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cases/18usc1962/f-supp-3d-374-361-fleetwood-v-complete-bus.case

Source: cases/18usc1962/f-supp-3d-374-361-fleetwood-v-complete-bus.case

Case source: https://www.neochart.com/catalog/cases/f-supp-3d/volume_374/0361_01/index.html

Verbatim annotated passages

The Court finds the Amended Complaint satisfies both Turkette and Boyle at this stage.
As a result, the Court will deny Defendants' motion to dismiss on this ground.

Exact source text

casedsl 1.2
# author: Flash1 (gemini-3.8-flash-high)
# triaged-by: Fable (2026-11-10)

case /f-supp-3d/374/0361-01
  name    Fleetwood Servs., LLC v. Complete Bus. Solutions Grp., Inc.
  cite    374 F. Supp. 3d 361 (2019)
  court   United States District Court for the Eastern District of Pennsylvania
  date    2019-04-10
  url     catalog/cases/f-supp-3d/volume_374/0361_01/index.html
  source  ir/caselaw/f_supp_3d_374.jsonl sha1=d6e3527ce408aebf970e97c15bcebbc1142fea76 chars=47871

opinion op : majority by Sánchez @0..47871 controlling
party p1 : CBSG and PTF (moving defendants: the funder/servicer and the broker)
count c1 : Count IV, civil RICO § 1962(c)
theory t1 : association-in-fact "Lending Enterprise" of Doe investors, broker PTF and funder/servicer CBSG
theory t2 : wire fraud by misrepresenting a usurious loan as an enforceable factoring agreement

law 18usc1962 (c)
  role    applied
  posture civil; small-business borrower and its guarantors sued a merchant-cash-advance funder and broker under § 1962(c), alleging both a pattern of wire fraud and collection of unlawful (usurious) debt; Rule 12(b)(6) motions denied as to the RICO count (the agreement assumed, for the motions only, to be a loan governed by Texas usury law)
  result  claimant-won

element enterprise : satisfied [pleaded]
  route   association-in-fact
  pattern investors supply capital, a broker originates and a funder services usurious merchant cash advances
  party   p1
  count   c1
  theory  t1
  fact @1444..1653 [supports] | PTF and CBSG, along with the unidentified Investor Defendants, work together to fund, originate, underwrite, and service loans, which, like their consumer analogs, feature exorbitant annualized interest rates.
  fact @25040..25260 [supports] | there were relationships between each of the members (the John and Jane Does provided the capital, PTF brokered the loans, and CBSG serviced them), and sufficient longevity (from at least 2015) to accomplish that purpose
  fact @24427..24583 [supports] | Rather, the Amended Complaint explains how they each worked together in this scheme to originate, underwrite, and service loans with illegal interest rates.
  rule @22447..22821 [quoted] | Here, Plaintiffs allege the existence of an "association-in-fact" enterprise, which requires its own three-part showing: "(1) there exists an ongoing organization, formal or informal; (2) the various associates of the organization function as a continuing unit; and (3) the organization has an existence separate and apart from the alleged pattern of racketeering activity."
  held @23355..23441 | The Court finds the Amended Complaint satisfies both Turkette and Boyle at this stage.
  gloss   Association-in-fact enterprise adequately pleaded under both Turkette and Boyle; the court also rejected the argument that providers of "routine credit services" fall outside RICO enterprises.

element racketeering.mail-fraud : satisfied [pleaded]
  route   _pleading
  pattern emails and ACH debits said to create the false impression that a usurious cash-advance agreement was enforceable
  party   p1
  count   c1
  theory  t2
  fact @27056..27309 [supports] | At its core, the Amended Complaint alleges the Defendants engaged in a scheme to defraud by intentionally misrepresenting the enforceability of the Factoring Agreement, when, in fact, the Factoring Agreement was a usurious, and thus unenforceable, loan.
  fact @27656..28006 [supports] | In further support of its claim, Plaintiffs allege Defendants' use of the interstate wires to electronically debit its bank account "further created the impression" the Factoring Agreement was enforceable, and once Fleetwood Services experienced issues making payments, Defendants used emails and other wire communications to bolster this impression.
  rule @28955..29081 [quoted] | Nevertheless, a plaintiff "must allege who made a misrepresentation to whom and the general content of the misrepresentation."
  held @30986..31064 | As a result, the Court will deny Defendants' motion to dismiss on this ground.
  gloss   Added in triage. Wire-fraud predicates survive a Rule 9(b) particularity challenge. The court adds that the count would survive anyway on the unchallenged collection-of-unlawful-debt theory.

misfit The unchallenged collection-of-unlawful-debt theory (element debt) and the briefly treated RICO standing rulings (injury: usurious interest paid and lost profits; proximate cause) were also resolved for plaintiffs at the pleading stage and are not recorded as blocks.