Chancey v. State

349 S.E.2d 717, 256 Ga. 415, 1986 Ga. LEXIS 920
CourtSupreme Court of Georgia
DecidedNovember 13, 1986
Docket43481, 43482, 43483
StatusPublished
Cited by154 cases

This text of 349 S.E.2d 717 (Chancey v. State) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chancey v. State, 349 S.E.2d 717, 256 Ga. 415, 1986 Ga. LEXIS 920 (Ga. 1986).

Opinion

Marshall, Chief Justice.

The appellants in this case are Harold S. Chancey, Audie Jordan, and Charles I. Cagle. On August 24, 1982, the Walton County Grand Jury returned a 5-count indictment. Count 1 charged appellants, and *416 others, with the offense of violating the “Georgia RICO (Racketeer Influenced and Corrupt Organizations) Act.” OCGA § 16-14-1 et seq. Counts 2 through 5 charged appellant Harold Chancey, as well as Ruth Chancey and Bobby Gene Goswick, with murder and arson. Ruth Chancey’s motion for severance was granted, and the trial court subsequently declared a mistrial on the murder/arson charges as to Goswick and Harold Chancey. Appellants were each convicted of violating the RICO statute; they were each fined, and in addition they were each given a sentence of 20 years’ imprisonment. They appealed, arguing, among other things, that the RICO statute is unconstitutional.

I. The Act

The Georgia RICO Act (OCGA § 16-14-1 et seq.) is patterned after the federal RICO statute. 18 USC § 1961 et seq. The federal statute was enacted as Title IX of the Organized Crime Control Act of 1970. Although the state Act is patterned after the federal Act, there are differences between the two statutes.

The overriding purpose of the federal RICO statute is to deal with the problem of the infiltration of organized crime into all areas of American life through the money derived from its illegal endeavors. The provisions of RICO are intended to repair “defects in the evidence-gathering process of the law inhibiting the development of the legally admissible evidence necessary to bring criminal and other sanctions or remedies to bear on the unlawful activities of those engaged in organized crime . . .” United States v. Turkette, 452 U. S. 576, 589 (101 SC 2524, 69 LE2d 246) (1981); United States v. Angelilli, 660 F2d 23, 32 (2nd Cir. 1981).

Similarly, the Georgia RICO statute was enacted because of “a severe problem . . . posed in this state by the increasing organization among certain criminal elements and the increasing extent to which criminal activities and funds acquired as a result of criminal activity are being directed to and against the legitimate economy of the state.” OCGA § 16-14-2 (a). Consequently, the expressed intent of the Georgia statute “is to impose sanctions against this subversion of the economy by organized criminal elements and to provide compensation to private persons injured thereby. OCGA § 16-14-2 (b). However, § 16-14-2 (b) goes on to state that “[i]t is not the intent of the General Assembly that isolated incidents of misdemeanor conduct be prosecuted under this chapter but only an interrelated pattern of criminal activity, the motive or effect of which is to derive pecuniary gain. This chapter shall be construed to further that intent.”

The activities prohibited by the federal RICO statute are set out in subsections (a) through (d) of 18 USC § 1962. Subsection (a) makes *417 it “unlawful for any person who has received any income derived, directly or indirectly, from” what is termed a “pattern of racketeering activity ... in which such person has participated as a principal” to “use or invest, directly or indirectly, any part of such income ... in acquisition of any interest in, or the establishment or operation of, any enterprise . . .” Under subsection (b), it is “unlawful for any person through a pattern of racketeering activity ... to acquire or maintain, directly or indirectly, any interest in or control of any enterprise . ..” Under subsection (c), it is “unlawful for any person employed by or associated with any enterprise ... to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity . . .” Finally, subsection (d) of § 1962 makes it unlawful to conspire to violate any of the provisions of subsections (a), (b), or (c).

18 USC § 1961 (1) defines “racketeering activity” as encompassing various specified criminal offenses, e.g., murder, gambling, arson, dealing in narcotic or other dangerous drugs, wire fraud, securities fraud. “Enterprise” is defined under subsection (4) of § 1961 as including “any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity.” Under subsection (5), “ ‘pattern of racketeering activity’ requires at least two acts of racketeering activity, one of which occurred after the effective date of [the RICO statute] ...”

“In order to secure a conviction under RICO, the Government must prove both the existence of an ‘enterprise’ and the connected ‘pattern of racketeering activity.’ The enterprise is an entity, for present purposes a group of persons associated together for a common purpose of engaging in a course of conduct. The pattern of racketeering activity is, on the other hand, a series of criminal acts as defined by the statute . . . The former is proved by evidence of an ongoing organization, formal or informal, and by evidence that the various associates function as a continuing unit. The latter is proved by evidence of the requisite number of acts of racketeering committed by the participants in the enterprise. While the proof used to establish these separate elements may in particular cases coalesce, proof of one does not necessarily establish the other.” United States v. Turkette, supra, 452 U. S. at p. 583.

The “prohibited activities” under the Georgia RICO statute are set out in OCGA § 16-14-4. Subsection (a) makes it “unlawful for any person, through a pattern of racketeering activity or proceeds derived therefrom, to acquire or maintain, directly or indirectly, any interest in or control of any enterprise, real property, or personal property of any nature, including money.” Under subsection (b), “[i]t is unlawful for any person employed by or associated with any enterprise to con *418 duct or participate in, directly or indirectly, such enterprise through a pattern of racketeering activity.” Subsection (c) provides that “[i]t is unlawful for any person to conspire or endeavor to violate any of the provisions of subsection (a) or (b) of this Code section.”

The Georgia RICO statute is significantly broader than its federal counterpart in that OCGA § 16-14-4 (a) makes it unlawful for any person through proceeds derived from a pattern of racketeering activity to acquire or maintain any real property, or personal property of any nature, including money. In contrast, the federal RICO statute, 18 USC § 1962 (a), only targets investors who participate in the pattern of racketeering activity as a principal.

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Bluebook (online)
349 S.E.2d 717, 256 Ga. 415, 1986 Ga. LEXIS 920, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chancey-v-state-ga-1986.