What is a RICO charge?
RICO stands for the Racketeer Influenced and Corrupt Organizations Act. A RICO charge accuses you of running or helping run an enterprise, such as a business, group, or association, through a pattern of racketeering activity. A pattern needs at least two qualifying criminal acts. A conviction carries up to 20 years in federal prison, or life if one of those acts carries life, plus mandatory forfeiture.
- RICO is a federal law, 18 U.S.C. §§1961 to 1968, aimed at criminal enterprises rather than single crimes.
- Section 1962 makes four things unlawful, including conspiring to violate the others.
- A "pattern" needs at least two acts of racketeering, with the last one within 10 years of a prior act.
- Penalties: up to 20 years, or life if a predicate act carries life, a fine, and forfeiture of proceeds and interests.
- Texas has its own version, engaging in organized criminal activity, which raises the punishment one category.
A RICO charge feels different from an ordinary case, because the government is not just accusing you of one act. It is trying to tie you to a group and to everything that group allegedly did. This guide explains what the law actually requires, what it carries, and how the Texas version works. Peter M. Barrett has been licensed in Texas since 1994 and has tried more than 150 jury trials. He is a Past President of the Dallas Criminal Defense Lawyers Association (2005). See our Dallas federal crime defense page for how federal cases run.
What the RICO statute makes unlawful
18 U.S.C. §1962 has four subsections. Each describes a different way of violating the act:
- (a) Investing racketeering income. Using or investing income derived from a pattern of racketeering activity, or from collecting an unlawful debt, to acquire, establish, or operate an enterprise that affects interstate or foreign commerce.
- (b) Taking over an enterprise. Acquiring or maintaining an interest in or control of such an enterprise through a pattern of racketeering activity or collection of an unlawful debt.
- (c) Running one through racketeering. Being employed by or associated with such an enterprise and conducting or participating in its affairs through a pattern of racketeering activity or collection of an unlawful debt. Most criminal RICO charges are brought under this subsection.
- (d) Conspiracy. Conspiring to violate subsection (a), (b), or (c).
What counts as an "enterprise"
The definition is wide. Under §1961(4), an enterprise includes any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact, even if it is not a legal entity.
That last phrase is why RICO reaches far beyond the mob. A loose group with no name, no paperwork, and no office can be alleged to be an enterprise. Whether the government can actually prove one existed is often the first real fight in the case.
What counts as a "pattern of racketeering activity"
Two definitions do the work here.
Racketeering activity (§1961(1)) is a list, not a general idea. It includes:
- State crimes involving murder, kidnapping, gambling, arson, robbery, bribery, extortion, dealing in obscene matter, or dealing in a controlled substance, but only if the act is chargeable under state law and punishable by more than one year in prison.
- Federal offenses listed by section number, including bribery, counterfeiting, theft from interstate shipment, extortionate credit transactions, identity document and access device fraud, mail fraud, wire fraud, bank fraud, illegal gambling businesses, money laundering under §1956, and monetary transactions in criminally derived property under §1957.
A pattern (§1961(5)) requires at least two acts of racketeering activity. The last act must have occurred within 10 years of a prior act, not counting any time in prison.
Two acts are the minimum the statute sets. Whether any two acts add up to a pattern is a separate question. Courts also ask how the acts relate to each other and whether they show continuing conduct, so how the alleged acts connect is worth close review with your lawyer.
RICO also reaches the collection of an "unlawful debt," which §1961(6) defines around unlawful gambling debts and debts at usurious rates that are at least twice the enforceable rate.
RICO penalties
Under 18 U.S.C. §1963(a), a person who violates §1962:
- Prison. May be imprisoned not more than 20 years, or for life if the violation is based on a racketeering activity whose own maximum penalty includes life.
- Fine. May be fined under title 18. In place of that fine, a defendant who derived profits or proceeds may be fined up to twice the gross profits or proceeds.
- Forfeiture. Shall forfeit any interest acquired or maintained in violation of §1962, any interest in or control over the enterprise, and any property derived from the proceeds. The statute says the court shall order forfeiture in addition to any other sentence.
Forfeiture is not optional, and it reaches real property and other assets described in §1963(b). That is why asset questions come up early in these cases.
The predicate acts can also be charged on their own. A RICO count does not replace the underlying charges, so the exposure in an indictment is often larger than the RICO maximum alone.
RICO conspiracy
Section 1962(d) makes it unlawful to conspire to violate the other subsections. A conspiracy count carries the same penalties under §1963(a). This is how the government charges people who never personally committed the underlying acts, on the theory that they agreed to the scheme. What a person actually agreed to, and when, becomes the central question.
Civil RICO is a different thing
You may have seen RICO in a lawsuit rather than a prosecution. Under §1964(c), a person injured in business or property by a §1962 violation may sue in federal court and recover three times the damages, plus costs and a reasonable attorney's fee. A civil RICO suit is brought by a private party, and it does not require a criminal conviction. A criminal RICO charge is brought by the United States and carries prison and forfeiture.
