organized crime
Organized crime (or organised crime) is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally tho ...
extortion
Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offence; the bulk of this article deals with such cases. Robbery is the simplest and most common form of extortion, ...
ary, or otherwise illegal coordinated scheme or operation (a "racket") to repeatedly or consistently collect a profit.
Originally and often still specifically, racketeering may refer to an organized criminal act in which the perpetrators offer a service that will not be put into effect, offer a service to solve a nonexistent problem, or offer a service that solves a problem that would not exist without the racket. However, racketeers may offer an ostensibly effectual service to solve an existing problem. The traditional and historically most common example of such a racket is the "
protection racket
A protection racket is a type of racket and a scheme of organized crime perpetrated by a potentially hazardous organized crime group that generally guarantees protection outside the sanction of the law to another entity or individual from viole ...
", in which racketeers offer to protect a business from robbery or vandalism; however, the racketeers will themselves coerce or threaten the business into accepting this service, often with the threat (implicit or otherwise) that failure to acquire the offered services will lead to the racketeers themselves contributing to the existing problem. In many cases, the potential problem may be caused by the same party that offers to solve it, but that fact may be concealed, with the intent to engender continual patronage. The protection racket is thus often a method of
extortion
Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offence; the bulk of this article deals with such cases. Robbery is the simplest and most common form of extortion, ...
, at least in practice.
However, the term "racket" has expanded in definition over time and may now be used less strictly to refer to any continuous or repeated illegal
organized crime
Organized crime (or organised crime) is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally tho ...
operation, including those that do not necessarily involve fraudulent or coercive practices or extortion. For example, "racket" may refer to the " numbers racket" or the " drug racket", neither of which generally or necessarily involve extortion, coercion, fraud, or deception with regard to the intended clientele. Because of the clandestine nature of the
black market
A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by noncompliance with an institutional set of rules. If the rule defines the ...
, most proceeds made from criminal rackets often go untaxed.
The term "racketeering" was coined by the Employers' Association of Chicago in June 1927 in a statement about the influence of organized crime in the Teamsters Union.David Witwer, "'The Most Racketeer-Ridden Union in America': The Problem of Corruption in the Teamsters Union During the 1930s", in ''Corrupt Histories'', Emmanuel Kreike and William Chester Jordan, eds., University of Rochester Press, 2004. Specifically, a racket was defined by this coinage as being a service that calls forth its own demand, and would not have been needed otherwise.
Examples
Examples of crimes that may be alleged to be part of a pattern of racketeering activity include
* A
protection racket
A protection racket is a type of racket and a scheme of organized crime perpetrated by a potentially hazardous organized crime group that generally guarantees protection outside the sanction of the law to another entity or individual from viole ...
is a form of
extortion
Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offence; the bulk of this article deals with such cases. Robbery is the simplest and most common form of extortion, ...
whereby racketeers offer to "protect" property from damage in exchange for a fee, while also threatening (possibly in a veiled way), in part or in whole, to execute the kind of damage they claim to be offering protection against.
* A fencing racket is an operation specializing in the resale of stolen goods.
* A numbers racket is any unauthorized lottery or illegal
gambling
Gambling (also known as betting or gaming) is the wagering of something of Value (economics), value ("the stakes") on a Event (probability theory), random event with the intent of winning something else of value, where instances of strategy (ga ...
operation.
*
Money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdiction ...
and other
creative accounting
Creative accounting is a euphemism referring to accounting practices that may follow the letter of the rules of standard accounting practices, but deviate from the spirit of those rules with questionable accounting ethics—specifically disto ...
practices that are misused in ways to disguise sources of illegal funds.
* Organized, coordinated, and repeated or regular
theft
Theft is the act of taking another person's property or services without that person's permission or consent with the intent to deprive the rightful owner of it. The word ''theft'' is also used as a synonym or informal shorthand term for so ...
operations, including:
pickpocketing
Pickpocketing is a form of larceny that involves the stealing of money or other valuables from the person or a victim's pocket without them noticing the theft at the time. It may involve considerable dexterity and a knack for misdirection. A th ...
,
burglary
Burglary, also called breaking and entering and sometimes housebreaking, is the act of entering a building or other areas without permission, with the intention of committing a criminal offence. Usually that offence is theft, robbery or murde ...
metal theft
Metal theft is "the theft of items for the value of their constituent metals". It usually increases when worldwide prices for scrap metal rise, as has happened dramatically due to rapid industrialization in India and China. Apart from precious ...
,
train robbery
Train robbery is a type of robbery, in which the goal is to steal money or other valuables being carried aboard trains.
History
Train robberies were more common in the past when trains were slower, and often occurred in the American Old West. T ...
,
armed robbery
Robbery is the crime of taking or attempting to take anything of value by force, threat of force, or by use of fear. According to common law, robbery is defined as taking the property of another, with the intent to permanently deprive the perso ...
