sedima imrex argued april decided july racketeer influenced corrupt organizations act rico directed racketeering activity defined encompass inter alia acts indictable specific federal criminal provisions including mail wire fraud provides private civil action recover treble damages person injured business property reason violation section section prohibits conducting participating conduct enterprise pattern racketeering activity petitioner corporation entered joint business venture respondent company believed cheated alleged overbilling filed suit federal district asserting inter alia rico claims respondent company two officers also respondents alleged violations based predicate acts mail wire fraud dismissed rico counts failure state claim appeals affirmed holding rico plaintiff must allege racketeering injury injury caused activity rico designed deter injury occurring result predicate acts complaint also defective alleging respondents convicted predicate acts mail wire fraud rico violation held requirement private action proceed defendant already convicted predicate act rico violation requirement supported rico history language considerations policy contrary every indication requirement exists accordingly fact respondents convicted rico federal mail wire fraud statutes bar petitioner action pp requirement order maintain private action plaintiff must establish racketeering injury merely injury resulting predicate acts reading statute belies racketeering injury requirement defendant engages pattern racketeering activity manner forbidden racketeering activities injure plaintiff business property plaintiff claim room statutory language additional amorphous racketeering injury requirement plaintiff alleges element violation compensable injury necessarily harm caused predicate acts sufficiently related constitute pattern essence violation commission acts connection conduct enterprise pp white delivered opinion burger rehnquist stevens joined marshall filed dissenting opinion brennan blackmun powell joined post powell filed dissenting opinion post franklyn snitow argued cause petitioner brief william pauley iii richard eisenberg argued cause respondents brief alfred weintraub joel klein briefs amici curiae urging reversal filed state arizona et al attorneys general respective follows robert corbin arizona norman gorsuch alaska john van de kamp california duane woodard colorado joseph lieberman connecticut jim smith florida michael lilly hawaii jim jones idaho neil hartigan illinios linley pearson indiana david armstrong kentucky william guste louisiana frank kelley michigan edward pittman mississippi william webster missouri mike greely montana brian mckay nevada irwin kimmelman new jersey paul bardacke new mexico lacy thornburg north carolina nicholas spaeth north dakota anthony celebrezze ohio michael turpen oklahoma david fronmayer oregon dennis roberts ii rhode island travis medlock south carolina mark meierhenry south dakota michael cody tennessee david wilkinson utah john easton vermont kenneth eikenberry washington charlie brown west virginia bronson la follette wisconsin archie mcclintock wyoming state new york robert abrams attorney general robert hermann solicitor general city new york et al frederick schwarz james montgomery barbara mather county suffolk new york mark cohen briefs amici curiae urging affirmance filed alliance american insurers et al james fitzpatrick john quinn american institute certified public accountants philip lacovara jay kelly wright kenneth bialkin louis craco securities industry association joel sternman eugene gaer william fitzpatrick justice white delivered opinion racketeer influenced corrupt organizations act rico pub title ix stat amended provides private civil action recover treble damages injury reason violation substantive provisions initial dormancy provision recent greatly increased utilization familiar history response perceived misuse civil rico private plaintiffs construed permit private actions defendants convicted criminal charges occurred racketeering injury understand concern consequences unbridled reading statute reject holdings rico takes aim racketeering activity defines act chargeable several generically described state criminal laws act indictable numerous specific federal criminal provisions including mail wire fraud offense involving bankruptcy securities fraud activities punishable federal law section entitled prohibited activities outlaws use income derived pattern racketeering activity acquire interest establish enterprise engaged affecting interstate commerce acquisition maintenance interest enterprise pattern racketeering activity conducting participating conduct enterprise pattern racketeering activity conspiring violate provisions congress provided criminal penalties imprisonment fines forfeiture violation provisions addition set civil enforcement scheme including following provision private suits person injured business property reason violation section chapter may sue therefor appropriate district shall recover threefold damages sustains cost suit including reasonable attorney fee sedima filed action federal district eastern district new york complaint set claims unjust enrichment conversion breach contract fiduciary duty constructive trust addition asserted rico claims imrex two officers two counts alleged violations based predicate acts mail wire fraud see third count alleged conspiracy violate claiming injury least amount alleged overbilling sedima sought treble damages attorney fees district held injury reason violation section required must somehow different kind direct injury resulting predicate acts racketeering activity supp choosing precise formulation district held complaint must allege injury either sort distinct racketeering injury competitive injury found allegation injury apart result directly alleged predicate acts mail fraud wire fraud accordingly dismissed rico counts failure state claim divided panel appeals second circuit affirmed lengthy review legislative history held sedima complaint defective two ways first failed allege injury reason violation section view language limitation standing reflecting congress intent compensate victims certain specific kinds organized criminality provide additional remedies already compensable injuries analogizing clayton act model concluded antitrust plaintiff must allege antitrust injury rico plaintiff must allege racketeering injury injury different kind occurring result predicate acts simply caused predicate acts also caused activity rico designed deter sedima failed allege injury appeals also found complaint defective alleging defendants already criminally convicted predicate acts mail wire fraud rico violation element civil cause action inferred reference violation also observing requirement avoid serious constitutional difficulties danger unfair stigmatization problems regarding standard predicate acts proved decision one episode recent proliferation civil rico litigation within second circuit courts appeals light variety approaches taken lower courts importance issues granted certiorari reverse ii preliminary matter worth briefly reviewing legislative history private action rico formed title ix organized crime control act pub stat civil remedies bill passed senate limited injunctive actions became previous versions legislation however provided private action exactly terms ultimately adopted see sess hearings house judiciary committee representative steiger proposed addition private action similar private damage remedy found laws hose wronged organized crime least given access legal remedy addition availability remedy enhance effectiveness title ix prohibitions hearings related proposals subcommittee house committee judiciary hereinafter house hearings american bar association also proposed amendment based upon concept section clayton act see cong rec see also sess house counterpart dissent three members feared provision used malicious harassment business competitors committee approved amendment pp summarizing bill house floor sponsor described provision another example antitrust remedy adapted use organized criminality cong rec full house rejected proposal create