What does RICO stand for? It is the Racketeer Influenced and Corrupt Organizations Act, a United States federal law passed in 1970 as part of a larger organized crime bill. It lets prosecutors charge people for running or taking part in a criminal enterprise, not only for single crimes.
The law was written with organized crime families in mind. Over the decades it has been used against street gangs, fraud schemes, corrupt officials and businesses, and private parties can bring civil RICO lawsuits too. News reports use the name whenever a case ties many acts together into one pattern.
Quick facts
Stands for
Racketeer Influenced and Corrupt Organizations ActType
Acronym, said REE-kohPassed
1970, as part of the Organized Crime Control ActLevel
Federal law; many states have similar lawsCore idea
A pattern of crimes tied to an enterpriseTwo sides
Criminal charges and civil lawsuits
The RICO acronym word by word
- Racketeer: someone who makes money through a racket, an illegal scheme such as extortion or bribery.
- Influenced: controlled or affected by those people.
- and Corrupt: dishonest, acting illegally.
- Organizations: any group, from a crime ring to a company or union.
- Act: the word for a law passed by Congress. It is part of the name but not part of the four letters.
The title describes the target: groups that racketeers have taken over or are using. People say it as a word, "REE-koh," and it is common to hear "the RICO statute," "a RICO charge" or simply "RICO."
How a RICO case works
Most criminal laws punish one act, like a single robbery. RICO looks at the bigger picture. In plain terms, prosecutors usually need to show:
- An enterprise: a group of people working together, whether a legal business or an informal gang.
- A connection: the person ran, worked for or invested in that enterprise.
- A pattern of racketeering activity: at least two related crimes from a long list in the law, committed within ten years of each other.
The list of qualifying crimes, often called predicate acts, includes bribery, extortion, fraud by mail or wire, drug trafficking, money laundering, illegal gambling and violent crimes. Penalties can include long prison terms and the loss of property gained through the scheme.
Criminal RICO and civil RICO
| Side | Who brings it | What is at stake |
|---|---|---|
| Criminal | Federal prosecutors | Prison, fines, forfeiture of property |
| Civil | A person or business that was harmed | Triple damages plus legal fees |
The civil side is less famous but common. A company that says it was cheated by a coordinated fraud may file a civil RICO claim. Courts look closely at these suits, because the law has strict requirements and the damages are large.
What does RICO stand for at the state level?
Many states have passed their own racketeering laws modeled on the federal one, sometimes nicknamed "little RICO" acts. They work in a similar way but are enforced by state prosecutors in state courts, and each state sets its own list of qualifying crimes. When a news story mentions RICO charges, it may refer to either the federal law or a state version, and the article usually makes clear which.
How the term appears in the news
A headline style line: "Twelve members of a theft ring face RICO counts." This means prosecutors are treating the group as an enterprise and charging the members for the whole pattern, not just one theft each.
Reporters also use "racketeering charges" as a plain English stand in. Because the cases can involve many people and years of activity, RICO trials are often long and complex. Coverage tends to focus on the pattern evidence, such as phone records, money transfers and witness testimony. The law applies the same way no matter who the defendants are.
Questions people ask
What is a RICO charge?
It is a charge under the federal racketeering law or a state version. It accuses someone of taking part in an enterprise through a pattern of at least two related crimes.
Is RICO only for the mob?
No. It was written with organized crime in mind, but it has been applied to gangs, fraud schemes, corrupt officials and businesses. Private parties can also use it in civil suits.
How do you pronounce RICO?
The usual pronunciation is REE-koh, rhyming with "Puerto Rico." You rarely hear anyone spell it out letter by letter.
Is RICO an acronym, and what does RICO stand for exactly?
RICO stands for Racketeer Influenced and Corrupt Organizations, and because it is pronounced like a word, it fits the strict acronym label. Act belongs to the title but gets no letter.
What does racketeering mean?
Racketeering means making money through an organized illegal scheme, such as extortion, bribery or fraud. The RICO law lists the specific crimes that count.