,
bank robbery
Bank robbery is the criminal act of stealing from a bank, specifically while bank employees and customers are subjected to force, violence, or a threat of violence. This refers to robbery of a bank branch or teller, as opposed to other bank-ow ...
Organized retail crime
Organized retail crime (ORC) refers to professional shoplifting, cargo theft, retail crime rings and other organized crime occurring in retail environments. One person acting alone is not considered an example of organized retail crime. These ...
Fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compen ...
and
embezzlement
Embezzlement is a crime that consists of withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type ...
insurance fraud
Insurance fraud is any act committed to defraud an insurance process. It occurs when a claimant attempts to obtain some benefit or advantage they are not entitled to, or when an insurer knowingly denies some benefit that is due. According to th ...
securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in lo ...
,
bank fraud
Bank fraud is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution. In many i ...
telemarketing fraud
Telemarketing fraud is fraudulent selling conducted over the telephone. The term is also used for telephone fraud ''not'' involving selling.
Telemarketing fraud is one of the most persuasive deceptions identified by the Federal Trade Commissio ...
false billing
False billing is a fraudulent act of invoicing or otherwise requesting funds from an individual or firm without showing obligation
An obligation is a course of action that someone is required to take, whether legal or moral. Obligations are co ...
Confidence tricks
A confidence trick is an attempt to defraud a person or group after first gaining their trust. Confidence tricks exploit victims using their credulity, naïveté, compassion, vanity, confidence, irresponsibility, and greed. Researchers hav ...
, including:
romance scams
A romance scam is a confidence trick involving feigning romantic intentions towards a victim, gaining the victim's affection, and then using that goodwill to get the victim to send money to the scammer under false pretenses or to commit fraud aga ...
,
larceny
Larceny is a crime involving the unlawful taking or theft of the personal property of another person or business. It was an offence under the common law of England and became an offence in jurisdictions which incorporated the common law of Engl ...
Counterfeit
To counterfeit means to imitate something authentic, with the intent to steal, destroy, or replace the original, for use in illegal transactions, or otherwise to deceive individuals into believing that the fake is of equal or greater value tha ...
counterfeit medications
A counterfeit medication or a counterfeit drug is a medication or pharmaceutical item which is produced and sold with the intent to deceptively represent its origin, authenticity, or effectiveness. A counterfeit drug may contain inappropriate qu ...
copyright infringement
Copyright infringement (at times referred to as piracy) is the use of works protected by copyright without permission for a usage where such permission is required, thereby infringing certain exclusive rights granted to the copyright holder, ...
identity document forgery
Identity document forgery is the process by which identity documents issued by governing bodies are copied and/or modified by persons not authorized to create such documents or engage in such modifications, for the purpose of deceiving those ...
Kidnapping
In criminal law, kidnapping is the unlawful confinement of a person against their will, often including transportation/ asportation. The asportation and abduction element is typically but not necessarily conducted by means of force or fear: the ...
and
ransom
Ransom is the practice of holding a prisoner or item to extort money or property to secure their release, or the sum of money involved in such a practice.
When ransom means "payment", the word comes via Old French ''rançon'' from Latin ''re ...
rings
*
Contract killing
Contract killing is a form of murder or assassination in which one party hires another party to kill a targeted person or persons. It involves an illegal agreement which includes some form of payment, monetary or otherwise. Either party may b ...
market manipulation
In economics and finance, market manipulation is a type of market abuse where there is a deliberate attempt to interfere with the free and fair operation of the market; the most blatant of cases involve creating false or misleading appearan ...
, and
insider trading
Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider informati ...
*
Bribery
Bribery is the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With regard to governmental operations, essentially, bribery is "Co ...
and
police corruption
Police corruption is a form of police misconduct in which law enforcement officers end up breaking their political contract and Abuse of power, abuse their power for personal gain. This type of corruption may involve one or a group of officers. I ...
contract cheating
Contract cheating is a form of academic dishonesty in which students pay others to complete their coursework. The term was coined in a 2006 study by Thomas Lancaster and the late Robert Clarke (UK),Glendinning, I., Foltýnek, T., Dlabolová, D., ...
,
diploma mills
A diploma mill (also known as a degree mill) is a company or organization that claims to be a higher education institution but provides illegitimate academic degrees and diplomas for a fee. The degrees can be fabricated (made-up), falsified (fake ...
Computer crime
A cybercrime is a crime that involves a computer or a computer network.Moore, R. (2005) "Cyber crime: Investigating High-Technology Computer Crime," Cleveland, Mississippi: Anderson Publishing. The computer may have been used in committing t ...
s
*
Drug trafficking
A drug is any chemical substance that causes a change in an organism's physiology or psychology when consumed. Drugs are typically distinguished from food and substances that provide nutritional support. Consumption of drugs can be via insuffla ...
operations, including:
depressants
A depressant, or central depressant, is a drug that lowers neurotransmission levels, which is to depress or reduce arousal or stimulation, in various areas of the brain. Depressants are also colloquially referred to as downers as they lower the l ...
