A federal indictment alleges Los Angeles gang members killed a 3-week-old baby in a stroller while trying to shoot a street vendor who refused to pay the gang.

The racketeering indictment unsealed Tuesday says a clique of the 18th Street gang terrorized a neighborhood around MacArthur Park for years. Members allegedly 'taxed' drug dealers and street vendors in the gang's territory and took retribution against those who refused.

Many of the 38 people indicted have been arrested or were already in custody.

Those indicted for the baby's murder in 2007 and for a 2001 killing of a man mistaken for a rival gang member could face the death penalty if convicted. The others could face a maximum of life imprisonment.