X hits on this document

PDF document

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA - page 24 / 38

77 views

0 shares

0 downloads

0 comments

24 / 38

Plaintiffs here, however, do not claim that Defendant and its agents merely conducted the

normal affairs of a business relationship. Rather, Plaintiffs allege that the racketeering pattern

includes deliberate overcharging and misappropriating amounts due for the purchase of title

insurance in violation of law as set forth in the TIRBOP Manual. (Id.) Plaintiffs further allege that

these illegal activities constitute mail and wire fraud in violation of 18 U.S.C. §§ 1341 and 1343 and

are part of an ongoing pattern of racketeering activity. Critical to the alleged pattern of racketeering

activity is the dual function of the title/settlement agent, who not only has the power to prepare

documents on behalf of Commonwealth Land, but is also statutorily obligated to abide by the

TIRBOP guidelines. (Pl. Am. Compl. ¶62).8 The fact that the organization between Defendant and

its title agents engages in legitimate functions of performing title searches, selling and providing title

insurance, and investigating and paying claims does not overcome the claim of illicit overcharging

which is not part of the normal affairs of the business relationship.

Plaintiffs have alleged sufficient facts demonstrating that Commonwealth Land played a

distinct role as director of the alleged racketeering activity. Plaintiffs allege that Defendant directs

the enterprise by, inter alia, providing the systems and procedures for conducting title searches,

issuing policies, and providing the title insurance. (Pl. Am. Compl. ¶59.) While these activities may

seem legitimate on the surface, they are not ordinary or normal business activities if they are used

to advance the alleged fraudulent scheme. Moreover, Defendant’s “normal affairs” do not include

8See Introduction in TIRBOP Manual (“The provisions of this Manual are binding upon all members and subscribers of TIRBOP and their agents and must be used on and after the effective date hereof unless a specific deviation from the Manual has been filed by an individual member or subscriber company with, and approved by, the Pennsylvania Insurance Department.”).

24

Document info
Document views77
Page views77
Page last viewedFri Oct 28 14:17:39 UTC 2016
Pages38
Paragraphs853
Words11377

Comments