,
opioids
Opioids are substances that act on opioid receptors to produce morphine-like effects. Medically they are primarily used for pain relief, including anesthesia. Other medical uses include suppression of diarrhea, replacement therapy for opioid us ...
designer drugs
A designer drug is a structural or functional analog of a controlled substance that has been designed to mimic the pharmacological effects of the original drug, while avoiding classification as illegal and/or detection in standard drug tests. Des ...
Arms trafficking
Arms trafficking or gunrunning is the illicit trade of contraband small arms and ammunition, which constitutes part of a broad range of illegal activities often associated with transnational criminal organizations. The illegal trade of small ...
Extortion
Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offence; the bulk of this article deals with such cases. Robbery is the simplest and most common form of extortion, ...
rackets
*
Blackmail
Blackmail is an act of coercion using the threat of revealing or publicizing either substantially true or false information about a person or people unless certain demands are met. It is often damaging information, and it may be revealed to f ...
witness tampering
Witness tampering is the act of attempting to improperly influence, alter or prevent the testimony of witnesses within criminal or civil proceedings.
Witness tampering and reprisals against witnesses in organized crime cases have been a difficul ...
Modern piracy
Piracy in the 21st century (commonly known as modern piracy) has taken place in a number of waters around the world, including the Gulf of Guinea, Strait of Malacca, Sulu and Celebes Seas, Indian Ocean, and Falcon Lake.
Waters
Caribbean
...
Human trafficking
Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. This may encompass providing a spouse in the context of forced marriage, or the extr ...
labor trafficking
Forced labour, or unfree labour, is any work relation, especially in modern or early modern history, in which people are employed against their will with the threat of destitution, detention, violence including death, or other forms of ext ...
debt bondage
Debt bondage, also known as debt slavery, bonded labour, or peonage, is the pledge of a person's services as security for the repayment for a debt or other obligation. Where the terms of the repayment are not clearly or reasonably stated, the pe ...
Rum-running
Rum-running or bootlegging is the illegal business of smuggling alcoholic beverages where such transportation is forbidden by law. Smuggling usually takes place to circumvent taxation or prohibition laws within a particular jurisdiction. The ...
rackets (or alcohol smuggling),
caffeinated alcoholic drink
A caffeinated alcoholic drink is a drink that contains both alcohol (also known formally as ethanol) and a significant amount of caffeine. Caffeine, a stimulant, masks some of the depressant effects of alcohol. However, in 2010 and 2011, this ...
moonshine
Moonshine is high-proof liquor that is usually produced illegally. The name was derived from a tradition of creating the alcohol during the nighttime, thereby avoiding detection. In the first decades of the 21st century, commercial dist ...
operations
* Illegal
nuclear power
Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced ...
trade operations
* Illegal subleasing rackets
* Criminal operation of otherwise ostensibly legal operations, such as
strip club
A strip club is a venue where strippers provide adult entertainment, predominantly in the form of striptease or other erotic or exotic dances. Strip clubs typically adopt a nightclub or bar style, and can also adopt a theatre or cabaret-style. Am ...
s,
hotel
A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a ref ...
casino
A casino is a facility for certain types of gambling. Casinos are often built near or combined with hotels, resorts, restaurants, retail shopping, cruise ships, and other tourist attractions. Some casinos are also known for hosting live enterta ...
bar
Bar or BAR may refer to:
Food and drink
* Bar (establishment), selling alcoholic beverages
* Candy bar
* Chocolate bar
Science and technology
* Bar (river morphology), a deposit of sediment
* Bar (tropical cyclone), a layer of cloud
* Bar (un ...
construction
Construction is a general term meaning the art and science to form objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Press 2009 and ...
auto shop
An automobile repair shop (also known regionally as a garage or a workshop) is an establishment where automobiles are repaired by auto mechanics and technicians.
Types
Automotive garages and repair shops can be divided into following catego ...
s,
laundromat
A self-service laundry, coin laundry, laundromat, or coin wash is a facility where clothes are washed and dried without much personalized professional help. They are known in the United Kingdom as launderettes or laundrettes, and in the Uni ...
waste management
Waste management or waste disposal includes the processes and actions required to manage waste from its inception to its final disposal.
This includes the collection, transport, treatment and disposal of waste, together with monitori ...
firms,
farms
A farm (also called an agricultural holding) is an area of land that is devoted primarily to agricultural processes with the primary objective of producing food and other crops; it is the basic facility in food production. The name is used fo ...
hospitals
A hospital is a health care institution providing patient treatment with specialized health science and auxiliary healthcare staff and medical equipment. The best-known type of hospital is the general hospital, which typically has an emergenc ...
airline companies
An airline is a company that provides air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare agreements, in which ...