Is there a time limit on RICO charges?
Chapter 96 does not set its own criminal deadline. The general federal limitations statute, 18 U.S.C. §3282(a), requires an indictment within five years after the offense for most non-capital federal crimes. Because a pattern can stretch over years, when the clock starts is often disputed, so ask your lawyer how it applies to the dates in your indictment.
The Texas version: engaging in organized criminal activity
Texas has its own statute for group crime, Tex. Penal Code §71.02. A person commits it by committing or conspiring to commit one of the listed offenses with the intent to establish, maintain, or participate in a combination or in its profits, or as a member of a criminal street gang or foreign terrorist organization. The listed offenses include murder, robbery, burglary, theft, aggravated assault, several drug offenses, gambling, and prostitution offenses.
Two definitions matter (§71.01):
- Combination means three or more people who collaborate in carrying on criminal activities. They do not need to know each other's identity, and membership can change over time.
- Criminal street gang means three or more people with a common identifying sign or symbol, or an identifiable leadership, who continuously or regularly associate in committing criminal activities.
The punishment is the part people miss. Under §71.02(b), the offense is one category higher than the most serious listed offense that was committed. If the most serious offense is a Class A misdemeanor, it becomes a state jail felony. Certain aggravated sexual assault cases carry life without parole. Under §71.02(e), a deadly weapon used or exhibited during one of the listed offenses raises it one additional category in cases punishable as a second degree felony or lower.
Texas also has §71.023, which covers a person who, as part of the identifiable leadership of a criminal street gang or foreign terrorist organization, knowingly finances, directs, or supervises listed offenses by members.
Section 71.02(d) sets out a renunciation issue at the punishment stage: a defendant may show, by a preponderance of the evidence, that he withdrew from the combination before the offense and made a substantial effort to prevent it.
How these cases are defended
No two cases are alike, and no lawyer can promise a result. In a RICO case, the defense usually works on several fronts at once:
- The enterprise. Was there a real enterprise, or a set of people the government has grouped together after the fact?
- The pattern. Are there two qualifying acts, do they fall inside the 10-year window in §1961(5), and do they connect to each other?
- Your role. Association with a group is not the same as conducting its affairs through racketeering. For a conspiracy count, what did you actually agree to?
- The predicate acts. Each one has its own elements and its own proof problems. Knocking out predicates can undercut the pattern.
- Spillover. In a multi-defendant trial, much of the evidence may concern other people. Motions to sever and limiting instructions matter.
- Forfeiture. Property questions deserve their own attention, early.
What to do if you are charged or contacted
- Do not talk to agents without a lawyer, even to explain that you were not involved. Read about your right to remain silent.
- Do not contact co-defendants or witnesses. It can support an obstruction charge or a bond revocation.
- Preserve records and devices. Destroying anything creates a new case against you.
- Take a target letter or grand jury subpoena seriously. The pre-indictment window is when the most can be done.
- Call early. The office number is (214) 526-0555.
Related reading: embezzlement versus money laundering, federal drug conspiracy charges, and bail bonds in Dallas County.
Common questions
What does RICO stand for?
The Racketeer Influenced and Corrupt Organizations Act, at 18 U.S.C. sections 1961 to 1968. It targets people who run or help run an enterprise through a pattern of racketeering activity, rather than charging each crime on its own.
How much time do you get for a RICO charge?
Up to 20 years in federal prison under section 1963(a), or life if the violation rests on a racketeering act whose own maximum includes life. A fine also applies, and the court must order forfeiture of the proceeds and interests the statute describes.
How many crimes make a pattern of racketeering?
At least two acts of racketeering activity, with the last one committed within 10 years of a prior act, not counting time in prison. Whether two acts add up to a pattern also depends on how they relate to each other.
Can you be charged with RICO without committing a crime yourself?
The government can charge conspiracy under section 1962(d), which makes it unlawful to agree to violate the other subsections. It carries the same penalties. What you agreed to, and whether you agreed at all, is the heart of that charge.
Does Texas have its own RICO law?
Texas uses engaging in organized criminal activity, Penal Code section 71.02. It applies to listed offenses committed with intent to participate in a combination of three or more people, or as a gang member, and it raises the punishment one category above the most serious listed offense.
The law this article describes, at the source. Every figure above can be checked against it.
- 18 U.S.C. §1961: definitions, including racketeering activity, enterprise, and pattern
- 18 U.S.C. §1962: prohibited activities, including conspiracy
- 18 U.S.C. §1963: criminal penalties and forfeiture
- 18 U.S.C. §1964: civil remedies, including treble damages
- 18 U.S.C. §3282: the general five-year federal limitations period
- Texas Penal Code, Chapter 71: organized crime (§§71.01, 71.02, 71.023)
This article is general legal information about federal and Texas law, not legal advice about your case. Reading it does not create an attorney-client relationship. Laws change, so confirm the current rule with a licensed criminal defense attorney about your specific facts. Request a free, confidential case review.