Copyright © 1987 The Columbia Law Review.
Columbia Law Review
JUNE, 1987
87 Colum. L. Rev. 920
LENGTH: 30598 words
ARTICLE:
RICO:
THE CRIME OF BEING A CRIMINAL, PARTS III & IV. *
SEC-NOTE-1:
* These are the second two parts of a four part Article.
NAME: Gerard E. Lynch **
BIO:
** Professor of Law, Columbia University. B.A. 1972, J.D. 1975, Columbia
University.
SUMMARY:
... RICO: A NEW KIND OF BEAST? ... Prosecutors may have been induced
to add RICO counts to ordinary narcotics conspiracy charges in order to
avail themselves of its automatic forfeiture provisions. ... For
example, one defendant was a juror who allegedly took a bribe to fix a
prosecution of one of the members of the "crew"; another's entire
involvement (limited to three of the eighty racketeering acts charged in
the indictment) consisted of hiring members of the crew to bribe and
ultimately to murder a witness against his son in a state prosecution
entirely unrelated to the affairs of the enterprise; others were
involved only in one of the many criminal affairs of the enterprise, and
not at all in its more violent activities. ... The court thus seems to
accept that an agreement to raise revenue through miscellaneous criminal
activity is indictable as a conspiracy, holding only that the evidence
here did not show such an agreement. ... Third, the value of the RICO
forfeiture sanction suggests that increased use of this sort of penalty
should be seriously considered. ... As we have seen, the original
purpose of the RICO forfeiture remedy was the antitrust-type goal of
extruding the racketeer from the legitimate enterprise he had
infiltrated. ...
TEXT:
[*920] III.
RICO: A NEW KIND OF BEAST?
In the first portion of this study,
we saw that the Supreme Court in its 1981 Turkette decision
endorsed what was already the consensus view of the courts of appeals
that a group of individuals associated in fact to pursue entirely
illegitimate purposes could constitute a RICO enterprise.
Prosecutions of such associations have quickly become the leading use of
the statute. It can be reliably estimated that more than forty percent
of the reported appellate cases involving RICO indictments concern
prosecutions in which the alleged enterprise was such an illicit
association.
When the cases are classified by the nature of the predicate criminal
acts rather than of the alleged enterprise, roughly the same figure
appears: about forty percent of the cases involve allegations of
concerted criminal activity by more-or-less organized criminal groups,
with the rest divided among the various types of perversion of
legitimate institutions discussed in the preceding sections.
These figures demonstrate that the principal use of RICO has not been to
deal with the distinctive evil of infiltration by the mob into
legitimate enterprises, but rather to add an additional weapon to
prosecutors' efforts to attack organized criminal groups themselves for
their primary illegal activities.
The illicit association cases present a broad spectrum of illegal
activities. In many of the cases, the illicit activities charged as
predicate acts involve repeated instances of the same general type of
criminal conduct. The large number of RICO narcotics prosecutions typify
this kind of case, although similar examples involving gambling and
prostitution activity can be cited.
Other cases involve arson, extortion, and
[*921] theft
or fencing schemes.
The use of RICO in many of these cases appears indistinguishable from
the use of ordinary conspiracy law. Although most of the RICO cases seem
to involve particularly large or lucrative conspiracies,
some of them are strikingly ordinary criminal conspiracies.
Why have prosecutors invoked RICO so frequently? The cases in this area
are so diverse that no single answer is possible. In some instances,
particularly in simple cases involving schemes limited to one particular
sort of crime, the answers parallel those we have already seen in the
political corruption, white collar, and labor racketeering areas.
A. Jurisdictional Use of RICO
In theory, RICO can serve as a device to obtain federal jurisdiction to
prosecute common-law crimes against persons or property that would
normally be within the province of local law enforcement. A purse
snatcher or mugger may seem the quintessential example of the sort of
street criminal who is the responsibility of the local police force and
the local district attorney to apprehend and prosecute. If two or three
muggers, however, form a loosely knit gang and can be shown to have
cooperated in two or more such robberies they have become -- assuming
that some effect on interstate commerce can be fantasized -- a RICO
enterprise, and can be prosecuted federally.
Given the higher public concern about street crime than about the less
immediately threatening sorts of activity that compose the principal
objects of federal law enforcement efforts, an ambitious United States
Attorney might well want to grab a piece of this kind of crime-fighting
action by using RICO to stake out a federal presence in the war on
street robbery.
The use of RICO purely as a jurisdictional device to supplement or
preempt local law enforcement efforts against ordinary street crime has
so far been mostly a theoretical fear. The Department of Justice's RICO
Guidelines emphasize the importance of avoiding encroachments on local
law enforcement,
and specifically disapprove RICO
[*922]
indictments "where the predicate acts consist solely and only of state
offenses" except in certain instances.
This might be dismissed as mere lip-service to the values of federalism
and, in fact, the exceptions are sufficiently amorphous to provide
little barrier to prosecutions of entirely local criminal activity.
Nevertheless, pure cases of disregard for these principles are rare.
Still, the jurisdictional use of RICO is not without significance. Even
in cases that present only one straightforward conspiracy involving a
single type of criminal activity, jurisdiction and venue barriers may
prevent prosecutors from presenting all the evidence relating to the
single conspiracy in the same trial. In United States v. Winter,
for example, federal investigators had developed evidence of a
wide-ranging
[*923]
scheme to fix horse races at various race tracks. Although the case was
prosecuted in Massachusetts, the scheme affected racing in New
Hampshire, Rhode Island, Pennsylvania, and New Jersey. Such multistate
activity may be difficult to prosecute efficiently under conventional
doctrines of criminal law and procedure. Substantive criminal acts may
be committed in a variety of jurisdictions, making it impossible to join
all related transactions in the same venue. While a conspiracy
encompassing the entire scheme may be prosecuted in any district where
any overt act was committed,
unless the substantive offenses can be prosecuted in the same district,
the federal conspiracy statute may not provide penalties commensurate
with the scope of the criminal conduct involved.
RICO may function, in cases like Winter, as a jurisdictional device to
prosecute trans-jurisdictional schemes -- or, in effect, as an
aggravated conspiracy statute.
Congressional expansion of federal criminal jurisdiction makes it
possible for federal law enforcement agencies to reach most of the forms
of organized criminal conduct that have been attacked using RICO, under
certain circumstances. Theft,
arson,
extortion,
prostitution,
gambling,
and of course narcotics trafficking,
are all covered by federal statutes. While the use of RICO to assert
jurisdiction over criminal conduct that has not yet been made subject to
federal intervention could be seen as abusive, as in the area of
political corruption,
the frequent resort by Congress to artificial jurisdictional devices to
secure federal jurisdiction often makes the dividing line between
federal and state jurisdiction arbitrary. As to any individual
[*924]
criminal act, this patchwork jurisdiction might not matter. Unlike the
case of local governmental corruption,
there is no systemic reason to think that the absence of federal
jurisdiction to prosecute an act of gambling or arson will lead to
failure to prosecute the crime.
Where, however, the criminal conduct is part of a pattern of criminal
transactions conducted by an organized criminal conspiracy, the
fragmented pattern of jurisdiction may prevent any court from having
jurisdiction over enough of the case to permit unified prosecution of
the entire operation in a manner that makes significant penalties
available. RICO has been of genuine value in permitting such
prosecutions.
B. RICO as a Penalty Enhancer
In some cases, the impetus for the use of RICO in criminal enterprise
cases appears to be, as in the white collar and labor cases,
its extreme, mandatory and procedurally simple financial penalties. At
least some of the large number of narcotics cases in which RICO counts
are included can probably be accounted for on this basis.
In most narcotics cases, of course, there is no need for RICO to enhance
the incarceration penalties available; federal narcotics offenses carry
potentially drastic sentences.
Nor do narcotics offenses present the jurisdiction and venue barriers to
unified prosecution discussed in the preceding section.
[*925] On
the other hand, as with other forms of criminal activity, the financial
penalties attached to narcotics violations have not necessarily been
commensurate with the extraordinary profit potential of such violations.
The fines provided by federal narcotics laws, while steeper than those
applicable to mail fraud, conspiracy, and other white collar offenses,
until recently have not been remotely comparable to the profits of major
drug dealers.
