Legal Definitions - pattern of racketeering activity

A "pattern of racketeering activity" refers to a series of at least two connected criminal acts that demonstrate an ongoing or threatened continuation of illegal behavior. These acts are not isolated incidents but are linked in a way that suggests a sustained criminal enterprise or a high likelihood of future criminal conduct. This concept is central to laws designed to combat organized crime, such as the federal Racketeer Influenced and Corrupt Organizations (RICO) Act.

To establish a pattern, the criminal acts must be:

• Two or more: There must be at least two distinct criminal acts.
• Related: The acts must be connected to each other, for example, by common purpose, victims, perpetrators, or methods.
• Ongoing or threatening to continue: The acts must either constitute a continuing criminal enterprise or pose a threat that similar criminal activity will continue in the future.

Here are some examples illustrating a "pattern of racketeering activity":

• Example 1: Construction Bid-Rigging Scheme

  A construction company owner repeatedly colludes with several competitors over a period of three years to fix bids on government contracts. They ensure his company wins at inflated prices, sharing a portion of the illicit profits with the other companies. This involves multiple instances of fraud and conspiracy across various projects.

  How it illustrates the term: This scenario involves numerous criminal acts (bid-rigging, conspiracy, fraud) that are clearly related by the common goal of illicit profit, the same perpetrator (the company owner), and the consistent method of manipulating bids. The repeated nature of these acts over several years demonstrates a sustained criminal enterprise and a clear threat of continued illegal activity.

• Example 2: Extortion and Illegal Gambling Operation

  An individual operates an illegal high-stakes poker game out of a back room. Over several months, when players accrue large debts, the individual uses threats of physical harm or property damage to ensure repayment. This occurs with multiple different players who fall into debt.

  How it illustrates the term: The criminal acts here include operating an illegal gambling business and multiple instances of extortion (using threats to collect debts). These acts are related as they are all part of the individual's overall scheme to profit from illegal gambling. The repeated use of extortion against different debtors establishes a clear pattern and indicates an ongoing criminal enterprise.

• Example 3: Healthcare Insurance Fraud Ring

  A group of medical professionals and clinic administrators conspire to submit hundreds of fraudulent claims to various health insurance companies over a two-year period. They bill for services never rendered, perform unnecessary procedures, and use patient identities without consent, sharing the substantial payouts.

  How it illustrates the term: This involves a multitude of criminal acts, including healthcare fraud, identity theft, and potentially money laundering. These acts are highly related, being part of a coordinated scheme by the same group to systematically defraud insurance companies for financial gain. The sheer volume and systematic nature of these fraudulent submissions over an extended period clearly form a pattern and demonstrate an ongoing criminal operation.