Which of the following is a necessity to bring a private civil action against a violator of RICO based on securities fraud?
A)The accountant must not be a third-party independent contractor.
B)The defendant has to be first criminally convicted in connection with the securities fraud.
C)The plaintiff should file the case before the government brings a lawsuit.
D)The defendant has to be tried by the application of the Section 32(a)of the Securities Exchange Act of 1934 first.

Question

Quizplus · Accepted Answer

In order to bring a private civil action against a violator of RICO based on securities fraud, it is necessary for the defendant to be first criminally convicted in connection with the securities fraud. This is known as the "criminal conviction requirement" and was established in the case of Sedima, S.P.R.L. v. Imrex Co., Inc. (1985). This requirement is meant to prevent frivolous lawsuits and ensure that only those with valid claims can bring a lawsuit under RICO.

Which of the Following Is a Necessity to Bring a Private