NCJ Number
155190
Date Published
1989
Length
826 pages
Annotation
This report presents testimony before the U.S. Senate Judiciary Committee on S. 438, which amends the civil provisions of the Racketeer Influenced and Corrupt Organizations (RICO) Law.
Abstract
Supporters of S. 438 note that it limits the civil RICO provisions to reflect Congress' intentions that RICO be used to obstruct and sanction organized criminal elements. According to its advocates, S. 438 allows governmental plaintiffs to continue to pursue treble-damage awards, as mandated in the existing RICO statute, while limiting other plaintiffs to actual damages unless defendants' actions were consciously malicious. With regard to pending cases, there is language to permit the judge sitting in the particular case to allow continued pursuit of treble damages for a meritorious RICO claim. Some who oppose the bill, including a representative of Public Citizen and the U.S. Public Interest Research Group, argue that S. 438 takes the wrong approach to revision of RICO by reducing wholesale the availability of multiple damages by creating a special industry exemption for the securities and commodities industries and by applying its provisions retroactively. The plan's effect would be to slash damages by two-thirds in those cases where plaintiffs can prove a genuine pattern of unlawful acts. These witnesses urge the adoption of an approach that narrows and clarifies RICO without shortening its reach. Appended prepared statements