Racketeering

Understand Racketeering — meaning, plain-language explanation, and related glossary terms.

In the United States, racketeering is a type of organized crime in which the perpetrators set up a coercive, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation to repeatedly or consistently collect a profit. The term "racketeering" was coined…

Racketeering in U.S. law

In the United States, racketeering is a type of organized crime in which the perpetrators set up a coercive, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation to repeatedly or consistently collect a profit. The term "racketeering" was coined by the Employers' Association of Chicago in June 1927 in a statement about the influence of organized crime in the Teamsters' Union. Specifically, a racket was defined by this coinage as being a service that calls forth its own demand, and would not have been needed otherwise. Narrowly, it means coercive or fraudulent business practices; broadly, it can mean any criminal scheme or operation with ongoing or reoccurring profit, as defined in the 1970 U.S. RICO Act, which aimed to curtail the power of the Mafia and other organized crime.

The practical impact of Racketeering

Racketeering appears in U.S. legal practice across multiple practice areas. Knowing what it means — and when it applies — can determine the outcome of motions, filings, and negotiations. For non-lawyers, the value of looking up a precise definition is that legal terms often carry meanings that differ from everyday usage; relying on the common meaning can lead to costly missteps.

Racketeering — procedural details

In practice, Racketeering is invoked when parties, judges, or attorneys need to identify the legal status of an issue, the rights of those involved, or the procedural step required next. The definition shown above is sourced from Wikipedia , which is widely cited in U.S. legal practice. Because U.S. law is jurisdictionally layered — federal, state, and sometimes local — the precise application of the term can vary by court, so check the controlling authority for your specific case.

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Source: Wikipedia CC BY-SA 4.0

This page is provided for general informational purposes only and does not constitute legal advice. Laws change and definitions can vary by jurisdiction. Consult a licensed attorney for advice on your specific situation.

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