Civil Remedies for Victims
For civil claims brought by private parties who have been victimized by a criminal organization, the burden of proof is less onerous than in criminal court. A preponderance of the evidence standard applies. This means the jury must find that it is at least slightly more likely than not that the racketeering activities did in fact happen as alleged. Despite the lower burden of proof, civil RICO lawsuits are difficult and expense for individuals to pursue. Those who win are rewarded, however. Successful plaintiffs can recover “treble damages,” or in other words, three times the amount of money they lost due to the defendant’s actions.
Specific Elements of a RICO Claim
Liability for a RICO violation requires that a person be involved in an enterprise that operates through a pattern of racketeering activity. This raises a couple of issues that will prove important to anyone defending or pursuing a RICO case. First, a controversy may arise as to what will satisfy the element requiring an enterprise. Corporations, partnerships, and other businesses will surely qualify as enterprises. But what about informal organizations, like street gangs?
The Supreme Court considered the issue, and determined that an enterprise can be any group with members who are associated in a relationship in order to achieve a common purpose, provided the relationship lasts long enough to allow them to pursue that purpose. In the terminology of RICO law, such groups are known as “association-in-fact” enterprises.
Another common issue concerns the element requiring a pattern of racketeering activity. The RICO Act itself defines the term pattern as two or more acts of racketeering activity within a 10-year period. However, the Supreme Court has weighed in on this issue as well. According to the Court, to qualify as a pattern, the criminal activities must be related and continuous. Relatedness will be established if the crimes have similar characteristics such as the same perpetrators, victims, and methods of commission. Continuity will be established if the crimes occurred over a substantial period of time. Some courts have interpreted this to mean at least one year.
