By Eric Siebert

When we think about the word “mobster,” we often recall names such as Al Capone, and think of the time period of the early 20th century. We generally don’t associate the word “mobster” with hackers or the computer age. Recently, however, the Racketeering Influenced Corrupt Organizations Act (or RICO) has made such an association. Originally envisioned as a tool to target gang leaders who avoided direct liability by ordering subordinates to commit crimes, RICO has recently been used to target cybercriminals engaged in racketeering offenses. Rather than being used to target leaders of mafia-type activities, the law is now being used to prosecute and impose stiffer penalties on online criminals who engage in organized crime through various virtual networks.

RICO, passed in 1970, allows for the imposition of criminal penalties of up to 20 years imprisonment (or more if the underlying crime carries a higher maximum penalty), or civil penalties amounting to triple the actual damages incurred. Private individuals may also bring claims against anyone who has participated, directly or indirectly, in racketeering activities. To establish a claim under RICO, according to one Supreme Court case, a defendant must have “conduct[ed] or participat[ed] in the conduct of an enterprise ‘through a pattern of racketeering activity.’” Put simply, a defendant must have acted as part of a group that commits a series of at least two acts that qualify as racketeering activities. A useful breakdown of these elements can be found here. Continue reading →