Christie Cronies Could Face RICO Suits For Treble Damages // Blagojevich RICO Provides Precedent

WASHINGTON - Jan. 27, 2014 - PRLog -- In addition to a variety of  claims in at least two civil class action law suits which have already been filed, cronies of New Jersey Governor Chris Christie could also face legal actions under the federal Racketeer Influenced and Corrupt Organizations [RICO] Act for damages they caused to thousands of motorists, and perhaps to many others, suggests public interest law professor John Banzhaf, whose memo helped trigger a massive successful RICO suit against the tobacco industry.

An intriguing precedent may be found in the RICO action brought against former Illinois Governor Rod Blagojevich.  Indeed, one of the attorneys who helped defend Blagojevich said in a radio interview that: "I see Chris Christie having a lot of problems now underneath the wire fraud, maybe a RICO statute as well coming down the line."

Referring to the allegation that Sandy relief funds were deliberately withheld from Hoboken for political reasons, Sam Adam Jr. said "that's exactly what happened with Blagojevich.  . . That he was connecting campaign funds with contracts."

Although originally designed to provide a more powerful legal weapon for attacking organized crime and organized crime figures, RICO has been applied much more broadly to encompass situations including securities violations; the coverup of sex abuse by Catholic dioceses; the Key West, Florida, Police Department, for running a protection racket; a pro-life organization for impeding access to abortion clinics; and even a lawyer engaged in a Ponzi scheme, says Professor Banzhaf. More recently, it was used against the major cigarette manufacturers in a RICO action Banzhaf helped to instigate.

Under this far-reaching statute, which can be triggered by any two or more acts of fraud - e.g., statements transmitted by mail or wire as part of a coverup of information about the real reason for the lane closings or withholding relief funds - any person who claims to be "damaged in his business" can sue for and recover three times his actual damages.  RICO actions also enjoy other legal advantages.

"Wire" transmissions include statements made by telephone, over the Internet, on radio or television, and by other means, says Banzhaf.   Thus two or more false statements about the lane closings over the telephone, or made on a radio or TV program, could provide the necessary legal predicate fora RICO action, as could alleged actions in the nature of extortion or governmental wrongdoing, such as those involving Olympian Carl Lewis, or former Hunterdon County prosecutor Ben Barlyn.

The tobacco RICO action was triggered in part by a memo Prof. Banzhaf submitted to the government which outlined the legal theories under which the action could be brought.  Not surprisingly, Banzhaf has been called "The Law Professor Who Masterminded Litigation Against the Tobacco Industry," and "a Driving Force Behind the Lawsuits That Have Cost Tobacco Companies Billions of Dollars."

JOHN F. BANZHAF III, B.S.E.E., J.D., Sc.D.
Professor of Public Interest Law
George Washington University Law School,
FAMRI Dr. William Cahan Distinguished Professor,
Fellow, World Technology Network,
Founder, Action on Smoking and Health (ASH)
2000 H Street, NW
Washington, DC 20052, USA
(202) 994-7229 // (703) 527-8418
http://banzhaf.net/ @profbanzhaf