User:Pattywinter/OLES2129/draft

Predicate crime is a legal phrase that comes from the term “predicate”, which bears a definition of “to proclaim” or “to declare”. It is an illegal action that opposed the public order and against the Law. ^[1] In law practices, “predicate crime” is part of the Criminal Law and is called “predicate offence”, which refers to a crime that is a component of a larger crime.This crime will not have a large impact on its own, although will have a more impact on society if it took part in a larger crime. ^[2]

The organisation of Racketeer Influenced and Corrupt Organization Act, known as “RICO”, was made to target the predicate criminals. According to RICO, predicate acts include bribery, blackmail, extortion, fraud, theft, money laundering, counterfeiting, and illegal betting or operating a betting ring.^[3]

Crimes may be justified as predicate acts to a larger crime if they have a similar purpose of the larger crime. Producing a fake ID card in order to take out money from someone’s bank account is considered as a predicate offence. Predicate crimes can be penalized separately or mutually from the larger crime. The sentencing will depend on how impactful the crime committed is and whether the crime has actually been committed or not. ^[1]

The origin of the word "Predicate" came from a late Middle English word "praedicātum", which means to publicly acknowledge. Predicate is the act of establishing action upon something else. ^[4] Originally, predicate crimes were classified under drug-related offences. However, the law has broadened the characterization of predicate offences to include any serious crime. Predicate offence is a specified unlawful activity that is involving money laundering. ^[5] A predicate offence is usually committed as preparation of bigger and more serious crime scheme. ^[4]

Predicate crime falls into the category of criminal law because it relates to any crime that is part of a series of crimes that is committed in furtherance of a larger crime. ^[4] Example of predicate crime will be money laundering, bribery, blackmail, fraud, and theft.

According to the National Money Laundering Risk Assessment (2018), money laundering act is associated with predicate offences.^[6] Money laundering offences are the predicate crimes that generate illegal proceeds for laundering. On 19 December 1988, there was the Vienna Convention where the attention to money laundering is a phenomenon. Therefore, the range of predicate crime has widened and include money laundering as a predicate offence.^[7] Money laundering will include the act of:

• The exchange of possession, realising that this possession is proceeded, for the intention of hiding the illegal origin of the possession or helping any individual that is engaged with the party of the predicate crime to avoid the legal outcomes of the individual’s activities
• The deception of the genuine character, source, area, demeanour, act, rights as for realising that such possession is continued and subject to its protected standards and fundamental ideas of its lawful framework
• The profit, ownership or utilisation of possession, knowing, at the time of acceptance that such possession was continued

Bribery relates to the corrupt proposition, approval, or conversion of value in exchange for official action. This activity results in matters that should be handled in the aspect best for the private benefit of the decision maker. According to Legal Information Institute (2007), bribery is a crime for both the offeror and recipients which can be criminally charged. ^[8]

A case related to a bribery crime under predicate law would be US v Shulaya case under New York Court (30 April 2019). The defendant has been offered a plea deal. The offer required Shulaya to plead to one account of racketeering conspiracy. One of the offers is calculated based from 2014 to 2017 when the defendant has been accused of a conspiracy to traffic contraband tobacco which violates Predicate Act One.^[9]

Blackmail is the crime of threatening to reveal embarrassing, offensive or harming information about an individual to the public. Blackmail can also be known as extortion. Extortion is a predicate crime that occurs when an individual illegally acquire money, property or services from another individual by using threats. ^[10] Extortion can involve threats of physical damage, criminal indictment, or public exposure when the quantity or item demanded by the individual is not transferred.

An example of blackmail offence under predicate crime is Li V Gelormino under the District of Connecticut (2 May 2019). The defendant is tried for the action that falls into a predicate offence. RICO, representing the plaintiffs has accused the defendant of blackmailing under the pattern of racketeering activity. ^[11]

According to the Australian Criminal Intelligence Commission (2019), organized crime groups are increasingly involved in fraud. Due to the involvement of fraud with organised crime groups, fraud falls into the category of predicate offense.^[12] There are 7 types of fraud, which are:

• Superannuation fraud
• Serious and organized investment fraud
• Mass marketed fraud
• Revenue and taxation fraud
• Financial market fraud
• Card fraud
• Identity fraud

An example of a recent case of fraud is Williams v. US under the district court of M.D. Florida, Jacksonville Division. In this case, the defendant who is a petitioner has been charged with passing false and fictitious documents (i.e. counterfeit checks) with intent to defraud. The petitioner had argued that his/her action is not sufficient enough to fall under predicate offense, although later discovered that it was sufficient enough to be charged under predicate offense. ^[13]

According to United Nations Office on Drugs and Crime (2016), predicate crime falls under criminal law. The scope of predicate offence has been expanded from the United Nations treaty at the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988. As stated on United Nation treaty, predicate offences can be defined as all offences that threshold linked to a category of serious offences. Self-laundering will also fall under the predicate offence law; therefore, a person can be sentenced. ^[14]

There are core compliance facts that can determine whether or not a crime is considered predicate. These facts include:^[14]

• The legislation criminalizes the transfer and concealment of an offence
• The legislation criminalizes the ownership of a property represented to an offence
• Money-laundering offences will include participating, attempting, committing, conspiring to commit and counselling the act.
• Legislation reporting in suspicious transaction

There is also other approach of the legislation provided into defining the scope of predicate offence.^[14] Some countries will take all offences as predicate crime, others will only include serious offences and a list of offence. Predicate offences can include the offences of participating in several other crimes, which are:

• Organized criminal group
• Corruption
• Obstruction of justice

The Predicate Act Doctrine came as a result of an organisation act commonly known as RICO (Racketeer Influenced and Corrupt Organization Act).^[15] RICO is known to be the organization that create The Predicate Act Doctrine as the development of an organisation act. ^[16]

As of the 1970s, the RICO Act planned the raging racketeering allowing an individual directing these movements to independently being charged for the crimes of the group.^[17] By violating RICO, an individual must take part in an example of racketeering movement associated with an enterprise. The law defines 35 offences are constituting racketeering including money laundering, gambling, blackmail, bribery, fraud, extortion, theft, counterfeiting and illegal battling. To be tried under RICO, an individual has to at least have committed 2 predicate crimes within the last 10 years.^[15] The criminal that violates RICO statute will get a 20 years prison terms and severe financial cost. ^[18]

According to Bell, predicate offense is the basic criminal violation that are subject to a money laundering charge, drug offenses and other petty crime that can lead to a larger crime.^[19] This concept is very important in US Law because it is needed to successfully prosecute money laundering offenses by proving the property involved in the transaction is under a specified unlawful activity, i.e. fraud and drug trafficking. ^[20]

The Nine Trey Gangsters are starts in 1993 on the east side of New York.^[21] Throughout the years, they have spread up and down the East Coast in United States. The gang have maintained a hierarchy of power where the head leader in New York will be appointing leaders in the different part of cities.^[22] The gang members have been known to commit several petty crimes or other crimes involving drugs, robberies, murder, wire fraud and other illegal form of racketeering activities that can be charged under predicate offense.

One of Nine-Trey Gangster’s local leader was arrested and was given 3 consecutive life terms.^[23] According to court documentary, Simmons was sentenced for his leadership role in the racketeering conspiracy, several murder cases and attempted murders. Furthermore, he is also involved in drug and gun crimes (Web Staff, 2019).^[24]