Counseling Chapter 18 Eighteen Organized Crime And Gangs Learning Objectives After Reading This

Unlock access to all the studying documents.

View Full Document

CHAPTER EIGHTEEN

ORGANIZED CRIME AND GANGS

Learning Objectives

After reading this chapter, students will be able to:

1. List the requirements for a RICO conviction.

3. List three ways money can be laundered.

5. State the knowledge needed for a conviction under the federal money laundering statute,

specifically the section on transportation of illegal proceeds.

7. Explain why federal and state prosecutions of organized crime figures before 1970 were

generally unsuccessful.

8. Describe the advantages statutes passed after 1970 gave to the prosecution.

Lesson Plan

Correlated to PowerPoints

I. Organized Crime and Criminal Gangs

A. Gangs of organized criminals have operated in the United States for over 200

years

2. In American history, for the most part, the character of gangs has reflected

their environment.

a. Wild west gangs

b. Five Points section of New York

c. Dillinger

d. The mafia

Media Tool

Inside the Bloods and Crips L.A. Gangs – Documentary

http://www.youtube.com/watch?v=2t8_N_1fLt4

o YouTube video

o Discussion: What did you learn about gangs in the video that you

were not previously aware of? How do the gangs support their

activities? What happens after the police crack down on the

gangs? Is there any other way to address this problem?

Class Discussion/Activity

What are the reasons for the growth of violent gangs in the United States

over the past 20 years? What attracts members to join?

5-6

B. 2002 study of gangs

1. Gangs

a. Loose affiliation

b. Delinquent gang most typical

c. Member and location varied greatly

d. Successful gangs that began as local groups expanded to nearby

cities and states.

C. Chicago – 2008-2011

1. Concentrated attack on gangs and gang-related crime

a. Hired 400 officers to form a special unit to work with communities

to reduce violence

D. Los Angeles – 2007-2009

1. 16, 398 gang-related crimes committed in Los Angeles

2. Recruiting younger members from schools and illegal immigration

II. Federal and State Laws Passed After 1970 to Fight Organized Crime – Assignment

1, 2, 4

Learning Objective 1: List the requirements for a RICO conviction.

Learning Objective 2: Identify the jurisdictional requirements for a federal RICO charge.

Learning Objective 7: Explain why federal and state prosecutions of organized crime figures

before 1970 were generally unsuccessful.

Learning Objective 8: Describe the advantages statutes passed after 1970 gave to the

prosecution.

7-15

What If Scenario

What if Steve is assaulted by three persons and is seriously physically injured? The three

persons are captured and charged for the crime. What might the charges be?

Class Discussion/Activity

Students should research their state organized crime or gang statutes.

Every state has a section of their criminal laws that addresses this type of

activity. In Texas, students will look at the Organized Crime section of the

penal code. In Georgia, it’s called Street Gang and Terrorism Prevention.

In California, they’ll look at the Street Terrorism Enforcement and

Prevention Act. Other states may identify this section of the penal code as

gang enforcement.

A. Prior to 1970, federal and state criminal codes had no effective laws to penetrate

the code of silence protected organized crime leaders from prosecution

Media Tool

New State RICO Law Leads to Gang Arrests

http://chicago.cbslocal.com/2013/06/13/new-state-rico-law-leads-to-sreet-

gang-arrests/

o Local CBS news article

o Discussion: In what ways does the new Illinois RICO law help

law enforcement address the gang problem in Chicago? How did

law enforcement catch the gang members in a crime that qualified

for a RICO charge?

Class Discussion/Activity

What is required for a RICO conviction? What is required for a crime to

qualify under the federal RICO act?

