United States v. Sam C. Martino, Joseph C. Russello and Rolando Gonzalez Rodriguez

681 F.2d 952, 1982 U.S. App. LEXIS 16904
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 2, 1982
Docket78-3611
StatusPublished
Cited by57 cases

This text of 681 F.2d 952 (United States v. Sam C. Martino, Joseph C. Russello and Rolando Gonzalez Rodriguez) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Sam C. Martino, Joseph C. Russello and Rolando Gonzalez Rodriguez, 681 F.2d 952, 1982 U.S. App. LEXIS 16904 (5th Cir. 1982).

Opinions

JAMES C. HILL, Circuit Judge:

We granted rehearing en banc in this case to decide whether the term “interest” as used in 18 U.S.C. § 1963(a)(1), the crimi[953]*953nal forfeiture provision of the Racketeer Influenced and Corrupt Organizations statute (RICO), 18 U.S.C. §§ 1961-1968,1 includes income or profits derived from a pattern of racketeering activity. Specifically at issue in this case is the forfeitability of insurance proceeds obtained through the conduct of an arson ring. The district court resolved this question of statutory construction in the government’s favor. On appeal a panel of this court reversed the monetary forfeiture orders.2 We now affirm the decision reached by the trial court.

I

The facts surrounding the indictment, prosecution, and conviction of the various defendants are set out in detail in the panel opinion, 648 F.2d at 378-80, 409-11 app. Briefly, the evidence showed that a group of individuals associated for the purpose of committing arson with the intent to defraud insurance companies. This association in fact enterprise,3 composed of an insurance adjuster, homeowners, promoters, investors, and arsonists, operated to destroy at least eighteen residential and commercial properties in Tampa and Miami, Florida between July 1973 and April 1976. The panel summarized the ring’s operations as follows:

At first the arsonists only burned buildings already owned by those associated with the ring. Following a burning, the building owner filed an inflated proof of loss statement and collected the insurance proceeds from which his co-conspirators were paid. Later, ring members bought buildings suitable for burning, secured insurance in excess of value and, after a burning, made claims for the loss and divided the proceeds.

Id. at 380. These activities formed the basis for an indictment charging twenty-three defendants with mail fraud,4 conspiring to violate RICO,5 and substantive RICO violations.6 Following a jury trial sixteen defendants were found guilty and sentenced to varying terms of imprisonment.7 Pursuant to Federal Rule of Criminal Procedure 31(e),8 the forfeiture question was then submitted to the jury for its special verdict on the extent of the interest or property subject to forfeiture. The jury ordered four defendants to forfeit monies received as insurance payments upon the successful burning of their properties: Paul Guarino— $4,000.00; Sam C. Martino — $2,500.00;9 Rolando G. Rodriguez — $4,266.83; and Joseph C. Russello — $340,043.69. Concluding that § 1963(a)(1) was intended to reach only interests in an enterprise and not the profits or income from racketeering activity, the panel reversed these monetary forfeitures. 648 F.2d at 409.10

[954]*954II

A

Resolution of this issue of statutory construction must begin with an analysis of the language of the statute itself. Bread Political Action Committee v. Federal Election Commission, - U.S. -, -, 102 S.Ct. 1235, 1237, 71 L.Ed.2d 432 (1982) (quoting Dawson Chemical Co. v. Rohm & Haas Co., 448 U.S. 176, 187, 100 S.Ct. 2601, 2608, 65 L.Ed.2d 696 (1980)). In the absence of “a clearly expressed legislative intention to the contrary,” the plain language of the statute controls its construction. - U.S. -, 102 S.Ct. at 1238 (quoting Consumer Product Safety Comm’n v. GTE Sylvania, 447 U.S. 102, 108, 100 S.Ct. 2051, 2056, 64 L.Ed.2d 766 (1980)). Under 18 U.S.C. § 1963(a), a defendant who

violates any provision of section 1962 . .. shall forfeit to the United States (1) any interest he has acquired or maintained in violation of section 1962, and (2) any interests in, security of, claim against, or property or contractual right of any kind affording a source of influence over, any enterprise which he has established, operated, controlled, conducted, or participated in the conduct of, in violation of section 1962.

On its face, § 1963(a)(1) does not limit for-feitable interests to those in an enterprise. Rather, the statute speaks broadly of “any interest” which is the product of violating RICO’s prohibitory provision, section 1962. Significantly, § 1963(a)(2) expressly limits forfeitable interests to those in an enterprise. Guiding our efforts at statutory construction in the past has been the presumption that “where Congress includes particular language in one section of a statute but omits it in another section of the same Act, ... Congress acts intentionally and purposely in the disparate inclusion or exclusion.” United States v. Wong Kim Bo, 472 F.2d 720, 722 (5th Cir. 1972).11 Hence the limitation in § 1963(a)(2), and the absence of limitation in § 1963(a)(1), confirm what the straightforward language of the latter already tells us: that § 1963(a)(1) reaches any interest derived from a violation of § 1962.

No definition of the term “interest” appears in RICO. We must assume “that the legislative purpose is expressed by the ordinary meaning of the words used.” Richards v. United States, 369 U.S. 1, 9, 82 S.Ct. 585, 7 L.Ed.2d 492 (1962). The common or dictionary definition of the term includes “right, title, or legal share in something; participation in advantage, profit, and responsibility.” Webster’s Third New International Dictionary 1178 (1971). It has also been defined as “[t]he most general term that can be employed to denote a right, claim, title, or legal share in something.” Black’s Law Dictionary 729 (5th ed. 1979). The concept is therefore broad enough to include profits or income. Indeed, this understanding comports with the House Report’s definition of “interest” as inclusive of “all property and interests, as broadly described, which are related to the violations.” H.R.Rep.No.1549, 91st Cong., 2d Sess. 57, reprinted in [1970] U.S.Code Cong. & Ad.News 4007.

Not only is the concept of profits or proceeds within the plain meaning of “interest,” but the proceeds in question in this case were “acquired ... in violation of section 1962,” as § 1963(a)(1) requires. The insurance proceeds were the product of the defendants’ violation of § 1962(e). That section makes it unlawful for “any person .. . associated with any enterprise ... to conduct or participate ... in the conduct of such enterprise’s affairs through a pattern of racketeering activity .... ” In this case, members of the arson ring conducted the affairs of that enterprise through the racketeering offenses of arson and mail fraud.

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Bluebook (online)
681 F.2d 952, 1982 U.S. App. LEXIS 16904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-sam-c-martino-joseph-c-russello-and-rolando-gonzalez-ca5-1982.