Racketeering is creating an illegal business scheme that is typically run as part of an organized crime. There are several different forms of racket which exist and come with severe punishments. The most common form of this crime is called protection racket. This occurs when criminals demand money from a business in exchange for protection against crimes that the criminals will commit themselves if they are unpaid. Essentially, this is a form of extortion and threatening businesses with unscrupulous schemes in order to gain the money that they desire. Another illegal form of racketeering is called the numbers racket. This is a sort of illegal lottery where a bettor attempts to pick a three digit number that will match the number drawn from a hat later that day. This lottery has been called the “lowest, meanest form of gambling” and has been struck down in the USA. It is still often practiced in poor neighborhoods. The police can arrest a person who instigates one of these lotteries and they can face the appropriate state sentences for racketeering.

Both forms of racketeering are typically prosecuted under the federal extortion law. Extortion is considered any crime where money is obtained by threat to a victim’s property or loved ones. The money can also be gathered by the false claim of a right. The Hobbs Act of 1946 was passed to prohibit actual or attempted extortion that affects foreign or interstate commerce. The Hobbs Act was an effort to strike down all forms of racketeering in labor-management, but it has also been used to prosecute men and women who are involved in political bribing. Racketeering offenses are often dealt with by the Public Integrity Section which will oversee allegations of extortion by official right or extortion by a public official. As well, the Organized Crime and Racketeering Section Labor-Management Unity oversees allegations of extortion that deal specifically with labor management disputes. The Gang Unit oversees other extortion offenses in other contexts.

The court can punish a person who chooses to commit racket by intimidating a person into paying money out of three different methods. The first is racketeering through fear. In this situation, a person may threaten to harm the victim or the victim’s family unless he or she pays the money that the criminal desires. Another way that people commit extortion or racketeering is through force. A person can physically force the victim to pay the money up. This is often considered robbery or burglary as well. The court will want to carefully evaluate the case before ascribing specific charges to the criminal. As well, a person can commit this crime by inflicting violence.

The prosecution must prove that a suspect that was arrested on charges of racketeering was intentional about receiving money from a victim. For one, the prosecution must prove that the criminal attempted to induce the victim to relinquish property or rights. The prosecution must also prove that the defendant used or attempted to use the victim’s fear or economic harm or physical injury to provoke that person to relinquish property or rights. The prosecution also needs to prove that the defendant’s conduct actually affected, delayed, or obstructed foreign or interstate commerce and that the defendant’s actual or threatened use of fear, force, or violence was illegal.

In 1970, the Racketeer Influenced and Corrupt Organizations Act or the RICO Act was passed. This new law allowed law enforcement to charge a person or group of people with the crime of racketeering. This is considered committing multiple violations of extortion crimes within the past ten years. The RICO Act intended to eliminate organized crime and racketeering. While they said that they only handled racketeering cases, the RICO Act effectively dealt with all illegal activities that regulate interstate or foreign commerce. If you have been charged with racketeering, then you will want a criminal defense attorney on your side to help you fight your charges. Contact a local attorney listed on our directory today to get started!