California Racketeering Laws: Charges, Penalties, and Legal Defenses
California Racketeering Laws
In California, racketeering refers to a pattern of organized criminal activity carried out to benefit a criminal enterprise—typically for financial gain. These cases often involve multiple illegal acts, such as drug trafficking, extortion, embezzlement, human trafficking, money laundering, or even violent crimes like murder. The goal of racketeering laws is to dismantle criminal organizations by targeting not only the individuals involved, but the financial infrastructure that supports them.
At the federal level, prosecutors use the RICO Act (Racketeer Influenced and Corrupt Organizations Act) to charge those involved in organized crime. California has its own version—known as the California Control of Profits of Organized Crime Act, encoded in Penal Code §§ 186–186.8. This state law gives prosecutors broad authority to pursue cases against individuals or groups involved in repeated criminal acts tied to an enterprise.
To convict someone of racketeering in California, the prosecution must prove a pattern of criminal profiteering activity—meaning at least two qualifying felony offenses committed with a shared motive, method, or goal. These crimes must not be isolated incidents, but rather part of an ongoing criminal scheme.
Because racketeering charges often include asset forfeiture, financial penalties, and long prison sentences, it’s critical to consult with a skilled Los Angeles criminal defense attorney as soon as possible if you’re under investigation or facing formal charges.
What Is Racketeering in California?
Racketeering refers to engaging in a pattern of criminal activity for the benefit of an organization, enterprise, or group—typically to generate unlawful financial gain. These crimes are not isolated incidents but are connected by a shared structure, objective, or method. In California, this type of conduct is also referred to as criminal profiteering.
Racketeering can involve a wide variety of criminal acts committed as part of an organized operation. Some of the most common offenses tied to racketeering include:
- Drug manufacturing and distribution
- Money laundering
- Extortion or bribery
- Fraud schemes (real estate, insurance, welfare, etc.)
- Human trafficking
- Prostitution rings
- Loan sharking
- Embezzlement
- Organized retail theft
- Witness intimidation
- Gang-related violence
- Murder and kidnapping
These crimes are often carried out in furtherance of a criminal enterprise—whether a street gang, fraud ring, cartel, or other coordinated group. What ties these offenses together is that they’re part of a larger operation designed to profit from illegal conduct.
California prosecutors use Penal Code 186.2 to target these patterns of behavior, while Penal Code 186.3 enables the government to seize assets believed to be connected to the criminal activity, even before a conviction.
Because the law allows multiple underlying felonies to be grouped into a single racketeering case, charges under California’s racketeering laws can quickly become complex, aggressive, and high stakes.
California’s Racketeering Law – Penal Code 186.2 Overview
California’s racketeering laws are found under the California Control of Profits of Organized Crime Act, beginning with Penal Code 186.2. This statute defines criminal profiteering activity as a pattern of certain felony offenses committed for financial gain as part of a criminal enterprise.
What makes PC 186.2 particularly powerful is that it doesn’t require a specific organization like the federal RICO Act does. Instead, California law focuses on patterns of criminal conduct tied together by motive (financial gain), method, or connection to a larger scheme.
Under Penal Code 186.2, the prosecutor must show:
- That the defendant committed or attempted to commit at least two qualifying felony offenses
- That these offenses were connected and not isolated acts
- And that the activity was done for financial gain or advantage
The statute also includes a long list of felonies that can trigger a racketeering case, such as drug trafficking, fraud, extortion, bribery, and violent crimes like murder or arson.
Additionally, Penal Code 186.3 allows the government to seize property—such as bank accounts, cars, cash, and even real estate—if it believes those assets are tied to criminal profiteering activity. This can happen before a person is convicted.
Together, these laws give California prosecutors wide authority to bring sweeping criminal charges, often accompanied by aggressive asset forfeiture actions.
How Criminal Profiteering Is Proven in California
To secure a racketeering conviction under California law, the prosecution must prove that the defendant engaged in a pattern of criminal profiteering activity. This pattern is a key element that separates isolated offenses from organized criminal behavior.
The “Pattern” Requirement
A pattern exists when there are at least two or more qualifying felony acts that:
- Were committed within 10 years of each other (not including time in custody), and
- Share a common purpose, method, or connection to a criminal enterprise, and
- Were committed for financial gain or advantage.
These crimes do not need to be identical but must be linked in a way that shows they were not random or isolated. For example, a real estate fraud scheme that involves bribery, money laundering, and witness intimidation could all be prosecuted under PC 186 as part of a single racketeering case.
