Dershowitz Argues for Foreign Use of RICO

In testimony that was to be submitted to a Moscow court yesterday, a Harvard Law School professor, Alan Dershowitz, states: "In sum, a RICO civil lawsuit brought by a foreign nation in a foreign tribunal premised on the type of gross misconduct alleged here, and in particular, this vast money laundering scheme, is consistent with and advances Congress's goals in enacting a broad civil remedy and in ensuring its application in the global arena." The testimony was withdrawn by the plaintiffs before being submitted.

RELATED: Alan Dershowit'z Testimony (pdf).

In the testimony, obtained by The New York Sun, Mr. Dershowitz argues there is no reason that a foreign court cannot base a case on the RICO statute. In fact, Mr. Dershowitz says that while RICO allows for a judgment in "any appropriate United States district court," this restriction is not mandatory. It is for this reason that the U.S. Supreme Court allows RICO cases to be brought in state courts and arbitration tribunals.

Under RICO, it is necessary to show that the defendant has committed a crime, and Mr. Dershowitz also rejects the defendants' argument that they have never admitted to the crime of money laundering and so cannot be tried under RICO. The bank signed a non-prosecution agreement with the Department of Justice at the conclusion of the money laundering investigation, and Mr. Dershowitz argues that "any suggestion that the defendants are not subject to a civil RICO action because, though they entered into a non-prosecution agreement, they have not been convicted of a crime in a United States court is contrary to the law of the United States and should be rejected."

He also says that Congress has indicated it would like a broad application of the civil RICO act, which allows for treble damages, in order to penalize the terrorists who often use international money laundering to fund activities. "International application of civil RICO would be supportive of United States interests, both as set out in the legislative history of the RICO statute, and as they have emerged in the 21st century." He adds that RICO "has become one of the most critical weapons in the government's arsenal in fighting global terrorism."