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.

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 ongoing criminal enterprises. In New York, as in other states, RICO is used to combat a variety of illegal activities conducted through legitimate businesses or unions, including but not limited to gambling, money laundering, loan sharking, and extortion. Under RICO, individuals in leadership positions within criminal 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 personally carry out the criminal act. The law is codified at 18 U.S.C. § 1961-1968, with § 1961 providing definitions, § 1962 outlining the substantive offenses and conspiracy, and § 1963 detailing the penalties, which can include imprisonment, fines, and forfeiture of assets. RICO is a powerful tool for law enforcement agencies and prosecutors in New York to dismantle criminal organizations by targeting the higher-ups who may otherwise insulate themselves from direct involvement in the criminal activities.