RICO Report

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this installment, Cal welcomes Troutman Pepper Intellectual Property Partner Austin Padgett to discuss the recent RICO lawsuit against fast-fashion giant, Shein, and what it means for the industry. Specific topics include:

• Background on the fast-fashion industry and the Shein companies (2:00);
• Plaintiffs' claims and factual allegations against Shein (5:12);
• The alleged Shein RICO "enterprise" (7:41);
• Shein's alleged "racketeering activity": criminal copyright infringement (14:38);
• "Pattern" allegations: Reliance on other lawsuits against Shein (23:30); and
• Key takeaway: RICO claim threatens the core of the fast-fashion industry (28:32).

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this installment, Cal welcomes Associate Armeen Shroff to discuss how the RICO statute can be used to enforce and collect on a foreign arbitration award, as illustrated in the Supreme Court's recent ruling in Yegiazaryan v. Smagin. Specific topics include:

• Facts of Yegiazaryan v. Smagin (3:12);
• History of RICO's "domestic injury" requirement (5:30);
• The location test for "domestic injury" to tangible property (8:13);
• The bright line test for "domestic injury" to intangible property (10:40);
• The multifactor test for "domestic injury" to intangible property (12:44);
• Procedural posture of Yegiazaryan v. Smagin (16:04);
• Supreme Court majority finds RICO standing in Yegiazaryan v. Smagin (18:30);
• Dissenting opinion (22:12); and
• Practical takeaways from Yegiazaryan v. Smagin (24:30).

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this installment, Cal examines state RICO laws and how they compare with the federal RICO statute. In particular, Cal focuses on some the key areas where state RICO statutes can vary from federal RICO, and how those differences can practically impact the defense of a case. Specific topics include:

• History of state RICO statutes (4:45);
• Legislative intent underlying RICO statutes (7:29);
• State RICO statutes of limitations (11:38);
• Racketeering activity in state RICO statutes (13:43);
• State RICO definitions of pattern (16:22);
• Enterprise element under state RICO statutes (19:42);
• Variations in RICO conduct in state RICO statutes (21:23); and
• State RICO statutes' remedies (25:39).

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, examining the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this installment, Cal welcomes Troutman Pepper Associate Timothy Bado to discuss how unlawful debt collection practices can serve as a basis for a RICO claim. Specific topics include:

• Unlawful debt collection as a prohibited RICO activity (2:15);
• Definition of "unlawful debt" (6:05);
• What is a "usurious" loan? (10:30);
• "The business of" illegal gambling or usurious loans (14:49);
• Pleading unlawful debt collection vs. fraud (17:30);
• RICO litigation trend: "Rent-a-bank" cases (20:15); and
• RICO litigation trend: Merchant cash advance cases (24:57).

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this installment, Cal welcomes Troutman Pepper Partner, former Assistant U.S. Attorney, and experienced RICO prosecutor Michael Lowe to discuss two of the most common predicate acts for racketeering claims: mail fraud under 18 U.S.C. §1341 and wire fraud under 18 U.S.C. §1343. Specific topics include:

• How mail and wire fraud fit into a RICO claim (2:34);
• Frequency of mail and wire fraud as predicate acts (4:04);
• First-party reliance not required (8:08);
• Element #1: Scheme to defraud (13:16);
• Element #2: Use of mails and wires (18:16);
• Element #3: Intent to defraud (25:24);
• Materiality as a limitation to mail and wire fraud (29:10); and
• Honest services fraud (32:26).

