civil RICO Cases
Not all RICO claims are criminal. The statute also allows for civil lawsuits by individuals or organizations that a racketeering enterprise has harmed. Plaintiffs who prevail in a civil RICO case may be entitled to treble damages, three times the actual losses, as well as attorneys’ fees.
Civil RICO lawsuits are often filed in cases involving:
- Securities fraud
- Insurance fraud
- Business interference
- Corrupt union activity
- Real estate schemes
Because the burden of proof is lower in civil court (a “preponderance of the evidence” rather than “beyond a reasonable doubt”), these cases can provide an alternative path to justice for victims of organized schemes.
Why You Need an Attorney Who Understands RICO
Federal RICO charges are a different beast from state-level criminal charges. They often involve years of investigation, mountains of discovery, multiple defendants, and overlapping jurisdictions. If you’re under investigation or have been charged with a RICO violation, hiring an attorney with deep federal experience is critical.
From challenging the government’s interpretation of racketeering activity to dismantling the alleged connections between co-defendants, your legal team must be prepared to attack every part of the government’s theory.
Working with a seasoned firm like Carter Law Group can make all the difference when your freedom and future are at stake.
