A corporation can be liable for its officers’ crimes under the Racketeer Influenced and Corrupt Organizations Act where the company itself is not a RICO enterprise, an Essex County judge has ruled.
Though the RICO statute makes no mention of vicarious liability and New Jersey courts have not until now recognized it, Superior Court Judge Edith Payne ruled on Jan. 27 that a corporate officer’s participation in a county-kickback scheme that brought business to the company justified invoking respondeat superior. County of Essex v. First Union Corporation, ESX-L-11162-96.
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