Introduction and Context

• Josh, Chuck, and Jerry hosting "Short Stuff" podcast episode
• Discussion prompted by John Gotti "Teflon Don" Halloween costume idea
• Gotti went down in 1991, last of real mob bosses
• Golden Age/Heyday of mafioso in US was 1960s
• RICO Act passed ~20 years before Gotti's downfall

RICO Act Overview

• RICO = Racketeer Influenced and Corrupt Organizations Act
• Common term in modern mafia movies/TV (Sopranos)
• "Racket" = numbers racket, protection racket
• Authors suggest "organized crime act" would be clearer terminology
• Extended successfully to boardrooms and white collar crime
• Targets organized crime - people working together in illegal business activities

How RICO Works

• Racketeering = managing Enterprise/company/corporation/crime family with pattern of illegal activities
• Targets high-level organizers who don't personally commit crimes
• Addresses problem: could prosecute trigger people but not bosses ordering crimes
• FEDS use RICO when nothing else available - last resort charge
• Goes after "c-suite level people" in organized crime

Legal Requirements and Limitations

• Supreme Court and appeals courts narrowed broad language
• Two-part proving process:
  • Must prove pattern of criminal activity within organization (not just single incident)
  • Must prove specific person managing/directing operations
• High burden of proof required
• Originally allowed triple damages in civil suits (1980s)
• Led to attorney surge seeking triple money
• Tightened with 4-year statute of limitations

John Gotti Case Example

• Sammy "the Bull" Gravano turned state's evidence
• Gravano testified to killing people under Gotti's direction
• Wiretaps captured Gotti issuing orders
• Combination of testimony + recordings proved boss status
• Gotti died in prison
• Other NY families didn't send representatives to funeral (sign of disrespect)

Other RICO Cases

Catholic Church

• Civil RICO suit against Catholic Church
• Pope implicated in organized criminal enterprise
• Alleged obstruction of justice to avoid prosecution
• Covered up sexual abuse by priests and others
• Case status unclear/ongoing

Atlanta Schools Cheating Scandal (2015)

• Organizers indicted on racketeering charges
• Some received 20-year prison sentences
• Scheme: fudge standardized test scores for federal funding
• Fired/penalized employees who refused to participate
• People at top organized cheating scandal
• Defrauded federal government
• One of biggest criminal enterprises ever prosecuted

Legal Strategy Notes

• Defendants often play "doddering elderly" act in court
• Catch-22: want reputation as boss but deny being in charge legally
• RICO effective tool for prosecuting organizational crime leaders