Passed in 1970, the Racketeer Influenced and Corrupt
Organizations Act (RICO) is a federal law designed to combat organized
crime in the United States. It allows prosecution and civil penalties
for racketeering activity performed as part of an ongoing criminal
enterprise. Such activity may include illegal gambling, bribery,
kidnapping, murder, money laundering, counterfeiting, embezzlement, drug
trafficking, slavery, and a host of other unsavory business practices.
To convict a defendant under RICO, the government must prove that
the defendant engaged in two or more instances of racketeering activity
and that the defendant directly invested in, maintained an interest in,
or participated in a criminal enterprise affecting interstate or
foreign commerce. The law has been used to prosecute members of the
mafia, the Hells Angels motorcycle gang, and Operation Rescue, an
anti-abortion group, among many others.
RICO Act
§ 1961. Definitions
As used in this chapter
(1) racketeering activity means (A) any act or
threat involving murder, kidnapping, gambling, arson, robbery, bribery,
extortion, dealing in obscene matter, or dealing in a controlled
substance or listed chemical (as defined in section 102 of the
Controlled Substances Act), which is chargeable under State law and
punishable by imprisonment for more than one year; (B) any act which is
indictable under any of the following provisions of title 18, United
States Code: Section 201 (relating to bribery), section 224 (relating to
sports bribery), sections 471, 472, and 473 (relating to
counterfeiting), section 659 (relating to theft from interstate
shipment) if the act indictable under section 659 is felonious, section
664 (relating to embezzlement from pension and welfare funds), sections
891894 (relating to extortionate credit transactions), section 1028
(relating to fraud and related activity in connection with
identification documents), section 1029 (relating to fraud and related
activity in connection with access devices), section 1084 (relating to
the transmission of gambling information), section 1341 (relating to
mail fraud), section 1343 (relating to wire fraud), section 1344
(relating to financial institution fraud), section 1425 (relating to the
procurement of citizenship or nationalization unlawfully), section 1426
(relating to the reproduction of naturalization or citizenship papers),
section 1427 (relating to the sale of naturalization or citizenship
papers), sections 14611465 (relating to obscene matter), section 1503
(relating to obstruction of justice), section 1510 (relating to
obstruction of criminal investigations), section 1511 (relating to the
obstruction of State or local law enforcement), section 1512 (relating
to tampering with a witness, victim, or an informant), section 1513
(relating to retaliating against a witness, victim, or an informant),
section 1542 (relating to false statement in application and use of
passport), section 1543 (relating to forgery or false use of passport),
section 1544 (relating to misuse of passport), section 1546 (relating to
fraud and misuse of visas, permits, and other documents), sections
15811592 (relating to peonage, slavery, and trafficking in persons).,[1]
section 1951 (relating to interference with commerce, robbery, or
extortion), section 1952 (relating to racketeering), section 1953
(relating to interstate transportation of wagering paraphernalia),
section 1954 (relating to unlawful welfare fund payments), section 1955
(relating to the prohibition of illegal gambling businesses), section
1956 (relating to the laundering of monetary instruments), section 1957
(relating to engaging in monetary transactions in property derived from
specified unlawful activity), section 1958 (relating to use of
interstate commerce facilities in the commission of murder-for-hire),
section 1960 (relating to illegal money transmitters), sections 2251,
2251A, 2252, and 2260 (relating to sexual exploitation of children),
sections 2312 and 2313 (relating to interstate transportation of stolen
motor vehicles), sections 2314 and 2315 (relating to interstate
transportation of stolen property), section 2318 (relating to
trafficking in counterfeit labels for phonorecords, computer programs or
computer program documentation or packaging and copies of motion
pictures or other audiovisual works), section 2319 (relating to criminal
infringement of a copyright), section 2319A (relating to unauthorized
fixation of and trafficking in sound recordings and music videos of live
musical performances), section 2320 (relating to trafficking in goods
or services bearing counterfeit marks), section 2321 (relating to
trafficking in certain motor vehicles or motor vehicle parts), sections
23412346 (relating to trafficking in contraband cigarettes), sections
242124 (relating to white slave traffic), sections 175178 (relating to
biological weapons), sections 229229F (relating to chemical weapons),
section 831 (relating to nuclear materials), (C) any act which is
indictable under title 29, United States Code, section 186 (dealing with
restrictions on payments and loans to labor organizations) or section
501 (c) (relating to embezzlement from union funds), (D) any offense
involving fraud connected with a case under title 11 (except a case
under section 157 of this title), fraud in the sale of securities, or
the felonious manufacture, importation, receiving, concealment, buying,
