Banking Misconduct Blog



Judge Okays $7 Billion RICO Class Action Against State Farm

State Farm claims to be the nation’s number one insurer. According to its website, the company promises to deliver the value customer’s expect from the industry’s leader. Evidently, that bar is quite low. In 1999, a trial court ruled against State Farm and ordered the insurance...

PNC to Pay $24- $70mm to Settle RICO Class Action Suit

Want to cause a banker to shudder with fear? Mention the word RICO. Short for the Racketeer Influenced and Corrupt Organizations Act, RICO is one of the most potent weapons against corrupt banks and bankers. A recent lawsuit against PNC Bank alleging the bank violated truth in lending and...

Zions First National to Pay $37.5mm to Settle RICO Suit

A long running battle between consumers and Zions First National Bank came one step closer to resolution this week. The bank and two of its subsidiaries agreed to pay $37.5 million to settle a lawsuit brought under the Racketeer Influenced and Corrupt Organizations Act (RICO). The suit claimed that...

Mineral Rights Claim Shows Novel Use of Racketeering Law

The Racketeer Influenced and Corrupt Organizations Act (RICO) was originally intended as a criminal statute. Congress wanted to arm prosecutors with a new law to address criminal conspiracies involving gangs and organized crime. A last minute amendment allowed private litigants to use the law in...

RICO Complaint Targets Title Co’s, Marriott’s Timeshare Program

A class action lawsuit filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) last month claims Marriott’s “Vacation Club” timeshare program is actually an illegal racketeering scheme. A couple from Shelbyville, Indiana say they were duped into thinking they...

Tribe, Payday Lender Can’t Dodge RICO Claim

A Vermont federal court judge refused to toss a RICO claim filed against the Chippewa Cree payday lender, Plain Green LLC. The court also refused to enforce a loan provision that prevented borrowers from filing lawsuits or making class action claims. The payday lender unsuccessfully argued that...

RICO: Powerful Anti-Fraud Tool – EB-5 Class Action

Congress enacted the Racketeer Influenced and Corrupt Organizations Act (RICO) as a response to organized crime and biker gangs. A few decades later and this powerful statute is now mostly used by savvy private litigants seeking redress for a wide variety of fraud claims. This month a group of...

RICO- Collecting Damages for Lost Profits

There is a tremendous amount of case law surrounding the civil RICO statute. Because it the law provides for treble damages, arguments frequently arise over the proper measure of damages. This is particularly true when the damages claims include lost profits. Given the explosion in RICO claims,...

Does RICO Apply to Conduct Overseas?

The Racketeer Influenced and Corrupt Organizations Act (RICO) is one of the most powerful anti-fraud statutes on the books. It can really level the playing field for victims of fraud and criminal conspiracies. Triple damages, costs and attorney’s fees are what make the law so attractive to...