By the time most people learn they're the target of a federal RICO investigation, prosecutors have already spent months building their case, reviewing financial records, flipping cooperators, and gathering evidence. Knowing what happens during the investigation phase before charges are filed is essential for anyone who may be at risk, whether as a business owner, executive, or professional in a regulated industry.
What the RICO Statute Covers and Why It Matters
The Federal RICO statute 18 U.S.C § 1961 - 1968 targets individuals and organizations that engage in a “pattern of racketeering activity” through an enterprise. To establish pattern, prosecutors must prove at least two “predicate acts.” This can include serious crimes like fraud bribery, extortion, money laundering, drug trafficking, or even murder, all committed within ten years of each other.
But the government must show more than just two separate crimes: the acts must be related and demonstrate a threat of ongoing criminal conduct, which is why RICO is so powerful and why investigations cast such a wide net.
Originally designed to combat the Mafia, RICO is now used against a broad range of targets, from corporate executives to street gangs, making it one of the most feared charges in federal criminal law.
The First Moves: How Prosecutors Open a RICO Investigation
RICO investigations often start quietly, triggered by tips from informants, cooperating defendants in other cases, whistleblowers, or referrals from agencies like the FBI, DEA, or ATF already investigating related crimes. Prosecutors open grand jury investigations to subpoena financial records, emails, phone records, and witness testimony. This can all be done “under seal” meaning that a target can be under investigation without ever knowing.
During this investigative phase, investigators map out the alleged criminal enterprise, identify its members and associates, trace financial transactions, and look for connections between predicate acts that demonstrate a “pattern of racketeering." These investigations can unfold over months or years, with prosecutors building their case brick by brick before anyone is arrested or charged.
Triggers that Prompt a RICO Inquiry
RICO investigations are often triggered by specific red flags that suggest organized, ongoing criminal activity rather than isolated incidents.
Common triggers include:
- cooperating witnesses or defendants in other federal cases who provided information about broader criminal enterprise
- financial irregularities like large-scale money laundering suspicious wire transfers, or coordinated use of shell companies
- patterns of fraud, bribery, or extortion involving the same individuals or business entities
- violent crimes (murders, assaults, threats) that appear connected to a common organization or objective
- referrals from regulatory agencies, civil lawsuits, or even media investigations that expose systemic misconduct
In many cases, what starts as a routine investigation into tax evasion, drug trafficking, or public corruption evolves into a RICO case once prosecutors identify multiple predicate acts and enterprise structure.
Initial Evidence Gathering – Wiretaps, Surveillance, Subpoenas & Grand Juries
Federal Investigators gather RICO evidence in near-total secrecy, using tools specifically designed to avoid tipping off their targets. Wiretaps are among the most powerful weapons: after obtaining court authorization, agents and prosecutors can listen to phone calls, read text messages, and monitor emails in real time, sometimes for months, capturing conversations that reveal the structure and operations of the alleged criminal enterprise.
At the same time, surveillance teams conduct physical monitoring. These can include following suspects, photographing meetings, documenting who the target is communicating with, while undercover agents or informants may infiltrate the organization.
Grand jury subpoenas allow prosecutors to quietly demand financial records, business documents, and communications from banks, employers, and service providers, all without notifying the target. By the time most people learn they're under investigation, the government has already amassed thousands of pages of records, hours of recorded conversations, and testimony from cooperating witnesses.
Early Asset Seizure and Business Monitoring
One of the most devastating aspects of a RICO investigation is that prosecutors can freeze your bank accounts, seize property, and restrict access to business assets even before filing criminal charges.
Under federal forfeiture laws particularly 18 U.S.C. § 1963, the government can obtain court orders to restrain any assets it claims are connected to racketeering or represent proceeds of illegal activity, effectively shutting down businesses and cutting off access to funds needed for legal defense. These asset freezes often happen simultaneously with arrests or search warrants, but sometimes occur months earlier, leaving targets scrambling to understand why their accounts are suddenly inaccessible.
In some cases, prosecutors install monitors or trustees to take over business operations, removing owners from control of their own companies while the investigation unfolds. Even more troubling, the government can pursue civil forfeiture which requires a lower burden of proof than criminal charges, meaning you could lose your property permanently even if you're never convicted or even indicted.
