what is racketeering

Racketeering is a type of organized crime where perpetrators set up illegal coordinated schemes or operations, called "rackets," to repeatedly or consistently make a profit. These rackets often involve coercion, fraud, extortion, or other illegal activities. A common example is a "protection racket," where criminals offer protection to businesses from harm or vandalism, often threats that the criminals themselves pose, leading to extortion. More broadly, racketeering can encompass various criminal enterprises including drug trafficking, illegal gambling, money laundering, bribery, kidnapping, and murder for hire. The U.S. legal system addresses racketeering through the Racketeer Influenced and Corrupt Organizations (RICO) Act, which defines a wide range of crimes under racketeering and allows severe penalties for those involved in such criminal enterprises. Racketeering schemes can also include offering services to solve problems that the racketeers create themselves, thus ensuring continuous illegal profit. In summary, racketeering involves ongoing illegal business activities, often organized and repetitive, aimed at gaining illegal profits through coercive or fraudulent means. It can be prosecuted at federal or state levels with penalties including imprisonment, fines, and asset forfeiture. This term initially referred to specific illegal schemes but has since broadened to include many forms of organized criminal activity.