Which of the following is a necessity to bring a private civil action against a violator of the Racketeer Influenced and Corrupt Organizations Act (RICO)based on securities fraud?
A) The accountant must not be a third-party independent contractor.
B) The defendant must have been criminally convicted in connection with the securities fraud.
C) The plaintiff should file the case before the government brings a lawsuit.
D) The lawsuit must be based on the Tax Reform Act.

Question

Quizplus · Accepted Answer

In order to bring a private civil action against a violator of RICO based on securities fraud, the defendant does not need to have been criminally convicted, but such a conviction can be used as evidence in the case. Therefore, option B is the correct answer. The other options are incorrect. The accountant being a third-party independent contractor is not relevant, and the Tax Reform Act is not related to RICO or securities fraud. Additionally, there is no requirement to file the case before the government brings a lawsuit, though doing so can sometimes be advantageous.

Which of the Following Is a Necessity to Bring a Private