Racketeering is the act of engaging in criminal activities that are typically performed as part of an organized crime group. These activities can include, but are not limited to, bribery, extortion, money laundering, loan sharking, and fraud.
The term gained widespread recognition with the enactment of the Racketeer Influenced and Corrupt Organizations Act (RICO) in the United States in 1970, designed to tackle organized crime groups more effectively by allowing leaders of these groups to be tried for the crimes they ordered others to do or assisted in doing.
RICO gave law enforcement increased tools to combat organized crime, extending penalties and providing a civil cause of action for private parties injured by such activities.
What is an example of Racketeering?
An example of Racketeering can be seen in the case of a group of individuals running an illegal gambling ring. In this scenario, the group’s leaders would be considered engaging in racketeering by organizing and operating illegal activities.
They may also participate in other criminal activities, such as bribery and money laundering, further solidifying their involvement in Racketeering.
Other examples of Racketeering can include drug trafficking, human trafficking, and illegal arms dealing.
Many Other Examples of Racketeering
- Insurance Fraud: Creating false insurance claims for financial gain.
- Embezzlement: Theft of funds from a company, organization, or individual’s account by someone in a position of trust.
- Cyber extortion: This type occurs when a hacker deploys malware onto a user’s computer, effectively blocking all access to the system and data. Subsequently, the hacker demands a ransom to restore access to the affected individual.
- Protection rackets: In this scenario, a criminal organization threatens harm to a business or individual unless a protection fee is paid to them.
- Kidnapping: When an individual is unlawfully detained, and their captors demand a ransom for their release, it is categorized as Racketeering.
- Fencing racket: Acting as middlemen, individuals purchase stolen goods from thieves at discounted prices and then resell these items at a profit to unsuspecting buyers.
- Drug trafficking: The illegal production, smuggling, and distribution of drugs to the public.
- Illegal gambling activities: These include underground establishments like casinos, sports books, or card rooms where the establishment profits from the bets placed by participants.
Carter Wilson is a licensed lawyer with over 10 years of experience in various legal fields. He is passionate about making law accessible to the general public and helping individuals navigate through complex legal matters.