complementary remedy injured named defendants malicious private suits representative steiger also offered amendment allowed private injunctive actions fixed statute limitations clarified venue process requirements see proposal greeted hostility reviewed committee steiger withdrew without vote taken house passed bill provision form recommended committee senate seek conference adopted bill amended house provision drawn attention legislation still house received endorsement senator mcclellan sponsor view provision major new tool extirpating baneful influence organized crime economic life iii language rico gives obvious indication civil action proceed criminal conviction word conviction appear relevant portion statute see contrary predicate acts involve conduct chargeable indictable offense punishable various criminal statutes defined statute racketeering activity consists acts defendant convicted acts see also racketeering activity must act subject criminal sanction emphasis added thus requirement found definition racketeering activity found sets statute substantive provisions indeed either contain requirement prior conviction also prerequisite nonsensically criminal prosecution civil action government enjoin violations yet occurred appeals purported discover requirement term violation however even term read refer criminal conviction require conviction rico predicate offenses aside term violation imply criminal conviction see ward refers failure adhere legal requirements indisputable meaning elsewhere statute section renders certain conduct unlawful impose consequences criminal civil violations lightly infer congress intended term wholly different meanings neighboring subsections legislative history also undercuts reading clearest current history reliance clayton act model private governmental actions entirely distinct borden specific reference legislative history prior convictions aware objection provision broad precisely need conviction laws racketeering cong rec emphasis added history otherwise silent point contains nothing contradict import language appearing statute congress intended impose novel requirement least mention legislative history even statute appeals view narrow construction statute essential avoid intolerable practical consequences first without prior conviction rely plaintiff prove commission predicate acts beyond reasonable doubt require instructing jury different standards proof different aspects case avoid awkwardness inferred criminality must already established civil action proceed smoothly usual preponderance standard convinced predicate acts must established beyond reasonable doubt proceeding number settings conduct punished criminal upon proof beyond reasonable doubt support civil sanctions preponderance standard see one assortment firearms one lot emerald cut stones helvering mitchell regan indication congress sought depart general principle see measures relating organized crime hearings et al subcommittee criminal laws procedures senate committee judiciary statement assistant attorney general wilson house hearings statement steiger statement poff cong rec statement minish offending conduct described reference criminal statutes mean occurrence must established criminal standards consequences finding liability private civil action identical consequences criminal conviction cf ward supra need decide standard proof issue today even stricter standard applicable portion plaintiff proof resulting logistical difficulties accepted contexts great require invention requirement found statute congress even appeals concede envision also feared construction raise severe constitutional questions provide civil remedies offenses criminal nature stigmatize defendants appellation racketeer authorize award damages clearly punitive including attorney fees constitute civil remedy aimed part avoid constitutional protections criminal law view statute close constitutional edge noted fact conduct result criminal liability treble damages mean bona fide civil action familiar provisions criminal liability treble damages antitrust laws indicate much attorney fees clearly punitive cf stigma civil rico proceeding leaves greater stain number civil proceedings furthermore requiring conviction predicate acts protect unfair imposition racketeer label problem thus stigmatizing garden variety defrauder means civil action reduced making certain defendant guilty fraud beyond reasonable doubt finally extent action might considered requiring protections normally applicable criminal proceedings cf one plymouth sedan pennsylvania solution provide protections ensure previously afforded requiring prior convictions finally note requirement inconsistent congress underlying policy concerns rule severely handicap potential plaintiffs guilty party may escape conviction number reasons least among possibility government may choose pursue civil remedies private attorney general provisions part designed fill prosecutorial gaps cf reiter sonotone purpose largely defeated need treble damages incentive litigate unjustified private suits maintained already brought justice see also supra sum find support statute history language considerations policy requirement private action proceed defendant already criminally convicted contrary every indication requirement exists accordingly fact imrex individual defendants convicted rico federal mail wire fraud statutes bar sedima action iv considering appeals second prerequisite private civil rico action injury caused activity rico designed deter somewhat hampered vagueness concept apart reliance general purposes rico reference mobsters provided scant indication requirement racketeering injury means emphasized congress undeniable desire strike organized crime acknowledged purport overrule second circuit precedent rejecting requirement organized crime nexus see moss morgan stanley cert denied sub nom moss newman also stopped short adopting competitive injury requirement insisting plaintiff show kind economic injury effect competition require actual anticompetitive effect see also statement plaintiff must seek redress injury caused conduct rico designed deter unhelpfully tautological clarity furnished negative statement rule standing provided injury resulting predicate acts statement apparently inaccurate applied predicate acts unmistakably constitute kind conduct congress sought deter see opinion explain distinguish crimes predicate acts congress lumped together alone struggling define racketeering injury difficulty task cautions imposing requirement need pinpoint second circuit precise holding perceive distinct racketeering injury requirement given racketeering activity consists less commission predicate act initially doubtful requirement racketeering injury separate harm predicate acts reading statute belies requirement section authorizes private suit ny person injured business property reason violation section turn makes unlawful person mobsters use money derived pattern racketeering activity invest enterprise acquire control enterprise pattern racketeering activity conduct enterprise pattern racketeering activity defendant engages pattern racketeering activity manner forbidden provisions racketeering activities injure plaintiff business property plaintiff claim room statutory language additional amorphous racketeering injury requirement violation section sedima relies requires conduct enterprise pattern racketeering activity plaintiff must course allege elements state claim conducting enterprise affects interstate commerce obviously violation mere commission predicate offenses addition plaintiff standing recover extent injured business property conduct constituting violation seventh circuit stated defendant violates section liable treble damages everyone might injured conduct defendant liable injured haroco american national bank trust chicago aff post statute requires plaintiff alleges element violation compensable injury necessarily harm caused predicate acts sufficiently related constitute pattern essence violation commission acts connection conduct enterprise acts committed circumstances delineated activity rico designed deter recoverable damages occurring reason violation