Even if the fines had been significantly higher, however, they would not
be adequate to take the profit out of drug dealing. The collection of
fines presents a far graver problem in the case of narcotics dealers,
whose assets are generally underground, than in the case of white collar
offenders, who more commonly have visible sources of payment. While
narcotics offenses always carried the potential for civil forfeiture
actions,
before the Comprehensive Crime Control Act of 1984, RICO's procedurally
efficient criminal forfeiture remedy was only available under the
narcotics statutes against the supervisors and managers of the ring
subject to prosecution under the Continuing Criminal Enterprise statute.
Prosecutors may have been induced to add RICO counts to ordinary
narcotics conspiracy charges in order to avail themselves of its
automatic forfeiture provisions.
This hypothesis is supported by several inferences that can be drawn
from the sample data. RICO indictments seem to be used in narcotics
cases with some regularity where the narcotics ring involved was
particularly extensive or profitable. In addition, the narcotics cases
include a relatively large number of references to application of the
forfeiture remedy,
or to the involvement of a legitimate business organization
[*926] as a
front for narcotics operations.
Such references suggest that RICO is used where an element of
infiltration of legitimate business suggests that invocation of RICO is
particularly apt, or where the availability of forfeiture offers an
alluring additional sanction.
One might question, however, whether the use of RICO to achieve
marginally greater penalties in cases in which extensive financial
penalties and extremely harsh jail terms are already available to deter
and punish justifies the existence of the statute. As in the case of
white collar and labor offenses, if weak financial sanctions in
narcotics laws hinder their effective enforcement, a direct approach to
that problem that avoids the dangers and complexities of RICO is
obviously preferable.
Moreover, Congress in 1984 responded to that problem by enacting a
dramatic increase in the fines applicable to narcotics offenses,
providing an alternative fine equal to twice the gross profits or
proceeds from narcotics where even the enhanced fines are insufficient,
and adapting the criminal forfeiture procedures pioneered by RICO to all
felony narcotics cases.
If additional penalties are needed in the fight against narcotics
dealers, RICO is not necessary to provide them.
In some cases, RICO prosecutions are predicated not only on narcotics
violations, but on other offenses committed in furtherance of narcotics
activity. One common additional offense in RICO prosecutions of criminal
activity is corruption of law enforcement. In some cases, the extent of
corruption related to narcotics, gambling or prostitution is so extreme
that the law enforcement organization itself becomes the focus of
prosecutorial interest.
In others, the corruption
[*927] of
law enforcement is merely an adjunct to a prosecution directed
principally at the criminal group's primary activities.
In such cases, in addition to its value as a sentence enhancer, addition
of a RICO charge also serves to bolster the prosecution's ability to
join charges for trial. Even without RICO, crimes committed in order to
obstruct an investigation might be successfully added to an indictment
for the principal offenses as "parts of a common scheme or plan,"
or treated as aspects of a continuing conspiracy.
The use of an overarching RICO offense, however, serves to clinch the
prosecution's ability to present the corruption charges together with
the underlying narcotics or other violations.
This motivation for use RICO is especially strong where the offenses
sought to be joined are very serious and prejudicial, and thus
particularly likely to be severed in the exercise of the trial judge's
discretion.
Several cases in which the principal focus of the criminal enterprise
was the distribution of narcotics exemplify this phenomenon. United
States v. Thomas,
for example, involved "a huge narcotics ring run by a governing body
called the 'Council.'"
In addition to narcotics offenses, the predicate acts charged against
the defendants, all allegedly important members or associates of the
Council, included the murder of workers in the narcotics enterprise
thought to be potential informers or otherwise threatening to the power
of its leaders.
Without RICO, the government's ability to charge these murders would
[*928] have
been dubious. First, except in unusual circumstances, murder is a state
offense, not subject to federal jurisdiction. Second, even if
jurisdiction could be obtained in some circumstances,
a strong argument could be made that the joinder of acts of violence
would unfairly prejudice the jury's ability to judge the evidence of
narcotics crimes. The effort to avoid these arguments against use of the
murder evidence undoubtedly encourages use of RICO in such cases.
The use of RICO to incorporate collateral crimes of violence into
indictments charging conspiracies to carry on narcotics or other
"victimless" activities, however, like its use to overcome
jurisdictional boundaries to joinder of related offenses, is only a
minor instance of a phenomenon that reaches its fulfillment in massive
indictments of organized crime members, or members of other sorts of
criminal organizations, for a wide variety of separate types of criminal
activities, united only by the common purpose of the organization to
promote the long-range economic or political goals of its members. It is
now time to consider that phenomenon.
C. The Multi-Faceted Criminal Enterprise
RICO has thus been used by federal authorities to make possible a wide
variety of prosecutions that could not have been brought effectively
without it. But while these cases show the use of RICO to obtain
jurisdiction, to increase available sanctions, and to effect otherwise
dubious joinder of offenses, the resulting trials would not look
terribly strange to a criminal lawyer who had spent the last twenty
years in a Rip Van Winkle-style slumber. For all of the advantages RICO
has conferred upon prosecutors, the trials in the cases discussed so far
have been easily recognizable as bribery trials, narcotics conspiracy
cases, labor racketeering cases, and so on. In each, two or more
reasonably closely related criminal acts, usually of the same general
nature, have been charged against a reasonably manageable number of
defendants. Although the jury is asked, at the end, not only to decide
the defendants'
[*929] guilt
on the various specific acts, but also to make an overall determination
whether those acts formed a "pattern" in connection with an
"enterprise," the rules of procedure and evidence, and the ultimate
tests of guilt, have hardly been revolutionary.
But what would our attorney Van Winkle make of United States v.
Castellano?
The indictment in Castellano charged twenty-four defendants in
seventy-eight counts. Count 1 of the indictment alone charged all of the
defendants and a number of unindicted "co-racketeers" with violating
section 1962(c), in that they conducted the affairs of a "crew" or
subdivision of an organized crime family through a pattern of eighty
separate acts of racketeering,
including "twenty-six murders, bribery, extortion, narcotics violations,
thefts from interstate shipments, mail and wire fraud, obstruction of
justice, transportation of stolen property, and transportation of women
for purposes of prostitution," extending over a period of more than
eleven years.
Several of the acts of racketeering themselves consisted not of
individual actions, but of complex conspiracies and schemes, or were
technically duplicitive in that they charged more than one crime arising
out of the same criminal episode.
Numerous acts of racketeering charged could not have been prosecuted as
criminal offenses in their own right, either because the statute of
limitations had already run on those offenses,
or because they had been the subject of previous prosecutions.
Moreover, a large number of those acts could never have been charged
independently in federal court for lack of jurisdiction, and in any
event almost none of the racketeering acts could have been prosecuted in
the government's chosen venue, because "virtually every significant
racketeering act alleged in the indictment" occurred outside that
district.
While the range of activities charged against the enterprise was vast,
the involvement of many of the defendants in those activities could only
be described as tangential. For example, one defendant was a juror who
allegedly took a bribe to fix a prosecution of one of the members of the
"crew"; another's entire involvement (limited to three of the eighty
racketeering acts charged in the indictment) consisted of hiring members
of the crew to bribe and ultimately to murder a witness against his son
in a state prosecution entirely unrelated to the affairs of the
enterprise; others were involved only in one of the many criminal
[*930]
affairs of the enterprise, and not at all in its more violent
activities.
All of these defendants were to be tried together, despite the fact that
little of the evidence in what could only be an extraordinarily lengthy
trial would have any direct bearing on their own actions. Moreover, the
government's proof would not be limited to the actions of the defendants
on trial. The actions and fates of several alleged co-racketeers "not
[named as] defendant[s] herein because [they were] murdered" would also
be proved, as would the fact that the "defendants are part of organized
crime, and particularly the Mafia."
Our Rip Van Winkle of a defense lawyer would probably regard the notion
that such a case could be tried in this form as the product of a
demented prosecutor with delusions of grandeur and no understanding of
the rules of procedure and evidence. Yet the government's indictment,
and its plan to try the case in a single proceeding, were sustained in
virtually every particular by a scholarly and moderate district judge in
a careful opinion that persuasively demonstrates that RICO permits all
of these consequences.