selling, or otherwise dealing in a controlled substance or listed
chemical (as defined in section 102 of the Controlled Substances Act),
punishable under any law of the United States, (E) any act which is
indictable under the Currency and Foreign Transactions Reporting Act,
(F) any act which is indictable under the Immigration and Nationality
Act, section 274 (relating to bringing in and harboring certain aliens),
section 277 (relating to aiding or assisting certain aliens to enter
the United States), or section 278 (relating to importation of alien for
immoral purpose) if the act indictable under such section of such Act
was committed for the purpose of financial gain, or (G) any act that is
indictable under any provision listed in section 2332b (g)(5)(B);
(2) State means any State of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any territory or
possession of the United States, any political subdivision, or any
department, agency, or instrumentality thereof;
(3) person includes any individual or entity capable of holding a legal or beneficial interest in property;
(4) enterprise includes any individual, partnership,
corporation, association, or other legal entity, and any union or group
of individuals associated in fact although not a legal entity;
(5) pattern of racketeering activity requires at
least two acts of racketeering activity, one of which occurred after the
effective date of this chapter and the last of which occurred within
ten years (excluding any period of imprisonment) after the commission of
a prior act of racketeering activity;
(6) unlawful debt means a debt
(A) incurred or contracted in gambling activity
which was in violation of the law of the United States, a State or
political subdivision thereof, or which is unenforceable under State or
Federal law in whole or in part as to principal or interest because of
the laws relating to usury, and
(B) which was incurred in connection with the
business of gambling in violation of the law of the United States, a
State or political subdivision thereof, or the business of lending money
or a thing of value at a rate usurious under State or Federal law,
where the usurious rate is at least twice the enforceable rate;
(7) racketeering investigator means any attorney or
investigator so designated by the Attorney General and charged with the
duty of enforcing or carrying into effect this chapter;
(8) racketeering investigation means any inquiry
conducted by any racketeering investigator for the purpose of
ascertaining whether any person has been involved in any violation of
this chapter or of any final order, judgment, or decree of any court of
the United States, duly entered in any case or proceeding arising under
this chapter;
(9) documentary material includes any book, paper, document, record, recording, or other material; and
(10) Attorney General includes the Attorney General
of the United States, the Deputy Attorney General of the United States,
the Associate Attorney General of the United States, any Assistant
Attorney General of the United States, or any employee of the Department
of Justice or any employee of any department or agency of the United
States so designated by the Attorney General to carry out the powers
conferred on the Attorney General by this chapter. Any department or
agency so designated may use in investigations authorized by this
chapter either the investigative provisions of this chapter or the
investigative power of such department or agency otherwise conferred by
law.
§ 1962. Prohibited activities
(a) It shall be unlawful for any person who has
received any income derived, directly or indirectly, from a pattern of
racketeering activity or through collection of an unlawful debt in which
such person has participated as a principal within the meaning of
section 2, title 18, United States Code, to use or invest, directly or
indirectly, any part of such income, or the proceeds of such income, in
acquisition of any interest in, or the establishment or operation of,
any enterprise which is engaged in, or the activities of which affect,
interstate or foreign commerce. A purchase of securities on the open
market for purposes of investment, and without the intention of
controlling or participating in the control of the issuer, or of
assisting another to do so, shall not be unlawful under this subsection
if the securities of the issuer held by the purchaser, the members of
his immediate family, and his or their accomplices in any pattern or
racketeering activity or the collection of an unlawful debt after such
purchase do not amount in the aggregate to one percent of the
outstanding securities of any one class, and do not confer, either in
law or in fact, the power to elect one or more directors of the issuer.
(b) It shall be unlawful for any person through a
pattern of racketeering activity or through collection of an unlawful
debt to acquire or maintain, directly or indirectly, any interest in or
control of any enterprise which is engaged in, or the activities of
which affect, interstate or foreign commerce.
(c) It shall be unlawful for any person employed by
or associated with any enterprise engaged in, or the activities of which
affect, interstate or foreign commerce, to conduct or participate,
directly or indirectly, in the conduct of such enterprises affairs
through a pattern of racketeering activity or collection of unlawful
debt.