flow commission predicate acts less restrictive reading amply supported prior cases general principles surrounding statute rico read broadly lesson congress expansive language overall approach see turkette also express admonition rico liberally construed effectuate remedial purposes pub stat statute remedial purposes nowhere evident provision private action injured racketeering activity see also supra far effectuating purposes narrow readings offered dissenters effect eliminate statute rico aggressive initiative supplement old remedies develop new methods fighting crime see generally russello legislative statements novel remedies attacking crime fronts see made direct reference spirit act provisions read specific references consistent overall approach supporting hoped enhance effectiveness title ix prohibitions house hearings provide major new tool cong rec see also cong rec opponents also recognizing provision scope complained provided easy weapon innocent businessmen prone abuse cong rec also significant previous proposal add provisions sherman act come grief part precisely create inappropriate unnecessary obstacles way private litigant contend body precedent appropriate purely antitrust context setting strict requirements questions standing sue proximate cause cong rec aba comments see also proposed amendment title avoid problems borrowing racketeering injury requirement antitrust standing principles created exactly problems congress sought avoid underlying appeals holding distress extraordinary outrageous uses civil rico put instead used mobsters organized criminals become tool everyday fraud cases brought respected legitimate enterprises ibid yet congress wanted reach legitimate illegitimate enterprises turkette supra former enjoy neither inherent incapacity criminal activity immunity consequences fact used respected businesses allegedly engaged pattern specifically identified criminal conduct hardly sufficient reason assuming provision misconstrued reveal ambiguity discovered fact rico applied situations expressly anticipated congress demonstrate ambiguity demonstrates breadth haroco american national bank trust chicago supra true private civil actions statute brought almost solely defendants rather archetypal intimidating mobster yet defect defect inherent statute written correction must lie congress judiciary eliminate private action situations congress provided simply plaintiffs taking advantage difficult applications nonetheless recognize private civil version rico evolving something quite different original conception enactors see generally aba report though sharing doubts appeals increasing divergence agree either diagnosis remedy extraordinary uses civil rico put appear primarily result breadth predicate offenses particular inclusion wire mail securities fraud failure congress courts develop meaningful concept pattern believe amorphous standing requirement imposed second circuit effectively responds problems form statutory amendment appropriately undertaken courts sedima may maintain action defendants conducted enterprise pattern racketeering activity questions whether defendants committed requisite predicate acts whether commission acts fell pattern us complaint deficient failure allege either injury separate financial loss stemming alleged acts mail wire fraud prior convictions defendants judgment accordingly reversed case remanded proceedings consistent opinion ordered footnotes thorough bibliography civil rico decisions commentary see milner civil rico bibliography rico defines racketeering activity mean act threat involving murder kidnaping gambling arson robbery bribery extortion dealing narcotic dangerous drugs chargeable state law punishable imprisonment one year act indictable following provisions title code section relating bribery section relating sports bribery sections relating counterfeiting section relating theft interstate shipment act indictable section felonious section relating embezzlement pension welfare funds sections relating extortionate credit transactions section relating transmission gambling information section relating mail fraud section relating wire fraud section relating obstruction justice section relating obstruction criminal investigations section relating obstruction state local law enforcement section relating interference commerce robbery extortion section relating racketeering section relating interstate transportation wagering paraphernalia section relating unlawful welfare fund payments section relating prohibition illegal gambling businesses sections relating interstate transportation stolen motor vehicles sections relating interstate transportation stolen property section relating trafficking certain motor vehicles motor vehicle parts sections relating trafficking contraband cigarettes sections relating white slave traffic act indictable title code section dealing restrictions payments loans labor organizations section relating embezzlement union funds offense involving fraud connected case title fraud sale securities felonious manufacture importation receiving concealment buying selling otherwise dealing narcotic dangerous drugs punishable law act indictable currency foreign transactions reporting act supp iii relevant part provides shall unlawful person received income derived directly indirectly pattern racketeering activity collection unlawful debt use invest directly indirectly part income proceeds income acquisition interest establishment operation enterprise engaged activities affect interstate foreign commerce shall unlawful person pattern racketeering activity collection unlawful debt acquire maintain directly indirectly interest control enterprise engaged activities affect interstate foreign commerce shall unlawful person employed associated enterprise engaged activities affect interstate foreign commerce conduct participate directly indirectly conduct enterprise affairs pattern racketeering activity collection unlawful debt shall unlawful person conspire violate provisions subsections section day decision case another divided panel second circuit reached similar conclusion bankers trust rhoades cert pending held allowed recovery injuries resulting predicate acts fact part pattern plaintiff injury caused predicate acts injured regardless whether pattern hence said injured pattern recover emphasis original following day third panel circuit time unanimous decided furman cirrito cert pending case district dismissed complaint failure allege distinct racketeering injury appeals affirmed relying opinions sedima bankers trust wrote length record disagreement decisions panel required injury beyond resulting predicate acts month trio second circuit opinions released eighth circuit decided alexander grant tiffany industries cert pending nos viewing decision contrary sedima consistent though broader bankers trust held rico claim require unspecified element beyond injury flowing directly predicate acts time stood prior decision rejected requirement injury solely commercial competitive defendants involved organized crime see bennett berg aff part rev part en banc cert denied two months later seventh circuit decided haroco american national bank trust chicago aff post dismissing sedima resurrection discredited requirement organized crime nexus bankers trust emasculation remedy seventh circuit rejected elusive racketeering injury requirement fifth circuit taken similar position alcorn county interstate supplies requirement prior rico conviction rejected bunker ramo business forms usaco coal carbomin energy see also cappetto cert denied civil action government congress intended defendant previously convicted said title supp iii pon conviction person section forfeited property shall seized likewise title legislation congress explicitly required prior convictions rather prior criminal activity support enhanced sentences special offenders see considered significant requires violation section whereas clayton act speaks anything forbidden antitrust laws see viewed deliberate change indicating congress desire underlying conduct forbidden also led criminal conviction nothing legislative history support interpretation view minor departure