An underwriter, an attorney, and her law firm could be held liable for conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act if they knowingly facilitated the racketeering activities of the promoters of a fraudulent investment scheme for which they were engaged to conduct due diligence, the 7th U.S. Circuit Court of Appeals concluded Jan. 13 (Brouwer v. Raffensperger, Hughes & Co., 7th Cir., No. 99-1286, 1/13/00).

The court thus reversed the dismissal of RICO conspiracy claims against the underwriter and the attorneys who allegedly aided the promoters in setting yields “deceptively low to make the notes appear less risky to elderly investors.”

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]