Nor is Castellano an aberration. The fourteen cases from our sample
classified as involving "diversified syndicates," and most of the cases
categorized as involving "violence and extortion" or "political
violence,"
involved criminal conduct almost as diverse, and problems of trial
procedure almost as complex, as the Castellano prosecution. The cases
present various patterns. In some, like Castellano, the RICO enterprise
is explicitly identified as a traditional organized crime family -- in
effect, an arm of the Mafia -- engaged in the provision of unlawful
goods and services (prostitution, gambling, narcotics, loan-sharking),
appropriation of the property of others (theft, fraud, extortion) and
crimes of violence attendant on the operation and enforcement of such
schemes.
Others involve groups of criminals that are smaller or that
[*931] lack
formal affiliation with traditional organized crime groups, but that
engage in similar patterns of ongoing, organized criminality.
At least one case involves the efforts of a criminal group to control a
legitimate industry through a pattern of criminal activity, in a classic
pattern of violent infiltration of legitimate business.
In addition to these groups of organized criminals, RICO has been used
against groups whose methods may sometimes resemble those of traditional
organized crime syndicates, but whose goals are quite different --
political terrorists. In these cases, too, RICO has enabled prosecutors
to link together a wide range of different offenses committed by
numerous different individuals, linked together by common aims,
overlapping patterns of complicity in different crimes and general
awareness that others committed to the same goals were engaged in
similar illegal acts, in ways that would be impossible under traditional
rules of joinder, jurisdiction and venue. For example, in United States
v. Bagaric,
prosecutors presented evidence of "at least fifty acts of extortion
carried out in this country, two murders of extortion victims, several
unsuccessful efforts to murder, approximately a dozen bombings and
attempted bombings . . . and the transportation of weapons and
explosives from coast to coast," committed by a terrorist group of
Croatian nationalists.
Although venue was laid in New York, the activities of the ten
defendants in the thirteen-week trial centered on Chicago, Los Angeles,
Cleveland and Toronto, and included evidence of criminal acts in New
York, Pittsburgh, San Francisco, Milwaukee, Akron and Bridgeport -- as
well as Canada, Paraguay and West Germany -- over a
[*932]
seven-year period.
Although the testimony proved conclusively that the convicted defendants
were all committed members of the group, and had each been involved in
two or more of the specific violent acts alleged, the cast of characters
involved in each act of racketeering proved by the government differed.
Several similar prosecutions, involving other extremist political sects,
can be cited.
While the number of cases fitting this pattern is small in comparison to
the number of cases involving government corruption, business fraud,
labor racketeering or more specialized criminal organizations,
it is in these cases that RICO presents its most innovative face, and
its most significant challenge to orthodox notions of criminal law,
procedure and evidence.
D. The Transaction-Based Model of Crime
In order to understand RICO's value in prosecuting diversified illicit
enterprises, and the potential abuses of such prosecutions, we must
first understand the limits imposed on criminal prosecutions by our
conventional understanding of what a crime is, and the potential of RICO
to explode those limitations.
Fundamental to our traditional law of crimes, criminal procedure and
evidence is a conception of crime that is transaction-bound.
Synthesizers
[*933] of
the common-law tradition tell us that the core of any definition of
crime is a particular act or omission.
That act or omission is conceived as taking place in an instant of time
so precise that it can be associated with a particular mental state of
intention, awareness of risk, or neglect of due care.
The verbs that form the heart of the definitions of particular offenses
("takes and carries away," "engages in sexual intercourse," "damages by
starting a fire," "sells a controlled substance") typically refer to
single rather than repeated actions, completed in a brief span of time.
Where the verbs in penal statutes instead refer to causing a particular
result ("causes the death of another human being," "causes serious
physical injury") -- a process that can extend over a period of time --
the focus of inquiry into a defendant's culpability must nevertheless be
a specific, momentary act or omission.
Even the crime of conspiracy, which in practice may permit an
examination of an extended course of conduct by one or more individuals,
does so in the guise of using that course of conduct as evidence from
which to infer that a particular act of "agreement" occurred, presumably
at a specific, if not precisely ascertainable, moment in time.
Of course, while the criminal act itself must generally meet this
criterion, other elements in the definition of a crime sometimes allow
expansion of the relevant time-frame. Attendant circumstance elements
can have this effect. For example, in the crime of rape, the act of
penetration provides an identifiable instant in which the crime is
complete. But the required circumstance that the act of intercourse be
the product of forcible compulsion, which really represents the crux of
the offense, may significantly blur the time boundary of the inquiry,
and make identification of the precise act that makes the conduct
criminal (as opposed to the act that completes the offense) more
difficult. In
[*934]
borderline cases of intimidation and implied threat, it may be difficult
to determine which, if any, of a series of actions by an accused rapist
constituted the culpable application of force. Similarly, defenses such
as duress or self-defense make relevant courses of conduct, by the
defendant or another, that break the boundaries of the brief transaction
that constitutes the charged offense. Most dramatically, the insanity
defense can make the defendant's entire life history the subject of a
trial.
Most importantly, the mental element of most crimes (and, in the case of
conspiracy, the mental act of agreement itself) will often make relevant
a course of conduct extending beyond the specific criminal transaction,
because of the need to prove such mental states inferentially. For
example, intent or premeditation may be shown by prior activities that
show planning for the crime. Proof of motive, which is also relevant to
proving intent, may require an extensive inquiry into the background of
the specific act charged. But almost all of these possible expansions of
the scope of the inquiry are anchored to the particular act or
transaction in question in the case. The expanded inquiry is always
directed at ascertaining the circumstances or mental state of the
accused at a particular instant identified by the act charged. Other
acts or events are relevant only to the extent they support an inference
about that question.
The focus on particular events in defining crimes is not merely a
linguistic convention. The requirement that criminal punishment be based
on a specific act has deep roots. The very nature of criminal
punishment, as distinct from other uses of the compulsive power of the
state (such as mandatory treatment for physical or mental illness),
requires that a person not be punished for bad character, tendency to
commit crime, or even a specifically formulated intention to commit some
particular prohibited act. Before the state can deprive a citizen of
liberty in a punitive way, the individual must manifest that character
or tendency by the commission of some concrete prohibited act.
In significant part, the purpose of this limitation is the protection of
an individual from punishment for thoughts or traits not yet exemplified
by actual harmful conduct.
But the moral basis of the focus on particular acts extends beyond this
problem. Even for those accused of committing what is unquestionably a
concrete, particular offense, we are careful to guard against the
possibility that a defendant may be convicted and punished for bad
character rather than for the particular act charged. The insistence on
incident-based liability thus has important consequences for our rules
of procedure and evidence.
Since the crime with which a defendant is charged took place at a
[*935]
particular moment in time, the relevance of a defendant's actions prior
to that moment is always problematic; some tendency to support an
inference about what the defendant did or what he thought at the moment
of the crime is always necessary for such a prior act or event to
matter.
We are particularly concerned about the relevance of prior actions which
themselves constitute crimes. Because we fear that a jury will
"irrationally" conclude that a person who has committed prior crimes
will be guilty of the offense for which he stands accused on a
particular occasion, or will dismiss the very question of his present
guilt in favor of a condemnation of his general bad character, evidence
of prior crimes -- as well as evidence of general bad character or
criminal associations -- is usually excluded from evidence. Such
information is admissible only where its particular relevance to the
specific act charged greatly outweighs the "prejudice" it occasions by
distracting the jury from the only question properly before it -- the
defendant's actions in the particular incident being examined.
For similar reasons, charges that a defendant is guilty of more than one
offense, or that two or more defendants are guilty of joint crimes, may
only be tried together where the charges are so closely related that it
would be manifestly inefficient to have separate trials.
Where joint trials of different alleged offenses or offenders are
permitted, we are -- in theory at least -- careful to guard against the
danger that evidence relevant to one crime will unfairly "spill over"
into what ought to be a clinically pure evaluation of the evidence
concerning another.
A criminal trial thus tends to focus on a particular incident or
transaction.
The transaction-based model is so fundamental to our ways of thinking
about criminal law that we tend to take it for granted. Professor Kelman
has pointed out the importance of questioning the functions of such
"unconscious interpretive constructs" that "shape the way we view
disruptive incidents."
He views "narrow time-framing" and a tendency to treat incidents as
"disjoined" or separate transactions (central aspects of the
transaction-based model) as tools to "buttress the traditionally
asserted intentionalism of the criminal justice system," and suppress
the political choices inherent in imposing punishment.
