R.I.C.O. and Big Labor

The Racketeer Influenced and Corrupt Organizations Act (RICO), codified at 18 U.S.C. §§ 1961–1968, is a federal statute enacted as Title IX of the Organized Crime Control Act of 1970 (Pub. L. 91–452, 84 Stat. 922, signed into law by President Richard Nixon on October 15, 1970).

Origins and Legislative History

RICO emerged in the late 1960s amid growing public and congressional concern over organized crime (particularly the Mafia and other syndicates) infiltrating legitimate businesses, labor unions, gambling operations, and politics. Traditional criminal laws proved inadequate because prosecutors could only charge individual crimes (e.g., extortion, bribery, or murder), not the broader pattern of ongoing criminal activity by hierarchical organizations. High-profile investigations—such as the Kefauver Committee (1950–1951) on interstate gambling and organized crime, and the McClellan Committee (1957–1959) on labor racketeering—exposed systemic corruption, embezzlement, violence, and ties between unions, employers, and mob figures. These hearings revealed that prosecuting isolated acts left leaders insulated.

Congress sought a tool to attack the enterprise itself, not just isolated crimes. The Organized Crime Control Act of 1970 was the comprehensive response. Title IX (RICO) was drafted primarily by G. Robert Blakey, a law professor and chief counsel to the Senate Subcommittee on Criminal Laws and Procedures, under the close supervision of Senator John L. McClellan (D-AR), chairman of that subcommittee. Blakey drew inspiration from earlier anti-racketeering efforts and aimed to create a “super-conspiracy” framework that could tie together disparate crimes committed in furtherance of an ongoing criminal enterprise.

The bill passed the Senate on January 23, 1970 (74–1), and the House on October 7, 1970 (341–26), reflecting broad bipartisan support amid fears of organized crime’s economic and political influence.

Purpose

RICO’s declared congressional purpose was “the elimination of the infiltration of organized crime and racketeering into legitimate organizations operating in interstate commerce” (S. Rep. No. 91-617, at 76 (1969)). It targeted patterns of illegal conduct (racketeering activity) through an “enterprise” (broadly defined to include businesses, unions, associations, or informal groups affecting interstate commerce). Key goals:

• Dismantle criminal syndicates from the top down by holding leaders accountable for crimes committed by subordinates.
• Provide enhanced penalties (up to 20 years imprisonment per count, fines, and forfeiture of ill-gotten gains).
• Allow civil remedies (private lawsuits for treble damages and attorneys’ fees) to encourage victims and businesses to fight back.

Key Features and Structure

RICO prohibits four main activities (18 U.S.C. § 1962):

• (a) Investing income from racketeering in an enterprise.
• (b) Acquiring or maintaining an interest in an enterprise through racketeering.
• (c) Conducting or participating in an enterprise’s affairs through a pattern of racketeering activity.
• (d) Conspiring to violate any of the above.

“Racketeering activity” is defined broadly (18 U.S.C. § 1961(1)) to include dozens of state and federal offenses (e.g., murder, kidnapping, gambling, bribery, extortion, narcotics trafficking, mail/wire fraud, embezzlement from union funds, obstruction of justice). A “pattern” requires at least two predicate acts within 10 years.

Early Uses and Impact

In the 1970s and 1980s, RICO was used aggressively against traditional organized crime:

• Prosecutions dismantled major Mafia families (e.g., the “Commission” case in New York in the 1980s, convicting leaders of the five New York crime families).
• It targeted labor unions infiltrated by organized crime (e.g., Teamsters under Jimmy Hoffa and others).
• High-profile early cases included convictions for labor racketeering, embezzlement, and pension-fund misuse.

RICO’s broad language soon led to expanded applications beyond the Mafia—to white-collar crime, street gangs, corrupt businesses, political corruption, and even some labor disputes. Its civil provisions (treble damages) made it a powerful tool for private plaintiffs and government enforcement.

Legacy RICO revolutionized federal anti-crime efforts by shifting focus from isolated acts to the enterprise and pattern of conduct. While originally aimed at organized crime, its scope has been controversial, with critics arguing it is overly broad and sometimes used punitively. It remains a cornerstone of federal prosecutions against complex criminal organizations.