EXCEPTION · 18usc1962:open-market-investment
Express statutory safe harbor in § 1962(a) for open-market passive investment purchases totaling <1% of any class of voting/non-voting securities without power to elect a director. Note verbatim typo in statute text ("any pattern or racketeering activity").
Exact element source
A purchase of securities on the open market for purposes of investment, and without the intention of controlling or participating in the control of the issuer, or of assisting another to do so, shall not be unlawful under this subsection if the securities of the issuer held by the purchaser, the members of his immediate family, and his or their accomplices in any pattern or racketeering activity or the collection of an unlawful debt after such purchase do not amount in the aggregate to one percent of the outstanding securities of any one class, and do not confer, either in law or in fact, the power to elect one or more directors of the issuer.Source:
docroot/ir/usc/title18.jsonl#title18_sec1962; Unicode character offsets [603:1254] (end exclusive); SHA-256 6caae47f43b5ab0899b660616e298363bd36f9f540d915c2be11eb7126f5e27d.Routes and case patterns
No routes recorded for this element.
How courts decided this element
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Court interpretations
interpretation
Because injury by reason of investment of racketeering income in an enterprise is the very foundation of a § 1962(a) claim, Plaintiffs’ allegations are insufficient as a matter of law.
Goldfine v. Sichenzia — 118 F. Supp. 2d 392 (2000) · United States District Court for the Southern District of New York · 2000 (18usc1962: author: Fable · historical QA: PASS (QA1, neov2/qa/cases-QA1.md) · changed after review; current content not independently reviewed)
Because injury by reason of investment of racketeering income in an enterprise is the very foundation of a § 1962(a) claim, Plaintiffs’ allegations are insufficient as a matter of law.Source:
docroot/ir/caselaw/f_supp_2d_118.jsonl#/f-supp-2d/118/0392-01; Unicode character offsets [18192:18376] (end exclusive); SHA-256 7a6992301d8f07cdcfefb2ba1333ee88e7724e88e90a83145c93f1937232b139.Express statutory safe harbor in § 1962(a) for open-market passive investment purchases totaling <1% of any class of voting/non-voting securities without power to elect a director. Note verbatim typo in statute text ("any pattern or racketeering activity").