4447 CORP. v. Goldsmith

504 N.E.2d 559, 55 U.S.L.W. 2531, 1987 Ind. LEXIS 844
CourtIndiana Supreme Court
DecidedMarch 2, 1987
Docket29S04-8703-CV-270
StatusPublished
Cited by26 cases

This text of 504 N.E.2d 559 (4447 CORP. v. Goldsmith) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
4447 CORP. v. Goldsmith, 504 N.E.2d 559, 55 U.S.L.W. 2531, 1987 Ind. LEXIS 844 (Ind. 1987).

Opinions

CIVIL PETITION TO TRANSFER

GIVAN, Chief Justice.

These consolidated causes are before the Court on appellees’ Petition to Transfer. Appellees filed similar actions in which they allege the various defendants, owners and operators of adult bookstores, have engaged in racketeering activity as defined in the Racketeer Influenced and Corrupt Organizations Act (RICO), Ind. Code § 35-45-6-1 et seq. Appellees seek various remedies as provided in the Civil Remedies for Racketeering Activity (CRRA) statute, Ind. Code § 34-4-30.5-1 et seq.

In both cases the trial court, pursuant to Ind. Code § 34-4-30.5-3(b), entered an ex parte order seizing appellants’ assets. On interlocutory appeal of the denial of appellants’ motions to vacate the seizure orders, a majority of the Court of Appeals, Fourth District, held that the RICO and CRRA statutes constitute facially unconstitutional prior restraints in their application to the predicate offense of obscenity. 4447 Corp. v. Goldsmith (1985), Ind.App., 479 N.E.2d 578, 592. We grant appellees’ petition and thereby vacate the opinion of the Court of Appeals.

In 1980, the legislature enacted the Indiana RICO statute, which is essentially patterned after the federal anti-racketeering laws. See Alvers v. State (1986), Ind.App., 489 N.E.2d 83. As set out in Ind. Code § 35-45-6-2(a), a person:

“(1) who has knowingly or intentionally received any proceeds directly or indirectly derived from a pattern of racketeering activity, and who uses or invests those proceeds or the proceeds derived from them to acquire an interest in real property or to establish or to operate an enterprise;
(2) who through a pattern of racketeering activity, knowingly or intentionally acquires or maintains, either directly or indirectly, an interest in or control of real property or an enterprise; or
[561]*561(3)who is employed by or associated with an enterprise, and who knowingly or intentionally conducts or otherwise participates in the activities of that enterprise through a pattern of racketeering activity;”

commits the offense of Corrupt Business Influence, a Class C felony. “ ‘Racketeering activity’ means to commit, to attempt to commit, or to conspire to commit a violation, or aiding and abetting in a violation” of any of a number of enumerated predicate offenses, including violation of the obscenity statute. Ind.Code § 35-45-6-1. A “pattern of racketeering activity” is defined as “engaging in at least two (2) incidents of racketeering activity that have the same or similar intent, result, accomplice, victim, or method of commission....” Id.

Under the CRRA provisions, the prosecuting attorney in a county in which the violation occurs may bring an action to enjoin a violation of the RICO statute. Ind.Code § 34-4-30.5-2. If the court finds by a preponderance of the evidence that such a violation has occurred, it may:

“(1) order a defendant to divest himself of any interest in any enterprise or real property;
(2) impose reasonable restrictions upon the future activities or investments of a defendant, including prohibiting a defendant from engaging in the same type of endeavor as the enterprise in which he was engaged in violation of IC 35-45-6-2;
(3) order the dissolution or reorganization of any enterprise;
(4) order the suspension or revocation of a license, permit, or prior approval granted to any enterprise by any agency of the state;
(5) order the forfeiture of the charter of a corporation organized under the laws of Indiana, or the revocation of a certificate authorizing a foreign corporation to conduct business within the state, upon finding that the board of directors or a managerial agent acting on behalf of the corporation, in conducting the affairs of the corporation, has authorized or engaged in conduct in violation of IC 35-45-6-2 and that, for the prevention of future criminal activity, the public interest requires the charter of the corporation forfeited and the corporation dissolved or the certificate revoked; and
(6)make any other order or judgment that the court considers appropriate.” Id.

Additionally, pursuant to Ind.Code § 34-4-30.5-3(a), the prosecuting attorney in a county in which any of the property is located “may bring an action for the forfeiture of any property used in the course of, intended for use in the course of, derived from, or realized through, conduct in violation of IC 35-45-6-2.” Upon a showing by a preponderance of the evidence that the property in question was so used, the court shall order the property forfeited to the state. Id. When a forfeiture action has been filed, the prosecutor may move for an order to have the property subject to forfeiture seized by a law enforcement agency and the court “shall issue such an order upon a showing of probable cause to believe that a violation of IC 35-45-6-2 involving the property in question has occurred.” Ind.Code § 34-4-30.5-3(b).

The first of the instant cases was commenced on August 1, 1983, when appellee Stephen Goldsmith, Prosecuting Attorney for the Nineteenth Judicial Circuit, filed a CRRA action in Marion Circuit Court. The complaint alleged that the three bookstores owned and operated by the individual and corporate defendants (appellants) comprised an illegal enterprise as defined in Ind.Code § 35-45-6-1 and that appellants had engaged in a pattern of racketeering activity. The predicate offenses alleged were the distribution of obscene matter in violation of Ind.Code § 35-30-10.1-2 (repealed by Acts 1983, P.L. 311, recodified as Ind.Code § 35-49-3-1).

At the same time Goldsmith filed a Verified Petition for Seizure of Property Subject to Forfeiture. In support of the petition, he attached a probable cause affidavit sworn by Detective Thomas R. Rogers of the Indianapolis Police Department. Detective Rogers stated therein that he and other officers had visited the two operating [562]

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Bluebook (online)
504 N.E.2d 559, 55 U.S.L.W. 2531, 1987 Ind. LEXIS 844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/4447-corp-v-goldsmith-ind-1987.