Defending Corporate RICO Charges (18 U.S.C. § 1962)

The federal Racketeer Influenced and Corrupt Organizations (RICO) Act establishes enhanced criminal penalties for individuals who participate in or benefit from a pattern of racketeering activity within an enterprise.

While RICO was enacted to make it easier to prosecute heads of organized criminal organizations, federal authorities may also use this law to prosecute fraud, corruption, and other forms of misconduct within legitimate organizations—including corporations, partnerships, and associations.

If you're the head of a corporation facing a RICO indictment, you've been thrown into a high-stakes case that could threaten your freedom, your career, and your reputation.

These cases are among the most complex in American criminal law due to their broad definitions, sweeping evidence standards, and the potential for devastating collateral consequences.

At Eisner Gorin, LLP, our experienced federal defense attorneys will implement a comprehensive, team-based approach to your case, leaving no stone unturned to bolster your defense and minimize your exposure.

Schedule your consultation by calling (818) 781-1570 or by using the contact form.

What Actions Are Prohibited Under RICO?

18 U.S.C. 1962 details four specific behaviors that may be prosecuted under RICO:

• Investing money obtained through "racketeering" (e.g., fraud, extortion, and other criminal acts) into a business entity (aka "enterprise") engaged in interstate commerce.
• Taking over or controlling an enterprise through racketeering.
• Conducting the affairs of a business enterprise through a pattern of racketeering.
• Conspiring with others to do any of the above.

What Constitutes an “Enterprise” and Who Can Be Charged?

The term “enterprise” under RICO refers broadly to:

• Legal entities (corporations, partnerships, associations),
• Informal groups of individuals associated for a common purpose,
• Both legal and illegal business operations.

Federal prosecutors do not need to prove that the enterprise itself existed for illegal purposes—only that its structure enabled the criminal acts. This elasticity exposes even the highest levels of management to criminal liability if they are shown to have directed, authorized, or knowingly facilitated illegal conduct.

What Is a “Pattern of Racketeering Activity”?

Under RICO, establishing a “pattern of racketeering activity” requires at least two acts of racketeering, known as predicate acts, within ten years.

Predicate acts include—but are not limited to:

• Wire fraud
• Mail fraud
• Money laundering
• Bribery
• Embezzlement
• Obstruction of justice.

To convict you under RICO, prosecutors must demonstrate that these acts are interrelated and reflect the threat of continued criminal activity.

What Is Corporate RICO, and How Are These Cases Prosecuted?

Corporate RICO charges center on allegations that corporate directors, executives, or employees used their corporate structure to engage in or facilitate criminal activities.

Federal prosecutors approach corporate RICO indictments with powerful investigative tools and substantial legal leverage. Their aim is to build a narrative that portrays the organization as a vehicle for crime.

Typical forms of evidence in a corporate RICO prosecution include:

• Financial records and bank transfers tracking the flow of suspected proceeds,
• Internal documentation suggesting knowledge or facilitation,
• Recordings or surveillance capturing incriminating statements,
• Whistleblower or lower-level employee testimony, often obtained in exchange for immunity or reduced sentences,
• E-mail correspondence or electronic messages that imply, or can be construed to show, knowledge of the scheme.

Federal grand juries can issue broad subpoenas for records and compel testimony, leading to massive document productions and lengthy investigations.

What Are the Penalties for a Corporate RICO Conviction?

A conviction under RICO imposes exceptionally severe penalties, including up to 20 years in prison and/or up to $250,000 per count, as well as forfeiture of assets associated with the racketeering activity.

If you're convicted of one or more RICO violations related to your corporate activity, you could face devastating consequences without strong legal intervention. Possible penalties include:

• Incarceration: Each RICO count can result in up to 20 years in federal prison. In cases where the underlying predicate act includes murder or large-scale drug trafficking, a life sentence is possible.
• Financial Fines: Fines may be imposed up to $250,000 per violation, or twice the gross profits or other proceeds derived from the offense.
• Asset Forfeiture: The court must order the forfeiture of any interest, business, or contractual right associated with the racketeering activity. For many defendants, this includes business interests, bank accounts, real estate, and other property.

The Threat of Freezing Corporate Assets

Federal authorities may seek court orders to freeze bank accounts and business assets as early as the investigation stage.

Asset freezes can paralyze business operations and make it difficult for the defendant to retain legal counsel or pay other necessary expenses. The defense must often seek early court intervention to unfreeze necessary funds for legal representation.

Related Federal Crimes

Corporate RICO cases under 18 U.S.C. § 1962 are rarely charged in isolation. Federal prosecutors often include additional offenses—known as “predicate acts” or related crimes—to strengthen their case and increase potential penalties.

18 U.S.C. § 1343 – Wire Fraud

Involves using electronic communications (email, phone, internet) to carry out fraudulent schemes. Frequently used as a core predicate act in RICO cases.

18 U.S.C. § 1341 – Mail Fraud

Covers fraudulent schemes conducted through the U.S. mail or private carriers. Often paired with wire fraud in corporate investigations.

18 U.S.C. § 1956 – Money Laundering

Involves concealing or transferring proceeds of illegal activity. Common in cases involving financial transactions tied to alleged racketeering.

18 U.S.C. § 201 – Bribery of Public Officials

Section 201 applies when individuals offer or receive something of value to influence official actions. May be used in corruption-related RICO cases.

18 U.S.C. § 1503 – Obstruction of Justice

Criminalizes interference with investigations or court proceedings, including destroying evidence or influencing witnesses.

