racketeering: Definition and Much More from Answers.com

Originally, an organized conspiracy to commit extortion. Today, punishable offenses created by Congress to "seek the eradication of organized crime by establishing new penal prohibitions and by providing enhanced sanctions and new remedies to deal with the unlawful activities of those engaged in organized crime." Pub. L. 91-452, §1, 84 Stat. 922 (1970). The federal statute is entitled "racketeer influenced and corrupt organizations act [rico]" under Title IX of the Organized Crime Control Act of 1970 (18 U.S.C. §§1961-68) and many states have adopted similar statutes, e.g., N.J.S.A. 2C:41-1.1 et seq.

There are four punishable racketeering offenses under the federal statute: (1) directly or indirectly investing income derived from a pattern of racketeering activity or through collection of an unlawful debt in any enterprise affecting trade or commerce; (2) acquiring or maintaining any interest in an enterprise through a pattern of racketeering activity or collection of an unlawful debt; (3) conducting or participating in the affairs of the enterprise through a pattern of racketeering activity or collection of an unlawful debt; or (4) conspiring to violate the racketeering provisions. 18 U.S.C. §1962. See also, N.J.S.A. 2C:41-2a to 2C:41-2d. "Pattern of racketeering activity" requires engaging in at least two incidents of racketeering conduct (specified offenses ranging from murder, kidnapping, criminal usury, and theft to forgery, alteration of motor vehicle identification numbers, and possession or use of firearms or explosives) within 10 years of each other, and where at least one of the incidents occurs after the effective date of the act. Some states also require that there be a showing that the incidents of racketeering are interrelated in some way. The term "enterprise" in the federal act includes any individual, partnership, corporation, or any union or group of individuals associated in fact though not a legal entity, and some states have expanded the meaning to include sole proprietorships, business or charitable trusts, governmental entities, and illicit as well as licit entities. A criminal forfeiture provision is included in the act that allows for forfeiture of "any interest in money or property acquired in violation of the act." 18 U.S.C. §1963. Some state racketeering statutes have civil forfeiture provisions as well. N.J.S.A. 2C:41-4. Finally, the provisions of the acts are directed to be liberally construed to best effect the overall purpose. The acts are felt to be a powerful tool in assisting prosecutors in apprehending and convicting those persons involved in organized crime and are preferred to viable alternatives under traditional conspiracy or professional criminal or habitual offender statutes. See 571 F. 2d 880.