Qualifying Criminal Offenses
California Penal Code 186.2 lists over 30 felony offenses that can be used to establish a criminal profiteering pattern. Common examples include:
- Drug trafficking and manufacturing
- Grand theft, embezzlement, or identity theft
- Bribery or extortion
- Insurance or real estate fraud
- Kidnapping, robbery, or murder
- Money laundering (PC 186.10)
- Human trafficking
- Arson
- Witness intimidation or obstruction of justice
The prosecution often uses these charges together with criminal profiteering to create a broader narrative of organized crime—making it easier to justify severe penalties like asset forfeiture and extended prison terms
Penalties for Racketeering in California
Asset Forfeiture Under California Law
One of the most powerful tools prosecutors have in these cases is the ability to seize property under Penal Code 186.3. If the government can prove that your money, real estate, vehicles, or business assets were acquired through criminal profiteering—or were exchanged for proceeds of unlawful activity—those assets may be subject to forfeiture.
This means the state can take:
- Bank accounts and cash
- Homes, vehicles, and real property
- Businesses and equipment
- Any item acquired directly or indirectly through criminal activity
Even if you are not convicted of the underlying offense, the government may still pursue a civil forfeiture case, which has a lower burden of proof.
Criminal Penalties and Prison Time
In addition to financial consequences, a person convicted of racketeering may also face:
- Felony charges tied to each qualifying offense
- Multiple years in state prison — often based on the most serious underlying crimes
- Substantial fines
- Restitution to victims, if financial loss can be proven
- Probation or parole conditions upon release
The specific sentence will depend on the nature and number of the underlying crimes. For instance, racketeering linked to violent acts or major fraud schemes will result in far harsher consequences than those involving non-violent financial offenses.
California law treats organized criminal activity as a threat to public safety and economic stability. That’s why even first-time offenders can face steep penalties when prosecutors allege a pattern of criminal profiteering.
Possible Legal Defenses to Racketeering Charges in California
No Pattern of Criminal Profiteering
To convict someone of racketeering, the prosecution must prove that you committed two or more qualifying felonies that were part of a coordinated criminal enterprise. If your alleged offenses were isolated, unrelated incidents, or occurred too far apart in time, your attorney may argue there was no “pattern” of criminal profiteering, as required under Penal Code 186.2.
Lack of Financial Motive
California’s racketeering laws specifically target crimes committed for financial gain. If there’s no clear link between the alleged conduct and a profit motive, the prosecution may not meet the legal definition of criminal profiteering. This defense can be especially powerful when the underlying charges involve violence or threats not connected to economic benefit.
No Connection to a Criminal Enterprise
Prosecutors often try to tie individuals to broader criminal networks, but that link must be proven. If you were not part of an organized group or didn’t act in coordination with others, your attorney may challenge the state’s claim that your actions furthered a criminal enterprise or organization.
Unlawful Seizure or Asset Forfeiture
In many racketeering cases, law enforcement seizes property before a conviction has occurred. If the government cannot clearly connect your assets to the alleged crimes—or if your constitutional rights were violated in the process—your attorney can file motions to suppress evidence or challenge the legitimacy of the forfeiture.
False Allegations or Overcharging
Because racketeering charges often involve multi-agency investigations and complex fact patterns, mistakes happen. People can be wrongly accused or overcharged based on association alone. Your lawyer may be able to uncover flawed evidence, unreliable witnesses, or lack of direct involvement in the criminal conduct.
Charged with Racketeering in California? Speak with a Criminal Defense Attorney Now
If you’re facing racketeering charges under California’s organized crime laws, the consequences can be severe—asset forfeiture, long prison terms, and a lifetime impact on your reputation and financial future. Prosecutors build these cases to be sweeping and aggressive, often relying on broad allegations and circumstantial links to criminal enterprises.
With over 20 years of experience, Attorney Hashemi has defended clients across Los Angeles County facing high-stakes felony charges and criminal allegations. As an experienced Los Angeles criminal defense attorney, he understands how to challenge the prosecution’s narrative and protect your rights at every stage of the case.
At The Law Offices of Arash Hashemi, we’ll review the facts, explain your legal options, and fight for the best possible outcome—whether that means dismissal, reduced charges, or avoiding asset forfeiture entirely. Contact our office today for a free confidential consultation.
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