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White-Collar Crime - IRAC - Applicability of Racketeer Influenced and Corrupt Organizations Act (RICO)
Todd Martin, a 25-year-old entrepreneur, was on his way to taking in $2 million per month. He owned a Ferrari, a BMW, four Mercedes-Benzes, and had recently moved into a $1.1 million home. Todd's luxurious lifestyle was furnished wholly from money made due to his Internet activities as the notorious spammer, Hanzel. After discovering that Todd had been violating anti-spamming laws, as well as performing illegal conduct on the Internet such as selling cable descramblers and fake college degrees, federal agents raided Todd's office and seized $4.2 million in assets. Todd is furious and subsequently leaves a message with your supervising attorney, inquiring about the government's ability to seize his assets when he has not yet had a trial.
Please draft a short memo explaining the applicable provisions from Racketeer Influenced and Corrupt Organizations Act (RICO) and its applicability to the seizure of Todd's assets.
An IRAC style essay is appropriate for this assignment.
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Advise what tax consequences arise in respect of the payments.
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