B. 1970 passage of the Racketeer Influenced and Corrupt Organizations Act (RICO)

and the Continuing Criminal Enterprise Statute (CCE)

1. Drafted to enable prosecutors to focus on the conspiratorial nature of

organized crime

2. The federal and state RICO laws generally require the government to

3. For a conviction under federal or state RICO laws the prosecution must

prove:

a. The enterprise existed and was engaged in racketeering activity

9-13

4. RICO has been successfully used to stop illegal activities by anti-abortion

5. RICO and the related Continuing Criminal Enterprise (CCE) laws, both

6. RICO laws target membership in a “criminal enterprise.”

a. Boyle v. United States (2009)

b. United States v. Harris (2012)

What If Scenario

What if several members of a street gang murdered members of other gangs in an effort to

control their turf? Can the gang members be charged with violation of the RICO laws? The

indictment identified the gang as a criminal enterprise but included only the murders and other

acts of violence as the predicate acts.

C. Limits on federal jurisdiction and RICO prosecutions

2. If the underlying predicate acts do not affect interstate commerce, the

3. Waucaush v. United States is an example of a case where a federal court

of appeals held that the predicate acts did not affect interstate commerce.

III. The Federal Witness Protection Program and the Crime of Witness Tampering

Media Tool

U.S. Marshalls Service Witness Security Program

http://www.usmarshals.gov/witsec/

o U.S. Marshalls Service Website

o Discussion: How does the website describe the witness security

program? What information is available about the program? Is

there any information you would like that is not available?

Class Discussion/Activity

The U.S. Supreme Court has held that it is a person’s civic duty to testify

and give information in both civil and criminal cases, even when witnesses

fear for their lives because of such testimony. Is the federal witness

16-17

protection program sufficient to alleviate witnesses’ fears? What else

should be done? Why?

A. Obtaining witnesses to testify against gang and organized crime figures has

always been a problem

1. The witnesses were themselves gang or organized crime members.

3. As part of the Organized Crime Control Act of 1970, the witness

protection program was established.

4. The Federal Victim and Witness Protection Act of 1982 created the crime

5. One form of witness tampering under federal statute is acts done to

prevent a witness from testifying in an official proceeding.

6. Witness tampering also includes killing a person with the intent to prevent

IV. The Crime of Money Laundering – Assignment 3

Learning Objective 3: List three ways money can be laundered.

Learning Objective 5: State the knowledge needed for a conviction under the federal money

laundering statute, specifically the section on transportation of illegal proceeds.

Learning Objective 6: Define proceeds under the money laundering statutes.

Media Tool

Money Laundering Examples

http://www.irs.gov/uac/Examples-of-Money-Laundering-Investigations-

Fiscal-Year-2013

o IRS website providing examples of money laundering cases

o Discussion: Are you surprised that the IRS investigates money

laundering cases? Does it make sense that the IRS would

investigate cases of money laundering? What benefits are there

for the IRS to investigate cases of money laundering?

Class Discussion/Activity

Organized crime often has an international dimension. The website for the

United Nations Office on Drugs and Crime describes efforts to fight

organized crime that traverses across borders. Have students review the

website: http://www.unodc.org/ and discuss the issues with human

trafficking and money laundering.

A. Money laundering is defined by the U.S. Department of the Treasury as “the

18-21

process by which criminals or criminal organizations seek to disguise the illicit

nature of their proceeds by introducing them into the stream of legitimate

commerce and finance”

B. The Bank Secrecy Act of 1970 was the first attempt by Congress to prevent

criminals from concealing or laundering money through banks or other financial

institutions

C. The Money Laundering Control Act of 1986 created the crimes of money

laundering and knowingly helping money laundering of the proceeds of criminal

activities

D. The USA Patriot Act of 2001 toughened laws prohibiting the concealment of

money and laundering money for criminal purposes

E. Money laundering has been called the world’s third largest business

1. Money can be laundered through legitimate businesses, the Black Market

F. Transactions covered by the Federal Money Laundering Statutes

1. Section 1956: “intending to transport or transfer monetary funds knowing

3. In 2009 Congress amended the money laundering statute to make it clear

that proceeds means either profits of illegal activities, or “gross receipts of

such activity”

G. Currency transaction reports and the crime of smurfing

1. Currency Transaction Reporting Act

2. Smurfing

3. Currency or other monetary instruments report

V. Other Criminal Laws used to Fight Gangs and Organized Crime

Learning Objective 4: List four federal statutes used to combat interstate crime.

