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In theUnited States,racketeering is a type oforganized crime in which the perpetrators set up acoercive,fraudulent,extortionary, or otherwise illegal coordinated scheme or operation (a "racket") to repeatedly or consistently collect a profit.[1] The term "racketeering" was coined by theEmployers' Association of Chicago in June 1927 in a statement about the influence of organized crime in theTeamsters' Union.[2][3] Specifically, a racket was defined by this coinage as being a service that calls forth its own demand, and would not have been needed otherwise.[2]: 9 Narrowly, it meanscoercive orfraudulent business practices; broadly, it can mean any criminal scheme or operation with ongoing or reoccurring profit, as defined in the 1970U.S. RICO Act, which aimed to curtail the power of theMafia and other organized crime.[4]
Originally and often still specifically, racketeering may refer to an organized criminal act in which the perpetrators offer a service that will not be put into effect, offer a service to solve a nonexistent problem, or offer a service that solves a problem that would not exist without the racket. However, racketeers may also sometimes offer an ostensibly effectual service outside of the law to solve an actual existing problem. The traditional and historically most common example of a racket is the "protection racket", in which racketeers offer to protect a business from robbery or vandalism; however, the racketeers will themselves coerce or threaten the business into accepting this service, often with the threat (implicit or otherwise) that failure to acquire the offered services will lead to the racketeers themselves contributing to the existing problem. In many cases, the potential problem may be caused by the same party that offers to solve it, but that fact may be concealed, with the intent to engender continualpatronage. The protection racket is thus often a method ofextortion, at least in practice.
However, the definition of the term "racket" has been expanded over time and may now be used less strictly to refer to any continuous or repeated illegalorganized crime operation, including those that do not necessarily involve fraudulent or coercive practices or extortion. For example, "racket" may refer to the "numbers racket" or the "drug racket", neither of which generally or necessarily involve extortion, coercion, fraud, ordeception with regard to the intended clientele. Because of the clandestine nature of theblack market, most proceeds made from criminal rackets often gountaxed.
On October 15, 1970, the Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. §§ 1961–1968), commonly referred to as the "RICO Act", became United States law. The RICO Act allows federal law enforcement to charge a person or group of people with racketeering, defined as committing multiple violations of certain varieties within a ten-year period. The purpose of the RICO Act was stated as "the elimination of the infiltration of organized crime and racketeering into legitimate organizations operating ininterstate commerce". S.Rep. No. 617,91st Cong., 1st Sess. 76 (1968). However, the statute is sufficiently broad to encompassillegal activities relating to any enterprise affecting interstate or foreigncommerce.
18 U.S.C. § 1961(10) provides that theAttorney General of the United States may designate any department or agency to conduct investigations authorized by the RICO statute and such department or agency may use the investigative provisions of the statute or the investigative power of such department or agency otherwise conferred by law. Absent a specific designation by the Attorney General, jurisdiction to conduct investigations for violations of18 U.S.C. § 1962 lies with the agency having jurisdiction over the violations constituting the pattern of racketeering activity listed in18 U.S.C. § 1961.[5]
To prove a RICO charge, the prosecution must prove that a pattern of racketeering activity occurred within a ten year period.[6] Racketeering activity includes the act or threat ofmurder,kidnapping,gambling,arson,robbery,bribery,extortion,dealing in a controlled substance, and additional serious crimes punishable by imprisonment for more than 1 year.[7]
In the United States, civil racketeering laws are also used infederal andstate courts.
Types offraud | |
|---|---|
| Business-related | |
| Family-related | |
| Financial-related | |
| Food-related | |
| Government-related | |
| Healthcare | |
| Other types | |
