State and federal governments seek to prevent and punish organized crime through racketeering laws.
Whether charged at the state or federal level, racketeering is a serious offense. If charged with racketeering, a person could face substantial fines, a lengthy prison sentence, forfeiture of property, and additional penalties.
If you or someone you know has been charged with racketeering, a qualified criminal defense attorney can guide you through the process and build a defense strategy tailored to the facts.
- What is racketeering?
- The 3 elements of racketeering (RICO)
- What federal RICO charges can a defendant face?
- What is an example of racketeering?
- What are the different types of racketeering?
- Racketeering laws in California
- Penalties for a RICO conviction
- Legal defenses against racketeering charges
- Los Angeles racketeering defense attorney
- Frequently Asked Questions
What is racketeering?
Congress passed the Racketeer Influenced and Corrupt Organizations Act (RICO Act) in 1970. The RICO Act was created to stop organized criminal activity and prevent corrupt organizations from operating through legitimate businesses.
In plain terms, racketeering refers to a pattern of criminal activity carried out through an enterprise (a group or organization), usually to generate illegal profit or gain money or property. That enterprise can be a formal organization or an informal network that operates like a criminal organization.
Racketeering can involve many different crimes, but common examples include:
- Drug dealing and drug trafficking
- Money laundering
- Wire fraud and other fraud schemes
- Bribery and corruption
- Extortion and coercion
- Robbery and violence
- Cyber extortion (including ransomware-style threats)
- Murder
The 3 elements of racketeering (RICO)
In any criminal case, the prosecution must prove specific facts. These are known as the “elements of the crime.” In a federal racketeering case, the government typically has to prove three core elements beyond a reasonable doubt.
1) An enterprise
The prosecutor must show the defendant was connected to a criminal enterprise. An enterprise can be a company, a formal group, or an “association-in-fact” that functions together for a common purpose. In many federal cases, the enterprise must affect interstate commerce in some way.
2) A pattern of racketeering activity
The government must prove a pattern of racketeering activity, not just one incident. A “pattern” is often built by alleging at least two predicate acts (qualifying crimes) within a ten-year period, tied to the enterprise.
3) Predicate acts (racketeering activity)
RICO cases are built on underlying crimes called predicate acts. Predicate acts can include extortion, wire fraud, money laundering, bribery, drug trafficking, and other offenses listed in the RICO statute.
Table: The 3 elements prosecutors must prove in a RICO case
| Element | What the prosecution must show | What defenses often focus on |
|---|---|---|
| Enterprise | A functioning group or organization exists | The “enterprise” is exaggerated or doesn’t legally qualify |
| Pattern | A connected pattern (not isolated events) | No true pattern, or timing doesn’t meet the legal threshold |
| Predicate Acts | Qualifying crimes actually occurred | Weak proof, mistaken identity, lack of intent, unreliable witnesses |
What federal RICO charges can a defendant face?
The three federal RICO-related offenses a defendant can be charged with include:
- Leading or participating in an enterprise that engages in racketeering activity
- Gaining or maintaining interest in an enterprise via racketeering activity
- Investing proceeds obtained through racketeering activity
In addition, many racketeering cases include RICO conspiracy, where the allegation is an agreement to participate in racketeering activity even if the government claims the person did not personally commit every predicate act.
What is an example of racketeering?
Racketeering is a type of criminal activity that involves an unlawful act committed for the purpose of obtaining money or property. Examples of racketeering can include extortion, money laundering, embezzlement, bribery, fencing stolen goods, and fraud. Racketeering is often associated with organized crime and criminal organizations, and it can carry severe penalties.
Money laundering (a common racketeering example)
Money laundering is an example of racketeering. It is the process of making “dirty” money (money obtained through illegal means) look clean.
Money is laundered through a series of financial transactions, such as:
- Moving money through multiple bank accounts
- Using it to purchase assets
- Investing it into a business or “legitimate” revenue stream
In many cases, money laundering allegations also overlap with fraud, wire fraud, and related financial crimes.
Protection rackets (a classic racketeering scheme)
A protection racket is another traditional racketeering example. A person or group demands payment in exchange for “protection,” often backed by threats of harm or retaliation. In some cases, the threat is implied. In others, it’s direct coercion.
What are the different types of racketeering?
