RICO: Racketeer Influenced and Corrupt Organizations Act
Criminal organizations ran amok in the United States for decades as the nation's attention was drawn to higher priorities, including the Great Depression and World War II. Focus on these organizations did not really come to light until Robert Kennedy became the Attorney General, and since that time, law enforcement officials on all levels have been tightening their hold on these operations.
This effort, as is always the case, was aided by the passing of certain laws. Perhaps the most useful law for enforcement bodies came in 1970, when the statute commonly known as RICO was passed by Congress. RICO stands for Racketeer Influenced and Corrupt Organizations (RICO) Act, and it's been a powerful aid for investigators and prosecutors all over the country, as it takes into account the manner in which criminal enterprises operate.
Below is a brief look at how RICO works in everyday terms, and if you are facing any sort of RICO investigation or even indictment, you need to contact our criminal defense lawyers as soon as possible to schedule an initial consultation.
The RICO Statute
Below is relevant language from the RICO statute:
- Sec. 1962. Prohibited activities
- It shall be unlawful for any person who has received any income derived, directly or indirectly, from a pattern of racketeering activity or through collection of an unlawful debt in which such person has participated as a principal within the meaning of section 2, title 18, United States Code, to use or invest, directly or indirectly, any part of such income, or the proceeds of such income, in acquisition of any interest in, or the establishment or operation of, any enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce. A purchase of securities on the open market for purposes of investment, and without the intention of controlling or participating in the control of the issuer, or of assisting another to do so, shall not be unlawful under this subsection if the securities of the issuer held by the purchaser, the members of his immediate family, and his or their accomplices in any pattern or racketeering activity or the collection of an unlawful debt after such purchase do not amount in the aggregate to one percent of the outstanding securities of any one class, and do not confer, either in law or in fact, the power to elect one or more directors of the issuer.
The language above is only one sub-section of what is an enormous statute, and RICO's scope is much deeper than a few tangible acts that constitute a criminal offense.
Penalties and Your Next Step
There are two different remedies available if someone is convicted of violating RICO. One remedy is forfeiture, whereby a convicted defendant can forfeit up to twice the value of the property or assets accumulated illegally as defined by RICO. The other remedy is prison time, and a defendant convicted of violating RICO can face up to 20 years in a federal penitentiary.
If you face this situation, you need to begin building your defense immediately. Contact the Blanch Law Firm as soon as possible to schedule an initial consultation.
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