New York Civil RICO Attorneys

Representation for RICO Lawsuits in NY

The Racketeer Influenced and Corrupt Organizations Act (RICO) is a powerful federal law designed to combat organized crime. While primarily associated with criminal prosecutions, RICO also allows for civil lawsuits against individuals or organizations engaged in a pattern of racketeering activity. In New York, the law firm of Horn Wright, LLP, specializes in representing clients involved in civil RICO cases. Our experienced attorneys understand the complexities of RICO litigation and are committed to providing aggressive and effective representation.

Whether you are facing a civil RICO lawsuit or considering filing a claim, Horn Wright, LLP is here to help. Our team can provide expert guidance on the legal process, identify potential defenses, and negotiate favorable settlements or represent you in court.

What is RICO?

The RICO Act, or Racketeer Influenced and Corrupt Organizations Act, allows civil lawsuits against individuals or organizations engaged in a pattern of racketeering activity. In civil cases, plaintiffs can sue for damages resulting from criminal activities such as fraud, embezzlement, bribery, or extortion. 

The RICO Act provides for treble damages, meaning the plaintiff can recover three times the actual damages suffered, plus attorney's fees. Civil RICO cases require proving the existence of an enterprise, a pattern of racketeering activity, and a connection between the racketeering acts and the damages incurred.

The RICO Act was passed by Congress to address the intricacies of organized crime networks and the challenges in prosecuting same.  However, since its enactment, the Supreme Court of the United States has noted that the civil RICO actions been brought against “respected and legitimate enterprises.”  Notwithstanding this observation of the Court, they have refused to restrict the application of Civil RICO Act.  The Supreme Court’s basis for refusing to curtail the application of the statute beyond its original purpose is that Congress has not legislated this curtailing, in fact the actions of Congress seem to indicate that its supports the expansion of the Civil RICO Act’s application.

How Does Civil RICO Differ from Criminal RICO?

Civil RICO and criminal RICO both involve the same underlying statutes but differ in their underlying purpose and proceedings. Criminal RICO cases are prosecuted by the government and can result in imprisonment and fines. Civil RICO cases are brought by private individuals or entities seeking money damages caused by racketeering activities. 

The burden of proof is lower in civil cases, requiring a preponderance of the evidence rather than proof beyond a reasonable doubt. Civil RICO allows plaintiffs to recover treble damages and attorney's fees.

What Constitutes Racketeering Activity Under RICO?

Racketeering activity under RICO includes a variety of criminal acts listed in the statute. These acts, known as predicate offenses, encompass crimes such as mail fraud, wire fraud, bribery, embezzlement, money laundering, and extortion. 

To establish a RICO claim, there must be at least two predicate offenses that constitute a pattern of racketeering activity. The offenses must be related and occur within a specified time frame. The pattern demonstrates ongoing illegal conduct connected to an enterprise.

Who Can be Sued under Civil RICO Laws?

Under civil RICO laws, individuals, businesses, and other entities can be sued if they have participated in racketeering activities that have caused harm. This includes officers, directors, employees, or associates of an enterprise engaged in illegal conduct. Plaintiffs can bring actions against both organizations and individuals involved in the pattern of racketeering activity. The defendants must have conducted or participated in the conduct of the enterprise's affairs through the pattern of racketeering.

What Damages Can Be Recovered in a Civil RICO Lawsuit?

In a civil RICO lawsuit, a plaintiff can recover three times their actual damages, known as treble damages, plus costs and reasonable attorney's fees. Actual damages refer to the direct financial losses suffered due to the racketeering activities. Treble damages serves as a punitive measure to deter wrongful conduct. Recoverable damages may include lost profits, property losses, and other quantifiable economic harms directly caused by the defendant's illegal actions.

Key Elements of a Civil RICO Claim

What is Required to Prove a Pattern of Racketeering Activity?

To prove a pattern of racketeering activity, a plaintiff must show that the defendant committed at least two predicate acts of racketeering within a 10-year period. The acts must be related and pose a threat of continued criminal activity. The relationship can be demonstrated by similar purposes, results, participants, or methods of commission. Continuity can be either closed-ended (a series of related acts over a substantial period) or open-ended (past conduct that by its nature projects into the future with a threat of repetition).

What is an “Enterprise” Under the RICO Act?