(d) It shall be unlawful for any person to conspire
to violate any of the provisions of subsection (a), (b), or (c) of this
section.
§ 1963. Criminal penalties
(a) Whoever violates any provision of section 1962 of this chapter
shall be fined under this title or imprisoned not more than 20 years (or
for life if the violation is based on a racketeering activity for which
the maximum penalty includes life imprisonment), or both, and shall
forfeit to the United States, irrespective of any provision of State law
(1) any interest the person has acquired or maintained in violation of section 1962;
(2) any
(A) interest in;
(B) security of;
(C) claim against; or
(D) property or contractual right of any kind affording a source of influence over;
any enterprise which the person has established, operated,
controlled, conducted, or participated in the conduct of, in violation
of section 1962; and
(3) any property constituting, or derived from,
any proceeds which the person obtained, directly or indirectly, from
racketeering activity or unlawful debt collection in violation of
section 1962.
The court, in imposing sentence on such person shall order, in
addition to any other sentence imposed pursuant to this section, that
the person forfeit to the United States all property described in this
subsection. In lieu of a fine otherwise authorized by this section, a
defendant who derives profits or other proceeds from an offense may be
fined not more than twice the gross profits or other proceeds.
(b) Property subject to criminal forfeiture under this section includes
(1) real property, including things growing on, affixed to, and found in land; and
(2) tangible and intangible personal property, including rights, privileges, interests, claims, and securities.
(c) All right, title, and interest in property described in
subsection (a) vests in the United States upon the commission of the act
giving rise to forfeiture under this section. Any such property that is
subsequently transferred to a person other than the defendant may be
the subject of a special verdict of forfeiture and thereafter shall be
ordered forfeited to the United States, unless the transferee
establishes in a hearing pursuant to subsection (l) that he is a bona
fide purchaser for value of such property who at the time of purchase
was reasonably without cause to believe that the property was subject to
forfeiture under this section.
(d)
(1) Upon application of the United States, the
court may enter a restraining order or injunction, require the execution
of a satisfactory performance bond, or take any other action to
preserve the availability of property described in subsection (a) for
forfeiture under this section
(A) upon the filing of an indictment or
information charging a violation of section 1962 of this chapter and
alleging that the property with respect to which the order is sought
would, in the event of conviction, be subject to forfeiture under this
section; or
(B) prior to the filing of such an indictment or
information, if, after notice to persons appearing to have an interest
in the property and opportunity for a hearing, the court determines that
(i) there is a substantial probability that
the United States will prevail on the issue of forfeiture and that
failure to enter the order will result in the property being destroyed,
removed from the jurisdiction of the court, or otherwise made
unavailable for forfeiture; and
(ii) the need to preserve the availability of
the property through the entry of the requested order outweighs the
hardship on any party against whom the order is to be entered:
Provided, however, That an order entered pursuant to subparagraph (B)
shall be effective for not more than ninety days, unless extended by
the court for good cause shown or unless an indictment or information
described in subparagraph (A) has been filed.
(2) A temporary restraining order under this
subsection may be entered upon application of the United States without
notice or opportunity for a hearing when an information or indictment
has not yet been filed with respect to the property, if the United
States demonstrates that there is probable cause to believe that the
property with respect to which the order is sought would, in the event
of conviction, be subject to forfeiture under this section and that
provision of notice will jeopardize the availability of the property for
forfeiture. Such a temporary order shall expire not more than fourteen
days after the date on which it is entered, unless extended for good
cause shown or unless the party against whom it is entered consents to
an extension for a longer period. A hearing requested concerning an
order entered under this paragraph shall be held at the earliest
possible time, and prior to the expiration of the temporary order.
(3) The court may receive and consider, at a
hearing held pursuant to this subsection, evidence and information that
would be inadmissible under the Federal Rules of Evidence.
(e) Upon conviction of a person under this section,
the court shall enter a judgment of forfeiture of the property to the
United States and shall also authorize the Attorney General to seize all
property ordered forfeited upon such terms and conditions as the court
shall deem proper. Following the entry of an order declaring the
property forfeited, the court may, upon application of the United
States, enter such appropriate restraining orders or injunctions,
require the execution of satisfactory performance bonds, appoint
receivers, conservators, appraisers, accountants, or trustees, or take
any other action to protect the interest of the United States in the
property ordered forfeited. Any income accruing to, or derived from, an
enterprise or an interest in an enterprise which has been ordered
forfeited under this section may be used to offset ordinary and
necessary expenses to the enterprise which are required by law, or which
are necessary to protect the interests of the United States or third
parties.