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this seventh installment Cal discusses the element of RICO racketeering activity. Cal focuses the discussion on the first three subparts of Section 1961 Subsection One which covers state offenses, federal offenses found in Title 18, and racketeering offenses in Title 29 that involve labor unions.  Specific topics include:

• Statutory definition of “racketeering activity” (3:00)
• State criminal offenses as “racketeering activity” (8:10)
• Federal offenses in Title 18 as “racketeering activity” (11:15)
• Labor offenses in Title 29 as “racketeering activity” (14:33)
• No conviction requirement for “racketeering activity” (16:30)
• Attempt offenses as “racketeering activity” (17:30)

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this sixth installment, Cal welcomes Troutman Pepper Associates Chris Carlson and Mary Grace Metcalfe to discuss the RICO element requiring a pattern racketeering activity, including analyzing the definition of “pattern,” the history of Supreme Court guidance on the element, and practical tips on how practitioners can attack the pattern element to defend their clients. Specific topics include:

• RICO’s Statutory Definition of “Pattern” (2:42)
• Supreme Court’s Sedima Decision (5:10)
• Post-Sedima Pattern Tests (8:20)
• HJ, Inc.: The Relatedness + Continuity Test (16:22)
• RICO Relatedness (24:01)
• RICO Continuity (26:16)

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this fifth installment, Cal welcomes Troutman Pepper Associate Sam Harrison to discuss the RICO “enterprise” element and how it applies to RICO cases, particularly those brought under Section 1962(c) for operating a RICO enterprise. Specific topics include:

• Purpose of the enterprise requirement (2:00);
• History of the association-in-fact enterprise (5:45);
• Establishing the association-in-fact enterprise (10:02);
• RICO person/enterprise distinction in Section 1962(c) cases (15:31);
• Corporations as RICO enterprises (18:42); and
• Conducting the affairs of a RICO enterprise (23:08).

Be on the lookout for our next episode of this podcast series.

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this fourth installment, Cal welcomes Troutman Pepper Partner William Taylor and Associate Jaclyn Essinger to discuss the intersection between trade secrets law and RICO, with a particular focus on the Defend Trade Secrets Act (DTSA), including:

• Overview of DTSA (3:58);
• Ingredients of a Typical DTSA RICO Case (8:45);
• What DTSA Violations Are “Racketeering Activity” (14:35);
• DTSA RICO “Enterprises” (21:48); and
• The Future of DTSA RICO Litigation (28:06).

Be on the lookout for our next episode of this podcast series.

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this third installment, Cal welcomes Troutman Pepper Partner Joanna Cline to discuss the four subsections of “prohibited activity” that comprise the RICO “conduct” element:

• Section 1962(a): Investing in an Enterprise (4:20);
• Section 1962(b): Acquiring or Maintaining an Interest in an Enterprise (7:05);
• Section 1962(c): Conducting the Affairs of an Enterprise (10:10); and
• Section 1962(d): RICO Conspiracy (17:27).

Be on the lookout for our next episode of this podcast series.

The Second Circuit Court of Appeals recently issued an opinion in Alix v. Mckinsey & Co. that may fundamentally broaden the proximate cause element of claims brought under the Racketeer Influenced and Corrupt Organizations Act (RICO). RICO's proximate cause element requires a plaintiff to allege facts plausibly establishing a "direct relationship" between the claimed injury and the defendant's conduct in violation of RICO. By expanding its interpretation of this element, the Second Circuit may have made it easier for future plaintiffs to bring and plead civil RICO claims, particularly against their business competitors.

Join Troutman Pepper Partners Cal Stein and Stephen Rinehart for this installment of the RICO Report as they discuss the case (1:18); RICO claims (4:02); McKinsey's successful motion to dismiss the RICO claims at the district court level (5:37); the Second Circuit's appellate decision, including its analysis of intervening events (8:25); Alix's market share causation argument (10:39); and key lessons practitioners can take away from the decision and possibly apply to future RICO cases (18:24).

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO).

In this first installment, Cal provides a brief overview of the RICO statute and introduces many other topics he plans to explore in future installments. Cal answers basic questions — like what is RICO and how does RICO work — and provides a high-level summary of foundational substantive legal issues, such as a discussion of RICO's elements and its civil and criminal penalties. This session also provides a basic understanding of RICO's statutory framework and the underlying criminal offenses that constitute actionable racketeering activity.

Be on the lookout for our next episode of this podcast series.