What Is RICO? Federal RICO and CCE Charges Explained

RICO is the Racketeer Influenced and Corrupt Organizations Act, a federal law found at 18 U.S.C. §§ 1961–1968. A RICO charge accuses a person of running, or taking part in, an enterprise through a pattern of racketeering activity: two or more related crimes from a list in the statute. RICO cases are prosecuted in federal court.

This page explains what the government has to prove, what counts as racketeering, the penalties, and how RICO compares with the federal continuing criminal enterprise (CCE) law. Criminal Center represents people charged under both laws.

What does RICO stand for, and where did it come from?

RICO stands for Racketeer Influenced and Corrupt Organizations. You may also see it written R.I.C.O., or misspelled “Ricco.” Congress passed it as Title IX of the Organized Crime Control Act of 1970 (Pub. L. 91-452), signed on October 15, 1970.

Congress aimed the law at organized crime, including mob control of businesses and unions. But the law is written broadly. The Supreme Court has held that an “enterprise” can be a legitimate business or a purely criminal group (United States v. Turkette, 452 U.S. 576 (1981)). Today RICO charges are brought against gangs, fraud schemes, and corrupt organizations and officials, not only the Mafia.

What does the government have to prove in a RICO case?

Most RICO cases are charged under 18 U.S.C. § 1962(c). To convict, the government must prove each of these beyond a reasonable doubt:

• An enterprise. This can be a company, a union, or any group of people “associated in fact,” even if it is not a legal entity (18 U.S.C. § 1961(4)). An informal group counts if it has a purpose, relationships among its members, and enough longevity to pursue that purpose. It does not need a boss, a chain of command, or a name (Boyle v. United States, 556 U.S. 938 (2009)).
• A link to interstate commerce. The enterprise must be engaged in interstate or foreign commerce, or its activities must affect it.
• The person’s role. The person must be employed by or associated with the enterprise and must take part in conducting its affairs. That means some part in the operation or management of the enterprise itself (Reves v. Ernst & Young, 507 U.S. 170 (1993)).
• A pattern of racketeering activity. This means at least two predicate crimes, with the last one within 10 years of an earlier one, not counting time in prison (18 U.S.C. § 1961(5)). Two acts are the minimum, but they are not always enough. The acts must be related to each other, and they must amount to or threaten continued criminal activity (H.J. Inc. v. Northwestern Bell Telephone Co., 492 U.S. 229 (1989)).

What are the four RICO crimes?

Section 1962 makes four things a crime. Each can rest on a pattern of racketeering activity or on collecting an “unlawful debt,” such as a debt from illegal gambling or from a lending business charging at least twice the legal interest rate (18 U.S.C. § 1961(6)).

• § 1962(a): investing money made from racketeering in an enterprise.
• § 1962(b): getting or keeping an interest in, or control of, an enterprise through racketeering.
• § 1962(c): conducting or taking part in an enterprise’s affairs through racketeering.
• § 1962(d): conspiring to commit any of the first three.

What counts as racketeering activity?

“Racketeering activity” means the crimes listed in 18 U.S.C. § 1961(1). Lawyers call them predicate acts. The law does not give a number. Counted entry by entry, the list has 71 crimes or groups of crimes in seven groups, and one entry brings in a separate list of federal terrorism crimes. You may see other numbers elsewhere; they depend on how the list is counted.

In plain groups, the list includes:

• Violent crimes: murder, kidnapping, robbery, arson, extortion, and murder for hire
• Bribery and corruption: bribery, sports bribery, and illegal payments to labor unions
• Fraud: mail fraud, wire fraud, bank fraud, identity document and access device fraud, securities fraud, and bankruptcy fraud
• Money crimes: money laundering, unlicensed money transmitting, counterfeiting, loan sharking, and crimes under the Currency and Foreign Transactions Reporting Act
• Drugs: dealing in controlled substances or listed chemicals
• Gambling: illegal gambling businesses and sending gambling information across state lines
• Theft and embezzlement: theft from interstate shipments, embezzlement from pension, welfare and union funds, and moving stolen property or vehicles across state lines
• Obstruction: obstruction of justice and of criminal investigations, and tampering with or retaliating against witnesses, victims, and informants
• Exploitation: slavery, peonage, human trafficking, sexual exploitation of children, and transportation for illegal sexual activity
• Immigration and documents: passport, visa, and naturalization fraud, and bringing in or harboring noncitizens for profit
• Other crimes: firearms trafficking and straw purchases, trade secret theft, counterfeit goods and copyright crimes, contraband cigarettes, obscene matter, chemical, biological and nuclear weapons crimes, and federal terrorism crimes

Some state crimes count too, such as murder, robbery, bribery, and drug dealing, if they are punishable by more than one year in prison (18 U.S.C. § 1961(1)(A)). The RICO charge itself is still federal.

What is a RICO conspiracy?

A RICO conspiracy is an agreement to commit a RICO crime. It is a separate crime under 18 U.S.C. § 1962(d), with the same penalties as the other RICO crimes.

The government does not have to prove an overt act, meaning a step someone took to carry out the plan. It also does not have to prove that the person personally committed, or agreed to commit, two predicate acts. It is enough that the person agreed to further or help an effort that, if completed, would meet every element of a RICO crime (Salinas v. United States, 522 U.S. 52 (1997)).

Because of this, a RICO conspiracy charge can reach people with small roles. In these cases, what the person actually knew and agreed to is often the central question.

What is the sentence for a RICO charge?

RICO has no mandatory minimum sentence. A RICO count carries up to 20 years in prison. If a predicate crime carries a possible life sentence, such as some murder and drug trafficking crimes, the RICO count can carry up to life (18 U.S.C. § 1963(a)).

Each count is separate, so a person convicted of more than one count can face more than 20 years in total. Other charges in the same case, such as a drug or gun count, can carry their own mandatory minimums.

• Fine: for an individual, generally up to $250,000 per count (18 U.S.C. § 3571), or up to twice the gross profits or other proceeds of the crime (18 U.S.C. § 1963(a)).
• Forfeiture: the court must order the person to give up any interest gained through the violation, any interest in or source of influence over the enterprise, and any property that came from the racketeering (18 U.S.C. § 1963(a)).
• Substitute property: if that property was spent, hidden, moved, or mixed with other property, the court must order forfeiture of other property up to the same value (18 U.S.C. § 1963(m)).

The government can also ask the court to restrain property after an indictment, and in some cases before one, so it cannot be sold, moved, or hidden before trial (18 U.S.C. § 1963(d)).

Within the range the statute allows, the judge starts with the federal Sentencing Guidelines. Under USSG §2E1.1, the base offense level is 19 or the level for the underlying racketeering activity, whichever is greater. Adjustments then apply, and the judge weighs the factors in 18 U.S.C. § 3553(a).

How the federal sentencing guidelines work (Sentencing.net)

How is CCE different from RICO?

CCE stands for continuing criminal enterprise, a federal crime under 21 U.S.C. § 848. It is sometimes called the “kingpin” law. Unlike RICO, it covers only federal drug crimes, and it targets the people who organize and run drug operations. It was part of the Comprehensive Drug Abuse Prevention and Control Act of 1970.

To convict, the government must prove that the person:

• Committed a felony federal drug crime
• As part of a continuing series of federal drug violations
• Carried out together with five or more other people
• Whom the person organized, supervised, or managed
• And from which the person got substantial income or resources (21 U.S.C. § 848(c))

The jury must agree unanimously on which specific violations make up the “continuing series.” It is not enough for jurors to agree only that there was some series (Richardson v. United States, 526 U.S. 813 (1999)).

What are the penalties for CCE?

