Legal Document

464 U.S. 16 104 S.Ct. 296 78 L.Ed.2d 17 Joseph C. RUSSELLO, Petitionerv.UNITED STATES. No. 82-472. Argued Oct. 5, 1983. Decided Nov. 1, Syllabus Petitioner was convicted in Federal District Court, under the Racketeer Influenced and Corrupt Organizations (RICO) chapter of Organized Crime Control Act 1970, violating 18 U.S.C. §§ 1962(c) (d) by being involved an arson ring that resulted his fraudulently receiving insurance proceeds payment for fire loss a building he owned. The Court also entered judgment forfeiture against petitioner amount pursuant to § 1963(a)(1), which provides person 1962 shall forfeit United States "any interest has acquired or maintained violation 1962." Appeals affirmed. Held: received as result activities constitute "interest" within meaning 1963(a)(1) are therefore subject forfeiture. Pp. 20 -29. (a) Section does not reach only "interests enterprise." Where term is specifically defined RICO statute, it assumed legislative purpose expressed term's ordinary meaning, comprehends all forms real personal property, including profits proceeds. Congress apparently selected broad because did wish provision be limited rigid technical definitions drawn from other areas law fully consistent with statute's pattern utilizing terms concepts. Every property interest, right proceeds, may described something. Before illegal enterprise divided, each participant said own ill-gotten gains, after distribution possessory currency items so distributed. -22. (b) Had intended restrict enterprise, presumably would have done expressly 1963(a)(2). To construe interests blunt section's effectiveness combating illegitimate enterprises mean whole organized crime activity placed beyond statute. 22-24. (c) fact Controlled Substances authorizes "profits" obtained drug cannot read imposing limitation upon 1963(a)(1)'s broader language, particularly where statute aimed at crime's economic power its forms, whereas narcotics proscribed usually generates monetary profits. 24-25. Nor limiting construction supported certain state racketeering statutes provide "profits," "money," "interest property," "all personal," racketeering, since those used such language avoid narrow interpretations their laws given federal opinions. P. 26. (e) history clearly demonstrates new weapons unprecedented scope assault roots, thus authorize rule lenity apply here, clear. 26-29. 681 F.2d 952 (5th Cir. 1982), Ronald A. Dion, Miami, Fla., petitioner. Samuel Alito, Jr., Newark, N.J., respondent. Justice BLACKMUN delivered opinion Court. 1 This yet another case concerning 1970. Pub.L. 91-452, Title IX, 84 Stat. 941, amended, 1961-1968. At issue here interpretation chapter's provision, and, specifically, words [the defendant] . section 2 * On June 8, 1977, Russello others were indicted conspiracy, mail fraud, 1341, (d), 2. App. 5. After jury trial Middle Florida, charged four counts indictment. then returned special verdicts States, 1963(a), payments, aggregating $340,048.09, made company. 54-57. These related second count indictment had been convicted. accordingly, amount. Id., 58. 3 took appeal former Fifth Circuit. A panel court affirmed petitioner's criminal conviction, v. Martino, 648 367, 406 (1981), this denied certiorari, 456 943, 102 2006, 72 465 (1982), aspect case. panel, however, reversed 64-69. full granted rehearing en banc on vote 16-7, vacated portion opinion, (1982). Because significant division among judges Appeals, Circuit majority, id., 959, stated holding "squarely conflict[ed]" Ninth Marubeni America Corp., 611 763 (1980), we certiorari. --- ----, 77 ---- (1983).1 Since then, Seventh issued agreeing McManigal, 708 276, 283-287 (1983). II 4 So far present posture concerned, basic facts dispute. majority them succinctly: 5 "Briefly, evidence showed group individuals associated purposes committing intent defraud companies. association composed adjuster, homeowners, promoters, investors, arsonists, operated destroy properties Tampa Florida between July 1973 April 1976. summarized ring's operations follows: 6 'At first arsonists burned buildings already owned ring. Following burning, owner filed inflated proof statement collected co-conspirators paid. Later, members bought suitable secured excess value claims divided proceeds' (footnote omitted)." F.2d, 953. 