Media Tool

Misha Glenny Investigates Global Crime Networks

http://www.irs.gov/uac/Examples-of-Money-Laundering-Investigations-

Fiscal-Year-2013

o Ted website

o Discussion: What do you think of the explanation for the success

of organized crime following the fall of communism? If what the

speaker says is true, how does law enforcement need to address

organized crime?

22–23

A. The Travel Act

1. Prohibits traveling in interstate or foreign commerce or use of the mail or

any facility in interstate or foreign commerce with intent to

a. Distribute the proceeds of any unlawful activity

b. Commit any crime of violence to further any unlawful activity

c. Promote, manage, establish, carry on, or facilitate the promotion,

management, establishment, or carrying on of any unlawful

activity

What If Scenario

What if you own a restaurant? The city health inspector threatens to charge you with serious

sanitation violations unless you provide free catering for his daughter’s wedding. What crime

has been committed?

B. Extortion

1. The Hobbs Act

2. Protection money

C. Bribery

1. Using money, property, or “favors” to influence a public or private official

2. The Federal Foreign Corrupt Practices Act of 1977

D. Kickbacks

2. Not all are illegal

4. Covered under the Foreign Corrupt Practices Act of 1977

E. Mail fraud

1. People who commit crimes using the U.S. mail or any other interstate

delivery system to defraud a victim can be prosecuted under the federal

mail fraud statute.

Class Discussion/Activity

Students can use the FBI website (fbi.gov) to research fraud schemes.

Have students identify several different fraud schemes on the website and

then decide which act would be the best route to prosecuting the scheme.

Alternatively, assign the students to debate the best means to prosecuting

one or two different fraud schemes found on the website.

VI. Honest Services Fraud

A. A wire fraud scheme is as a scheme to deprive another of the “intangible

right of honest services.”

B. Prosecutions under the federal mail and wire fraud acts based on

deprivations of the right to honest services will be limited to classic

property crimes.

C. Prosecutions for breach only of a fiduciary duty can no longer be brought

under honest services fraud.

What If Scenario

What if your roommate stole your credit card and bought merchandise with it? The merchants

who sold the goods sent their invoices through the mail for payment from the credit card

company. Can your roommate be charged with mail fraud? Why or why not?

Lecture Notes

Whether you’re watching reruns of the “Sopranos” or reading a news article about youth gang

violence in your community, it’s obvious that organized (even loosely organized) criminal

activity presents a special danger to the public, and specific criminal laws are required to deal

with it. These laws go further than the laws dealing with complicity and conspiracy discussed in

Chapter 4. The laws make it easier for the government to prosecute criminal organizations and

Enacted in 1970, the RICO Act was designed to attack organized crime, primarily the Mafia. It

has been used extensively since 1970 to prosecute many individuals and groups unrelated to the

Mafia. Under RICO, there are 35 crimes listed as “predicate acts.” If an individual defendant or

a group has committed the “predicate act” crimes two times with a similar purpose or result

within a 10-year period, the federal government can charge the organization or the defendant

with racketeering. If a person or group is indicted under RICO, the federal government can seek

an injunction and temporarily seize their assets. In the 1980s, lawyers started to use other

sections of the lengthy RICO Act that permit civil lawsuits to be filed by any person whose

property or business has been harmed because of a RICO violation. Other offenses commonly

committed by criminal organizations are also described in the RICO Act, such as money

laundering, mail fraud, and witness intimidation.

While this chapter primarily concerns the laws enacted to address organized and gang crime, it is

important to note that there are existing laws that are used to fight such crime as well. Such

legislation includes The Travel Act, extortion, bribery, kickbacks, mail fraud, and honest

services fraud.

