Racketeering is any of several types of illegal activities usually associated with organized crime groups, such as the Mafia. There are three main types of rackets: (1) protection rackets, (2) labor rackets, and (3) business rackets. In a protection racket, an organization uses threats, also called extortion, to force businesses to pay it money. In a labor racket, the offenders steal union funds or use a union’s power to force companies to give them money. In a business racket, a firm tries to prevent other businesses from competing against it.
In the United States, racketeering is prohibited under RICO, a section of the federal Organized Crime Control Act of 1970. RICO is an abbreviation of the section’s title, “Racketeer Influenced and Corrupt Organizations Act.” Under RICO, people convicted of racketeering can be given up to 20 years in prison for each offense.
RICO has proved to be a powerful weapon against organized crime. After it went into effect, a number of U.S. states and many other countries adopted similar laws. The countries with such laws include Belgium, Germany, Italy, and South Africa.
