Guide to Civil RICO

The Racketeer Influenced and Corrupt Organizations Act (RICO) was originally enacted to combat organized crime, such as the Mafia. However, its scope has expanded significantly, and today, civil RICO claims are a powerful tool for individuals and businesses to seek civil damages and/or redress for a range of illegal activities, including fraud, embezzlement, and extortion. Dynamis has significant experience both bringing and litigating against civil RICO actions. See our recently filed civil RICO against Binance, a large crypto exchange, filed in the District of Massachusetts.

What is a Civil RICO Claim?

While initially aimed at dismantling criminal enterprises, RICO’s civil provisions allow individuals and businesses (and not the Government) to bring lawsuits against parties engaged in a "pattern of racketeering activity." This tool can be a powerful remedy in cases involving fraud, corruption, and other illegal conduct, but it requires meeting stringent legal standards.

Elements of a Civil RICO Claim

To succeed in a civil RICO claim, a plaintiff must prove the following elements:

(a)Existence of an Enterprise: This can be any individual, partnership, corporation, association, or other legal entity, formal or informal, that has a common purpose.

(b) Pattern of Racketeering Activity: The defendant must have engaged in at least two related acts of racketeering activity within a 10-year period. Racketeering activity encompasses a broad range of offenses, including:

Acts of violence, like murder, kidnapping, and arson.
Financial crimes, like bribery, extortion, money laundering, securities fraud, mail and wire fraud, embezzlement.
Other Offenses: Obstruction of justice, witness tampering.

(c) Conduct of an Enterprise's Affairs: The defendant must have conducted or participated in the conduct of the enterprise's affairs through the pattern of racketeering activity.

(d) Injury to Business or Property: The plaintiff must have suffered injury to their business or property as a direct result of the defendant's RICO violation.

While the potential rewards of a civil RICO claim are significant, these cases are notoriously complex. Plaintiffs face the burden of proving all elements, including the existence of an enterprise and a pattern of racketeering activity, often requiring substantial evidence and detailed documentation. Courts also scrutinize civil RICO claims closely to prevent misuse of the statute in routine business disputes.

Additionally, RICO claims often involve parallel criminal investigations or proceedings, which can complicate litigation. The involvement of federal agencies or prosecutors may impact the availability of evidence or delay the case’s resolution.

Examples of Civil RICO Cases

Corporate Fraud: When businesses engage in systematic schemes to defraud investors, competitors, or customers, such as through falsified financial reporting or deceptive marketing practices.

Real Estate Scams: Cases involving fraudulent property deals, mortgage schemes, or illegal land-use arrangements.

Organized Crime Involvement: Situations where legitimate businesses are used as fronts for illegal activities like money laundering or extortion.

How Dynamis LLP Can Help

Civil RICO cases are complex and require specialized knowledge and experience. Our attorneys have a deep understanding of RICO law and a proven track record of success in prosecuting or defending against these claims. We'll thoroughly analyze the facts and evidence to determine if a RICO claim is viable or subject to challenges regarding jurisdiction or stating a claim.

At Dynamis LLP, with offices in Boston, New York and Miami, we specialize in navigating complex civil litigation in federal and state courts. Our attorneys combine strategic expertise with local knowledge to secure favorable outcomes for clients. Contact attorneys at Dynamis LLP or email civil@dynamisllp.com today for tailored legal representation.

Further Resources on Complex Civil Litigation

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A civil RICO claim is a lawsuit brought under the Racketeer Influenced and Corrupt Organizations (RICO) Act to address patterns of organized illegal activity, such as fraud, embezzlement, or extortion. Plaintiffs must prove that the defendant engaged in at least two related acts of racketeering activity within a 10-year period and that these actions harmed their business or property.
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