ORGANIZED CRIME M2A1
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ORGANIZEDCRIMESTATUTES.pdf
CHAPTER FOURTEEN
Organized Crime: Statutes
Abadinsky, Organized Crime 10th ed.
The Racketeer Influenced and Corrupt Organizations statute, enacted in 1970 and commonly referred to as RICO, is the most important single piece of legislation ever enacted against organized crime. RICO's criminal enterprise model represented a new approach in the government's prosecution of organized crime groups.
RICO and other statutes used in response to organized crime will be examined in this chapter.
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INTERNAL REVENUE CODE
The 1927 U.S. Supreme Court decision in United States v. Sullivan denied the claim of self-incrimination (5th Amend.) for failure to file tax return on illegal gains.
This decision enabled the federal government to successfully prosecute Al Capone and members of his organization.
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CONROLLED SUBSTANCES STATUTES
1914 Harrison Act: Illegal to sell or give away opium or coca or derivatives without written order on an IRS form.
1970 Comprehensive Drug Abuse Prevention and Control Act: A new legal approach to federal drug policy—not the taxing power, but federal authority over interstate commerce.
1984 and 1986: Harsher sentences for certain drug offenses.
1988: Military role in drug-law enforcement increased; record-keeping requirements for precursor chemicals; casual user civil penalties.
2003: Illicit Drug Anti-Proliferation Act (“Rave Act”).
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THE HOBBS ACT
Earliest statutes designed to deal with “racketeering” are known as the Hobbs Act and since 1946 they have been amended several times.
The Hobbs Act makes it a federal crime to engage in criminal behavior that interferes with interstate commerce.
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SHERMAN ANTI-TRUST ACT
Enacted in 1890.
Prohibits agreement among competitors to fix prices, rig bids, or engage in other anticompetitive activity.
There are 5 general categories.
Price fixing
Bid rigging
Complementary bidding
Bid rotation
Market division
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LANDRUM-GRIFFIN ACT
1957: Attack on Costello and murder of Anastasia, led to a meeting of leading Mafia bosses at estate of Joseph M. Barbara, Sr., boss of the Northeastern Pennsylvania crime Family, in upstate Appalachian, NY.
NY police sergeant was suspicious of the activities. He conducted a raid and “dozens of well-dressed men ran out of the house and across the fields in all directions.”
Using roadblocks and reinforcements, police arrested the men. The Appalachian raid made headlines around the country. Many
of the men claimed to be labor-management consultants. The Senate acted, establishing the Select Committee on Improper Activities in the Labor or Management Field, chaired by Sen. McClellan of Arkansas.
The hearings led to the passage of the Landrum-Griffin Act in 1959, establishing a Bill of Rights for union members.
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CONSPIRACY
The agreement is the corpus (body) of the crime.
U.S. does not criminalize participation in a criminal organization.
Federal conspiracy statutes generally require the government to prove that 2 or more persons agreed to commit an offense and 1 or more of these persons did at least act to carry out the agreement.
3 types of conspiracy:
Wheel
Chain
Enterprise.
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JOSEPH VALACHI
In 1963, Senator McClellan, chair of the Permanent Subcommittee on Investigations:
Televised hearings on OC.
Introduced the public to star witness, Joseph Valachi.
Valachi discussed the Castellammarese War, Luciano’s murder of Masseria and Maranzano. He outlined the structure of each crime Family and their link through a national commission.
Testimony paved the way for the 1965 President’s Commission and the 1970 RICO statute.
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TASK FORCE ON ORGANIZED CRIME
1965: Pres. Johnson established President’s Commission on Law Enforcement and Administration of Justice.
Report of the Task Force on Organized Crime: “Today the core of organized crime in the United States consists of 24 groups operating as criminal cartels in large cities across the Nation.” (1967)
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TITLE IX OF THE ORGANIZED CRIME CONTROL ACT OF 1970
Purpose “eradication of organized crime in the U.S.”
Includes many offenses that do not ordinarily violate any federal statute: “[A]ny act or threat involving murder, kidnapping, gambling, arson, robbery, bribery, extortion, or dealing in narcotic or other dangerous drugs, which is chargeable under State law and punishable by imprisonment for more than one year.”
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RICO PROVIDES FEDERAL JURISDICTION
The thrust of RICO is to prove a pattern of crimes conducted through an organization—an enterprise: “any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact, although not a legal entity.”
In order for racketeering to be a RICO violation, there must be a “pattern,” which requires the commission of at least two of the specified crimes within a ten-year period.
