Under the Racketeer Influenced and Corrupt Organizations (RICO) Act, the prosecutor must prove two elements to get a conviction: enterprise and pattern of racketeering activity. In the 1970s, the term “enterprise” usually meant criminal organizations like mobs or street gangs, which were the original targets of the Act.
Today, RICO convictions can apply to many other types of organizations. If you are facing a RICO case, challenging the existence of an enterprise can be a potential defense.
The definition of enterprise under RICO
Under RICO, the legal definition of enterprise is any group of individuals who associate with each other for one purpose. An enterprise can be a formal entity, such as a business, or an informal organization like a street gang. Other common examples are:
- Corporations
- Partnerships or sole proprietorships
- Government agencies
- Nonprofit organizations
- Labor unions
To prove a RICO crime, the prosecution must have evidence that your group was ongoing, the members worked together for a common purpose and engaged in a pattern of racketeering activity.
Can you use the lack of an enterprise as a defense strategy?
Yes, you can argue that your organization does not fall within the legal definition of enterprise under RICO.
For example, you can show that the individuals involved did not have any formal or informal organizational structure. Another potential defense is to assert that the accused parties did not share a common purpose.
By contesting the existence of an enterprise, your defense can undermine one of the essential elements for the prosecution to prove a RICO violation. However, this will also depend on other facts and circumstances surrounding your case.
RICO cases can be extremely complex due to the Act’s broad scope and very specific qualifications. That said, an experienced defense team can be invaluable in building the strongest defense possible.
