Has Your Real Estate Agent Been Acting Against Your Best Interests?
Being an informed consumer is essential. Florida’s Antitrust Act and the Florida Racketeer Influenced and Corrupt Organization (RICO) Act are designed to prevent unfair business practices and organized fraud. However, some real estate companies have violated these laws, engaging in unlawful practices. As a result, buyers and sellers have been exploited. Understanding these violations is crucial—not just to identify if they’re happening to you or someone you know, but also to determine whether you’ve already been a victim.
What is The RICO (Racketeer Influenced and Corrupt Organization) Act?
The RICO Act (Racketeer Influenced and Corrupt Organizations Act) is a U.S. federal law to combat organized crime. It allows law enforcement to charge individuals or groups involved in long-term patterns of criminal activity as part of an ongoing enterprise (like a mafia family, street gang, or even a corrupt corporation). Prosecution under RICO covers:
- Individuals or groups operating as part of an organized structure that repeatedly engages in illegal activities.
- Though originally aimed at the Mafia, RICO has been used against drug cartels, corrupt politicians, white-collar criminals, and even corporations.
To be prosecuted under RICO, the person or group must have committed certain crimes, including:
- Fraud & Corruption: Bribery, money laundering, wire fraud, securities fraud
- Financial Crimes: Embezzlement, counterfeiting, extortion
- Pattern of Racketeering: The prosecution must prove that at least two or more crimes (predicate offenses) occurred within a 10-year period as part of the enterprise.
https://www.ussc.gov/guidelines/primers/rico
What is The Florida RICO Act
The Florida RICO Act is a state law designed to combat organized crime within Florida, paralleling the federal RICO statute but with notable distinctions:
- Statute of Limitations: The statute explicitly provides a five-year limitations period, commencing from when the conduct in violation terminates or the cause of action accrues, rather than four years in the federal RICO Act.
- Standard of Proof: Demands a higher standard, requiring proof by clear and convincing evidence, indicating that the claim is highly and substantially more probable to be true.
- Distinction between parties involved: While the federal RICO Act requires a clear distinction between the “person” (defendant) and the “enterprise” involved in racketeering, historically, Florida courts have allowed an individual associated with an enterprise composed solely of themselves to satisfy the statute’s requirements of what constitutes the entity.
The Florida RICO Act Classifies violations as first-degree felonies, carrying penalties of up to 30 years in prison and substantial fines, potentially amounting to hundreds of thousands of dollars, depending on the scale of the illegal activity.
Did a real estate agent or broker in John’s Island or Indian River County affect your transaction in a negative way? You’re not alone. Fill out the form to share your experience and discover your rights—at no cost to you.