Both the procedural and substantive manifestations of the model
[*936] of
crime based on specific incidents or acts are indeed associated with a
particular conception of the individual as a moral actor. The careful
elaborations in our penal codes of the precise nature of the prohibited
acts, and the equally careful calibrations of the degree of
blameworthiness to be attributed to different prohibited acts, seem to
presuppose actors with a free will to avoid the prohibited conduct, who
can fairly be apportioned different degrees of guilt or punishment based
on the nature of the conduct in which they have chosen to engage.
Indeed, our rules of procedure seem to carry this notion of moral
freedom even further. The individual is implicitly conceived not only as
free in principle to act in accordance with or in violation of defined
norms, but also as free at any given moment to make choices at odds with
any consistent character that may be deduced from his prior acts. To
infer that a defendant committed the particular offense for which he is
being tried from the fact that he has previously committed other crimes
of a generally similar nature -- or, worse still, other crimes of an
entirely different nature -- is not only unfair, but inconsistent with a
fundamental supposition that criminal behavior is punishable because it
represents a free choice at a particular moment in time to commit an
immoral act.
Indeed, the power of this model of the individual is so strong that some
proponents of the "just deserts" model of punishment have argued that
the focus on the individual incident rather than on the character of the
offender should be extended even into the sentencing process. On this
view, a defendant's past conduct or overall character would have no
relevance at all in determining an appropriate sentence, giving
especially concrete content to the idea of punishing the crime and not
the criminal.
At this point, however, our tradition until recently has balked, and the
sentencing decision has been seen, within limits set by a vague
principle of proportionality and by concrete maximum sentences devised
by legislatures in correlation to the seriousness of particular
offenses, as including appropriate attention to treatment and
incapacitation goals based in part on the general character of the
offender.
The prevalence of legislative proposals for less discretionary, more
conduct-based sentencing systems may suggest that the retributive view
of crime may be weakening even the citadel of sentencing discretion.
[*937] But
Professor Kelman is wrong in his claim that these moral notions are the
sole basis of the transaction model, and that they have served to
obscure the function of criminal law as a means of social control. The
historical roots of the transaction model reach back far beyond the
relatively recent philosophical arguments with which Kelman associates
it. Indeed, the notion that individuals (or at least nobles) should not
be punished except for defined conduct -- according to the law of the
land -- has roots in the explicitly political demands of the barons at
Runnymede not to be subjected to punishment by arbitrary fiat from
above. It is precisely because criminal punishment constitutes an
exercise of power by the strong over the weak that the weak have
demanded limitations on its exercise, including that punishment only be
imposed on a showing of particular conduct, defined in advance.
If such a system is to function, a trial has to be about something
relatively concrete.
The historical and political roots of the transaction model show, on one
hand, that that model cannot merely be dismissed as a mask for
fundamentally arbitrary exercises of power; they suggest, on the other,
that to those not committed to a purely retributivist position, the
attributes of that model are contingent -- part of the important but
adjustable balance that the criminal law must always maintain between
the exercise of social control and the maintenance of individual
liberty.
E. The Enterprise Offense
RICO prosecutions of criminal enterprises present a serious challenge to
the substantive and procedural implications of this transaction-based
model of crime.
This challenge is partially apparent on the face of the statute.
Ordinary criminal statutes, as we have seen, define the conduct they
prohibit in terms of rather concrete actions that can be committed in an
identifiable moment of time. Indeed, two of the three substantive
prohibitions imposed by the RICO statute in essence follow this very
model. Those sections make it a crime to "use or invest" money from
particular sources in a particular way,
and to "acquire . . . any interest" in an enterprise by means of certain
conduct.
While the necessity
[*938] of
proving a "pattern of racketeering activity" may well permit proof of a
variety of (possibly only distantly related) criminal acts, the act that
constitutes the offense is a single, specific action -- acquisition of a
business interest. The particular moment at which an individual commits
the prohibited act can, in theory and usually in practice, be
identified. Past acts of racketeering are relevant to the offense
charged only if they bear directly on the particular acquisition of an
interest charged in the indictment.
Section 1962(c), in contrast, makes it a crime to "conduct or
participate, directly or indirectly, in the conduct" of the affairs of
any "enterprise[ ] . . . through a pattern of racketeering activity."
The very words of the statute reveal an intent to prohibit not any
particular, time-bound action, but a course of conduct extending over a
potentially lengthy period of time. Although the predicate acts of
racketeering are conventional crimes, defined in terms of specific
conduct, the actual RICO violation is not identifiable by the physical
contours of a particular action or effect. Rather, the defining
characteristic of the "pattern of racketeering" is the relationship of
certain conduct to other conduct and to the "enterprise," which itself
is an abstract construct of certain interpersonal relationships. Whether
or not this definition is vague in the technical legal sense of the
word,
the level of abstraction in the definition permits the offense to cover
a wide variety of conduct for which ordinary language does not supply a
single common term.
RICO is such an oddity among penal statutes that its exponents
frequently claim that it is not really a criminal statute at all,
arguing that "RICO is a remedial, as opposed to substantive, statute"
because "[t]he
[*939]
provisions of section 1962 do not create 'new crimes' but serve as the
prerequisites for the invocation of increased sanctions for conduct
which is proscribed elsewhere in both federal and state criminal codes."
But this claim is misleading. In formal terms, RICO is plainly a
criminal statute; each of its provisions, including section 1962(c),
defines a certain cluster of behaviors as a new crime. Like section
1962(c), a statute establishing a higher penalty for certain murders
defined as "first-degree" does not prohibit conduct previously lawful,
but rather establishes "prerequisites for the invocation of increased
sanctions for conduct which is [already] proscribed."
But such statutes are certainly substantive criminal laws, in any
commonly understood meaning of the term.
The distinction between remedial and substantive statutes is not merely
formal or rhetorical; it has serious procedural and substantive
consequences. If RICO were truly only a remedial statute which added an
additional sentencing consideration to affect the punishment meted out
for what were elsewhere defined as criminal acts, there might well be no
need to require that the sentence-enhancing element be proved to a jury
beyond a reasonable doubt; the recidivist or organized enterprise
element might be deferred to a post-trial sentencing hearing, with the
necessary findings to be made before a judge subject to a lower standard
of proof.
Moreover, it is the fact that RICO does define a crime that entails some
of its most dramatic procedural and evidentiary consequences.
[*940] Since
section 1962(c) defines participating in the affairs of an enterprise
through a pattern of racketeering as a crime separate and apart from the
predicate acts, it does not merely enhance the statutory penalty for the
predicate acts, but rather permits the imposition of consecutive
sentences for the RICO offense and the predicates.
Because the RICO offense is a separate crime, the statute of limitations
runs only from its completion; thus, every additional racketeering
offense committed in furtherance of the enterprise's affairs within ten
years of a previous one extends the statute of limitations for another
five years for prosecution of the entire pattern.
A RICO indictment thus may hold a defendant accountable for acts that
took place twenty or more years before the date of the indictment -- not
for the penalty attached to the predicate crime, but for the separately
defined RICO offense.
Even within the ordinary limits of the double jeopardy principle and the
statute of limitations, a prosecutor can use section 1962(c) to place
before a single jury in a single trial offenses that could not otherwise
be included in the same indictment or admitted into evidence at the same
trial. Suppose, for example, the authorities develop evidence that the
same defendant from whom they have recently made an undercover purchase
of narcotics is a member of an organized crime family who committed a
contract killing three years earlier. Under our ordinary,
transaction-bound rules of procedure and evidence, the defendant would
have to be tried separately for each offense. Since the earlier crime is
plainly not part of the same course of events as the later, joinder of
the two crimes would not be possible; if the homicide had taken place in
another state, jurisdictional or venue problems would also prevent
joinder.
In a trial on the narcotics charge alone, moreover, the evidence of a
prior homicide committed by the defendant would likely be excluded as
irrelevant and highly prejudicial. Evidence that the defendant in a
narcotics trial was part of the "Mafia" would surely be excluded as
merely prejudicial evidence of the defendant's character and
associations. And the prosecutor presumably would not even think about
trying to elicit evidence of crimes that some other member of the same
crime family had committed, in which this particular defendant was not
personally involved. Evidence of the defendant's involvement in
organized crime or of the murder he may have committed might finally
surface after the defendant's conviction, as part of an argument for a
[*941]
severe sentence.