Key Terms

RICO (The Racketeer Influenced and Corrupt Organizations Act) – Passed by Congress to

enable prosecutors to charge all people engaged in unlawful activity who own or invest in an

enterprise that affects interstate commerce. (p. 513)

witness protection program – Established as part of the Organized Crime Control Act of 1970,

this program provides new identities and relocation for witnesses and their families in both state

and federal criminal prosecutions of organized crime. (p. 517)

CTRs (currency transaction reports) – Reports that businesses, banks, and financial

institutions are required to file for cash transactions of more than $10,000. CTRs can help

determine whether tax fraud or money laundering is occurring. (p. 522)

Travel Act – Legislation that can be used to prosecute those involved in criminal activities that

cross state borders or involve foreign commerce. (p. 523)

Assignments

1. Students should research their state organized crime or gang statutes. Every state has a

section of their criminal laws that addresses this type of activity. In Texas, students will

look at the Organized Crime section of the penal code. In Georgia, it’s called Street

Gang and Terrorism Prevention. In California, they’ll look at the Street Terrorism

Enforcement and Prevention Act. Other states may identify this section of the penal code

as gang enforcement. Considering the attempts made by cities and states to regulate gang

2. Have students break into groups and prepare a presentation on the definition of RICO, the

3. Have students, individually or in small groups, find a recent money laundering case and

4. Have students find a case in which the federal witness protection program was used.

Have them write an essay discussing why the program was used and if the witness was

successfully protected. Students can also describe the case outcomes and attempt to

Case Analysis and Writing Exercises

1. As noted in this chapter, most states have “little” RICO statutes. Oregon is such a state:

ORS § 166.720 (3). What exactly is a criminal “enterprise” under the Oregon statute? Does it

2. This chapter notes that cities like Los Angeles, California, which has thousands of street

gang members, have used nuisance laws to obtain injunctions against gang members,

preventing the gang members from engaging in many legal as well as illegal activities. While

this practice has existed for years, only recently has a federal court considered the propriety

of such laws. In Vasquez v. Rackauckas, 734 F.3d 1025 (9th Cir. 2013) 115 members of the

Orange Varrio Cypress street gang appealed a decision granting an injunction against the

gang members from engaging in a broad range of activities-legal and illegal- within a 3.78

square mile area in the City of Orange. What do you see as the problems created by such

broad, sweeping injunctions? How should the problem be resolved?

3. Notwithstanding Congress’ amending of the federal money laundering statute in response

to the U.S. Supreme Court’s decision in United States v. Santos, discussed in this chapter, the

reasoning of the court in Santos lives on. Courts continue to see a “merger” problem in

prosecutions under the money laundering statute for using “proceeds” of criminal activities in

financial transactions. To use the Supreme Court’s example of “merger” in Santos, if a thief

uses stolen money to rent a getaway car, the theft crime and the money laundering crime

merge, which makes dual convictions almost like double jeopardy. What was the “merger”

problem in United States v. Abdulwahab, 715 F.3d 521 (4th Cir. 2013)? How did the court

define “proceeds” under the money laundering statute to resolve the problem?

4. This chapter discusses gambling on sports under federal anti-gambling statutes. States

also have laws making illegal gambling a crime. Is this gambling: An owner of an internet

café rented internet time to customers by selling cards that were “swiped” by a card reader

near a computer terminal. The owner instituted a “sweepstakes” game where customers were

given entries into a cash sweepstakes contest for each ten minutes they purchased on the

internet. Drawings were held periodically, and cash prizes were awarded the winners. The

owner was arrested, charged and convicted of gambling under New Mexico state law. He

appealed his conviction, and the New Mexico Court of Appeals reversed his conviction. Did

the court say the evidence didn’t prove the owner conducted a gambling operation? Or did it

say something else? See State v. Vento, 286 P.3d 627 (N.M. App. 2012). Does it matter that

customers purchased 140,000 hours of internet time, and 110,000 of those hours were

purchased with sweepstakes winnings? Or that only 330 hours of internet time were actually

used by all those purchases? What kind of “game” does that practice resemble?