18 U.S.C. § 371 – Conspiracy

Section 371 covers agreements between two or more people to commit a federal crime. Often charged alongside RICO to capture coordinated activity.

18 U.S.C. § 666 – Theft or Bribery Concerning Programs Receiving Federal Funds

Section 666 targets fraud or bribery involving organizations that receive federal funding, including corporations and institutions.

Why These Charges Matter

RICO cases are built on underlying criminal acts. By stacking multiple related charges, prosecutors can:

• Increase sentencing exposure
• Strengthen their legal theory
• Apply pressure during negotiations

A comprehensive defense must address not only the RICO charge itself but also each underlying offense alleged by the government.

Frequently Asked Questions

What is a RICO charge?

A RICO charge involves participating in or benefiting from a pattern of racketeering activity under 18 U.S.C. § 1962.

Can corporate executives be charged?

Yes. Executives, employees, and entire companies may face liability.

What are predicate acts?

They are underlying crimes (like fraud or bribery) used to establish a RICO violation.

What penalties can I face?

Penalties include prison time, fines, and asset forfeiture.

Can assets be frozen before trial?

Yes. The government may freeze assets during the investigation.

Can RICO charges be dismissed?

Yes, especially if prosecutors cannot prove a pattern or enterprise.

Why Hire a Federal Criminal Defense Lawyer?

Corporate RICO cases are among the most complex in federal law. A skilled defense attorney can:

• Analyze large-scale evidence
• Challenge the government's theory
• Protect your business and assets
• Develop a comprehensive defense strategy

What Defenses Are Available Against RICO Charges?

A skilled federal criminal defense team will combat RICO charges through strategies such as disproving that the corporation's activities meet the definitions of criminal conduct, disputing predicate acts and patterns, and asserting procedural defenses.

Defending a corporate RICO case demands a structured, multi-pronged strategy executed by a skilled, multidisciplinary legal team. At Eisner Gorin, LLP, our attorneys utilize multiple strategies, including, but not limited to:

• Challenging the Enterprise: Arguing that the company and individuals are not legally distinct entities or that any alleged criminal conduct was the work of a rogue employee acting outside of corporate policy.
• Disputing Predicate Acts and Patterns: Contesting the sufficiency of the predicate acts by showing that the conduct does not meet the statutory definition of racketeering, or that there is no continuity or relationship between the alleged acts, thus negating the required "pattern."
• Asserting Procedural and Constitutional Defenses: Utilizing defenses such as the statute of limitations, challenging evidence obtained through unlawful searches and seizures under the Fourth Amendment, and filing motions to suppress illegally obtained evidence.

Our Multi-Lawyer Approach for RICO Cases

In high-stakes RICO cases, our legal team uses a multi-lawyer model to ensure the most ironclad defense strategies.

This involves multiple lawyers independently reviewing all discovery, evidence, and proposed strategies and issuing second opinions on key tactical decisions.

This approach limits our risk of overlooking key details, enabling us to effectively challenge the prosecution's narrative at every stage.

Hypothetical Case Study

To illustrate our multifaceted approach to these cases, consider the following hypothetical situation.

The Scenario

The CEO of a national pharmacy chain is indicted under RICO based on government claims that the corporate structure facilitated illegal distribution of prescription opioids.

Prosecutors allege the company operated as an “enterprise” to violate DEA quotas and maximize profits through fraudulent means. The prosecution builds its case against the CEO in the following ways:

• Alleged predicate acts include mail and wire fraud for falsifying distribution records, as well as conspiracy among the CEO, regional managers, and physicians.
• The prosecution presents e-mails showing internal discussions about bypassing regulatory alerts and increased opioid shipments.
• Witness testimony from former employees purports that management knowingly ignored compliance warnings.

Our Approach to Defending the Client

In this scenario, the attorneys at Eisner Gorin implement the following strategies.

Challenging the Enterprise Allegation:

• Present comprehensive DEA compliance records and internal audit results to refute the claim that the corporation's structure was intentionally used for criminal activity.
• Demonstrate that any local violations were isolated incidents by individual employees, not company policy.
• Organize timelines showing that the executive team instituted measures to prevent illegal activity after initial regulatory warnings.

Attacking Predicate Acts and Patterns:

• Meticulously audit distribution and enforcement records to demonstrate compliance with federal regulations.
• Show the vast majority of transactions met legal standards, with only sporadic incidents outside of executive awareness.

Procedural and Constitutional Challenges:

• File motions to suppress corporate communications seized outside the proper scope of federal warrants.
• Call out instances where government investigators overstepped discovery rules or relied on tainted testimony.

The Outcome

Utilizing this approach, our attorneys are frequently able to get charges reduced or dismissed, or to negotiate a favorable plea agreement, on the basis of insufficient evidence of coordinated, systemic wrongdoing. 

We can also help avert asset forfeiture and preserve the business's interests.

Federal corporate RICO prosecutions represent a unique threat to both business operations and individual liberty.

The statute's breadth, severe penalties, and complexity require a defense that is methodical, data-driven, and rooted in a deep understanding of both federal law and corporate operations.

If you are facing RICO allegations, an informed, detailed, and precise defense offers the best chance of securing a favorable outcome and safeguarding your future and the business's future.

Eisner Gorin LLP is ready to assist you. Feel free to schedule your consultation by giving us a call at (818) 781-1570 or by filling out the contact form. We're here to help every step of the way!