If the case could be indicted and tried under RICO, however, all of the
evidence regarding this defendant's activities could easily be presented
in the same trial. Since the government would have to allege and prove a
pattern of racketeering activity, the murder and the narcotics offense
could be alleged as elements of the same crime, the violation of section
1962(c). The rules precluding admission of evidence of other crimes,
consequently, would simply have no application -- evidence of the
homicide would not be evidence of a prior crime, but evidence of the
very offense charged in the indictment.
Jurisdictional and venue problems disappear, as well. It is irrelevant
that the federal government lacks jurisdiction to prosecute ordinary
homicides; the crime charged here is racketeering that affects
interstate commerce, not murder. The single crime of racketeering, like
any other crime, can be prosecuted in any district where a portion of
the crime was committed,
so any venue problem with combining crimes committed in different
districts disappears.
The government would also have to allege and prove that the crimes were
committed in furtherance of the affairs of an enterprise, so the
prosecution would be permitted to show the existence, purposes and
structure of the organized crime family, and the defendant's membership
in it.
Even if no other defendant were on trial, this may necessitate reference
to criminal activities committed by other members of the organization,
as examples of its continuing nature, hierarchical structure, or
purposes as an entity; if the defendant were indicted along with several
other alleged members of the same organized crime family, as is commonly
done in RICO prosecutions, their crimes would of course have to be
proved too. Joining those defendants in the same indictment would
automatically be proper, of course; since the defendants were all
jointly charged with the same crime -- the RICO violation -- we are
faced not with the joinder of several separate offenses by different
actors, but with a single offense all the defendants are alleged to have
committed together.
All of these procedural consequences stem from the fact that violation
[*942] of
section 1962(c) is defined as a single crime, and our procedural system,
for reasons alluded to above, attaches considerable importance to the
concept of a crime as a unified event, distinct from other crimes. If
RICO's effects are principally remedial, in the sense that the statute's
importance lies not in the prohibition of certain conduct, but in the
procedural and sentencing consequences of committing conduct already
defined as criminal, it accomplishes most of those effects precisely by
the fact that it is indeed, in formal terms, a substantive criminal
statute.
In substance, as well as in form, section 1962(c) defines a substantive
crime. The RICO offense is not reducible to the predicate acts of
racketeering. If the jury determines beyond a reasonable doubt that the
defendant committed those acts, it still must find an additional element
before it can convict: that the predicate acts were committed in the
conduct of the affairs of an enterprise.
The significance of this additional element varies considerably in
different types of RICO cases. Where, as in the bulk of the labor,
business and governmental crimes,
the enterprise is a more or less formal entity, the structure of the
section 1962(c) offense is quite conventional: the prohibited conduct is
the commission of the predicate acts, with the relation of the crimes to
an enterprise serving as an aggravating factual circumstance. Like most
such aggravating factors (possession of a weapon, causing injury, entry
at night), the existence of the enterprise and the relation of the
criminal conduct to it are relatively easily ascertainable,
noncontroversial facts.
Where the enterprise is an illegitimate association-in-fact, however,
the existence of the enterprise is not merely an easily established
formal element of proof. Rather, the existence of the enterprise is both
potentially controversial and genuinely significant in legally
differentiating
[*943] RICO
offenses from mere aggregations of predicate crimes. Indeed, it can be
argued that the enterprise element constitutes the essence of the crime.
Operation of a criminal organization -- unlike operation of a business
corporation -- is not morally neutral. Nor is it merely an incidental
fact about the context in which a criminal act was committed. Rather, it
constitutes a distinct species of social harm.
The arguments made by appellants in Turkette
and Elliott
illustrate the importance of the enterprise element. In each case, the
defendants' legal and factual claims were that the government had, at
best, shown that various individuals had committed various distinct
crimes. In effect, they were asserting the factual accuracy and legal
necessity of applying a transactional view of crime to their various
antisocial acts. The courts rejected this argument, however, holding
that the whole offense was indeed greater than, or at least distinct
from, the sum of its parts -- that, at least on the facts of those
cases, it was legitimate to hold the defendants guilty not only of a
series of separate criminal transactions, but of entering into a
relationship, exemplified by a course of conduct over a period of years,
that itself was criminal. It is the operation of the criminal enterprise
through criminal acts, not merely the commission of the acts themselves,
that constitutes the crime of RICO.
But whether or not a group of individuals, who, in various combinations,
committed a series of predicate offenses, constituted an enterprise, and
whether each of the defendants was part of that enterprise, are not
always questions of historical fact. Where a criminal group has a
sufficiently tangible organization, it may be possible to confirm the
existence of the enterprise, and to identify someone as a "member."
But one need not be a "member" of an organization to participate in the
conduct of its affairs,
and, of course, not all illicit enterprises are so conveniently
structured. As is often true with the "agreement" that is the actus reus
of conspiracy, the jury is not necessarily being asked to decide whether
a particular event occurred. Rather, it is being asked to impose a
conceptual construct on the events that it finds took place.
[*944] What
the jury is being asked to decide is whether the defendant's acts should
be treated as evidence of a commitment to a criminal association.
Such a commitment is not, in any conventional sense, an "act." The
jury's task is to assess in a global way the nature of the defendant's
involvement in a network of criminal activities and associations, to
determine whether the total picture of the defendant's criminal career
permits the judgment that he has become part of an underworld
"enterprise." If character can be defined as the residue of a series of
moral decisions, the jury in a very real sense is being asked to make a
judgment on the defendant's character.
In making such a judgment, the jury is entitled to rely not only on
evidence of the defendant's own crimes, but also on evidence of the
crimes of those with whom he is alleged to have thrown in his lot. Such
evidence is excluded from the transaction-model trial, precisely because
it may distract the jury from its responsibility of deciding what the
evidence shows about a particular act. In an illicit-enterprise RICO
trial, it is admitted, precisely because the jury is asked to make a
judgment not only about what discrete acts the defendant committed at
particular moments in time, and what his intention was with respect to
each act at those moments, but also about how those acts fit into his
entire moral life: Were they parts of a pattern? Were they committed as
part of his association with a subculture of crime?
RICO illicit association cases thus pose both a substantive and a
procedural challenge to the transaction-based model of criminal law.
Substantively, the standard legal texts tell us that a distinct act or
omission is the core event constituting a crime,
and academic analyses of
[*945] penal
codes, including ones that in some ways radically attack the
Anglo-American consensus,
are principally concerned with articulating the precise circumstances in
which specified acts should be subject to condemnation as crimes. The
distinctive nature of criminal punishment, we are told, is that it
represents a societal response to and judgment upon particular moral
actions, rather than to a person's character, status, or intentions. The
RICO illicit association cases, in contrast, demand a more global
judgment about a defendant's character and loyalties. To be found
guilty, it is not enough that the defendant has committed specific
criminal acts; those acts must be part of an ongoing commitment to the
values of a criminal organization.
Our procedural and evidentiary rules support the substantive values of
the transaction-based model of crime by rigorously focusing the trial
process on information that bears directly on demonstrating what
happened, in the physical world and in the defendant's consciousness,
during the particular transaction under examination. RICO trials,
however, permit a much wider exploration of the context of the
particular predicate acts, both in the defendant's history, and within
the institutions and communities of which he is a part.
F. RICO and Conspiracy
The challenge RICO presents to conventional criminal law thinking is not
without precursors. Indeed, it can be argued that the practical and
theoretical problems presented by RICO prosecutions have long been
festering under the law of conspiracy.
There is considerable truth to this observation, although for reasons
developed below, RICO constitutes a more extreme departure from the
traditional model.
In theory, conspiracy, unlike section 1962(c), functions as an inchoate
crime, criminalizing an agreement to perform prohibited acts without
regard to the consummation of the criminal plan. If two or more people
sit at a table and expressly agree to rob a bank the next day, they are
guilty of conspiring to rob the bank.
Structurally, the crime fits the transaction model: although the "act"
of agreeing is a somewhat bloodless one, at least in this simple
hypothetical it is clear that the defendants have done something beyond
engaging in antisocial
[*946]
thoughts or having deformed characters. They have taken a particular
step toward accomplishment of social harm that can, at least in theory,
be demonstrated to have occurred at a specific time and place.