(f) Following the seizure of property ordered
forfeited under this section, the Attorney General shall direct the
disposition of the property by sale or any other commercially feasible
means, making due provision for the rights of any innocent persons. Any
property right or interest not exercisable by, or transferable for value
to, the United States shall expire and shall not revert to the
defendant, nor shall the defendant or any person acting in concert with
or on behalf of the defendant be eligible to purchase forfeited property
at any sale held by the United States. Upon application of a person,
other than the defendant or a person acting in concert with or on behalf
of the defendant, the court may restrain or stay the sale or
disposition of the property pending the conclusion of any appeal of the
criminal case giving rise to the forfeiture, if the applicant
demonstrates that proceeding with the sale or disposition of the
property will result in irreparable injury, harm or loss to him.
Notwithstanding 31 U.S.C. 3302 (b), the proceeds of any sale or other
disposition of property forfeited under this section and any moneys
forfeited shall be used to pay all proper expenses for the forfeiture
and the sale, including expenses of seizure, maintenance and custody of
the property pending its disposition, advertising and court costs. The
Attorney General shall deposit in the Treasury any amounts of such
proceeds or moneys remaining after the payment of such expenses.
(g) With respect to property ordered forfeited under this section, the Attorney General is authorized to
(1) grant petitions for mitigation or remission of
forfeiture, restore forfeited property to victims of a violation of
this chapter, or take any other action to protect the rights of innocent
persons which is in the interest of justice and which is not
inconsistent with the provisions of this chapter;
(2) compromise claims arising under this section;
(3) award compensation to persons providing information resulting in a forfeiture under this section;
(4) direct the disposition by the United States of
all property ordered forfeited under this section by public sale or any
other commercially feasible means, making due provision for the rights
of innocent persons; and
(5) take appropriate measures necessary to
safeguard and maintain property ordered forfeited under this section
pending its disposition.
(h) The Attorney General may promulgate regulations with respect to
(1) making reasonable efforts to provide notice to
persons who may have an interest in property ordered forfeited under
this section;
(2) granting petitions for remission or mitigation of forfeiture;
(3) the restitution of property to victims of an
offense petitioning for remission or mitigation of forfeiture under this
chapter;
(4) the disposition by the United States of forfeited property by public sale or other commercially feasible means;
(5) the maintenance and safekeeping of any property forfeited under this section pending its disposition; and
(6) the compromise of claims arising under this chapter.
Pending the promulgation of such regulations, all provisions of law
relating to the disposition of property, or the proceeds from the sale
thereof, or the remission or mitigation of forfeitures for violation of
the customs laws, and the compromise of claims and the award of
compensation to informers in respect of such forfeitures shall apply to
forfeitures incurred, or alleged to have been incurred, under the
provisions of this section, insofar as applicable and not inconsistent
with the provisions hereof. Such duties as are imposed upon the Customs
Service or any person with respect to the disposition of property under
the customs law shall be performed under this chapter by the Attorney
General.
(i) Except as provided in subsection (l), no party
claiming an interest in property subject to forfeiture under this
section may
(1) intervene in a trial or appeal of a criminal case involving the forfeiture of such property under this section; or
(2) commence an action at law or equity against
the United States concerning the validity of his alleged interest in the
property subsequent to the filing of an indictment or information
alleging that the property is subject to forfeiture under this section.
(j) The district courts of the United States shall
have jurisdiction to enter orders as provided in this section without
regard to the location of any property which may be subject to
forfeiture under this section or which has been ordered forfeited under
this section.
(k) In order to facilitate the identification or
location of property declared forfeited and to facilitate the
disposition of petitions for remission or mitigation of forfeiture,
after the entry of an order declaring property forfeited to the United
States the court may, upon application of the United States, order that
the testimony of any witness relating to the property forfeited be taken
by deposition and that any designated book, paper, document, record,
recording, or other material not privileged be produced at the same time
and place, in the same manner as provided for the taking of depositions
under Rule 15 of the Federal Rules of Criminal Procedure.
