Re: RICO and Asset Forfeitures

[Brian Davis <bdavis@thepoint.net>]

On Sun, 16 Jul 1995, Timothy C. May wrote:

> At 12:59 PM 7/16/95, Andrew Spring wrote:
> >>ranked as a mobster subject to RICO.  My guess is that the intent is that
> >>from one placement on an FTP server or one posting to a newsgroup, the
> >>perpetrator of that heinous act will have passed his RICO qualification and
> >>therefore be subject to having all he owns taken from him.
> >
> >RICO question:  i thought that the idea of RICO is to confiscate assets of
> >racketeers that are derived from criminal activities.  PGP and remailer
> >software is distributed free.  so would RICO seizures even apply (yes I
> >know this doesnt' always stop the FBI)?
> 
> As I understand RICO (Racketeer-Influenced and Corrupt Organizations Act,
> though the euphonious "Rico," a la South American drug kingpins, is the
> real reason for the name), only the assets imputed to the illegal act can
> be seized. Thus, boats, factories, houses, etc., that are imputed
> (believed, claimed) to have been bought partially or wholly from funds from
> illegal acts can be seized.
>
Assets directly traceable to criminal activity can be forfeited in a 
civil proceeding.  "Substitute assets" (when the assets obtained 
directly from the criminal activity have been dissipated or just can't be 
found) can be forfeited in a criminal forfeiture (that is, as part of an 
indictment...).
 
> Civil penalties are another matter. If you're charged with distributing
> something illegal and a fine of $250,000 is levied, then you may have to
> sell everything you own to pay it, but it's not a RICO seizure.
> 
> --Tim May
> 
EBD