In practice, however, three principal complicating factors undermine
this theory, and bring conspiracy closer in its effects to RICO. First,
even where such a simple express agreement to join in a criminal
activity has been made, direct evidence of such an agreement will not
often be available.
Absent an informer or electronic surveillance, the authorities will
never know when and where the agreement was made, or what were its
precise terms. Accordingly, the making of the agreement will ordinarily
have to be inferred from the actions of the parties to it. After the
bank robbery has occurred, one may determine from the apparently planned
coordination of the robbers' actions that an agreement had been made.
Moreover, the agreement need not be express at all -- the agreement to
commit the crime, though actual, may be made without words.
This further complicates the difficulty of inferring its terms.
Second, the scope of possible conspiratorial agreements is both wide and
not clearly defined. It is well established that a single conspiracy can
include among its objects the commission of several crimes -- either
multiple violations of the same statute or violation of several
statutes.
Thus, it is perfectly legitimate to charge defendants with conspiring
not merely to rob one bank, but to rob several, or to rob a bank and buy
drugs with the proceeds, or to commit mail fraud, evade taxes, and
obstruct justice. Whether the evidence shows one conspiracy with
multiple objects or several distinct conspiracies is essentially a
question of fact: "the precise nature and extent of the conspiracy must
be determined by reference to the agreement which embraces and defines
its objects."
[*947] This
would present little problem for traditional theory if we had a tape
recording of the meeting at which a group of criminals agreed to their
unlawful plan. But when the breadth of potential conspiratorial
agreement is combined with the likely reliance on circumstantial
evidence to prove the agreement, and the possibility that the agreement
was only implicit in any event, the concept of agreement begins to lose
its moorings. In the context of a typical narcotics conspiracy
prosecution, it is plain that all of the participants at various levels
of a distribution network have not "agreed," even implicitly, on any
precise series of actions; at best, various individuals at different
levels have agreed to engage in certain specific acts of possession or
distribution, with the understanding that the acts and agreements of
others at other levels are necessary for the success of their venture.
The nature of the required agreement has subtly changed from the
paradigm with which we began: the typical conspiracy to distribute
narcotics does not involve an express agreement to engage in specific
acts, but a series of mutually unconnected decisions to engage in a
business known to involve a high degree of mutual interdependence.
The requirement of agreement is further diluted by the frequently
repeated doctrine that a conspirator does not need to agree to, or even
to know about, all of the objects of the conspiracy in order to be
liable for joining it.
This doctrine is virtually an inevitable consequence of allowing the
formulation of indictments charging conspiracies with multiple objects
that extend over a period of time. It is extremely likely that the
parties to such an agreement will change over time, and that adherents
may be recruited to execute portions of the plan without being made
aware of all of its contours.
It serves the convenience of prosecutors and courts to say that these
new recruits are "members" of
[*948] the
conspiracy. But when each conspirator knows only some of the objects of
the "agreement," it becomes difficult to see what reality remains to the
notion of agreement. Moreover, because the overall agreement itself is
usually merely an inference from the concrete offenses committed by the
putative conspirators, what can be found in retrospect to be a single
"conspiracy" embracing multiple objects may well consist merely of a
series of crimes united only by rather casual links among the
perpetrators.
Third, as with RICO, the procedural and evidentiary consequences
directly or indirectly associated with a conspiracy charge make
conspiracy charges attractive to prosecutors, and create possibilities
of abuse.
Charging that various substantive offenses are objects of a unitary
conspiracy usually permits joinder of those offenses in a single trial,
permits selection of a favorable venue, and facilitates introduction of
hearsay evidence.
These procedural advantages more readily account for the widespread use
of conspiracy charges in federal criminal cases than any difference
between the substantive elements of conspiracy and consummated offenses.
When these factors are considered, the widespread assumption that RICO
vastly expands the ambit of possible conspiracy prosecutions
becomes somewhat puzzling. Let us assume that our hypothetical
conspirators sitting at the table have more resources, and more
ambition, than a handful of potential bank robbers. The proposal on the
table, in consequence, is that the conspirators would pool their
existing networks for narcotics distribution, gambling and prostitution;
divide up the city into territories in which each would have an
exclusive franchise; intimidate potential informers or complainants by
murder and arson; and diversify their activities by infiltrating members
of the ring into a securities firm in an effort to steal negotiable
bonds and launder the proceeds of their illicit activities. Had the FBI
been recording this meeting on a court-authorized "bug," is there any
reason why those present at the meeting could not be charged with
conspiring to commit a series of state or federal crimes?
[*949] There
is no readily apparent reason why not. Certainly, the diversity of the
criminal objects of the conspiracy should not be an obstacle. As noted
above, so long as the conspirators have joined in a single common
agreement, that agreement can have as its object the violation of
several statutes. There is no conceptual reason why an agreement to
commit fraud, evade taxes and obstruct justice should be indictable as
conspiracy, while an agreement to spread the net more widely and commit
a broader range of crimes should not.
United States v. Elliott,
the decision that popularized the notion of RICO as a super-conspiracy
statute, contains the most extensive judicial effort to distinguish
between conspiracy law and sections 1962(c) and (d).
The Elliott court announced that "RICO has displaced many of the legal
precepts traditionally applied to concerted criminal activity. Its
effect in this case is to free the government from the strictures of the
multiple conspiracy doctrine and to allow the joint trial of many
persons accused of diversified crimes."
But the court's discussion of just how this is so is perplexing.
The crux of the court's "doubt that a single conspiracy could be
demonstrated" rests essentially on two observations.
First, the court points out that various subgroups of the alleged
conspirators had no contact with each other.
But as we have seen, and as the Elliott court elsewhere concedes, "'a
party to a conspiracy need not know the identity, or even the number, of
his confederates'" -- let alone have direct contact with them.
This could hardly be a basis for rejecting a jury finding of a single
conspiracy.
Second, and more significantly, the court states that "[t]he activities
allegedly embraced by the illegal agreement in this case are simply too
diverse to be tied together on the theory that participation in one
activity necessarily implied awareness of others."
Essentially the court here is holding that the prosecution has failed to
meet its burden
[*950] of
proving that a single agreement existed. If the government is relying on
inference to show the overall agreement, the inference must be
sufficient to persuade a reasonable jury beyond a reasonable doubt that
the common plan existed, and it is not unreasonable to argue that mere
proof of a collection of entirely unrelated crimes is insufficient for
this purpose.
But then, how does RICO come "to the [r]escue"?
The problem, according to the court, is that in organized crime cases,
the need to infer a common agreement "inhibited mass prosecutions
because a single agreement or 'common objective' cannot be inferred from
the commission of highly diverse crimes by apparently unrelated
individuals."
The solution is that "RICO helps to eliminate this problem by creating a
substantive offense which ties together these diverse parties and
crimes."
Since the RICO objective is to "participate in the affairs of an
enterprise through a pattern of racketeering activity," and not to
commit the particular substantive crimes that serve as the predicate
acts, the lack of apparent relation between the crimes is irrelevant "so
long as we may reasonably infer that each crime was intended to further
the enterprise's affairs."
This is simply double talk. According to the court's analysis, what was
missing for conviction of a "traditional" conspiracy was not a legally
sufficient objective, but evidence sufficient to support a finding that
that objective existed in this particular case. Explaining the
inadequacy of the evidence under conventional conspiracy law, the court
had stated:
Even viewing the "common objective" of the conspiracy as the raising of
revenue through criminal activity, we could not say, for example, that
Foster, when he helped to conceal stolen meat, had to know that J. C.
was selling drugs to persons unknown to Foster, or that Delph and
Taylor, when they furnished counterfeit titles to a car theft ring, had
to know that the man supplying the titles was also stealing goods out of
interstate commerce.
The court thus seems to accept that an agreement to raise revenue
through miscellaneous criminal activity is indictable as a conspiracy,
holding only that the evidence here did not show such an
[*951]
agreement.
But if there was insufficient proof to infer a single agreement to
"rais[e] revenue through criminal activity," how can the proof in turn
be sufficient -- as the court says it must be -- to permit finding
"agreement on an overall objective" to "further the enterprise's
affairs"?
