White-collar crimes like money laundering and embezzlement carry extremely harsh penalties under federal sentencing guidelines. Since defendants cannot be charged with “white-collar crimes” the way they can be charged with murderrape, or assault, how are these offenses prosecuted?

RICO, or the Racketeer Influenced and Corrupt Organizations Act, expands the government’s powers to prosecute racketeering activity and white-collar crimes. White-collar crime” is not an individual offense, but an umbrella term that describes many offenses. The FBI’s website puts it in rather blunt terms: “Lying, cheating, and stealing. That’s white-collar crime in a nutshell.” White-collar crimes are perhaps best summarized as financial crimes designed for pecuniary gain. Crimes prosecuted under RICO typically refer to racketeering, which may involve violent offenses as well, such as kidnapping or arson. For white-collar crimes to be prosecuted under RICO, a pattern of racketeering must typically be established, and our lawyers can challenge this as well as other arguments from the prosecution when handling your case.

Call the Liberty Law Team for a free and confidential case review from our criminal defense lawyers at (215) 826-3314.

What White-Collar Crimes Can Be Prosecuted Under RICO?

The RICO Act (Racketeer Influenced and Corrupt Organizations Act), more commonly known simply as RICO, was designed to combat white-collar crimes. First introduced in 1970 as part of the Organized Crime Control Act or OCCA, RICO is a federal law that seeks to discourage would-be perpetrators of white-collar crimes by permitting increased penalties in the event of a conviction. (In fact, most federal sentences are longer than their state counterparts, though this is not always the case.)

As its name suggests, RICO primarily focuses on racketeering, or criminal activity that profits an organization – oftentimes a criminal organization. Racketeering is closely associated with crime syndicates and Mafia organizations around the world, including the American Mafia, the Sicilian Mafia, and Mexican drug cartels.

White-collar crimes are any non-violent illegal acts committed by a person or business for financial gain. Common examples include large-scale money laundering, embezzlement, extortion, and bribery, though many other crimes could also be categorized as white-collar.

Like white-collar crime, racketeering is also an umbrella term. However, racketeering is even broader in scope, encompassing violent crimes in addition to financial crimes. Under 18 U.S.C. § 1961(1), acts or threats involving robbery, murder, bribery, or arson, among others, can constitute racketeering activity and be prosecuted under RICO.

This is just a small portion of the full list, which contains no fewer than 35 offenses in total (eight state crimes and another 27 federal crimes). This list is very important to understanding prosecution under RICO, which may occur if “there is a pattern of racketeering activity,” meaning a defendant allegedly commits “at least two acts of racketeering activity” (the second act of which occurs within 10 years of the first act) in accordance with § 1961(5).

Who is Typically Prosecuted for White-Collar Crimes Under RICO?

Prosecutors use RICO to target “enterprises.” This might mean a small, family-operated business, a large corporation, a business partnership, a highly organized crime syndicate, a street gang, or even a political group. The group itself may be illegal (such as the crime syndicate example) or perfectly legal (such as the family-owned business example). It simply depends on the situation.

Significantly, RICO also allows the leaders of organizations and businesses to be prosecuted for crimes they allegedly ordered committed, but did not personally commit themselves, thereby broadening the government’s powers of prosecution.

In fact, RICO was developed largely because pre-RICO prosecutors could only target individual suspects, which ultimately proved insufficient as a means of fighting organized crime. As Congress declared in its Congressional Statement of Findings and Purpose, RICO was designed “to seek the eradication of organized crime in the United States by strengthening the legal tools in the evidence-gathering process, by establishing new penal prohibitions, and by providing enhanced sanctions and new remedies to deal with the unlawful activities of those engaged in organized crime.”

RICO enables prosecutors to charge defendants with multiple crimes that may seem unrelated but, according to their arguments, establish a pattern of racketeering or other white-collar criminal activity. All individuals allegedly involved in a criminal organization could be prosecuted under RICO, though prosecutors typically use RICO to charge leadership.

What to Do if You Are Being Prosecuted for a White-Collar Crime Under RICO

If you have been charged with white-collar crimes or federal crimes in Philadelphia or elsewhere in Pennsylvania, you face a lengthy prison term and other harsh penalties. When the stakes are this high, it is absolutely critical that your rights are protected by an experienced Philadelphia white-collar crimes lawyer with a history of obtaining favorable outcomes. To give one example, Philadelphia embezzlement defense lawyer Lonny Fish obtained a verdict of not guilty in the biggest federal indictment in the Eastern District of Pennsylvania’s history.

Prosecutors spend ample time preparing RICO cases before filing charges, so having our attorneys there to overhaul the case against you and quickly synthesize evidence and arguments is crucial. Our attorneys may work to swiftly challenge the prosecution’s evidence of an alleged pattern of racketeering, which may be the basis of the case.

It is important to understand that RICO allows for both criminal and civil cases against defendants, potentially holding them liable for huge sums in addition to penalizing them with jail time. Convicted defendants might also be forced to forfeit their assets or earnings from the enterprise. Anticipating the complexities of RICO cases requires experience, and defendants facing white-collar crimes or racketeering charges likely need the support of our skilled attorneys.

Providing our criminal defense lawyers with financial information about your legitimate business so we can have our own financial experts analyze it may help your case, as well as any correspondence or other evidence that helps prove your innocence rather than your guilt. Point us to witnesses who may be beneficial, and leave no stone unturned when discussing your case confidentially with our attorneys.

Defending Yourself Against Prosecution Under RICO

Being prosecuted for white-collar crimes or under RICO requires a strong defense that our lawyers can help you identify and build when handling your case.

For example, we may argue that the organization you were allegedly part of did not meet the definition of an enterprise. We may also contest the prosecution’s basis for a pattern of racketeering, particularly if the alleged instances in question were within 10 years of one another. We will also assess the prosecution’s investigation and procurement of evidence, as missteps could make certain evidence against you inadmissible.

Showing you were not part of the alleged conspiracy or a lack of intent may also help you defeat RICO charges, which could, in turn, help you avoid long prison sentences if convicted.

Evidence our criminal defense lawyers may use to undermine RICO cases may include evidence of legitimate business activity from the alleged criminal enterprise, witness statements confirming you were not involved, inconsistencies in witness statements on behalf of the prosecution, and gaps in the prosecution’s case or general timeline regarding your alleged racketeering activity. Thoroughly reviewing the prosecution’s evidence is of the utmost importance, as this will allow us to identify weaknesses we may expose in their case.

Prosecutors might argue that bail be set egregiously high in RICO cases because of the defendant’s resources and access. Our attorneys can advocate for you during your initial arraignment and bail hearing so that you can participate in your defense from the comfort of your own home and not a jail cell.

Call Our Lawyers for Help with Your RICO Case Today

To speak confidentially about your case with our Philadelphia criminal defense attorneys, call the Liberty Law Team today at (215) 826-3314.