(l)
(1) Following the entry of an order of forfeiture
under this section, the United States shall publish notice of the order
and of its intent to dispose of the property in such manner as the
Attorney General may direct. The Government may also, to the extent
practicable, provide direct written notice to any person known to have
alleged an interest in the property that is the subject of the order of
forfeiture as a substitute for published notice as to those persons so
notified.
(2) Any person, other than the defendant,
asserting a legal interest in property which has been ordered forfeited
to the United States pursuant to this section may, within thirty days of
the final publication of notice or his receipt of notice under
paragraph (1), whichever is earlier, petition the court for a hearing to
adjudicate the validity of his alleged interest in the property. The
hearing shall be held before the court alone, without a jury.
(3) The petition shall be signed by the petitioner
under penalty of perjury and shall set forth the nature and extent of
the petitioners right, title, or interest in the property, the time and
circumstances of the petitioners acquisition of the right, title, or
interest in the property, any additional facts supporting the
petitioners claim, and the relief sought.
(4) The hearing on the petition shall, to the
extent practicable and consistent with the interests of justice, be held
within thirty days of the filing of the petition. The court may
consolidate the hearing on the petition with a hearing on any other
petition filed by a person other than the defendant under this
subsection.
(5) At the hearing, the petitioner may testify and
present evidence and witnesses on his own behalf, and cross-examine
witnesses who appear at the hearing. The United States may present
evidence and witnesses in rebuttal and in defense of its claim to the
property and cross-examine witnesses who appear at the hearing. In
addition to testimony and evidence presented at the hearing, the court
shall consider the relevant portions of the record of the criminal case
which resulted in the order of forfeiture.
(6) If, after the hearing, the court determines that the petitioner has established by a preponderance of the evidence that
(A) the petitioner has a legal right, title, or
interest in the property, and such right, title, or interest renders the
order of forfeiture invalid in whole or in part because the right,
title, or interest was vested in the petitioner rather than the
defendant or was superior to any right, title, or interest of the
defendant at the time of the commission of the acts which gave rise to
the forfeiture of the property under this section; or
(B) the petitioner is a bona fide purchaser for
value of the right, title, or interest in the property and was at the
time of purchase reasonably without cause to believe that the property
was subject to forfeiture under this section;
the court shall amend the order of forfeiture in accordance with its determination.
(7) Following the courts disposition of all
petitions filed under this subsection, or if no such petitions are filed
following the expiration of the period provided in paragraph (2) for
the filing of such petitions, the United States shall have clear title
to property that is the subject of the order of forfeiture and may
warrant good title to any subsequent purchaser or transferee.
(m) If any of the property described in subsection (a), as a result of any act or omission of the defendant
(1) cannot be located upon the exercise of due diligence;
(2) has been transferred or sold to, or deposited with, a third party;
(3) has been placed beyond the jurisdiction of the court;
(4) has been substantially diminished in value; or
(5) has been commingled with other property which cannot be divided without difficulty;
the court shall order the forfeiture of any other property of the
defendant up to the value of any property described in paragraphs (1)
through (5).
§ 1964. Civil remedies
(a) The district courts of the United States shall have jurisdiction
to prevent and restrain violations of section 1962 of this chapter by
issuing appropriate orders, including, but not limited to: ordering any
person to divest himself of any interest, direct or indirect, in any
enterprise; imposing reasonable restrictions on the future activities or
investments of any person, including, but not limited to, prohibiting
any person from engaging in the same type of endeavor as the enterprise
engaged in, the activities of which affect interstate or foreign
commerce; or ordering dissolution or reorganization of any enterprise,
making due provision for the rights of innocent persons.
(b) The Attorney General may institute proceedings under this
section. Pending final determination thereof, the court may at any time
enter such restraining orders or prohibitions, or take such other
actions, including the acceptance of satisfactory performance bonds, as
it shall deem proper.
(c) Any person injured in his business or property by reason of a
violation of section 1962 of this chapter may sue therefor in any
appropriate United States district court and shall recover threefold the
damages he sustains and the cost of the suit, including a reasonable
attorneys fee, except that no person may rely upon any conduct that
would have been actionable as fraud in the purchase or sale of
securities to establish a violation of section 1962. The exception
contained in the preceding sentence does not apply to an action against
any person that is criminally convicted in connection with the fraud, in
which case the statute of limitations shall start to run on the date on
which the conviction becomes final.