After all, the enterprise in this case consists of nothing other than an
association to raise revenue by committing crimes.
Conversely, if it is permissible to infer from a defendant's
participation in particular concrete crimes that he simultaneously
agreed to participate in the affairs of an overarching enterprise, why
not just rename the "enterprise" a "conspiratorial agreement with
multiple criminal objects" and infer his agreement to that?
Within the court's confusion, however, lurks a truth. Although the
borders of permissible conspiracy prosecutions remain unclear, and in
theory encompass an agreement to form a gang and commit whatever crimes
the leadership orders, the broad agreement by courts and commentators
that RICO still somehow expands the range of conduct that can be
prosecuted as a conspiracy strongly suggests that courts and prosecutors
recognized limits, if not on the kinds of agreement that could in
principle be indicted as conspiracies, at least on the kinds of criminal
conduct that would be permitted in practice to support an inference of a
unifying scheme. The Elliott court was no doubt both sincere and
accurate in stating that it would not have permitted the defendants
there to have been convicted of a simple conspiracy. And whatever courts
might have accepted if tested, few precedents can be found in
"traditional" conspiracy cases for agreements of the breadth and
complexity of RICO illicit association cases involving diversified
criminal syndicates.
RICO thus may be better seen as the occasion
[*952] for a
change in judicial and prosecutorial policy than as a provider of new
theoretical concepts.
Three points need to be made about this analysis, however. First, the
change in policy itself is significant. Whether RICO conspiracies
involve the recognition of a new conspiratorial objective or greater
latitude for prosecutors to charge and juries to find agreements that --
had they been express and proven by direct evidence -- would always have
been recognized as illegal conspiracies, the prosecutions that result
are distinctly broader than had previously been undertaken. Earlier
conspiracies, however large and long-lasting they were alleged to be,
typically were bounded by a single type of illegal activity (such as
narcotics or gambling) or by an easily described intermediate-range
objective involving a continuous flow of activity (such as conspiracies
to commit securities fraud and evade taxes, or to hijack trucks, kidnap
drivers, and bribe policemen). RICO prosecutions, as we have seen, have
not been so limited.
Second, by incorporating state crimes as predicate activity, RICO does
in fact expand the range of criminal objects that can be prosecuted in a
single federal prosecution. Yoking the plenary subject matter
jurisdiction of the states to the plenary geographic jurisdiction of the
federal government permits unification of offenses that could not
previously have been brought together in a conspiracy prosecution in any
jurisdiction. This is particularly significant in organized crime cases,
where it permits unified prosecution of multiple crimes of violence that
would previously have been regarded as unrelated.
Third, by creating a substantive offense worded in terms of a course of
conduct, RICO constitutes a theoretical break with the transactional
model of crime. Section 1962(c) explicitly recognizes a crime that can
be described as a course of conduct involving relationships with
criminal groups, rather than as a single moral act. Although conspiracy
prosecutions in practice permit presentation of a course of conduct
[*953] in a
single trial, in theory at least the crime remains defined in terms of a
single act of agreement.
This conceptual change may have practical consequences. However
attenuated the concept of agreement becomes in the actual administration
of conspiracy law, the need to anchor the crime in a hypothetical
instant of agreement may have helped courts to maintain some boundary
around the kind of conduct that would be permitted to be tried as a
unitary conspiracy. The fiction that all of the crimes charged were part
of a specific agreement could only be maintained if it plausibly could
be imagined that the core players at least could have sat together and
agreed -- even if it was clear that they did not in the particular
instance do so. "Participation in the affairs of an enterprise" more
accurately captures the reality of what fringe participants in a
conspiracy do than "agreeing" to the overall objectives of its core
members, and therefore permits easier inferences of guilt.
While the Elliott court was concerned with the relation between ordinary
conspiracies and RICO conspiracies under section 1962(d), the effect of
sections 1962(c) and 1962(d) in these respects is essentially identical.
Indeed, the difficulty of distinguishing between section 1962(c) and
section 1962(d) in illicit association cases reflects the radical
difference between those cases and other RICO violations.
A single individual can violate section 1962(a) or (b) or (c) in the
context of a legitimate enterprise, without the aid of accomplices. A
conspiracy to violate these sections therefore reflects a comprehensible
concept and, subject to the debate about whether conspiracy ever
identifies a harm distinct from the substantive offense that is its
object, constitutes a distinct crime. In the illicit enterprise cases,
however, the overlap between the completed and conspiracy offense is
total. At least if a single criminal cannot be both an enterprise and a
defendant,
the criminal enterprise whose affairs are conducted through a pattern of
racketeering can only exist to the extent its members have agreed to
form it. Each individual member, moreover, can only be guilty of
conducting his affairs through a pattern of racketeering to the extent
that he knows that his particular crimes are part of a larger criminal
enterprise with which he has voluntarily associated himself -- precisely
the mental state required to join the RICO conspiracy.
[*954] This
overlap does not mean that courts were wrong to reject the arguments
that section 1962(d) is an incoherent effort to penalize "conspiring to
conspire,"
or that multiple punishment for violating sections 1962(c) and (d)
violates the double jeopardy clause.
An inchoate conspiracy to violate section 1962(c) is a comprehensible
crime, if one rarely to be encountered. Had they been arrested
immediately after their conclave, the conspirators deciding to found an
organized crime syndicate hypothesized above would have violated section
1962(d), but not section 1962(c).
And so long as the Blockberger rule is applied at the level of abstract
elements of the offense rather than in the context of the facts of a
particular case,
it remains true that section 1962(c) is a separate offense from section
1962(d) because an agreement is not a formal element of the substantive
offense. But it does mean that in the context of illicit enterprise
prosecutions, the prohibition of conspiracies serves no purpose and
should not be included in a modified statute.
Traditional conspiracy law, in short, is an important precursor of RICO,
and indeed in theory might well encompass many of the results that have
been reached with that statute. The limits of traditional conspiracy law
are to be found not in the types of goals that a conspiratorial
agreement could in theory have, but in judicial policing of the
inferences that would be drawn from participation in various kinds of
crimes. Within those limits, conspiracy law has fostered an erosion of
the transaction model of criminal law and criminal procedure. Like RICO,
conspiracy permits prosecutors to present complex events in a single
criminal proceeding, and to avoid focusing on particular, identifiable
acts or transactions.
But RICO has been the vehicle by which
[*955]
courts have considerably expanded those limits, and thus permitted still
greater departures from the transaction model.
G. The RICO Model Evaluated
1. The Challenge to Substantive Law. -- Much of the criticism of RICO
implicitly assume the immutable validity of the conventional model of
criminal law and procedure; the critics apparently believe that to note
the ways in which RICO departs from the conventional is sufficient to
condemn it.
But the transaction-based model of criminal law is not beyond challenge.
To evaluate the legitimacy of the RICO illicit enterprise cases, we must
question why we have that model, whether we abide by it in practice, and
what it costs us to preserve it.
One value served by the transaction model of crime is its preclusion of
punishment in the absence of behavior manifesting a concrete threat of
harm to legitimate social interests. The notion that a defendant is
being punished merely for his character or status, or for the danger
that he potentially represents, is often said to be offensive to our
concepts of fairness.
A person may be a seething mass of antisocial ideas, repulsive character
traits, dangerous tendencies, and even concrete evil plans, but he is
neither a criminal nor subject to punishment until he commits specific
proscribed acts. Even if society might gain by engaging in preemptive
strikes against such villains, it is essential to the liberty and
security of ordinary citizens that government not be permitted to
deprive them of freedom unless they violate clearly defined norms.
"Character" or "predicted danger" are flexible and unpredictable
standards of decision, too easily used as tools of oppression.
These substantive concerns, however, are not directly violated by RICO.
Although the distinguishing features of RICO are its somewhat amorphous
associational and course of conduct elements, a fundamental prerequisite
of a substantive RICO violation is the commission of particular criminal
acts. These predicate racketeering acts are themselves conventional,
transactionally defined crimes, requiring the commission of particular
conduct for their violation. RICO does not permit
[*956] a
person to be convicted on the basis of his thoughts, tendencies,
intentions, or character alone; defined and concrete antisocial acts are
a part of the definition of the crime.