7 Specifically, Central Professional Building Tampa. structure two parts, original smaller front newer addition rear. latter contained apartments, offices, parking facilities. arranged set portion. He use rebuild section. fire, spread Carter, member ring, adjuster claim helped him obtain highest payments possible. resulting up aggregate sum $340,043.09 mentioned above. From paid Carter $30,000 assistance. III 8 states unlawful "for any employed engaged in, affect, interstate commerce, conduct participate, directly indirectly, enterprise's affairs through collection debt." 1962(d) makes conspire violate 1962(c). 9 sole whether derived contends reaches enterprise" mere "profits proceeds." rests argument propositions forfeitures disfavored statutes, consequence, must strictly construed. 10 In recently decided, observed: "In determining look language. If statutory unambiguous, absence 'a contrary, ordinarily regarded conclusive.' " Turkette, 452 576, 580, 101 2524, 2527, 69 246 quoting Consumer Product Safety Comm'n GTE Sylvania, Inc., 447 102, 108, 100 2051, 2056, 64 766 (1980). See, also, Dickerson New Banner Institute, 103 986, 990, 74 845; Lewis 445 55, 60, 915, 918, 63 198 11 Here, calls There no question 1962(c); much definitely finally settled. Accordingly, if qualify "interest," they forfeitable. 12 silence compels us "start assumption used." Richards 369 9, 82 585, 591, 492 (1962). surely encompasses See Webster's Third International Dictionary 1178 (1976), broadly defining things, "good," "benefit," "profit." Random House English Language (1979) defines include "profit," "welfare," "benefit." Black's Law 729 ed., 1979) definition "interest": "The most general can denote right, claim, title legal share something." It apparent 13 repeatedly relied "property" Due Process Clause Fourteenth Amendment Constitution. Perry Sindermann, 408 593, 601, 92 2694, 2699, 33 570 (1972) (" 'property' denotes range interests"); Logan Zimmerman Brush Co., 455 422, 430, 1148, 1155, 71 265 (1982); Jago Van Curen, 454 14, 17-18, 31, 33-34, 70 (1981). undoubtedly 1963(a) describe things concepts breadth. Among these "enterprise" 1961(4); "racketeering activity" 1961(1) (1976 Supp. V); "participate" 14 himself attempted define 1963(a)(1). insists, money because, says: 'Interest,' definition, includes necessity Brief 9. asserts "something" emerges wording itself, is, "acquired 1962," derives very barred words, direct relationship exists constitutes racketeering. relationship, said, means confined itself. support approach supra, district opinions, Meyers, 432 F.Supp. 456, 461 (WD Pa.1977), Thevis, 474 134, 142 (ND Ga.1979), aff'd grounds, 665 616 (CA5 1982). now relies McManigal case, decided Tr. Oral Arg. 4. 15 We do agree. gains. distribution, will conclude plainly covers activities. IV fortified conclusion our examination disagree courts felt word necessarily undermined provisions. refuted succeeding subsection (a)(2). speaks acquired," while established[,] operated, controlled, conducted, participated of, Similar less expansive appears 1962(b) 1964(a). "[W]here particular one but omits same Act, generally presumed acts intentionally purposely disparate inclusion exclusion." Wong Kim Bo, 472 720, 722 1972). Wooten, 688 950 (CA4 immediately following North Haven Board Education Bell, 512, 521, 1912, 1917, 299 Naftalin, 441 768, 773-774, 99 2077, 2081-2082, 60 624 (1979). 773, S.Ct., 2082, said: short answer write way." refrain concluding differing subsections each. presume ascribe difference simple mistake draftsmanship. evolution provisions supplies further extend enterprise. An early proposed version RICO, S. 1861, 91st Cong., 1st Sess. (1969), single later into phrase "in excluded first. earlier bill deletes prior enactment, intended. Arizona California, 373 546, 580-581, 83 1468, 1487-1488, 542 (1963). Weiner, Must Not Pay: Criminal Forfeiture Perspective, 1981 N.Ill.U.L.Rev. 225, 238 n. 49. say, does, all-encompassing suggested 1963(a)(2) independent surplusage. incorrect. Subsection (a)(1) interest," provided (a)(2), hand, restricted itself need illegally acquired. Thus, there forfeitable one, other, subsections.2 note 1961(4) both entities associations-in-fact. U.S., 580-593, 2527-2533. association-in-fact little kind rarely identifiable assets; instead, distributed immediately. construing combatting enterprises, "[w]hole beyond" 589, 2531. 