(d) A final judgment or decree rendered in favor of the United States
in any criminal proceeding brought by the United States under this
chapter shall estop the defendant from denying the essential allegations
of the criminal offense in any subsequent civil proceeding brought by
the United States.
§ 1965. Venue and process
(a) Any civil action or proceeding under this chapter against any
person may be instituted in the district court of the United States for
any district in which such person resides, is found, has an agent, or
transacts his affairs.
(b) In any action under section 1964 of this chapter in any district
court of the United States in which it is shown that the ends of justice
require that other parties residing in any other district be brought
before the court, the court may cause such parties to be summoned, and
process for that purpose may be served in any judicial district of the
United States by the marshal thereof.
(c) In any civil or criminal action or proceeding instituted by the
United States under this chapter in the district court of the United
States for any judicial district, subpenas issued by such court to
compel the attendance of witnesses may be served in any other judicial
district, except that in any civil action or proceeding no such subpena
shall be issued for service upon any individual who resides in another
district at a place more than one hundred miles from the place at which
such court is held without approval given by a judge of such court upon a
showing of good cause.
(d) All other process in any action or proceeding under this chapter
may be served on any person in any judicial district in which such
person resides, is found, has an agent, or transacts his affairs.
§ 1966. Expedition of actions
In any civil action instituted under this chapter by the United
States in any district court of the United States, the Attorney General
may file with the clerk of such court a certificate stating that in his
opinion the case is of general public importance. A copy of that
certificate shall be furnished immediately by such clerk to the chief
judge or in his absence to the presiding district judge of the district
in which such action is pending. Upon receipt of such copy, such judge
shall designate immediately a judge of that district to hear and
determine action.
§ 1967. Evidence
In any proceeding ancillary to or in any civil action instituted by
the United States under this chapter the proceedings may be open or
closed to the public at the discretion of the court after consideration
of the rights of affected persons.
§ 1968. Civil investigative demand
(a) Whenever the Attorney General has reason to believe that any
person or enterprise may be in possession, custody, or control of any
documentary materials relevant to a racketeering investigation, he may,
prior to the institution of a civil or criminal proceeding thereon,
issue in writing, and cause to be served upon such person, a civil
investigative demand requiring such person to produce such material for
examination.
(b) Each such demand shall
(1) state the nature of the conduct constituting the alleged
racketeering violation which is under investigation and the provision of
law applicable thereto;
(2) describe the class or classes of documentary material produced
thereunder with such definiteness and certainty as to permit such
material to be fairly identified;
(3) state that the demand is returnable forthwith
or prescribe a return date which will provide a reasonable period of
time within which the material so demanded may be assembled and made
available for inspection and copying or reproduction; and
(4) identify the custodian to whom such material shall be made available.
(c) No such demand shall
(1) contain any requirement which would be held to
be unreasonable if contained in a subpena duces tecum issued by a court
of the United States in aid of a grand jury investigation of such
alleged racketeering violation; or
(2) require the production of any documentary
evidence which would be privileged from disclosure if demanded by a
subpena duces tecum issued by a court of the United States in aid of a
grand jury investigation of such alleged racketeering violation.
(d) Service of any such demand or any petition filed under this section may be made upon a person by
(1) delivering a duly executed copy thereof to any partner, executive
officer, managing agent, or general agent thereof, or to any agent
thereof authorized by appointment or by law to receive service of
process on behalf of such person, or upon any individual person;
(2) delivering a duly executed copy thereof to the principal office or place of business of the person to be served; or
(3) depositing such copy in the United States mail, by registered or
certified mail duly addressed to such person at its principal office or
place of business.
(e) A verified return by the individual serving any such demand or
petition setting forth the manner of such service shall be prima facie
proof of such service. In the case of service by registered or certified
mail, such return shall be accompanied by the return post office
receipt of delivery of such demand.
(f)
(1) The Attorney General shall designate a
racketeering investigator to serve as racketeer document custodian, and
such additional racketeering investigators as he shall determine from
time to time to be necessary to serve as deputies to such officer.
(2) Any person upon whom any demand issued under
this section has been duly served shall make such material available for
inspection and copying or reproduction to the custodian designated
therein at the principal place of business of such person, or at such
other place as such custodian and such person thereafter may agree and
prescribe in writing or as the court may direct, pursuant to this
section on the return date specified in such demand, or on such later
date as such custodian may prescribe in writing. Such person may upon
written agreement between such person and the custodian substitute for
copies of all or any part of such material originals thereof.
