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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA - page 15 / 38

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enterprise (3) through a pattern (4) of racketeering activity.” Camiolo v. State Farm Fire & Cas. Co.,

334 F.3d 345, 364 (3d Cir. 2003) (quoting Sedima, 473 U.S. at 496).

RICO defines a “person” as “any individual or entity capable of holding a legal or beneficial

interest in property.” 18 U.S.C. § 1961(3). A corporation can qualify as a “person” for RICO

purposes if that corporation has conducted an enterprise’s affairs through a pattern of racketeering

activity. Lorenz v. CSX Corp., 1 F.3d 1406, 1412 (3d Cir. 1993); United States v. Philip Morris

USA, Inc., 566 F.3d 1095, 1110 (D.C. 2009).

“‘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.” 18

U.S.C. § 1961(4). It is well-settled that an “association-in-fact” enterprise may consist of a

corporation together with non-employee individuals. R.R. Brittingham v. Mobil Corp., 943 F.2d

297, 302 (3d Cir. 1991); see also, n.19, infra. “For the purposes of pleading, a corporation may be

both a defendant ‘person’ and part of an association-in-fact enterprise.” Crown Cork & Seal Co. Inc.

v. Ascah, No. 93-2933, 1994 WL 57217, *4 (E.D. Pa. Feb. 18, 1994). Finally, a RICO enterprise

“may be comprised only of defendants, or of defendants and non-defendants.” United States v.

Urban, 404 F.3d 754, 782 (3d Cir. 2005).

Racketeering activity is defined in Section 1961(1) to include acts indictable under certain

provisions of the federal crimes code. Mail and wire fraud under 18 U.S.C. §§ 1341 and 1343 are

included. A pattern of racketeering activity requires at least two acts of racketeering. § 1961(5).

Plaintiffs allege predicate acts of racketeering activity involving fraud, which triggers the pleading

requirements of Federal Rule of Civil Procedure 9(b). Under 9(b), a court must decide if plaintiff

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