Green’s Dictionary of Slang

(US Und.) of a confidence man, to operate at will, without fear of interference from the authorities; also as adj.

1940		‘Und. Place-Names’ in AS XV:3 Oct. 341/1: In rip-and-tear locales, certain mobs are given temporary carte blanche for a price, for which they may operate freely, knowing that members of other gangs in the city at the time will be rounded up to ‘take the rap’ for the protected mob.
1940		D. Maurer Big Con 132: The con men felt free to ‘rip and tear’ – that is, to grift without restraint.