Antitrust Law Daily Wrap Up, RICO—E.D.N.Y.: Human trafficking crimes did not support common enterprise, (Dec 5, 2014)
Law Firms Mentioned:Mishcon de Reya New York LLP | Snitow Kanfer Holtzer & Millus, LLP
Organizations Mentioned:Burtolucci's Catering Corp. | Burtolucci's Ristorante, LLC | Snitow Kanfer & Holtzer, LLP | World-Wide Plumbing Supply Inc.
By Greg Hammond, J.D.
An alleged victim of repeated rapes, beatings, and torture could not state valid Racketeer Influenced and Corrupt Organizations Act (RICO) claims against her husband and 12 other individuals and entities. The federal district court in Brooklyn determined that she failed to allege a common enterprise to control and prevent her from “escaping” (Stein v. World-Wide Plumbing Supply Inc., December 2, 2014, Cogan, B.).
Plaintiff Rivka Stein married defendant Yoel Weiss in 2008. Stein claims that Weiss, his family members, and others engaged in a scheme to control and prevent her from escaping by repeatedly raping, beating, and torturing her, and forcing servitude and peonage. She also alleged that the residence she was forced to stay in was used as a commercial warehouse for the distribution and resale of stolen goods—an illegal fencing operation. Stein was purportedly forced to work at two restaurants, without compensation, to assist in the laundering of the proceeds from the illicit fencing operation. She alleged civil RICO violations predicated on violations of human trafficking prohibitions. The defendants moved to dismiss.
To state a valid RICO claim, Stein was required to allege (1) conduct (2) of an enterprise (3) through a pattern (4) of racketeering activity. A RICO enterprise is a group of persons associated together for a common purpose of engaging in a course of conduct.
The court determined that Stein failed to demonstrate a common purpose of obtaining forced labor or otherwise exploiting her. Rather, the allegations demonstrated that the individuals and entities listed in the complaint associated to engage in and profit from an illegal fencing operation. Because the intended victims of the fencing operation enterprise were companies who had their goods stolen, Stein did not have standing to bring a civil RICO claim.
The case number is 13 Civ. 6795 (BMC).
Attorneys: Vincent Filardo, Jr. (Mishcon de Reya New York LLP) for Rivka Stein. Franklyn H. Snitow (Snitow Kanfer Holtzer & Millus, LLP) for World-Wide Plumbing Supply Inc.
Companies: Burtolucci's Catering Corp.; World-Wide Plumbing Supply Inc.; Burtolucci's Ristorante, LLC
Cases: RICO NewYorkNews