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How the Hobbs Act Applies to Robberies and Extortion

How the Hobbs Act Applies to Robberies and Extortion

Hey there! Today we’re gonna be talking about how the Hobbs Act applies to robberies and extortion. I know, super exciting stuff, right? But stick with me cause this is actually pretty interesting and good to know.
The Hobbs Act is a federal law that prohibits robbery and extortion that affects interstate or foreign commerce. So what does this mean exactly? Well, let me break it down for you.

What is the Hobbs Act?

The Hobbs Act makes it a federal crime to obstruct, delay, or affect commerce or the movement of any article or commodity in commerce by robbery or extortion. It was passed by Congress in 1946 and is named after U.S. Representative Sam Hobbs of Alabama.
Here’s the key things to know about the Hobbs Act:
It applies to both robbery and extortion
The robbery or extortion has to affect interstate or foreign commerce in some way
It’s a federal law, so charges are brought by federal (not state) prosecutors
Violations are punishable by up to 20 years in prison
So in simple terms, the Hobbs Act makes it a federal crime to rob or extort people or businesses engaged in interstate commerce.

What is Robbery Under the Hobbs Act?

The Hobbs Act defines robbery pretty much how you’d expect – it’s taking property from someone by force or threat of force. This includes things like:
Armed robbery – using a weapon to steal money or property
Strong-arm robbery – physically intimidating someone to hand over their stuff
Bank robbery – robbing a bank or financial institution
The key thing is that the robbery has to affect interstate commerce in some way for the Hobbs Act to apply. More on that soon!

What is Extortion Under the Hobbs Act?

Extortion under the Hobbs Act is defined as obtaining property from someone through wrongful use of fear. This can include threats of physical violence, but also threats to:
Damage a person’s business or financial reputation
Reveal damaging or embarrassing information (blackmail)
Cause financial loss or hardship
Some examples of extortion:
A business owner is threatened with arson unless he pays “protection money”
An elected official takes bribes in exchange for awarding contracts
A company is threatened with a cyber attack unless they pay a ransom
Again, the extortion has to affect interstate commerce for the Hobbs Act to kick in.

How Does the Hobbs Act Apply to Robberies?

For a robbery to violate the Hobbs Act, the stolen property has to come from a business or person engaged in interstate commerce.
Here are some examples of robberies that could be charged under the Hobbs Act:
Robbing a store that sells goods that have been shipped from other states . Even if the stolen items themselves didn’t travel interstate, the business engages in interstate commerce.
Robbing a drug dealer of drugs that have been imported from abroad . The drugs traveled in foreign commerce.
Robbing a distributor of electronics that were made overseas . Again, foreign commerce is involved.
Robbing a pizza delivery driver of the pizzas and cash they’re carrying . The pizzas’ ingredients moved in interstate commerce.
Robbing a traveler of their luggage after they land at an airport . Air travel = interstate commerce.
So even if the actual items stolen didn’t travel across state lines, as long as the victim was engaged in interstate or foreign commerce, the Hobbs Act can still apply.

How Does the Hobbs Act Apply to Extortion?

For extortion, the key is that the threat made has to potentially affect interstate commerce. Some examples:
Threatening to damage or destroy a factory unless the owner pays up . This could shut down interstate operations.
Forcing a restaurant owner to buy supplies from your company through threats of property damage . This affects interstate commerce of restaurant supplies.
Blackmailing an elected official to get lucrative government contracts . The contracts likely involve interstate commerce.
Coercing employees to pay a fee to work each week or they’ll be fired . This affects the employees’ ability to engage in commerce.
The key is that the threat has to have the potential to affect interstate commerce in theory, even if it doesn’t actually succeed. Just the threat of impacting interstate business is enough.

What About Robberies or Extortion Without an Interstate Commerce Connection?

If a robbery or extortion doesn’t meet the interstate commerce requirements under the Hobbs Act, it may still be charged under state law. For example:
Robbing a private home – no interstate commerce impact . Would likely be prosecuted under state robbery laws.
Extorting cash from an individual by threatening to expose damaging personal information about them . No interstate nexus, so would be a state extortion charge.
So the Hobbs Act doesn’t cover every robbery or extortion – only the ones that affect interstate or foreign commerce. Without that piece, state laws take over.

What Are Some Key Court Decisions on the Hobbs Act?

There’s been a bunch of court cases over the years that have helped shape how the Hobbs Act is applied and interpreted. Here are some notable ones:
Stirone v. United States (1960) – Established that the Hobbs Act’s language on interstate commerce should be read broadly . This case said even a potential or slight effect on commerce is enough.
United States v. Culbert (1978) – Said the effect on interstate commerce does not actually have to be proven, only that commerce could have been affected . Prosecutors don’t have to show a definite impact.
Scheidler v. NOW (2003) – Ruled the Hobbs Act does not require a thief to actually “obtain” property, just attempting to do so is enough . So you can be guilty of attempted robbery under the Act.
Sekhar v. United States (2013) – Said that recommending someone for a government investment doesn’t qualify as “extortion”, limiting the reach of the Hobbs Act .
So the courts have generally interpreted the Hobbs Act broadly, but put some limits on it as well. These cases help shape how prosecutors apply the law.

What Are Some Criticisms of the Hobbs Act?

While the Hobbs Act has been an important tool for federal prosecutors, it has its critics too. Here are some common complaints:
It has been applied very broadly, way beyond what Congress initially intended back in 1946 . Prosecutors use it today in ways never envisioned.
The interstate commerce requirement can be very loose and flexible . Almost any business activity can qualify, so the feds can charge many local crimes.
It overlaps a lot with state extortion and robbery laws . Critics see it as the feds overreaching into matters states should handle.
It carries high penalties – up to 20 years per violation . Some say the punishment often doesn’t fit the crime.
It gives unfair leverage to federal prosecutors to coerce plea deals . Even innocent defendants will plead guilty to avoid 20 years.
So while the Hobbs Act serves an important purpose, it also has some real issues that legal scholars continue to grapple with.

The Bottom Line on the Hobbs Act

Ok, let’s wrap this up with some key takeaways:
The Hobbs Act is a federal law that prohibits robbery and extortion affecting interstate commerce.
Robberies and extortion under the Act have to impact interstate or foreign business in some way – the commerce connection is key.
Courts have interpreted the Act’s commerce requirements very broadly.
Prosecutors use the Hobbs Act to charge many kinds of robberies and extortion schemes.
But the law has also been criticized for overreach and harsh punishments.
So in a nutshell, that’s the basics on how this nearly 75-year-old law applies to modern robbery and extortion cases today! It’s kind of a complex topic, I know, but hopefully this overview helped explain this important federal criminal statute. Let me know if you have any other questions!

References

https://www.justice.gov/archives/jm/criminal-resource-manual-2402-hobbs-act-robbery-18-usc-1951
https://www.justice.gov/archives/jm/criminal-resource-manual-2404-application-hobbs-act-robbery-drug-dealers
https://scholarlycommons.law.northwestern.edu/cgi/viewcontent.cgi?article=6828&context=jclc
https://www.justice.gov/archives/jm/criminal-resource-manual-2403-hobbs-act-robbery-pizza-delivery-driver
https://casetext.com/case/united-states-v-walker-920
https://www.justice.gov/archives/jm/criminal-resource-manual-2410-application-hobbs-act-extortion-cases-involving-threats-damage