Racketeering is a type of organized crime where a service is fraudulently offered in order to solve a non-existent problem.
Racketeering is used to extort money out of businesses. Racketeers offer solutions to businesses for problems that the racketeers secretly created.
In 1970, RICO, which stands for Racketeer Influenced and Corrupt Organization, became law. RICO made is legal to charge and convict individuals or groups with the act of committing organized crime, or racketeering.
Typical defendants are not mob bosses. Anyone who uses any kind of business to commit two or more racketeering activities can be charged.
Racketeering is a broad term that encompasses a number of different criminal offenses. These include embezzlement, fraud, bribery, obstruction of justice, securities fraud, bankruptcy fraud, money laundering, and more.
Plaintiff parties injured by racketeering defendant may seek damages up to three times the amount lost to the defendant as wells any attorney fees or litigation costs. Defendants convicted may face up to 20 years in prison for each RICO violation committed. Convicted defendants also forfeit any interest, asset, or property derived from their racketeering.
For more information and details regarding the civil provisions of RICO, contact an experienced and knowledgeable business litigation attorney.