RICO Claims Dismissed in Multi-Million Dollar Lawsuit Alleging Real Estate Fraud

RICO Claims Dismissed in Multi-Million Dollar Lawsuit Alleging Real Estate Fraud

Plaintiffs alleged that various defendants fraudulently induced them to pay fees to other defendants to obtain millions of dollars in financing real estate transactions. Plaintiffs alleged that the defendant whom MCB represented violated the Racketeering Influenced and Corrupt Organizations Act (“RICO”) by funneling those funds through its attorney client fund. MCB made a pre-Answer motion, asking the Court to dismiss the RICO claims for failure to state a cause of action. The Court granted the motion, thereby allowing the defendants to avoid having to engage in extensive and costly discovery. The motion was made by Senior Partner Peter T. Crean and Partner Gregory J. Radomisli in the United States District Court, Southern District of New York.