NCJ Number
134057
Journal
University of Illinois Law Review Volume: 1990 Issue: 3 Dated: (1990) Pages: 675-710
Date Published
1990
Length
36 pages
Annotation
This legal note analyzes the context in which the victim of credit card fraud, most likely a bank, can sue the person or enterprise perpetrating the fraud under the RICO (Racketeer Influenced and Corrupt Organizations) Act to gain triple the money lost due to fraud.
Abstract
The American Bankers Association estimates that credit card fraud caused by telemarketing scams cost banks about $600 million a year. Telemarketing credit card fraud is defined as the use and abuse of credit card account numbers that are fraudulently obtained by means of interstate telephone communications. Although Congress did not explicitly define organized crime in the RICO statute, RICO provides civil and criminal sanctions for use by government and provides relief for private plaintiffs. Section 1964(c) of RICO provides relief in treble damages to persons injured in their business or property by reason of another person's RICO violations. Wire and mail fraud statutes have been enacted that apply to a broad range of fraud types. These statutes, like RICO, are quite broad. RICO is frequently used in conjunction with the Federal wire fraud statute. The plaintiff must specify facts such as the time and place of the wire fraud violation, the identity of the person making representation, and the consequences of the misrepresentation. The RICO plaintiff must also show that the misrepresentation was intentional. Defenses to civil RICO actions based on wire fraud are discussed along with potential barriers to a RICO wire fraud claim. It is recommended that the use of RICO to deter credit card fraud be encouraged. 334 footnotes