Under the RICO Act, an enterprise is any individual, partnership, corporation, association, or other legal entity, or a group of individuals associated in fact although not a legal entity. The enterprise must be separate from the pattern of racketeering activity and can be formal or informal. It is the vehicle through which the racketeering acts are committed. The plaintiff must prove the existence of the enterprise and that the defendant operated or managed the enterprise through the pattern of racketeering activity.

How Important is Causation in a Civil RICO case?

Causation is tremendously important in a civil RICO case as the plaintiff must demonstrate that the defendant's racketeering activity directly caused the plaintiff's injury to business or property. There must be a direct link between the wrongful conduct and the damages suffered. Proximate cause is required, meaning the injury was a foreseeable result of the racketeering acts. Without establishing causation, the plaintiff cannot recover damages under RICO.

Can a Single Act Constitute a RICO Violation?

Generally, a single act doesn’t constitute a RICO violation. The statute requires a pattern of racketeering activity, which means at least two predicate acts that are related and continuous. Isolated or sporadic criminal acts are insufficient. The requirement of a pattern is intended to target ongoing criminal conduct rather than one-time offenses.

What Defenses are There in a Civil RICO Claim?

Defenses against a civil RICO claim may include challenging the existence of an enterprise, disputing the occurrence of predicate acts, arguing that the acts do not constitute a pattern, or demonstrating lack of causation between the alleged racketeering activity and the plaintiff's damages. Defendants may also assert that the statute of limitations has expired or that the plaintiff lacks standing. Procedural defenses and attacking the sufficiency of the complaint are also common strategies.

Legal Representation in Civil RICO Cases

Why Do I Need an Experienced Civil RICO Lawyer in New York?

Civil RICO cases are complex and require a deep understanding of federal statutes, case law, and procedural rules. An experienced lawyer can navigate the intricate legal requirements, build a strong defense, and identify weaknesses in the plaintiff's case. They can also negotiate settlements and represent clients effectively in court. Without specialized knowledge, it is challenging to defend against or pursue a RICO claim successfully.

How Can a NY Civil RICO Lawyer Help in Defending a Civil RICO Lawsuit?

A New York RICO lawyer can assess the merits of the case, develop legal strategies, and file motions to dismiss or limit claims. They can gather evidence, depose witnesses, and challenge the plaintiff's allegations. Lawyers can negotiate with opposing counsel to seek favorable settlements or prepare for trial if necessary. They ensure that the client's rights are protected throughout the legal process.

What Should I Look for When Hiring a NY Civil Rico Attorney?

Look for an attorney with experience handling civil RICO cases, a strong track record, and knowledge of federal court procedures. They should have expertise in the relevant areas of law, such as fraud or organized crime. Good communication skills, strategic thinking, and the ability to manage complex litigation are essential. Client testimonials and professional recognition can also be indicators of competence.

Can an Attorney Help Prevent a Civil RICO Claim in NY?

Yes, an attorney can advise clients on compliance with laws, implement policies to prevent illegal activities, and conduct internal investigations to identify and address potential issues. Proactive legal counsel can help businesses avoid actions that could lead to civil RICO claims. They can also provide training and guidance to ensure that employees understand legal obligations.

Steps in Defending a New York Civil RICO Case

What Happens After a Civil RICO Lawsuit is Filed?

The initial response typically involves filing an answer or a motion to dismiss the complaint. The defendant, through their attorney, reviews the allegations, assesses legal defenses, and determines whether to challenge the sufficiency of the complaint. A motion to dismiss may argue that the plaintiff failed to state a claim upon which relief can be granted or that there are procedural defects.

How is Discovery Conducted in a Civil RICO Case?

Discovery involves the exchange of information between the parties through methods such as interrogatories, requests for documents, depositions, and requests for admissions. Both sides gather evidence to support their claims or defenses. Discovery in civil RICO cases can be extensive due to the complexity and breadth of the issues involved. Attorneys manage the process to obtain relevant information while protecting privileged or confidential material.

What are Pre-Trial Motions in a Civil RICO Case?

Pre-trial motions may include motions to dismiss, motions for summary judgment, motions to exclude evidence, or motions to compel discovery. These motions aim to narrow the issues, resolve legal questions, or dispose of the case before trial. Successful pre-trial motions can significantly impact the outcome by eliminating claims or defenses or limiting the scope of the trial.