Backyard breeding
A backyard breeder is an amateur animal breeder whose breeding is considered substandard, with little or misguided effort towards ethical, selective breeding. Unlike puppy mills and other animal mill operations, backyard breeders breed on a small ...
livestock
Livestock are the domesticated animals raised in an agricultural setting to provide labor and produce diversified products for consumption such as meat, eggs, milk, fur, leather, and wool. The term is sometimes used to refer solely to anima ...
and other kinds of
domesticated animals
This page gives a list of domesticated animals, also including a list of domestication of animals, animals which are or may be currently undergoing the process of domestication and animals that have an extensive relationship with humans beyond simp ...
Illegal sports
An illegal sport is any sport that is illegal in one or more jurisdictions due to the violent or dangerous nature of the sport. Well-known illegal sports, such as cockfighting and dogfighting, are barred on the basis of animal abuse.
Illegal spor ...
street racing
Street racing is typically an unsanctioned and illegal form of auto racing that occurs on a public road. Racing in the streets is considered an ancient hazard, as horse racing occurred on streets for centuries, and street racing in automobiles is ...
Poaching
Poaching has been defined as the illegal hunting or capturing of wild animals, usually associated with land use rights.
Poaching was once performed by impoverished peasants for subsistence purposes and to supplement meager diets. It was set ag ...
and
overfishing
Overfishing is the removal of a species of fish (i.e. fishing) from a body of water at a rate greater than that the species can replenish its population naturally (i.e. the overexploitation of the fishery's existing fish stock), resulting in the ...
*
Illegal logging
Illegal logging is the harvest, transportation, purchase or sale of timber in violation of laws. The harvesting procedure itself may be illegal, including using corrupt means to gain access to forests; extraction without permission, or from a p ...
illegal mining
Illegal mining is mining activity that is undertaken without state permission, in particular in absence of land rights, mining licenses, and exploration or mineral transportation permits.
Illegal mining can be a subsistence activity, as is the cas ...
organized horse fighting
Organized horse fighting is a blood sport between two stallions which is organized for the purposes of betting or entertainment. Although combat between horses occurs naturally in the wild, death or serious injury in naturally occurring animal fi ...
cockfighting
A cockfight is a blood sport, held in a ring called a cockpit. The history of raising fowl for fighting goes back 6,000 years. The first documented use of the ''word'' gamecock, denoting use of the cock as to a "game", a sport, pastime or ent ...
, and
bullfighting
Bullfighting is a physical contest that involves a bullfighter attempting to subdue, immobilize, or kill a bull, usually according to a set of rules, guidelines, or cultural expectations.
There are several variations, including some forms w ...
RICO Act
On October 15, 1970, the Racketeer Influenced and Corrupt Organizations Act (
18 U.S.C.
Title 18 of the United States Code is the main criminal code of the federal government of the United States. The Title deals with federal crimes and criminal procedure. In its coverage, Title 18 is similar to most U.S. state criminal codes, w ...
§§ 1961–1968), commonly referred to as the "RICO Act", became
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five ma ...
law. The RICO Act allowed law enforcement to charge a person or group of people with racketeering, defined as committing multiple violations of certain varieties within a ten-year period. The purpose of the RICO Act was stated as "the elimination of the infiltration of organized crime and racketeering into legitimate organizations operating in interstate commerce". S.Rep. No. 617, 91st Cong., 1st Sess. 76 (1968). However, the statute is sufficiently broad to encompass illegal activities relating to any enterprise affecting interstate or foreign
commerce
Commerce is the large-scale organized system of activities, functions, procedures and institutions directly and indirectly related to the exchange (buying and selling) of goods and services among two or more parties within local, regional, natio ...
.
Section 1961(10) of Title 18 provides that the
Attorney General of the United States
The United States attorney general (AG) is the head of the United States Department of Justice, and is the chief law enforcement officer of the federal government of the United States. The attorney general serves as the principal advisor to the p ...
may designate any department or agency to conduct investigations authorized by the RICO statute and such department or agency may use the investigative provisions of the statute or the investigative power of such department or agency otherwise conferred by law. Absent a specific designation by the Attorney General, jurisdiction to conduct investigations for violations of 18 U.S.C. § 1962 lies with the agency having jurisdiction over the violations constituting the pattern of racketeering activity listed in 18 U.S.C. § 1961.
In the US, civil racketeering laws are also used in federal and state courts.
Confidence trick
A confidence trick is an attempt to defraud a person or group after first gaining their trust. Confidence tricks exploit victims using their credulity, naïveté, compassion, vanity, confidence, irresponsibility, and greed. Researchers ha ...