Rick Chen, et al. v. Marcin Chojnacki, et al.

District Court, N.D. Illinois·Decided September 9, 2026·No. 1:23-cv-02520·Unknown

Opinion

THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION RICK CHEN, et al., ) ) Plaintiffs, ) No. 23 C 2520 v. ) ) Chief Judge Virginia M. Kendall MARCIN CHOJNACKI, et al., ) ) Defendants. )

MEMORANDUM OPINION & ORDER

California residents Rick Chen, Thomas Lau, Tony Lau, and Harry Tang (collectively “Plaintiffs” or “Chen Plaintiffs”) brought a complaint alleging violations of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1962(c), (d), and various state-law claims. (Dkt. 106). It is one of 151 related cases, all in front of this Court, that Plaintiffs’ attorneys have brought alleging that various overlapping Defendants engaged in a fraudulent real-estate investment scheme. This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1331 and 18 U.S.C. § 1964(c). Over the course of the litigation, numerous defendants settled in all of the related cases. Nonetheless, three separate sets of Defendants filed motions for summary judgment against Plaintiffs: Defendants Kendall Murphy and 1st Midwest Financial, Inc (“Murphy Defendants”) (Dkt. 223); Defendants First National Financial, Inc. and Kathleen Long (“Long Defendants”) (Dkt. 223); and Defendant Marcin Chojnacki along with related entities (Chojnacki Defendants) (Dkt. 228).

1 There were as many as 16 related cases, but one, Ascot Specialty Insurance Company, A Rhode Island Corporation v. Midwest Title & Closing Services LLC et al, 1:24-cv-05216, settled and closed on December 4, 2025. In this case, Plaintiffs’ Amended Complaint alleged that Chojnacki and the Murphy Defendants violated 18 U.S.C.§ 1962(c), (d), (Dkt. 106 ¶¶ 165–175), while the Long Defendants violated just § 1962(d), (id. at ¶¶ 176–185). This is a distinct choice from other related cases, such as Malik, where the Plaintiff alleged that the Long Defendants violated “§ 1962(c), (d).” In their

Response, however, Plaintiffs’ attorneys spend more time rambling through the general grievances animating the 15 related cases than focusing on the specific facts (anchored in the record) as they relate to the Chen Plaintiffs themselves. In doing so, they group the Long Defendants in with the Chojnacki Defendants in their discussion of § 1962(c), (Dkt. 239 at 13–19), seemingly forgetting that nowhere did they allege the Long Defendants to have violated § 1962(c). It is a well-established principle that “a party may neither amend its pleadings by argument in opposition to summary judgment nor introduce new theories of liability in opposition to summary judgment.” Colbert v. City of Chicago, 851 F.3d 649, 656 (7th Cir. 2017) (citing Whitaker v. Milwaukee Cty., Wis., 772 F.3d 802, 808 (7th Cir. 2014)). Plaintiffs’ Response makes zero reference to a single element of § 1962(d), instead exclusively focusing on § 1962(c) and

grouping the Long Defendants in with the other defendants in this case. After the defendant has made its showing, the non-moving party must come forth with evidence showing what facts are in actual dispute. Celotex Corp. v. Catrett, 477 U.S. 317, 322–24 (1986). If the non-moving party fails to do so, summary judgment is proper. United States v. Selenske, 882 F.2d 220 (7th Cir.1989). Thus, the Court strikes Plaintiffs’ Response to the extent it makes § 1962(c) arguments as to the Long Defendants. That leaves the remaining motions, which are resolved on the substance. For the below reasons, the Chojnacki Defendants’ Motion for Summary Judgment (Dkt. 228), the Long Defendants’ Motion (Dkt. 225), and the Murphy Defendants’ Motion (Dkt. 223) are granted in part and denied in part. The Motions are granted with regard to Plaintiff’s attempt to proceed under 18 U.S.C. § 1964 on a theory of speculative profit loss; they are otherwise denied as to the RICO claims, which remain in the case in accordance with the analysis herein and will proceed to trial unless the parties can reach a settlement. The Court also grants summary judgment on all state-

law claims as to all Defendants. BACKGROUND The issue with the Long Defendants’ briefing is not an anomaly. Related cases in this litigation have already made clear the shortcomings of the present record. To summarize some of the most pertinent issues discussed therein: Plaintiffs’ attorneys regularly inserted entire paragraphs worth of fact into their 56.1 Response entries, routinely provided massive string cites that did not justify the stated assertions, and consistently inserted their legal allegations and conclusory assessments—including entire swaths of their expert reports—as statements of “fact,” all of which the Court ignored. On multiple occasions in the related cases, the Plaintiffs’ attorneys cited to the allegations in the Complaint, rather than admissible evidence, in their 56.1 statements;

multiple parties inappropriately admitted facts and then proceeded to provide further information in the response. The Defendants, meanwhile, routinely base their 56.1 statements on the plaintiffs’ depositions in these cases and then proceed to object to plaintiffs’ own citations to those exact same depositions—often the exact same portion of the depositions—as inadmissible hearsay (though this characterization is frequently incorrect under the party-opponent admission exception under Federal Rule of Evidence 801(d)(2)(D)). As made clear throughout the related cases, this Court has the discretion to deem admitted facts that either side does not expressly admit yet fails to dispute with citations to admissible evidence in the record. See Dade v. Sherwin–Williams Co., 128 F.3d 1135, 1139 (7th Cir. 1997) (referring to L.R. 56.1’s predecessor rule, the court affirmed the district court’s taking as true uncontroverted facts alleged in the movant's statement and supported by references to the record); see also Harney v. Speedway SuperAmerica, LLC, 526 F.3d 1099, 1104 (7th Cir. 2008) (“It is not the duty of the court to scour the record in search of evidence to defeat a motion for summary

judgment; rather, the nonmoving party bears the responsibility of identifying the evidence upon which he relies.”). The Court thus proceeds by crediting only those statements that are adequately supported in the record and relevant to the resolution of the Motions. As explicated in the related cases, Defendants’ frequent objections to cited emails on authenticity and hearsay grounds are overruled unless indicated otherwise in the text of the Court’s analysis. The few other objections relevant to material facts are addressed below, alongside the relevant facts (that are undisputed unless otherwise indicated). I. Background The Court also, at this point, adopts the general background information established as undisputed in the related cases without repopulating the same record with new citations.2 That

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Rick Chen, et al. v. Marcin Chojnacki, et al., (N.D. Ill. 2026).

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