19 stresses 21 848(a)(2), 1242, continuing offenses. 6-7. Marubeni, 766, 7, similar reliance 848(a)(2) observed passed month. feel, specific mention accepted indication meant well types interests. sheds light different even when enacted about time. specific; general. fairly addition, natural fulfill aim. contrast, 848 profits, explain narrower 848(a)(2). Petitioner, course, correctly suggests who voted aware Act. 116 Cong.Rec. 33651 (1970) (remarks Rep. Brotzman); 1180-1182 Sen. Thurmond); 33631 Weicker); 33646 Kastenmeier); 35318 Anderson). unlikely, without explanation potent weapon withheld crime, included part struggle. Congress' intent, expect clear understandable terms. subsequent legislation 1970 excludes 29-34. bills refers, introduced order overcome decisions Thevis. e.g., 2320, 97th 2d introduction hardly sponsors viewed correct Gordon, 638 886, 888, (CA5), cert. denied, 909, 3038, 411 event, settled 'the views form hazardous basis inferring one.' Jefferson County Pharmaceutical Assn. Abbott Laboratories, 27, 1011, 1020, 882 (1983), Price, 361 304, 313, 80 326, 331, 334 (1960). Clark, 23, 33, 895, 902, 171 22 Neither persuaded position 8-9. Nearly post-date Meyers Thevis decisions. Colo.Rev.Stat. 18-17-106 (Supp.1982) (enacted 1981); R.I. Gen.Laws 7-15-3 1979). legislatures along lines V 23 necessary turn finds reveal, hold, see 11-21, congressional intent. 24 roots. findings enacting 922 (1970), forth 1. dramatically describes problem presented crime. declared, 923: "It seek eradication providing enhanced sanctions remedies deal crime." recognized significance purpose. 588-589, 2531-2532. Further, directed, 904(a) 947: liberally construed effectuate remedial purposes." aware, substantive contains directive; 3731. 25 emphasized fashion achieve far-reaching objectives. S.Rep. 91-617, p. 76 (1969). 26 "What needed approaches individuals, base serious threat well-being Nation. short, attack source take place available fronts." 79. 27 Senator Scott spoke "new weapons," 819 McClellan stressed penal remedies. 591-592. Representative Poff, floor manager House, observations. 35193. Rodino "drastic methods essential, develop enforcement measures least efficient 35199. "extraordinary" weapon. 602 Hruska). And serve aims Statute, namely, "punish, deter, incapacitate, remove corrupting influence channels commerce." 18955 McClellan). 28 leaves doubt that, view Congress, huge Blakey, Civil Fraud Action Context: Reflections Bennett Berg, 58 Notre Dame L.Rev. 237, 249-256 could hoped successfully roots reaching During debates, sources magnitude income repeatedly. 115 5873, 5884-5885 (1969); 590, 592 this, seems obvious. H.R.Rep. 91-1549, 57 U.S.Code Cong. & Admin.News, 4007, recites extends "to interests, defined, violations." 29 true large response infiltration legitimate enterprises. 2532. But concerns infiltration. goal profit separating racketeer dishonest often deter; indeed, might encourage speedy looting infiltrated unlikely enact incentive authorizing worth bankrupt shell. 30 otherwise presence 1969 letter Deputy Attorney General McClellan. Measures Relating Crime: Hearings Subcommittee Laws Procedures Senate Committee Judiciary, Sess., 407 That letter, reference "one's indicate, us, preclude reference, merely pending bill. Furthermore, sentence what meant, why Department believed constitutional. 31 lenity, situations ambiguity, 587, 10, 2531 application here. "comes operation end process expressed, beginning overriding consideration lenient wrong-doers." Callanan 364 596, 81 321, 312 (1961). clear, "the come play." 588, 2531, 10. 32 reasoning respective cases, affirm Circuit.3 ordered. Solicitor General, perceiving "a factual distinction case," require opposite instant case." Memorandum 4, 3. joined prayer writ certiorari granted. apply. subsections, wholly redundant. ruling today, recognize resolved ambiguity inherent "proceeds." Our suggest calculating precise hold simply "interests"

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