The Racketeer Influenced and Corrupt Organizations Act—commonly referred to as the RICO Act or simply RICO—is a federal law that provides for criminal prosecution of racketeering activities as part of an ongoing criminal organization. 18 U.S.C. §1961. RICO is designed to address the infiltration of legitimate business enterprises by organized crime and other illegal ventures—such as laundry services, retail stores, restaurants, nightclubs, and labor unions—to commit gambling, money laundering, loan sharking, or extortion.

Under RICO, leaders of criminal organizations can be held liable for crimes they order others to commit, or assist them in committing, in furtherance of the ongoing criminal organization. Section 1962 sets forth three substantive offenses and makes it a crime to conspire to commit any of the three substantive offenses. Section 1961 provides definitions for terms used in the RICO statute. And section 1963 establishes criminal penalties, including imprisonment, fines, and criminal forfeiture.

In California, as in all states, the Racketeer Influenced and Corrupt Organizations Act (RICO) is a federal law that targets organized crime by allowing for the prosecution of individuals involved in racketeering activities as part of an ongoing criminal enterprise. The law is codified at 18 U.S.C. § 1961 and subsequent sections. RICO is particularly focused on the infiltration of legitimate businesses by criminal organizations for the purpose of conducting illegal activities such as gambling, money laundering, loan sharking, or extortion. Under RICO, leaders of these organizations can be prosecuted for crimes they directed others to commit or for assisting in the commission of those crimes, even if they did not commit the criminal acts themselves. The law outlines substantive offenses under Section 1962 and provides definitions in Section 1961. Criminal penalties, including imprisonment, fines, and forfeiture of assets, are detailed in Section 1963. While RICO is a federal statute, it can be applied to criminal activities that occur within California, and the state's law enforcement agencies often cooperate with federal authorities in RICO investigations and prosecutions.