wording without indicate fundamental departure meaning representative steiger proposed wording house nowhere indicated desire depart antitrust model regard see cong rec contrary viewed provision parallel private remedy letter house judiciary committee likewise senator hruska discussion identically worded proposal gives hint intent see cong rec event change language support drastic inference seems likely language chosen succinct clayton act consistent neighboring provisions see worth bearing mind holding without problematic consequences arbitrarily restricts availability private actions lawbreakers often apprehended convicted even conviction obtained unlikely private plaintiff able recover acts constituting extensive pattern multiple victims able obtain redress criminal convictions often limited small portion actual possible charges decision also create peculiar incentives plea bargaining offenses ensure immunity later civil suit nothing else criminal defendant might plead tiny fraction counts limit future civil liability addition dependence potential civil litigants initiation success criminal prosecution lead unhealthy private pressures prosecutors trial testimony least accusations thereof problems also arise convictions reversed appeal finally compelled wait completion criminal proceedings result pursuit stale claims complex statute limitations problems wasteful splitting actions resultant claim issue preclusion complications appeals also observed allowing civil suits without prior convictions make hash statute requirement see rico since criminal statutes must strictly construed reasoned allowing liberal construction rico approach often justified ground conduct liability imposed already criminal permissible already existed criminal convictions doubts premise rather convoluted argument principle merely guide statutory interpretation like identical twin rule lenity serves aid resolving ambiguity used beget one callanan see also turkette even principle application support holding principles mutually exclusive strictly construed without adopting approach cf gypsum indeed congress mandate applied anywhere rico remedial purposes evident even constitutional questions significant doubts insufficient overcome mandate statute language history statutes construed avoid constitutional questions interpretative canon license judiciary rewrite language enacted legislature albertini decision appear identical bankers trust established standing requirement whereas bankers trust adopted limitation damages one focused mobster element took conceptual approach distinguishing injury caused individual acts injury caused cumulative effect thus eighth circuit indicated agreement bankers trust sedima alexander grant tiffany industries see also haroco american national bank trust chicago two tests described different aba task force see aba report yet bankers trust seem think departing sedima see second circuit panels treated two decisions consistent see furman cirrito cert pending durante brothers sons flushing national bank evident difficulty discerning racketeering injury requirement consists make rather hard apply practice explain jury given plain words statute agree congress inkling implications congress inklings best determined statutory language chooses language chose extends far beyond limits drawn appeals clanging silence legislative history justify limits one thing pass congress unnoticed see part ii supra addition congressional silence matter clanging override words statute many commentators pointed definition pattern racketeering activity differs provisions pattern requires least two acts racketeering activity emphasis added means two acts implication two acts necessary may sufficient indeed common parlance two anything generally form pattern legislative history supports view two isolated acts racketeering activity constitute pattern senate report explained target rico thus sporadic activity infiltration legitimate business normally requires one racketeering activity threat continuing activity effective factor continuity plus relationship combines produce pattern emphasis added similarly sponsor senate bill quoting portion report pointed colleagues term pattern requires showing relationship therefore proof two acts racketeering activity without establish pattern cong rec statement mcclellan see also statement poff rico aimed isolated offender house hearings significantly defining pattern later provision bill congress enlightening riminal conduct forms pattern embraces criminal acts similar purposes results participants victims methods commission otherwise interrelated distinguishing characteristics isolated events language may useful interpreting sections act cf iannelli damages include limited sort competitive injury dissenters allow recovery see post dissent reading statute harm proximately caused forbidden conduct compensable ultimately indirectly flowing therefrom reject approach finding warrant language history statute denying recovery thereunder direct victims racketeering activity post preserving indirect even grudging apparently allowed recovery direct ultimate harm flowing defendant conduct requiring injury simply caused predicate acts also caused activity rico designed deter emphasis added dissent also go second circuit requirement plaintiff suffered competitive injury stated congress nowhere suggested actual effect required suits statute ibid language chose allowing recovery ny person injured business property emphasis added applied situation suggests statute limited aba task force found known civil rico cases trial level involved securities fraud fraud commercial business setting allegations criminal activity type generally associated professional criminals aba report another survey published decisions found involved securities transactions commercial contract disputes category made double figures american institute certified public accountants authority bring private suits rico removed justice marshall justice brennan justice blackmun justice powell join dissenting today recognizes private civil version rico evolving something quite different original conception enactors ante however expressly validates result imputing manner statute drafted fundamentally disagree reading statute conclusion believe statutory language history disclose narrower interpretation statute fully effectuates congress purposes make compensable civil rico host claims congress never intended bring within rico purview interpretation civil rico statute quite simply revolutionizes private litigation validates federalization broad areas state common law frauds approves displacement federal remedial provisions lightly infer congressional intent effect fundamental changes infer intent untenable indication congress even considered much less approved scheme today defines single significant reason expansive use civil rico presence statute predicate acts mail wire fraud violations see supp iii prior rico federal statute expressly provided private damages remedy based upon violation mail wire fraud statutes make federal crime use mail wires furtherance scheme defraud see moreover courts appeals consistently held implied federal private causes action accrue victims federal violations see ryan ohio edison mail fraud napper anderson henley shields bradford pritchard wire fraud cert denied victims normally restricted bringing actions state fraud theories opinion today two fraudulent mailings uses wires occurring within years might constitute pattern racketeering activity leading civil rico liability see effects making mere two instances mail wire fraud potentially actionable civil rico staggering recent years courts appeals tolerated extraordinary expansion mail wire fraud statutes permit federal prosecution conduct thought subject state criminal civil law weiss newman dissenting bringing criminal actions statutes prosecutors need show either substantial connection scheme defraud mail wire fraud statutes see pereira fraud involved money property courts sanctioned prosecutions based deprivations intangible rights shareholder right material information siegel client right undivided loyalty attorney bronston cert denied employer right