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5 BASIC CRITICISMS OF RICO
1. Overreaching 2. Penalties are excessive 3. Invoking RICO can result in assets being frozen
before trial, effectively can put a company out of business. The threat of freezing assets can induce corporate defendants to plead guilty even when they believe themselves to be innocent.
4. Stigma of “racketeer” 5. Permits triple damages even when ordinary business
transactions, not OC or racketeering, are at issue.
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USA PATRIOT ACT OF 2001
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.
Increased law enforcement ability to search phone and e-mail, and medical and financial records.
Eases restrictions on foreign intelligence gathering in the U.S.
Expands Secretary of the Treasury’s authority to regulate financial transactions, particularly those involving foreign individuals and entities.
Expands definition of terrorism to include “domestic terrorism.”
Department of Justice has used these powers to pursue defendants for crimes unrelated to terrorism, including drug violations, credit card fraud, and bank theft.
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THE COMMISSION CASE
The RICO statute resulted in one of the most important prosecutions ever brought against the American Mafia.
Task force from federal, state, and local law enforcement targeted the commission of Mafia Families in NY.
Electronic surveillance used on an unprecedented scale—bugs were planted in cars, homes, and social clubs. In addition, the Bonanno Family was penetrated by an FBI agent to the point of his being proposed for membership.
Government theory of the case: Cosa Nostra commission constituted a criminal enterprise and each defendant had committed two or more racketeering acts in furtherance of the commission’s goals.
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CONTINUING CRIMINAL ENTERPRISE (CCE)
CCE is similar in purpose to RICO but targets only illegal drug activity.
The statute makes it a crime to commit or conspire to commit a continuing series of felony violations of the 1970 Drug Abuse Prevention and Control Act in concert with 5 or more persons.
For conviction under this statute, the offender must have been an organizer, manager, or supervisor of the continuing operation and have obtained substantial income or resources from the drug violations.
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CONSUMER CREDIT PROTECTION ACT (CCPA)
Targets loansharking.
Defines loan shark debt as any extension of credit with respect to which it is the understanding of the creditor and the debtor at the time the loan is made that delay in making repayment or failure to make repayment could result in the use of violence or other criminal means to cause harm to the person, reputation, or property of any person.
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FORFEITURE
There are 3 categories: Criminal forfeiture: in personam (against the person).
It requires the government charge the property used or derived from the crime along with the defendant.
Civil forfeiture: in rem (against the property). It is a device for denying someone the fruits of their criminal behavior.
Administrative forfeiture: in rem. Permits seizure and forfeiture of property without judicial involvement.
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BANK SECRECY ACT (BSA)
1970: In response to reports of people bringing bags full of cash into banks for deposit, Congress enacted the Bank Secrecy Act.
Reporting and recordkeeping requirements.
Currency Transaction Report (CTR) ̶ over $10,000
Suspicious Activity Report (SAR)
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MONEY LAUNDERING
Money laundering is the process by which criminals or criminal organizations seek to disguise the illicit nature of their proceeds by introducing them into the stream of legitimate commerce and finance.
Money Laundering Control Act of 1986
(MLCA)provides for civil confiscation of any property related to a money-laundering scheme.
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ANTI-MONEY LAUNDERING LAWS
Bank Secrecy Act (1970)
Money Laundering Control Act (1986)
Anti-Drug Abuse Act of 1988
Annunzio-Wylie Anti-Money Laundering Act (1992)
Money Laundering Suppression Act (1994)
Money Laundering and Financial Crimes Strategy Act (1998)
Title III of the USA PATRIOT Act of 2001
Intelligence Reform and Terrorism Prevention Act of 2004
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TRAFFICKING IN PERSONS (TIP) STATUTES
Trafficking Victims Protection Act of 2000 (TVPA)
Forced labor
Sex slaves
Prosecutorial Remedies and Other Tools to End the Exploitation of Children Today Act of 2003 (PROTECT) authorizes the prosecution of Americans whose behavior involves the commercial sexual exploitation of children anywhere in the world.
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IDENTITY THEFT
There are 4 types of identity theft:
1. Fictitious identity
2. Payment card
3. Account takeover
4. True name
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ELECTRONIC SURVEILLANCE
Title III of Omnibus Crime Control and Safe Streets Act in 1968.
Bans private eavesdropping.
Authorizes federal officials and prosecutors to intercept wire or oral communications.
Requires judicial authorization.
Certain legal conditions must be met.
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