RICO Forfeitures and the Rights of Innocent Third Parties
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Third Parties
Title IX of the Organized Crime Control Act of 19701 added a
new chapter to Title 18 of the United States Code.2 The new
chapter, entitled Racketeer Influenced and Corrupt Organizations
(RICO), was enacted in response to what Congress perceived as
the threat to the American economy from the unchecked growth
of organized crime.3
Congressional concern with the use of racketeering activities4 to
gain or maintain positions of control in legitimate business led to
the enactment of RICO.5 This concern was fostered by the failure
of traditional law enforcement and prosecutorial methods to halt
the use of racketeering activities in gaining access to these posi-
tions.6 In enacting RICO, Congress created new statutory of-
fenses7 and supplemented traditional prosecutorial tools by
authorizing forfeiture of a RICO defendant's interest in the enter-
prise which he was convicted of corrupting.8 Such a forfeiture
would divorce the convicted defendant's corrupting influence
from the corrupted enterprise,9 thus restoring it to a state of well
being.l°
This Comment will describe the forfeitures authorized by
RICO, focusing on the constitutional issues arising under the
due process clause of the United States Constitution12 when prop-
erty rights of parties, who are not defendants, are adversely af-
1. Pub. L. No. 91-452, 84 Stat. 941 (1970).
2. The new chapter is Chapter 96. Organized Crime Control Act of 1970, Pub.
L. No. 91-452, § 901(a), 84 Stat. 941 (1970) (codified at 18 U.S.C. §§ 1961-1968).
3. United States v. Parness, 503 F.2d 430, 439 (2d Cir. 1974).
4. See notes 20-22 and accompanying text infra.
5. Pub. L. No. 91-452, 84 Stat. 922 (1970); see also United States v. Rubin, 559
F.2d 975, 990 (5th Cir. 1977) [hereinafter cited as Rubin].
6. Organized Crime Control Hearings: Hearing on § 30 Before Subcommittee No.
5 of the House Committee on the Judiciary, 91st Cong. 2d Sess. 107 (1970); see also
United States v. Huber, 603 F.2d 387, 392 (2d Cir. 1979) [hereinafter cited as Huber];
Rubin, supra note 5, at 991.
7. See notes 25-28 and accompanying text infra.
8. See notes 35 and 36 and accompanying text infra.
9. See notes 23-24 and accompanying text infra.
10. See note 6 supra; Taylor, Forfeitures Under 18 U.S.C. § 1963-RICO'S Most
Powerful Weapon, 17 AM. CRIM. L. REv. 379 at 380 (1980) [hereinafter cited as
Taylor].
11. See notes 35-36 and 61-67 and accompanying text infra.
12. No person shall. . . be deprived of life, liberty, or property without due
process of law. ... U.S. CONsT. amend. V.](ViewImageLocal?handle=hein.journals/cwlr18&div=26&collection=journals&method=preview&ext=.png&size=3)
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RICO Forfeitures and the Rights of Innocent Third Parties
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