Commercial Litigation and Arbitration

RICO — Activities of Enterprise, Not Each Predicate Act, Must Affect Interstate Commerce

From Aguilar v. Mega Lighting, Inc., 2009 U.S. Dist. LEXIS 28348 (C.D. Cal. April 6, 2009):

RICO grants jurisdiction over "any enterprise engaged in, or the activities of which affect[] interstate or foreign commerce," which is used for "a pattern of racketeering activity." 18 U.S.C. § 1962(c). RICO requires that the activities of the "enterprise," not each RICO "predicate act," affect interstate commerce. United States v. Rone, 598 F.2d 564, 573 (9th Cir. 1979). A "minimal" or "de minimis" effect on interstate commerce is sufficient to establish jurisdiction in a civil RICO prosecution. United States v. Juvenile Male, 118 F.3d 1344, 1348 (9th Cir. 1997)(citing United States v. Rone, 598 F.2d 564, 573 (9th cir. 1979). A minimal effect on interstate commerce is demonstrated by "proof of a probable or potential impact." Id. at 1349.

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