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Smith v. Berg

Judgment against corporate defendants affirmed in action alleging conspiracy to defraud plaintiffs by misleading them into purchasing homes they could not afford; under the RICO conspiracy statute, corporate defendants who participated in the conspiracy were liable for the acts of their individual co-conspirator even though the corporate defendants did not personally agree to perform, or to conspire with respect to, any particular element.

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Argued March 12, 2001

OPINION OF THE COURT

This case presents two questions: First, in light of the Supreme Court’s decision in Salinas v. United States, 552 U.S. 52 (1997), may liability under the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”) conspiracy statute codified at 18 U.S.C. S 1962(d) be limited to those who would, on successful completion of the scheme, have participated in the operation or management of a corrupt enterprise? Second, did the Supr eme Court’s more recent decision in Beck v. Prupis , 529 U.S. 494 (2000), limit application of its holding in Salinas to criminal cases? Ruling against the Appellants on both issues, we will affirm the Orders of the District Court for the Eastern District of Pennsylvania. In doing so, we hold that any reading of United States v. Antar, 53 F .3d 568 (3d Cir. 1995), to the effect that conspiracy liability under section 1962(d) extends only to those who have conspir ed personally to operate or manage the corrupt enterprise, or otherwise suggesting that conspiracy liability is limited to those also liable, on successful completion of the scheme, for a substantive violation under section 1962(c), is inconsistent with the broad application of general conspiracy law to section 1962(d) as set forth in Salinas.

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