honest faithful service employees bohonus cert denied citizen right know nature agreements entered leaders political parties margiotta cert denied restraining influence inexorable expansion mail wire fraud statutes siegel supra winter dissenting part concurring part prudent use prosecutorial discretion prosecutors simply invoke mail wire fraud provisions every case violation relevant statute proved see dept justice attorney manual example scheme directed class persons general public includes substantial pattern conduct serious consideration given mail fraud prosecution cases parties left settle differences civil criminal litigation state courts ibid responsible use prosecutorial discretion particularly important respect criminal rico prosecutions often rely mail wire fraud predicate acts given extremely severe penalties authorized rico criminal provisions federal prosecutors therefore instructed tilization rico statute federal criminal sanctions requires particularly careful reasoned application mar justice department recognizes broad interpretation criminal rico provisions violate principle primary responsibility enforcing state laws rests state concerned ibid specifically justice department bring rico prosecutions unless pattern racketeering activity required relation purpose enterprise attorney manual mar congress well aware restraining influence prosecutorial discretion enacted criminal rico provisions chose confer broad statutory authority executive fully expecting authority used cases use warranted see measures relating organized crime hearings et al subcommittee criminal laws procedures senate committee judiciary hereinafter cited senate hearings moreover seeking broad interpretation rico turkette government stressed extreme cases brought justice department exercise sound discretion centralized review process see brief context civil rico however restraining influence prosecutors completely absent unlike government private litigants reason avoid displacing state remedies quite contrary litigants lured prospect treble damages attorney fees strong incentive invoke rico provisions whenever allege good faith two instances mail wire fraud defendant facing tremendous financial exposure addition threat labeled racketeer strong interest settling dispute see rakoff personal reflections sedima case reforming rico rico civil criminal law journal civil rico provision consequently stretches mail wire fraud statutes absolute limits federalizes important areas civil litigation solely within domain addition altering fundamentally balance civil remedies broad reading civil rico provision also displaces important areas federal law example one predicate offense rico fraud sale securities supp iii alleging two instances fraud plaintiff might able bring case within scope civil rico provision take great legal insight realize plaintiff pursue case rico rather solely securities act securities exchange act provide express implied causes action violations federal securities laws indeed federal securities laws contemplate compensatory damages ordinarily authorize recovery attorney fees invoking rico contrast successful plaintiff recover treble damages attorney fees importantly interpretation civil rico provision far increase available damages fact virtually eliminates decades legislative judicial development private civil remedies federal securities laws years courts paid close attention matters standing culpability causation reliance materiality well definitions securities fraud see blue chip stamps manor drug stores requirement law endangered species plaintiffs avoid limitations securities laws merely alleging violations predicate acts example even cases investment instrument security covered federal securities laws rico provide remedy plaintiff prove required pattern mail wire fraud cf crocker national bank rockwell international supp nd cal rico course plaintiff recovered federal law mail wire fraud violation similarly customer refrained selling security period market value declining allege two occasions broker recommended telephone part scheme defraud customer sell security customer might thereby prevail civil rico even though neither purchaser seller standing bring action federal securities laws see also two misstatements proxy solicitation subject director national corporation racketeering charges threat treble damages attorneys fees effect civil rico federal remedial schemes limited securities laws example even though commodities fraud predicate offense listed carefully crafted private damages causes action commodity exchange act may circumvented commodities case civil rico actions alleging mail wire fraud see parnes heinold commodities supp nd list goes dislocations caused reading civil rico provision theoretical practice provision frequently invoked legitimate businesses ordinary commercial settings recognizes aba task force studied civil rico found reported cases involved securities fraud involved fraud commercial business setting see ante many prudent defendant facing ruinous exposure decide settle even case merit thus surprising civil rico used extortive purposes giving rise evils designed combat report ad hoc civil rico task force aba section corporation banking business law hereinafter cited aba report civil rico cases involved allegations criminal activity normally associated professional criminals see ante central purpose congress sought promote civil rico mere summary theory practice civil rico brought profound changes legal landscape undoubtedly congress power federalize great deal state common law certainly relevant constraints ability displace federal law however questions face case decide instead whether congress fact intended produce results established canons statutory interpretation counsel reading civil rico provision first impute lightly congressional intention upset balance provision civil remedies fundamentally statute view example santa fe industries green stated bsent clear indication congressional intent reluctant federalize substantial portion law corporations deals transactions securities striking nonchalance declined santa fe industries much well second respect effects federal securities laws federal regulatory statutes reluctant displace federal remedial schemes absent clear direction congress see train colorado public interest research group radzanower touche ross case nothing language statute legislative history suggests congress intended either federalization state common law displacement existing federal remedies quite contrary statute legislative history reveal matters judge oakes called clanging silence moreover congress intended bring dramatic changes nature commercial litigation least paid cursory attention civil rico provision provision added house representatives senate already passed version rico bill house adopted civil remedy provision almost afterthought senate thereafter accepted house version bill without even requesting conference see infra congress simply act way intends effect fundamental changes structure federal law ii statutory language legislative history support view congress intend effect radical alteration federal civil litigation fact language history indicate congressional intention limit workable coherent manner type injury compensable civil rico provision following demonstrates congress sought fill existing gap civil remedies provide means compensation otherwise exist honest businessman harmed economic power racketeers begin review statutory language section grants private right action person injured business property reason violation section section turn makes unlawful invest enterprise engaged interstate commerce funds derived pattern racketeering activity acquire operate interest enterprise pattern racketeering activity conduct participate conduct enterprise pattern racketeering activity section defines racketeering activity mean numerous acts chargeable indictable enumerated state federal laws including murder arson bribery statutes federal mail wire fraud statutes antifraud provisions federal securities laws pattern racketeering activity requires proof least two acts racketeering within years terms therefore grants cause action person