Former Ambassador Files Civil Suit Alleging That FCPA Violations Can Trigger RICO Liability

While there is no private right of action under the FCPA, a private citizen may sue under the Racketeer Influenced and Corrupt Organizations Act (RICO) for damages caused by an enterprise that engages in a pattern of “racketeering activities,” the broad definition of which may include violations of the FCPA.  These principles – the broad sweep of RICO and the potential for FCPA violations to trigger RICO liability – are at issue in a civil suit recently commenced by the Honorable Otto J. Reich, a former Ambassador to Venezuela, against three Venezuelan expatriates.  Reich alleges that the expatriates sought to damage his business and reputation after Reich sought to assist a Venezuelan bank.  The bank was a vocal critic of the Hugo Chavez regime and claimed that those expatriates had bribed Venezuelan officials in order to secure lucrative contracts to build power plants in Venezuela.  This article summarize Reich’s complaint.  See also “How to Anticipate and Manage Collateral Litigation after an FCPA Investigation Becomes Public,” above, in this issue of the Anti-Corruption Report; and “Non-FCPA Liability for Alleged FCPA Violations” (Jun. 6, 2012).

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