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What is Racketeering?

Racketeering is one of those charges that we never really hear of, except for the business of the mafia. The reason that we hardly hear of it is because it has such a vague definition. In short, it is any business that is structured around a criminal act in order to make a profit. The range with which racketeering can be applied is astounding: theft, fraud, bribery, sexual exploitation, trading untaxed alcohol, prostitution, and drug trafficking. These illegal businesses are often covered by legitimate businesses and a clever bribing network that allows the activity to take place. For this reason, racketing is usually referred to as a white-collar crime.

In theory, any business can become illegal if the laws change. This fact raises a few questions: With the advent of new technology, which paves the way for new platforms on which to build new business, how does an organization approach the problem of becoming an illegal operation if it once was not?

The most immediate case in point is that of Napster, the online wonder that transformed the way we listen to and appreciate music. The company believed that it was truly serving its customers well, until proprietors in the music industry opposed the seeming ubiquitous sharing of songs. The ensuing litigations changed the laws forcing Napster to radically restructure its organization. What it thought was a legitimate business turned out to be racketeering over time, because a few people disagreed.

While this is a uniquely famous case, the fact the matter remains that just because someone believes you are racketeering does not mean that it’s the truth.

If you would like more information about this and other white-collar crimes, contact an Austin Criminal Lawyer at 866-812-4596.