injured reason violation holds today injury plaintiff need allege injury occurring reason predicate racketeering act one offenses listed terms provide remedy injury reason requires injury reason words section prohibits involvement enterprise racketeering activity racketeering violation thus construction rico permitting recovery damages arising racketeering acts simply comport statute written congress effect broad construction replaces rule treble damages recovered occur reason violation section rule permitting recovery treble damages whenever violation section unwarranted judicial interference act plain meaning justified comment nw rev footnotes omitted addition statute permits recovery injury business property therefore excludes recovery personal injuries however many predicate acts listed threaten inflict personal injuries murder kidnaping congress fact intended victims predicate acts recover injuries holds inexplicable congress limited recovery business property injury simply makes sense allow recovery victims predicate acts make recovery turn solely whether defendant chosen inflict personal pain harm property order accomplish end summary statute clearly contemplates recovery injury resulting confluence events described merely commission predicate act contrary interpretation distorts statutory language guise adopting definition without offering indication congressional intent justifies deviation shown plain meaning statute however even statutory language ambiguous see haroco american national bank trust chicago aff post scope civil rico provision different interpretation statute finds strong support legislative history provision reviewing legislative history civil rico numerous federal courts become mired controversy extent congress intended adopt reject federal antitrust laws model rico provisions basis dispute among lower courts language provision tracks virtually word word provision antitrust laws clayton act given parallel little doubt latter served model former courts relied heavily congruity read competitive injury requirement civil rico statute see north barrington development fanslow supp nd courts rejected requirement antitrust analogy relying significant part perceive congress rejection wholesale adoption antitrust precedent see yancoski hutton supp ed mauriber express supp sdny many courts read far much antitrust analogy legislative history makes clear congress viewed form civil remedies rico analogous remedies antitrust laws thereby intend substantive compensable injury exactly legislative history also suggests congress might wanted avoid saddling civil rico provisions standing requirements time limited standing sue antitrust laws however committee reports hearings way suggest congress considered rejected requirement injury separate resulting predicate acts far congress offered considerable indication kind injury primarily sought attack compensate existing civil criminal remedies inadequate nonexistent requisite injury thus akin broader targeted antitrust laws different kind resulting underlying predicate acts brief look legislative history makes clear antitrust laws relevant respect constrain analysis preclude formulation independent requirement senator hruska first introduced congress predecessor rico proposed amendment sherman act prohibited investment use intentionally unreported income one line business establish operate invest another line business sess studying provision american bar association issued report acknowledging effects organized crime infiltration legitimate business stated preference provision separate antitrust laws see cong rec according report placing enforcement recovery procedures separate statute commingling criminal enforcement goals goals regulating competition avoided moreover use antitrust laws vehicle combating organized crime create inappropriate unnecessary obstacles way persons injured organized crime might seek treble damage recovery private litigant contend body precedent appropriate purely antitrust context setting strict requirements questions standing sue proximate cause time courts believe civil rico doctrine mirror civil antitrust doctrine also read much legislative history absolutely clear congress intended adopt antitrust remedies civil actions government treble damages house representatives added civil provision title ix response suggestions aba congressmen remedy similar private damage remedy found laws organized crime control hearings related proposals subcommittee house committee judiciary statement steiger hereinafter house hearings see also statement edward wright aba suggesting amendment include additional civil remedy authorizing private damage suits based upon concept section clayton antitrust act cong rec remarks poff chief spokesman bill explaining bill adoption antitrust remedy use organized crime decision adopt antitrust remedies however compel conclusion congress intended adopt substantive antitrust doctrine courts construe references antitrust laws indications congress intent adopt substance antitrust doctrine also read much little language foregoing establishes congress sought adopt remedies akin used antitrust law civil government enforcement reject antitrust standing rules portions legislative history reveal congress intended substantive dimensions civil action quite simply principal target economic power racketeers toll legitimate businessmen end congress sought fill gap civil criminal laws provide new remedies broader already available private government antitrust plaintiffs different available government private citizens state federal laws significantly narrower adopted today senator hruska proposed two bills designed part implement recommendations president commission law enforcement administration justice katzenbach commission fight organized crime see cong rec former bill proposed amendment sherman act prohibiting investment use unreported income derived one line business another business latter bill separate sherman act prohibited acquisition business interest income derived criminal activity ibid representative poff introduced similar bills house representatives see sess cong rec introducing senator hruska explained limiting application intentionally unreported income proposal highlights fact evil curbed unfair competitive advantage inherent large amount illicit income available organized crime emphasis added described organized crime infiltrated wide range businesses observed instances large amounts cash coupled threats violence extortion similar techniques utilized mobsters achieve desired objectives monopoly control enterprises emphasis added identified four means control legitimate business acquired first investing concealed profits acquired gambling illegal enterprises second accepting business interests payment owner gambling debts third foreclosing usurious loans fourth using various forms extortion proper functioning free economy requires economic decisions made persons free exercise judgment force fear limits choice ultimately reduces quality increases prices organized crime moves business brings techniques violence intimidation used illegal businesses competitors eliminated customers confined sponsored suppliers effect even unwholesome monopolies position rest economic superiority senator mcclellan introduced organized crime control act altered numerous criminal law areas grand juries immunity sentencing contained provision like known rico see sess cong rec shortly thereafter senator hruska introduced criminal activities profits act sess cong rec explained designed synthesize earlier two bills placing unified whole outside sherman act response aba concerns according senator bill meant attack economic power organized crime exercise unfair competition honest businessmen address power organized crime establish monopoly within numerous business fields impact free market honest competitors racketeer dominated venture emphasis added introduced contained provision private action language provision virtually identical likely served model see explaining provision senator hruska said addition criminal prohibition bill also creates civil remedies honest businessman damaged unfair competition racketeer