There are many different types of racketeering, but some of the most commonly prosecuted include:
- Extortion: obtaining money or property through force, threats, or coercion
- Bribery: exchanging money or favors for influence or advantage
- Money laundering: hiding the source of money through financial transactions
- Illegal gambling: unlicensed bookmaking and unlawful gambling operations
- Drug trafficking: distribution, transport, or sale of illegal drugs
- Wire fraud: using electronic communications to commit fraud
- Cyber extortion: threats tied to systems, data, or access (often digital)
Racketeering laws in California
In addition to the federal RICO Act, California has its own California Control of Profits of Organized Crime Act under California Penal Code 186.
This law aims to punish organized criminal activity and crimes committed for the illegal benefit of a criminal organization. Under this statute, the state of California can seize property or proceeds gained through criminal profiteering activity.
Penalties for a RICO conviction
Penalties for a federal RICO conviction are severe and may include:
- A prison sentence of up to twenty (20) years or life (if the defendant was charged with certain crimes such as murder as part of the racketeering offense)
- A fine of up to $250,000 or twice the proceeds of the offense
- Mandatory forfeiture of all property, proceeds, and property obtained from the proceeds of the crime, as well as any interest the defendant holds in the criminal enterprise
Federal sentencing in RICO cases often depends on the alleged predicate acts and how the court calculates offense levels. Many attorneys review guidance published by the United States Sentencing Commission when evaluating likely outcomes in federal court.
In California, the penalties for offenses under Penal Code 186 depend on the unique facts of the case, including the seriousness and number of crimes committed and the defendant’s criminal record. Potential penalties for a California Penal Code 186 violation may include:
- A prison sentence of up to 20 years
- House arrest
- Fines
- Forfeiture of property and proceeds
- Probation
- Compensation of 3 times the damage caused to victim(s)
Legal defenses against racketeering charges
Whether charged under the federal RICO statute or the California Control of Profits and Organized Crime Act, racketeering charges can involve a lengthy and aggressive process.
Defendants may be asked to provide testimony, turn over documents, or respond to broad investigation demands. It is essential that anyone accused of racketeering have a dedicated criminal defense attorney to protect them, challenge the prosecution, and prevent the case from expanding unnecessarily.
Below are common defenses against racketeering charges, depending on the facts and evidence:
- No pattern of criminal activity
To convict someone under the RICO Act, the prosecution must prove a pattern of racketeering activity. If the alleged crimes are isolated, unrelated, or do not meet the required timeline, the case may be vulnerable. - Lack of involvement in a criminal organization or enterprise
The prosecution must prove the defendant was involved with an enterprise and that the alleged criminal activity was connected to that enterprise. - Insufficient evidence
If the evidence is weak, unreliable, or incomplete, the prosecution may not be able to prove guilt beyond a reasonable doubt. - Lack of intent
Many predicate acts require knowledge and intent. If the government cannot prove the necessary state of mind, the charge may not hold. - Illegal search and seizure
Law enforcement must follow strict constitutional protocols. If evidence was obtained unlawfully, it may be excluded, weakening the prosecution’s case.
Los Angeles racketeering defense attorney
If you or someone you know is facing racketeering charges, you need a knowledgeable and dedicated criminal defense attorney who can help you navigate the process and build an aggressive defense.
As a criminal defense attorney with more than four decades of experience representing clients in both federal and California state cases, Robert M. Helfend can be the strong legal ally you need.
Call today for your free consultation – 800-834-6434.
Frequently Asked Questions
Can racketeering be charged without organized crime involvement?
Yes. While the RICO Act is strongly associated with organized crime, RICO charges can involve many kinds of alleged criminal enterprises, including cases built around fraud, extortion, or financial schemes.
How many crimes does it take for a RICO case?
RICO generally requires a pattern of racketeering activity, often alleged as at least two predicate acts within ten years.
What are the three elements of racketeering?
Most federal RICO cases focus on: (1) an enterprise, (2) a pattern of racketeering activity, and (3) predicate acts tied to that enterprise.
Can a racketeering case be beaten on lack of evidence?
Yes. If the prosecution cannot prove the enterprise, pattern, or predicate acts beyond a reasonable doubt, the defendant may have strong defense options.
What happens to money or property in a RICO case?
Forfeiture is common in racketeering cases, and prosecutors often pursue property they claim is tied to proceeds, profit, or interests in the enterprise.
Published April 24, 2021. Last updated January 18, 2026.
References
- “California Control of Profits of Organized Crime Act.” California Penal Code Section 186.
- “Racketeer Influenced and Corrupt Organizations.” 18 U.S. Code Chapter 96.