Racketeering

Racketeering

Racketeering refers to the act of engaging in a "racket," which is a fraudulent service offered to solve a problem that may not exist, would not otherwise exist, or that the racketeers themselves created. The term is most commonly associated with organized crime, where it encompasses a range of illegal activities conducted as part of an organized criminal enterprise.

Definition

Racketeering is defined as the act of running an illegal business or scheme in order to make a profit, often as part of an organized crime syndicate. The term "racket" is used to describe a business that is run illegally, typically involving extortion or fraud.

History

The concept of racketeering has been around for centuries, but it became particularly prominent in the United States during the early 20th century. The term "racketeer" was first used in the 1920s, during the Prohibition era, when organized crime groups were heavily involved in the illegal production and distribution of alcohol.

Types of Racketeering

Racketeering can take many forms, including but not limited to:

• Extortion: Forcing someone to pay money or provide services through threats or coercion.
• Loan Sharking: Offering loans at extremely high interest rates and using threats to collect payments.
• Bribery: Offering money or favors to influence the actions of someone in a position of power.
• Money Laundering: Concealing the origins of illegally obtained money, typically by passing it through a complex sequence of banking transfers or commercial transactions.
• Fraud: Deceptive practices designed to secure unfair or unlawful gain.

Legal Framework

In the United States, racketeering is prosecuted under the Racketeer Influenced and Corrupt Organizations Act (RICO), which was enacted in 1970. The RICO Act allows for the leaders of a syndicate to be tried for crimes they ordered others to do or assisted them in doing, closing a loophole that allowed a person who instructed someone else to, for example, murder, to be exempt from the trial because they did not actually commit the crime personally.

Impact on Society

Racketeering has significant negative impacts on society, including:

• Economic Damage: Racketeering can undermine legitimate businesses and distort market conditions.
• Corruption: It often involves corruption of public officials, which can erode trust in government and public institutions.
• Violence: Many racketeering activities are associated with violence and intimidation.

Also see

• Organized crime
• Extortion
• Money laundering
• Bribery
• Fraud