businessman despite willingness courts apply sherman act organized crime activities practical matter legitimate businessman adequate civil remedies available act bill fills gap emphasis added december senate judiciary committee reported organized crime control act amended include title ix racketeer influenced corrupt organizations title ix clear aimed precisely evil senator hruska targeted infiltration legitimate business organized crime according committee report title purpose elimination infiltration organized crime racketeering legitimate organizations operating interstate commerce seeks achieve objective fashioning new criminal civil remedies investigative procedures similarly senator byrd spoke favor title ix gave examples awesome power racketeers methods operation described example one racketeer gained foothold detergent company used arson murder try get tea buy detergent tested rejected cong rec another example explained racketeers corner market good service withhold businessman surrendered business made related economic concession ibid cases note racketeer engaged criminal acts order accomplish commercial goal destroy competition create monopoly infiltrate legitimate business see also statement hruska organized crime employs physical brutality fear corruption intimidate competitors customers achieve increased sales profits emphasis added sum crutiny senate report establishes without doubt single dominating purpose senate proposing rico statute title ix represents committee careful efforts fashion new remedies deal infiltration organized crime legitimate organizations operating interstate commerce aba report bill passed senate short debate vote without provision considered house hearings house judiciary committee suggested bill include additional civil remedy authorizing private damage suits based upon concept section clayton act house hearings statement edward wright aba see also statement steiger suggesting addition private civil damages remedy reporting bill favorably september house judiciary committee made one change civil remedy provision added private provision civil remedies already available government committee accorded change single statement committee report title amended also authorizes civil treble damage suits part private parties injured three congressmen dissented report views particularly telling language narrow compared extraordinary scope civil provision acquired three challenged possible breadth abuse private civil remedy indeed provides invitation disgruntled malicious competitors harass innocent businessmen engaged interstate commerce authorizing private damage suits competitor need raise claim rival derived gains two games poker title prohibits even indirect use gains provision tremendous outreach litigation begun protracted expensive trial may succeed adverse publicity may well accomplish destruction rival business emphasis added putting together various pieces conclude congress intended give businessmen might otherwise available remedy possible way recover damages competitive injury infiltration injury economic injury resulting wholly distinct predicate acts congress fully recognized racketeers engage predicate acts ends instead racketeers threaten burn murder order induce victims act way accrues economic benefit racketeer ceasing compete agreeing make certain purchases congress concern direct victims racketeers acts state federal laws already protected competitors investors whose businesses interests harmed destroyed racketeers whose competitive positions decline infiltration relevant market focus victims extraordinary economic power racketeers able acquire wide range illicit methods indeed congress provided recovery injury business property commercial injuries personal physical emotional injury way give effect congress concern require plaintiffs plead prove suffered rico injury injury competitive investment business interests resulting defendant conduct business infiltration business market pattern racketeering activity shall demonstrate requirement manageable puts statute use addressed addition requirement faithful language statute appear provide recovery injuries incurred reason individual predicate acts also avoids extraordinary uses statute put legitimate businesses engaged two criminal acts labeled racketeers faced judgments favor direct victims often settled avoid destructive publicity resulting harm reputation cases take toll results distort market saddling legitimate businesses punitive bills undeserved labels allow punitive actions significant damages injury beyond statute intended target achieve nothing statute sought achieve ironically injure many lawful businesses statute sought protect circumstances believe derelict failure interpret statute keeping language intent congress several lower courts remarked however rico injury requirement perhaps contemplated statute defies definition disagree following series examples culled part legislative history rico statute illustrates precisely fall within definition first racketeer uses hreats arson assault force competitors business obtain larger shares market house hearings statement mcclellan threats arson assault represent predicate acts pattern acts designed accomplish accomplishes goal monopolization competitors thereby injured forced business allege rico injury recover damages lost profits purchasers racketeer goods services forced buy higher prices whose businesses therefore injured might recover damages excess costs business direct targets predicate acts whether competitors suppliers others recover damages flowing predicate acts state perhaps federal law rico second racketeer uses arson threats induce honest businessmen pay protection money purchase certain goods hire certain workers targeted businessmen sue recover injury business property resulting added costs direct victims predicate acts reacted offenses committed businessmen case predicate acts committed order accomplish certain end induce prospective plaintiffs take action economic benefit racketeer case result taken toll competitive position prospective plaintiff increasing costs business time plaintiffs recover rico direct damages predicate acts example recover cost building burned personal injury resulting threat indeed compensation latter injury barred already rico exclusion personal injury claims previous example injuries amply protected damages actions third racketeer infiltrates obtains control legitimate business either fraud foreclosure usurious loans extortion acceptance business interests payment gambling debts honest investor thereby displaced bring civil rico action claiming infiltration injury resulting infiltrator pattern predicate acts enabled gain control thereafter enterprise conducts business pattern racketeering activity enhance profits perpetuate economic power competitors enterprise bring civil rico actions alleging injury reason enhanced commercial position enterprise obtained unlawful acts customers forced purchase sponsored suppliers recover added costs business time direct victims activity example customers defrauded infiltrated bank recover civil rico bank course thereby escape liability customers simply must rely existing causes action usually state law alternatively infiltrated enterprise operates legitimate business businessman competitive disadvantage enterprise strong economic base derived perpetration predicate acts competitor bring civil rico action alleging injury competitive position predicate acts enabled enterprise gain competitive advantage brought harm direct victims predicate acts whose profits invested legitimate enterprise able recover damages civil rico injury resulting predicate acts alone examples exclusive formulation adopted lower courts course opportunity smooth numerous rough edges examples designed simply illustrate type injury civil rico mind designed compensate construction describe offers powerful remedy honest businessmen congress concerned might recourse racketeer prior enactment statute time construction avoids theoretical practical problems outlined part view traditional claims federalized federal remedial schemes inevitably displaced superseded consequently ordinary commercial