A more thorough explanation:

An association-in-fact enterprise is a group of people or entities that share a common purpose and maintain an ongoing organizational structure, but have not formed a legal entity. This type of enterprise is recognized under the Racketeer Influenced and Corrupt Organizations (RICO) Act.

It is important to note that the mere existence of an association-in-fact enterprise does not constitute a RICO violation. A pattern of racketeering activity must also be proven.

A group of individuals who regularly engage in drug trafficking may be considered an association-in-fact enterprise under RICO. They share a common purpose of profiting from the illegal drug trade and maintain an ongoing organizational structure, such as a hierarchy of leaders and subordinates.

Another example could be a group of individuals who engage in fraudulent activities, such as identity theft or insurance fraud. They may not have a formal legal entity, but they work together to carry out their illegal activities and share in the profits.

These examples illustrate how an association-in-fact enterprise can exist without a formal legal entity, but still function as a continuing unit to carry out illegal activities.