• At least 20 years and up to life in prison. This is a mandatory minimum. The fine for an individual can reach $2 million, or more if the general federal fine law allows (21 U.S.C. § 848(a)).
• At least 30 years and up to life after an earlier final CCE conviction, with a fine of up to $4 million or more (21 U.S.C. § 848(a)).
• Mandatory life for a principal administrator, organizer, or leader if the case involved at least 300 times the drug amount that triggers the 5-year minimum in 21 U.S.C. § 841(b)(1)(B), or the enterprise took in $10 million in gross receipts in any 12-month period. For methamphetamine, the figures are 200 times and $5 million (21 U.S.C. § 848(b), (s)).
• No probation and no suspended sentence (21 U.S.C. § 848(d)).
• Forfeiture of profits and property under 21 U.S.C. § 853.

If someone is intentionally killed in furtherance of the enterprise, or a law enforcement officer is intentionally killed, the law allows 20 years to life, or the death penalty (21 U.S.C. § 848(e)).

Criminal Center's guide to federal drug trafficking and conspiracy chargesHow federal drug cases are charged and sentenced, including the mandatory minimums.

Federal drug conspiracy charges

Has anyone beaten a RICO charge?

Yes. Like any federal charge, a RICO case can end in an acquittal at trial, the dismissal of some or all counts, or a plea to a lesser charge. How any one case ends depends on its facts and evidence, and no one can predict the result.

The government must prove every element beyond a reasonable doubt, and RICO has many elements. The ones most often contested are whether there was a real enterprise, whether the predicate acts form a pattern (related and continuing, not isolated), and what role the person actually played. In a conspiracy case, the dispute is often about what the person knew and agreed to.

Are RICO charges federal or state?

The RICO Act is a federal law. Charges under it are brought by federal prosecutors in federal court, even when some of the predicate acts are state crimes (18 U.S.C. § 3231). Many states have their own RICO-style laws; this page covers only the federal statute.

Federal prosecutors also need approval from Washington. The Justice Department’s manual says no RICO indictment or information may be filed without prior approval from the Criminal Division (Justice Manual 9-110.101).

How are RICO and CCE cases defended?

RICO and CCE cases often involve large amounts of evidence, many defendants, and cooperating witnesses. A defense starts with a careful review of that evidence. Common issues include:

• Whether there was really an “enterprise,” or just separate people committing separate crimes
• Whether the acts are related and continuing enough to form a true pattern
• Whether each predicate act is one of the listed crimes, and whether it was proved
• For CCE, whether the person really organized, supervised, or managed five or more people, and whether the income was substantial
• What property can fairly be restrained or forfeited, and protecting property that did not come from the crime
• At sentencing, how the guideline level for each underlying act is figured, and the reasons for a lower sentence under 18 U.S.C. § 3553(a)

RICO can also be used in civil lawsuits. A person injured in business or property can sue for three times the damages (18 U.S.C. § 1964(c)). Facts that come out in a civil RICO case can lead to a criminal investigation, so if you learn you may face federal charges, talk with a lawyer early.

Money laundering charges often come with RICO cases

Where can you read the law?

• 18 U.S.C. § 1961 (definitions, including racketeering activity and pattern)
• 18 U.S.C. § 1962 (the four RICO crimes)
• 18 U.S.C. § 1963 (criminal penalties and forfeiture)
• 18 U.S.C. § 1964 (civil remedies)
• 21 U.S.C. § 848 (continuing criminal enterprise)
• USSG §2E1.1 (racketeering guideline)
• Justice Manual 9-110.000 (RICO approval rules)
• Salinas v. United States, 522 U.S. 52 (1997)
• Boyle v. United States, 556 U.S. 938 (2009)
• Reves v. Ernst & Young, 507 U.S. 170 (1993)
• H.J. Inc. v. Northwestern Bell Telephone Co., 492 U.S. 229 (1989)
• United States v. Turkette, 452 U.S. 576 (1981)
• Richardson v. United States, 526 U.S. 813 (1999)

What should you do next?

If you are under investigation or charged with a RICO or CCE offense, or you are helping someone who is, the details of the case matter. Book a consultation and tell us what happened.

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