RICO usually refers to a U.S. federal law used to go after organized crime and certain kinds of ongoing fraud. It stands for “Racketeer Influenced and Corrupt Organizations Act.”
Basic definition
RICO is a federal statute, enacted in 1970, that targets people who conduct or participate in an “enterprise” through a pattern of criminal activity, known as racketeering. It allows prosecutors and private plaintiffs to link a series of related crimes together and treat them as part of one coordinated criminal enterprise.
What counts as racketeering
Under RICO, “racketeering activity” covers a long list of offenses, including things like bribery, extortion, drug trafficking, gambling offenses, and certain types of fraud and violent crimes. To qualify as a RICO pattern, there generally must be at least two qualifying racketeering acts within a 10‑year period.
Why RICO is important
RICO makes it easier to reach leaders and organizers of criminal groups, even if they did not personally carry out the underlying crimes, as long as they were involved in directing or benefiting from the enterprise. The law provides strong penalties (including lengthy prison terms, fines, and asset forfeiture) and also allows civil lawsuits where injured parties can seek multiple times their actual damages.