Civil RICO Claims: What Plaintiffs Must Prove to Succeed
If you believe your business has been targeted by corrupt dealings involving racketeering activity, countering such actions requires a precise legal approach. Civil RICO (Racketeer Influenced and Corrupt Organizations) claims provide a path for plaintiffs to seek justice and recover damages from those who engage in fraudulent activities. These cases are complicated, and achieving a successful outcome demands seasoned legal counsel.
This is where the Law Offices of David H. Schwartz, Inc. steps in. Based in San Francisco and serving the Bay Area, including San Jose, Santa Clara, San Mateo, Alameda County, and Oakland, Attorney David Schwartz brings over 45 years of experience in business litigation.
Known for his strategic thinking and sharp understanding of complex legal disputes, he has represented California businesses and individuals in high-stakes cases, including trade secret violations, Civil RICO claims, shareholder actions, and general business litigation.
Attorney Schwartz provides robust representation for plaintiffs in their fight against fraudulent and corrupt activities that harm their businesses. With a deep commitment to clients' success, he can guide business owners and individuals through Civil RICO claims.
Understanding Civil RICO Claims
Originally designed to combat organized crime, the RICO Act (18 U.S.C. § 1961–1968) allows individuals and businesses harmed by patterns of illicit activity to take legal action. While its origins are in criminal law, the statute also creates a civil claim pathway. A plaintiff can sue for triple damages, attorney’s fees, and cost recovery if they establish a case under RICO.
To file a successful Civil RICO claim, plaintiffs must prove specific elements required by the statute. These requirements are strictly interpreted by courts, making detailed preparation and legal knowledge key to succeeding in such cases.
The Four Key Elements Plaintiffs Must Establish
A Civil RICO case hinges on the plaintiff’s ability to prove these essential components:
1. Existence of an Enterprise
RICO claims revolve around the concept of an "enterprise," which can be either a formal organization like a corporation or an informal group of individuals or entities working together toward a common purpose. The plaintiff must show that the enterprise exists, is separate from the individual defendants, and engages in concerted activity.
2. Pattern of Racketeering Activity
Plaintiffs must demonstrate a “pattern” of racketeering activity, which includes at least two qualifying acts of racketeering within 10 years. These racketeering acts, also called “predicate acts,” may involve crimes such as fraud (mail, wire, or bank), embezzlement, extortion, and money laundering. Showing a pattern requires proving that these acts are connected and reflect the ongoing operation of the enterprise.
3. Connection Between Racketeering Activity and the Enterprise
There must be a clear link between the racketeering activity and the enterprise itself. A plaintiff needs to show that the enterprise not only engaged in criminal acts but also used those acts to sustain its operations or achieve its objectives.
4. Proximate Cause of Injury to the Plaintiff
The plaintiff must also establish that the racketeering activity directly caused measurable harm to their business or property. Merely showing that illegal acts occurred is insufficient; the injury must be a direct result of the specific racketeering acts under the RICO claim.
Success in Civil RICO cases depends upon comprehensive documentation, attention to detail, and a compelling demonstration of damages caused by the racketeering activity.
The Remedies Available Under RICO
If a plaintiff prevails in a Civil RICO claim, they are entitled to treble (triple) damages. For instance, if the plaintiff can prove that their actual damages amount to $2 million, the court may award $6 million under RICO. Additionally, courts may order the repayment of legal fees and other litigation-related expenses.
This punitive and compensatory element of RICO lawsuits makes them especially impactful, particularly in cases involving complex frauds or schemes causing widespread harm to businesses.
A Closer Look at Civil RICO in California
Federal law governs RICO, but California has its own statutes that often play a vital role in Civil RICO litigation. California's Business and Professions Code § 17200, also known as the “Unfair Competition Law,” regulates unlawful, unfair, or fraudulent business practices.
For plaintiffs in California, including the San Francisco Bay Area, these state laws can provide powerful supplementary claims alongside federal Civil RICO cases. Courts in California have applied RICO standards with unique considerations, particularly when analyzing patterns of racketeering and fraud within the state’s vibrant business landscape.
Additionally, California courts recognize that RICO cases can involve various industries, from technology and real estate to retail. Industry-specific practices often define the alleged acts of racketeering. Attorneys pursuing these claims must carefully analyze both federal and California laws for creating a persuasive case strategy.
Statutes of limitation also play a key role in California-based RICO cases. Civil RICO claims generally must be filed within four years of the discovery of the injury. However, plaintiffs should act quickly, as the timeframe for filing may depend on the specific circumstances of the case and applicable California statutes.
Civil RICO Claims Attorney Serving the San Francisco Bay Area
At the Law Offices of David H. Schwartz, Inc., businesses and individuals find an ally prepared to handle the pressing demands of complex litigation. Attorney David Schwartz has successfully represented California clients in cases involving fraud, trade secret disputes, shareholder actions, Civil RICO claims, and more.
David has spent over 45 years enabling clients to focus on their businesses while he crafts powerful legal solutions on their behalf. His approach combines thorough research with a strategic mindset honed through decades of experience.
If you’re in the San Francisco Bay Area, including San Jose, Santa Clara, San Mateo, Alameda County, or Oakland, and need legal assistance in a Civil RICO dispute, contact the Law Offices of David H. Schwartz, Inc. now.