A comparison with the unconstitutional statute in Robinson v. California
is instructive. California law made it a crime to be a narcotics addict,
without requiring any particular narcotics-related action. The Supreme
Court's opinion could be read as suggesting two possible grounds for
finding this statute offensive: the absence of a concrete proscribed act
and the defendant's arguable inability to control his actions. We now
know that the first of these grounds was controlling; nothing in the
Robinson principle precludes punishment of the addict's possession or
use of narcotics.
The critical defect of the statute was that it did not require proof
that the defendant had actually done anything within the state's
boundaries.
RICO does not contravene the Robinson principle. It is not a crime under
section 1962(c) to have the character or status of a racketeer, but to
be a racketeer who commits acts of racketeering. Nor would RICO raise
the problems associated with the second branch of the Robinson case. To
the extent that the elements of association with an illicit enterprise
and pattern of criminal conduct define a "status" of "racketeer," that
"status" is neither passive (unlike addiction, it cannot be acquired in
utero or by medical treatment) nor uncontrollable (unlike addiction,
continued involvement in the criminal enterprise is not the product of
physiological compulsion).
Nevertheless, RICO does make aspects of a defendant's background and
associations an aggravating factor in a defined crime. But our law has
never held that such factors are irrelevant to the quantum of punishment
that can be administered to one who has violated concrete norms. The
practical operation of law enforcement, in fact, frequently aims to do
precisely what a purely retributive model of criminal law tells us is
illegitimate: to punish based on character and propensity rather than on
the condemnation of specific actions. Considerations of "character" and
"danger to the community," often said to be banished from the definition
of criminal conduct, pervade the critical discretionary decisions of all
three of the agencies responsible for applying those definitions:
prosecutors, juries, and sentencing judges.
[*957] A
defendant's prior criminal acts and associations with organized criminal
groups, as well as all sorts of more amorphous features of his
character, are permissible factors for a judge to take into account in
imposing sentence, and are regularly used for that purpose.
The current discontent with broad judicial sentencing discretion does
not, for the most part, dispute the wisdom of basing sentencing
decisions on the character of the offender as well as of the offense;
rather, the goal is to reduce the perceived unfair disparity of
sentencing by systematizing the value to be assigned to various factors.
The Supreme Court's recent death penalty jurisprudence, indeed, requires
capital sentencing to take account of a broad range of mitigating
factors.
The acceptability of such considerations in the exercise of
prosecutorial discretion and jury nullification is less well documented,
since those discretionary features of the system are even less subject
to appellate oversight than sentencing. But any experienced
plea-bargainer knows that a defendant's prior record is a critical
determinant of the treatment the defendant will be offered.
Nor is this practice highly controversial. Few would condemn a
prosecutor for offering leniency to a young bank teller with no criminal
record and a stable background who embezzled a sum of money, while
insisting on prosecuting another teller who had committed a similar act,
but who had prior convictions
[*958] and
who was believed to be a member of a youth gang. Such discretion is
clearly not based on the relevance of the prior conduct to any element
of the potential charge,
but on a substantive judgment about the seriousness to be attributed to
the defendant's misconduct in light of a factual context beyond the
temporally and spatially limited transaction with which the penal code
is concerned.
Jurors' exercise of their power to enter a verdict of acquittal
notwithstanding the facts and the law is an even murkier topic,
but it seems clear that a conviction is less likely if the jury is not
persuaded that the defendant is a bad actor who deserves condemnation.
Certainly this is the practical belief of most prosecutors and defense
attorneys. Trial lawyers devote considerable effort to influencing the
jury's perception of a defendant's character. Apparently these efforts
pay off. Studies of jury behavior indicate that jurors' reactions to the
characteristics of the defendant play a major role in explaining verdict
disagreement between judges and juries.
The importance of these considerations to the substantive concerns of
the criminal law is obvious. The protection of the public from criminal
conduct is a central purpose of organized society. Given the substantial
evidence that a large proportion of the criminal acts are committed by a
relatively small number of repeat offenders,
it makes sense to single out such offenders for special attention from
prosecutors, investigators and sentencers. Organized criminal groups in
particular make possible the infliction of greater harm than can be
committed by individuals.
Critics of conspiracy law have justly pointed out that this "group
danger" argument does not provide a sufficient rationale for the
separate punishment of every agreement covered
[*959] by
the conspiracy concept.
But many of the RICO illicit association cases exemplify precisely the
sort of case in which even the critics implicitly acknowledge that the
"group danger" argument makes sense.
Many of the crimes charged in those cases could not have been committed
without the existence of an organized enterprise.
Moreover, criminal punishment is not only aimed at controlling or
reducing the tangible harms that flow from particular forms of
antisocial conduct. An important function of criminal justice is the
reinforcement of the solidarity of the law-abiding community by the
formal condemnation of offenders.
This function is most effectively served where it is manifest that the
criminal being punished is not merely a person who has committed a
single mistake, but someone who can plausibly be cast as a person of
deeply flawed character who has chosen to live outside the value system
of the dominant group.
This last perception, indeed, may be particularly relevant to the wrong
committed by organized criminals. Professor Fletcher has argued strongly
that recidivist criminals should not be punished more severely than
first-offenders out of resentment towards their rebelliousness. Unlike
parents of defiant teenagers, he contends, lawmakers in a liberal
society "are not entitled to react to a 'persistent' criminal as though
their personal authority were challenged."
But a criminal who chooses to give his allegiance to the code of the
Mafia rather than to the code of civil society
is not merely challenging the "personal authority" of lawmakers.
He is inflicting a deep injury on the social fabric, both by declaring
his own intent to prey upon those
[*960] who
agree to live within the law and by challenging the law-abiding
citizen's belief that adherence to the norms of society is required,
protected, and rewarded.
For the criminal justice system to reinforce adhesion to social norms,
it must not only distinguish those to be condemned from ordinary
citizens who merely yield to temptation, it must also actually and
forcefully condemn those it finds worthy of condemnation. Little is more
debilitating to the willingness of ordinary citizens to live within the
law than a perception that persistent violators of the law are
unpunished. In the area of organized crime, the disparity between social
reality and legal reality can become particularly acute, as the legal
system strives to isolate a defendant's particular acts from their
personal and social context. Respect for law is hardly fostered when the
legal system myopically focuses on isolated, perhaps minor, offenses of
individuals whose entire lives make plain their complete commitment to a
career of organized lawbreaking.
If facts extrinsic to a particular criminal transaction are significant
to the proper operation of the criminal justice system, it is not clear
why they should be confined to the shadows of its "discretionary"
components. Delineation of society's official code of morality is one
purpose of a penal code, and the character of the offender is clearly
irrelevant to this purpose. But a penal code also shares the purposes of
the law enforcement system of which it is a part.
So long as the values protected by the requirement that concrete conduct
be a part of the definition of crime are preserved, there is no special
reason why factors relating to the defendant's character and
associations should not be included in the definition of crimes.
Rather, removing these factors from the shadows of discretionary
decisionmaking can serve valuable ends. If there is broad social
agreement that considering the context of violations is legitimate,
making that consideration explicit can only increase public
understanding and approval of the system. Moreover, express inclusion of
aggravating circumstances based on professional criminality furthers the
goal of consistent and accurate decisionmaking, by subjecting
allegations of organized crime involvement to the same procedural
safeguards as other factors bearing on guilt. There is no procedural
regularity at all to a prosecutor's determination that a particular
defendant is associated with organized crime; a jury's judgment of
character in a trial from which evidence going beyond the transaction at
issue is in principle excluded can only be fragmentary and unreliable,
and even a judge's fact-finding at sentencing is required to meet only
minimal procedural standards. If membership in organized crime is
relevant to our judgment of
[*961] a
defendant, engaging that issue in a public trial process, subject to
ordinary procedural safeguards, is not in principle inappropriate.
2. The Challenge to Criminal Procedure. -- From the perspective of the
traditional model of criminal prosecution -- especially the perspective
of defense attorneys within that tradition -- it is difficult to see
RICO trials of the illicit association type as anything but
abominations. As described above,
the definition of the elements of a RICO violation of this type leads
inexorably, by application of the ordinary rules of evidence and
procedure, to the undermining of the principles underlying those rules,
and the reversal of their ordinary consequences. Thus, for example,
rules requiring that evidence be relevant to some element of the
particular offense charged i