Source: cases/18usc1962/f3d-927-108-bascunan-v-elsaca.case
Case source: https://www.neochart.com/catalog/cases/f3d/volume_927/0108_01/index.html
In sum, each of the injuries alleged in the SAC, except for the Sham Management Fees Scheme, calls for a domestic application of civil RICO.
Because the SAC does not allege that these injuries took place in the United States, the district court correctly held that this scheme is impermissibly extraterritorial as pleaded.
casedsl 1.2 # author: Flash1 (gemini-3.8-flash-high) # triaged-by: Fable (2026-11-10) case /f3d/927/0108-01 name Bascuñán v. Elsaca cite 927 F.3d 108 (2019) court United States Court of Appeals for the Second Circuit date 2019-06-13 url catalog/cases/f3d/volume_927/0108_01/index.html source ir/caselaw/f3d_927.jsonl sha1=45d1e97232345e215ffc97dffff15b6ae84bcfb2 chars=52111 opinion op : majority by Wesley @0..52111 controlling party bas : Bascuñán and affiliated plaintiffs (Chilean citizen and resident; owner of the Estate) party elsaca : Elsaca and affiliated defendants (cousin and estate manager holding power of attorney) count surviving : the Fintair, Tarascona, Sham Anacapri Sale and BCI Dividend schemes (the New York Trust Account and BCI Share Theft schemes being undisputed) count fees : the Sham Management Fees scheme theory t1 : domestic injury under RJR Nabisco / § 1964(c) law 18usc1962 (c), (d) role applied posture civil; foreign plaintiff sued his cousin under civil RICO for misappropriating estate funds held in New York bank accounts; district court dismissed the second amended complaint under Rule 12(b)(6) for lack of domestic injury, extraterritorial predicates and no pattern; CA2 reversed and remanded (second appeal) result claimant-won element injury : satisfied [pleaded] route _whole pattern foreign owner's funds stolen out of estate-owned New York bank accounts by his own agent party bas elsaca count surviving theory t1 fact @21890..22063 [supports] | The Estate owned Fintair when Elsaca transferred money into and out of its New York bank account, a fact Elsaca conceded in a declaration he submitted to the district court. fact @22412..22568 [supports] | The alleged theft or misappropriation occurred when the funds left the Estate, at which time they were located in a Morgan Stanley bank account in New York. fact @26472..26671 [supports] | The SAC alleges that Elsaca opened eleven New York bank accounts in Tarascona's name, filled them with money from the Estate's foreign accounts, and over time transferred the money out of the Estate. fact @1273..1317 [cuts-against] | Bascuñán is a resident and citizen of Chile. rule @18062..18207 [quoted] | "when a foreign plaintiff maintains tangible property in the United States, the misappropriation of that property constitutes a domestic injury." held @29003..29143 | In sum, each of the injuries alleged in the SAC, except for the Sham Management Fees Scheme, calls for a domestic application of civil RICO. gloss Domestic-injury requirement of § 1964(c) (RJR Nabisco): money moved by the agent between the owner's own accounts is not yet stolen; the injury occurs where the funds sit when they leave the owner, here New York. The plaintiff's foreign residence was the district court's original (rejected) test. ? route: the sub-question is WHERE the injury was suffered (domestic vs foreign injury under RJR Nabisco); the menu (business-or-property, racketeering-injury, ripeness-of-loss) has no such route. Flash's `racketeering-injury` (Sedima) was wrong. element injury : not-satisfied [pleaded] route _whole pattern location of the accounts the fees were taken from not alleged party bas elsaca count fees theory t1 fact @28311..28524 [cuts-against absent] | Bascuñán concedes that he does not know where the injuries caused by the Sham Management Fees Scheme took place because he does not know the locations of the accounts from which Elsaca withdrew the relevant funds. fact @8737..8924 [supports] | Bascuñán claims Elsaca transferred this money from unknown accounts to several New York-based Morgan Stanley bank accounts owned by GM&E, a shell corporation that Elsaca indirectly owned. rule @19497..19691 [quoted] | "the use of bank accounts located within the United States to facilitate or conceal the theft of property located outside of the United States does not, on its own, establish a domestic injury." held @28615..28796 | Because the SAC does not allege that these injuries took place in the United States, the district court correctly held that this scheme is impermissibly extraterritorial as pleaded. ? route: same missing domestic-injury route as above. misfit Not recorded as blocks: (1) `pattern` -- held adequately pleaded only because Elsaca waived any argument that the surviving schemes together fail (basis `waived` is not available with `satisfied`); (2) the holdings that the mail-, wire- and bank-fraud predicates are applied domestically when use of domestic mail or wires is a core component of the scheme -- an extraterritoriality ruling on the predicate statutes, not on a declared § 1962 element.