Recognizing the Warning Signs: Are You Under Investigation?
The warning signs of a RICO investigation are often subtle but unmistakable once you know what to look for:
- federal agents visiting your employees, business partners, or family members asking questions about you
- subpoenas issued to your bank, accountant, or company demanding financial records and communications
- former associates or colleagues suddenly acting strange or trying to draw you into incriminating conversations (they may be cooperating or wearing a wire)
- people in your business or social circle getting arrested or indicted.
Other red flags include unexplained freezes on bank accounts, surveillance activity near your home or office, or receiving a grand jury subpoena or "target letter" from federal prosecutors.
If you notice any of these signs, do not speak to federal agents, do not try to "explain" anything, and contact our office immediately. Anything you say before consulting counsel can and will be used against you.
Receiving Subpoenas or Grand Jury Notices
Receiving a grand jury subpoena for documents, records, or testimony is a clear signal that you or your business is part of a federal investigation, and how you respond can determine whether you become a witness, a subject, or a target. If you receive a subpoena for records, you must produce the specified documents by the deadline; if subpoenaed to testify, you must appear before the grand jury and answer questions under oath unless you properly invoke the Fifth Amendment.
Never ignore a subpoena, destroy documents, or speak to federal agents without an attorney present, doing so can lead to obstruction of justice or evidence tampering charges that are often easier for prosecutors to prove than the underlying offense.
If you receive a grand jury subpoena immediately call our office as you may be a target, subject or simply be identified as a witness. Our office can review the subpoena's scope, negotiate with prosecutors, assert privileges, and advise whether to comply, seek to quash the subpoena, or invoke your Fifth Amendment rights.
Unusual Business Audits, Financial Freezes, Law Enforcement Contact
What may look like routine business problems can actually be red flags that a federal RICO investigation is quietly advancing. An IRS audit that goes beyond standard tax questions to probe business relationships, cash flow, payments to associates, or corporate structure often indicates criminal investigators, not just civil auditors, are involved. Sudden, unexplained freezes or holds on bank accounts, credit cards, or business funds, especially when your financial institution won't provide a clear reason, typically mean federal prosecutors have obtained a seizure or restraining order.
Direct visits from FBI, DEA, or IRS Criminal Investigation agents asking to speak with you, your employees, or business partners about operations, transactions, or relationships are serious warning signs that should never be ignored or handled without counsel. When these events cluster together an audit, a financial freeze, and agent inquiries all happening within a short timeframe, it's almost certain that a coordinated federal investigation targeting you or your enterprise is already underway.
Internal Company/Business Risk: What to Do if Your Business is Targeted
If your business becomes the target of a RICO investigation, your immediate priorities are protecting the company's operations, safeguarding employees' rights, and ensuring you don't inadvertently worsen your legal exposure. Call our office immediately and understand that the company may need separate legal representation from individual owners, officers, or employees, as their interests can diverge quickly once the government starts offering cooperation deals.
Implement a litigation hold to preserve all documents and communications (do not delete emails, shred files, or alter records, as destruction of evidence will result in additional obstruction charges), but do not voluntarily turn over materials or speak to investigators without counsel present.
Establish clear protocols so employees know not to speak with federal agents without an attorney, and consider whether the company should cooperate with the investigation or mount a defense, a decision that requires careful analysis of the evidence, potential exposure, and strategic goals.
Finally, assess your financial position: if the government freezes assets or seeks forfeiture, you'll need to move quickly to challenge restraining orders, secure operating capital, and protect the business from collapse before you ever get your day in court.
Your Rights and What You Should Do Immediately
Do Not Speak to Federal Agents Without an Attorney
If federal agents contact you, politely decline and immediately call an experienced federal criminal defense attorney. Anything you say can and will be used against you, even in seemingly casual conversations. You have an absolute right to remain silent and to have counsel present, exercise it.
Preserve All Evidence and Protect Business Operations
Immediately preserve all documents, emails, texts, and financial records, instruct employees to do the same. Destroying or altering evidence, even unintentionally, can result in obstruction charges. If the government freezes accounts or seizes assets, work with counsel immediately to challenge these actions and protect your business.