Can a Civil RICO Case be Settled Out of Court?

Yes, parties can negotiate a settlement at any stage of the litigation. Settlements may involve payment of damages, dismissal of claims, or other agreed-upon terms. Settling can reduce legal costs, avoid the uncertainty of trial, and provide a quicker resolution. Attorneys facilitate negotiations and advise clients on the advantages and risks of settlement offers.

FAQ About Civil RICO

What is the Statute of Limitations for Civil RICO Claims in New York?

The statute of limitations for civil RICO claims is four years from the time the plaintiff knew or should have known of the injury. Courts may apply different rules to determine when the clock starts, such as the injury discovery rule or the injury occurrence rule. Timely filing is critical; otherwise, the claim may be barred. An attorney can help assess the applicable time frame based on the specifics of the case.

Can a Civil RICO Case be Filed in State Court?

Civil RICO cases can be filed in either federal or state courts, as federal courts have concurrent jurisdiction with state courts over RICO claims. However, most civil RICO cases are filed in federal court due to the federal nature of the statute. The choice of forum may depend on strategic considerations, such as procedural rules, local practices, and perceived advantages.  There are also rules specific to RICO actions promulgated by some of the individual Federal Districts.  Based upon these District specific rules, have the collateral effect of attracting or deterring Plaintiff from filing in certain Districts. 

Does RICO Apply to Activities Outside the United States?

RICO can apply to activities outside the United States if there is a sufficient connection to domestic enterprises or if the racketeering activities have substantial effects within the U.S. Courts have grappled with the extraterritorial application of RICO, and the specifics depend on the case facts. An attorney can analyze whether RICO applies to international conduct involved in a particular case.

Can Multiple Defendants be Sued in a Single RICO Case?

Yes, multiple defendants can be sued in a single RICO case if they are alleged to have participated in the racketeering enterprise. RICO is designed to address collective wrongdoing and can encompass various individuals and entities involved in the illegal activities. Joint and several liability may apply, making each defendant potentially responsible for the entire amount of damages.  By definition, all RICO cases must have at least two defendants.

How Does Bankruptcy Affect a Civil RICO Claim?

If a defendant files for bankruptcy, the civil RICO claim may be affected. The automatic stay in bankruptcy proceedings halts most civil actions against the debtor. However, some RICO claims may proceed under certain circumstances, such as when the claim arises from post-petition activities. The plaintiff may need to file a proof of claim in the bankruptcy case. An attorney can advise on the implications of bankruptcy on the RICO litigation.

What are the Consequences of a Civil RICO Judgment for a Business?

A judgment against a business in a civil RICO case can have severe consequences. The business may be liable for treble damages and attorney's fees, leading to significant financial losses. The judgment can damage the business's reputation, affect customer and supplier relationships, and lead to regulatory scrutiny. In some cases, it may result in dissolution or bankruptcy.

Can Employees be Personally Liable Under Civil RICO?

Yes, employees who participate in racketeering activities can be personally liable under civil RICO. Plaintiffs can sue individuals who conduct or participate in the affairs of the enterprise through a pattern of racketeering activity. Personal liability means that the individual's assets may be at risk to satisfy a judgment. Employers and employees may both be named as defendants.

How Does a Civil RICO Lawsuit Affect Current Business Operations?

A civil RICO lawsuit can disrupt business operations due to the time and resources required to defend the case. It may lead to negative publicity, loss of customer trust, and strained relationships with partners or investors. Management's attention may be diverted from regular activities. The financial impact of potential damages and legal fees can also affect the business's stability and growth.

Can a Civil RICO Case Lead to Criminal Charges?

Information uncovered in a civil RICO case can potentially lead to criminal investigations and charges. While civil and criminal proceedings are separate, evidence of criminal conduct may be shared with law enforcement. Defendants should be aware of the possibility and seek legal counsel experienced in both civil and criminal matters to navigate the risks.

What Steps Can a Business Take to Avoid RICO Allegations?

Businesses can implement compliance programs, establish clear policies against illegal activities, conduct regular training, and monitor for potential violations. Internal controls and audits help detect and address issues early. Legal counsel can assist in developing policies and responding promptly to any allegations of misconduct. Cultivating an ethical corporate culture reduces the risk of RICO allegations.

Your Trusted Guide Through Complex RICO Litigation in NY