disputes misguidedly placed within scope civil rico iii today permits two civil actions treble damages go forward authorized either language legislative history civil rico statute policies underlay passage statute shirks responsibility assure congress intent thwarted maintenance unintended litigation based unfounded reading statutory provision believe provision issue susceptible narrower interpretation comports statutory language legislative history dissent opinion applies also american national bank trust company chicago et al haroco et al post section provides person injured business property reason violation section chapter may sue therefor appropriate district shall recover threefold damages sustains cost suit including reasonable attorney fee section clayton act provides relevant part ny person shall injured business property reason anything forbidden antitrust laws may sue therefor district district defendant resides found agent without respect amount controversy shall recover damages sustained cost suit including reasonable attorney fee analysis dissent lead dismissal civil rico claims stake thus need decide whether civil rico action proceed criminal conviction see ante justice powell dissenting agree justice marshall today reads civil rico statute way validates uses statute never intended congress join dissent write separately emphasize disagreement conclusion statute must applied authorize types private civil actions brought frequently respected businesses redress ordinary fraud cases turkette noted construing scope statute language unambiguous must regarded conclusive absence clearly expressed legislative intent contrary emphasis added quoting consumer product safety gte sylvania accord russello turkette russello found declared purpose congress enacting rico statute seek eradication organized crime turkette supra quoting statement findings prefacing organized crime control act pub stat accord russello supra organized crime congress target apparent act title made plain throughout legislative history statute see acknowledged parties two cases accord report ad hoc civil rico task force aba section corporation banking business law aba report legislative history cited today amply supports conclusion see ante concedes private civil version rico evolving something quite different original conception enactors see generally aba report ante yet concludes compelled statutory language construe reach fraud breach contract cases us today ibid appeals observed case congress intended provide federal forum plaintiffs many common law wrongs least discussed today concludes congress aware broad scope statute relying fact congressmen objected possibility abuse rico statute arguing used harass innocent businessmen dissenting views conyers mikva ryan cong rec remarks mikva legislative history every statute one may find critics bill predict dire consequences event enactment need infer statements opponents congress intended consequences occur particularly compelling evidence contrary legislative history reveals congress state explicitly statute reach members mafia believed constitutional problems establishing specific status offense remarks celler remarks poff nonetheless legislative history makes clear statute intended applied organized crime influential sponsor bill emphasized effect beyond crime meant incidental remarks mcclellan aba study concurs view aba report attempt ensure constitutionality statute congress made central proscription statute use pattern racketeering activities connection enterprise rather merely outlawing membership mafia la cosa nostra organized criminal syndicates racketeering defined embrace potpourri federal state criminal offenses deemed type criminal activities frequently engaged mobsters racketeers traditional members organized crime pattern element statute designed limit application planned ongoing continuing crime opposed sporadic unrelated isolated criminal episodes enterprise element coupled pattern requirement intended congress keep reach rico focused directly traditional organized crime comparable ongoing criminal activities carried structured organized environment reach statute beyond traditional mobster racketeer activity comparable ongoing structured criminal enterprises intended incidental extent necessary maintain constitutionality statute aimed primarily organized crime omitted ii language complex statute susceptible read consistently intent example requirement statute proof pattern racketeering activity may interpreted narrowly section defining pattern racketeering activity pattern requires least two acts racketeering activity contrasts definition racketeering activity stating activity means number acts definition pattern may thus logically interpreted meaning presence predicate acts beginning something required pattern proved aba report concurs view argues persuasively pattern element statute designed limit application planned ongoing continuing crime opposed sporadic unrelated isolated criminal episodes aba report criminal acts alleged case us today legislative history bears interpretation pattern senator mcclellan leading sponsor bill stated proof two acts racketeering activity without establish pattern cong rec likewise senate report considered concept pattern essential operation statute stated bill aimed sporadic activity infiltration legitimate business normally requires one racketeering activity threat continuing activity effective factor continuity plus relationship combines produce pattern ibid emphasis added aba report suggests effectuate legislative intent pattern interpreted requiring racketeering acts related ii part common scheme iii sort continuity acts threat continuing criminal activity must shown aba report construing pattern focus manner crime perpetrated courts go long way toward limiting reach statute intended target organized crime concedes pattern narrowly construed ante notes part reason civil rico put extraordinary uses failure congress courts develop meaningful concept pattern ante declines decide whether defendants acts constitute pattern case however concludes question ibid agree scope pattern requirement included questions granted certiorari concerned however course rejecting appeals ruling statute requires proof racketeering injury read entire statute broadly difficult impossible courts adopt reading pattern conform intention congress bases rejection racketeering injury requirement general principles rico statute read broadly liberally construed effectuate remedial purposes ante quoting pub stat statute part aggressive initiative supplement old remedies develop new methods fighting crime ante although acknowledges legislative statements supporting principles made reference rico private civil action concludes nevertheless act provisions read spirit principles ibid constructing broad premise rejection racketeering injury requirement seems mandate future courts read entire statute broadly neither necessary decision view correct read civil rico provisions expansively ruled turkette russello statute must read broadly construed liberally effectuate remedial purposes like legislative history alludes clear referring rico criminal provisions necessarily follow principles apply rico private civil provisions senate report recognized difference criminal civil enforcement describing proposed civil remedies available government emphasized although proposed remedies intended place additional pressure organized crime intended reach essentially economic punitive goal emphasis added report elaborated follows however remedies may fashioned necessary free channels commerce predatory activities intent visit punishment individual purpose civil punishment limited criminal remedies ibid emphasis added omitted says suits brought archetypal intimidating mobster defect inherent statute ante rico must construed holds indeed defect congress never intended believe statute must construed effect irrational manner force observation accented rico provision treble damages enticing invitation litigate claims federal courts noted aba report district rico decisions prior year cases decided throughout entire decade whereas cases decided aba report table see ante