Control Communications and Protect Employee Rights
Establish a clear policy: no employee speaks to federal agents without a lawyer, and all law enforcement contact must be reported to counsel immediately. Avoid discussing the investigation in emails or meetings that could be subpoenaed, and never pressure employees to withhold information—this can lead to witness tampering charges.
Why Time Matters: Impact of Delay and Escalation
The earlier you involve experienced legal counsel in a RICO investigation, the more options you have to protect yourself, preserve assets, and potentially avoid charges altogether. Delays allow prosecutors to gather more evidence, flip cooperating witnesses, freeze accounts, and build a stronger case, often transforming what might have been a negotiable situation into an inevitable indictment.
Once charges are filed, your strategic options narrow dramatically: pre-indictment, your attorney may be able to negotiate with prosecutors, present exculpatory evidence, or convince the government not to charge you, but post-indictment, the focus shifts to damage control and trial preparation. Waiting until you're arrested or indicted to hire a lawyer means you've lost the most critical window to shape the outcome of your case.
FAQ
What does it mean when the U.S. Attorney opens a RICO investigation?
It means federal prosecutors believe there is potential evidence of an organized criminal enterprise engaging in a pattern of racketeering activity, and they are using grand juries, wiretaps, subpoenas, and other investigative tools to gather evidence, often for months or years before filing any charges. You or your business may be a target, subject, or witness, and the investigation will likely be conducted in secrecy until prosecutors decide whether to indict.
Can I be charged under RICO without ever committing a crime myself?
Yes, RICO allows prosecutors to charge individuals who participate in the affairs of a criminal enterprise, even if they didn't personally commit the predicate acts, as long as they knowingly contributed to the enterprise's racketeering activity. This means executives, managers, or associates can face RICO charges based on their role in facilitating or benefiting from crimes committed by others within the organization.
What do I do if I receive a grand jury subpoena in a RICO case?
Do not ignore it, destroy documents, or speak to federal agents without an attorney. Immediately call our office we can review the subpoena, negotiate its scope, assert applicable privileges (including your Fifth Amendment right against self-incrimination), and advise you on the safest path forward. Anything you produce or say can be used against you or others, so legal guidance is essential before you respond.
What happens if law enforcement freezes my business assets during the investigation?
Asset freezes can cripple or destroy your business before you're ever charged or convicted, cutting off access to operating funds and making it difficult to pay employees, vendors, or legal fees. You must act immediately with experienced counsel to challenge the restraining order, demonstrate that specific assets are untainted by criminal activity, and seek release of funds necessary for legitimate business operations and legal defense.
Does cooperating with prosecutors always make things better?
Not necessarily, cooperation can lead to reduced charges or sentencing, but it also requires you to plead guilty, provide truthful testimony against others (which may expose you to retaliation), and give up your right to trial. The decision to cooperate should only be made after careful analysis with your attorney of the strength of the government's case, your exposure, and whether cooperation will actually result in meaningful benefits or simply lock in a conviction.
How can I protect my business and personal assets before charges are filed?
Work with experienced counsel immediately to identify assets at risk of forfeiture, consider restructuring ownership or transferring untainted assets to protect them from seizure (done properly and lawfully, not to conceal or defraud), and prepare to challenge any restraining orders the government seeks. Early legal intervention is critical because once assets are frozen, recovering them becomes significantly more difficult and time-consuming.
How long can the government investigate under RICO before bringing charges?
RICO investigations can last months or even years, with no set time limit, prosecutors will continue gathering evidence until they believe they have a strong case or determine charges aren't warranted. The statute of limitations for most RICO violations is five years from the last predicate act, but the investigation itself can extend well beyond that as long as prosecutors are actively pursuing leads.
When should I hire a lawyer if I suspect a RICO investigation?
The moment you notice warning signs such as federal agents contacting associates, subpoenas being issued, account freezes, or any indication you're under scrutiny. The earlier you involve experienced federal criminal defense counsel, the more options you have to protect yourself, preserve assets, and potentially avoid charges altogether; waiting until you're arrested or indicted means you've lost the most critical window to shape the outcome.