(3) The custodian to whom any documentary material
is so delivered shall take physical possession thereof, and shall be
responsible for the use made thereof and for the return thereof pursuant
to this chapter. The custodian may cause the preparation of such copies
of such documentary material as may be required for official use under
regulations which shall be promulgated by the Attorney General. While in
the possession of the custodian, no material so produced shall be
available for examination, without the consent of the person who
produced such material, by any individual other than the Attorney
General. Under such reasonable terms and conditions as the Attorney
General shall prescribe, documentary material while in the possession of
the custodian shall be available for examination by the person who
produced such material or any duly authorized representatives of such
person.
(4) Whenever any attorney has been designated to
appear on behalf of the United States before any court or grand jury in
any case or proceeding involving any alleged violation of this chapter,
the custodian may deliver to such attorney such documentary material in
the possession of the custodian as such attorney determines to be
required for use in the presentation of such case or proceeding on
behalf of the United States. Upon the conclusion of any such case or
proceeding, such attorney shall return to the custodian any documentary
material so withdrawn which has not passed into the control of such
court or grand jury through the introduction thereof into the record of
such case or proceeding.
(5) Upon the completion of
(i) the racketeering investigation for which any documentary material was produced under this chapter, and
(ii) any case or proceeding arising from such
investigation, the custodian shall return to the person who produced
such material all such material other than copies thereof made by the
Attorney General pursuant to this subsection which has not passed into
the control of any court or grand jury through the introduction thereof
into the record of such case or proceeding.
(6) When any documentary material has been
produced by any person under this section for use in any racketeering
investigation, and no such case or proceeding arising therefrom has been
instituted within a reasonable time after completion of the examination
and analysis of all evidence assembled in the course of such
investigation, such person shall be entitled, upon written demand made
upon the Attorney General, to the return of all documentary material
other than copies thereof made pursuant to this subsection so produced
by such person.
(7) In the event of the death, disability, or
separation from service of the custodian of any documentary material
produced under any demand issued under this section or the official
relief of such custodian from responsibility for the custody and control
of such material, the Attorney General shall promptly
(i) designate another racketeering investigator to serve as custodian thereof, and
(ii) transmit notice in writing to the person
who produced such material as to the identity and address of the
successor so designated.
Any successor so designated shall have with regard to such materials
all duties and responsibilities imposed by this section upon his
predecessor in office with regard thereto, except that he shall not be
held responsible for any default or dereliction which occurred before
his designation as custodian.
(g) Whenever any person fails to comply with any civil investigative
demand duly served upon him under this section or whenever satisfactory
copying or reproduction of any such material cannot be done and such
person refuses to surrender such material, the Attorney General may
file, in the district court of the United States for any judicial
district in which such person resides, is found, or transacts business,
and serve upon such person a petition for an order of such court for the
enforcement of this section, except that if such person transacts
business in more than one such district such petition shall be filed in
the district in which such person maintains his principal place of
business, or in such other district in which such person transacts
business as may be agreed upon by the parties to such petition.
(h) Within twenty days after the service of any such demand upon any
person, or at any time before the return date specified in the demand,
whichever period is shorter, such person may file, in the district court
of the United States for the judicial district within which such person
resides, is found, or transacts business, and serve upon such custodian
a petition for an order of such court modifying or setting aside such
demand. The time allowed for compliance with the demand in whole or in
part as deemed proper and ordered by the court shall not run during the
pendency of such petition in the court. Such petition shall specify each
ground upon which the petitioner relies in seeking such relief, and may
be based upon any failure of such demand to comply with the provisions
of this section or upon any constitutional or other legal right or
privilege of such person.
(i) At any time during which any custodian is in custody or control
of any documentary material delivered by any person in compliance with
any such demand, such person may file, in the district court of the
United States for the judicial district within which the office of such
custodian is situated, and serve upon such custodian a petition for an
order of such court requiring the performance by such custodian of any
duty imposed upon him by this section.
(j) Whenever any petition is filed in any district court of the
United States under this section, such court shall have jurisdiction to
hear and determine the matter so presented, and to enter such order or
orders as may be required to carry into effect the provisions of this
section.