RICO is short for the federal law, Racketeer Influenced and Corrupt Organizations Act. The purpose of the RICO statute is to punish members of enterprises that racketeer, which means to engage in a pattern of serious illegal conduct. Specifically, RICO prohibits: investing proceeds obtained from racketeering activities, or acquiring an interest in a racketeering enterprise, or leading or participating in an enterprise carrying out racketeering. Through RICO, the Attorney General targets not only criminal organizations such as gangs or the mob. The A.G. also targets legal entities and legitimate businesses - such as corporations or homeowners associations - that become corrupt.