What is Racketeering?
A racket is an illegal business, usually run as part of organized crime. Engaging in it is referred to as racketeering.
Traditionally, the word “racket” is used to describe a business that is based on the example of the “protection racket” and indicates that the speaker believes that the business is making money by selling a solution to a problem that the business itself created (or that it intentionally allows continuing to exist), precisely so that continuous purchases of the solution are always needed.
The Employers’ Association of Chicago initially coined the term in June 1927 in a statement about the influence of organized crime in the Teamsters union.
The RICO Act
Racketeering is usually associated with organized crimes and criminal organizations and is usually punished under the RICO Act (Racketeering Influenced and Corrupt Organizations). The RICO Act allows law enforcement to prosecute all members of a crime organization instead of just going after a single individual. Law enforcement agencies use it to prosecute the mafia, cartels, street gangs, motorcycle gangs, and other organized crime units.
The RICO Act includes a list of 35 different crimes, including such things as:
- Gambling
- Murder
- Kidnapping
- Extortion
- Arson
- Robbery
- Bribery
- Dealing in obscene matter
- Dealing with a controlled substance or listed chemical
- Counterfeiting
- Theft
- Embezzlement
- Fraud
- Obstruction of justice
- Slavery
- Racketeering
- Money laundering
- The commission of murder-for-hire
- Bankruptcy fraud
- Securities fraud
- Drug trafficking
- Criminal copyright infringement
- Aiding or assisting illegal aliens entering the country for financial gain
- Terrorism
- Others
Examples
Protection Racket
The best-known form is the “protection racket”, in which criminals demand money from businesses in exchange for the service of “protection” against crimes that the racketeers themselves instigate if unpaid. This is depicted in numerous films such as The Godfather, where mobsters “shakedown” local businesses for money.
For example, a representative from an organized crime gang or family informs a store owner that a fee of a certain amount of dollars will be required every month to serve as protection money. However, the “protection” comes from the racket itself, not causing damage to the store or its employees. This practice is often seen in movies about the mafia and the mob.
Numbers Racket
This is a form of illegal lottery that is played in poor neighborhoods. In this situation, people pick three digits and place a bet, hoping to match random numbers drawn the next day. In recent years, the three-digit number is often taken from a number published in major NYC newspapers.
Punishment for Racketeering Crimes
Each count is punishable by up to 20 years in prison. In addition, the court can impose fines related to the number of the defendant’s profits from their crimes.
Hire a Private Investigator to Investigate
Private investigators may be hired to investigate various crimes related to racketeering. Detectives may go undercover to obtain proof or conduct surveillance to observe the behavior of specific individuals.
Questions and More Information
If you have any questions, please post a message below. For more legal definitions, visit our Glossary of Legal and Investigation Terms.
