Opinion ID: 418131
Heading Depth: 3
Heading Rank: 6

Heading: Character of Cauble's Interest

Text: 109 Cauble finally argues that, because his general partnership interest in Cauble Enterprises is not exercisable or transferable for value by the United States, 104 it is subject only to expiration and not to forfeiture. He argues that a forfeiture order installing the United States as general partner of Cauble Enterprises is impermissible under both the partnership articles and Texas law. 110 The language in Sec. 1962(c) on which Cauble relies has been construed only once. 105 In that case we noted that the defendant's offices in various unions and employee benefit plans could not meaningfully be transferred to the United States and were, therefore, subject only to termination. 106 111 Every court that has considered the broader question what interests are subject to forfeiture has concluded that Sec. 1963(a) requires forfeiture of interests in the nature of ownership of or control over an enterprise. 107 Cauble's general partnership interest in Cauble Enterprises is a source both of ownership and control. This interest is a property interest, valuable and heritable. It is not merely a position. 108 112 The forfeiture provision of RICO is designed to prevent a convicted defendant from being replaced by the enterprise or from exercising control over the enterprise's affairs in absentia. 109 In McNary, the court upheld forfeiture of the defendant's partnership interest in a family-owned travel service. 620 F.2d at 622, 628-29. In L'Hoste, we upheld forfeiture of a stockholder's interest in a corporation. 609 F.2d at 809, 812. 110 There is no reason to make the effect of a forfeiture depend on the form of the enterprise's organization. Accordingly, we hold that Cauble's general partnership interest in Cauble Enterprises is forfeitable to the United States.