Racketeer Influenced and Corrupt Organizations Act (RICO)

August 2, 2010

In an attempt to eradicate organized crime in the United States, Congress enacted the Racketeer Influenced and Corrupt Organizations Act as Title IX of the Organized Crime Control Act of 1970. Among its broad provisions, RICO specifically authorizes an injured person to sue in federal court for attorney's fees and treble damages when it is proved that the injury resulted from a pattern of racketeering activities as defined in the Act. Such activities include not only major crimes like murder and extortion, but milder crimes such as mail and telephone fraud. The scope of the Act is so comprehensive that violations of many securities laws may be used as fodder for bringing criminal claims alleging RICO violations for which severe penalties and imprisonment may be imposed.