“Financial institution" means a bank, savings bank, savings and loan association, credit union, loan company, sales finance company, insurance premium finance company, community currency exchange, seller of checks, insurance company, trust company, securities broker-dealer, as defined in s. 551.102 (4)
, mortgage banker, mortgage broker, pawnbroker, as defined in s. 134.71 (1) (e)
, telegraph company, or dealer in precious metals, stones, or jewels.
“Financial transaction information" means information being submitted to a financial institution in connection with a transaction with that financial institution.
“Monetary instrument" includes any of the following:
Coin or currency of the United States or any other country.
Traveler's check, personal check, money order, or share draft or other draft for payment.
Investment security or negotiable instrument, in bearer form, book entry, or other form that provides that title to the security or instrument passes upon delivery or transfer of the security or instrument.
“Transaction" means the acquisition or disposition of property by any means, including any of the following:
The purchase, sale, trade, transfer, transmission, exchange, loan, pledge, investment, delivery, deposit, or withdrawal of a monetary instrument.
Whoever knowingly does any of the following in connection with the submission of financial transaction information is guilty of a Class H felony:
Falsifies or conceals or attempts to falsify or conceal an individual's identity.
Makes a false statement regarding an individual's identity.
Makes or uses a writing containing false information regarding an individual's identity.
Uses a false personal identification document or false personal identifying information.
History: 2003 a. 36
; 2007 a. 196
RACKETEERING ACTIVITY AND CONTINUING CRIMINAL ENTERPRISE
Short title. Sections 946.80
may be cited as the Wisconsin Organized Crime Control Act.
History: 1981 c. 280
; 1989 a. 121
RICO and WOCCA. Gegios and Jervis. Wis. Law. Apr. 1990.
The legislature finds that a severe problem is posed in this state by the increasing organization among certain criminal elements and the increasing extent to which criminal activities and funds acquired as a result of criminal activity are being directed to and against the legitimate economy of the state. The legislature declares that the intent of the Wisconsin Organized Crime Control Act is to impose sanctions against this subversion of the economy by organized criminal elements and to provide compensation to private persons injured thereby. It is not the intent of the legislature that isolated incidents of misdemeanor conduct be prosecuted under this act, but only an interrelated pattern of criminal activity the motive or effect of which is to derive pecuniary gain.
History: 1981 c. 280
If a party violating this section could defend its actions using the voluntary payment rule, then the broad, remedial purpose of this section would be undermined. MBS-Certified Public Accountants, LLC v. Wisconsin Bell Inc. 2013 WI App 14
, 346 Wis. 2d 173
, 828 N.W.2d 575
“Commission of a crime" means being concerned in the commission of a crime under s. 939.05
“Enterprise" means any sole proprietorship, partnership, limited liability company, corporation, business trust, union organized under the laws of this state or other legal entity or any union not organized under the laws of this state, association or group of individuals associated in fact although not a legal entity. “Enterprise" includes illicit and licit enterprises and governmental and other entities.
“Pattern of racketeering activity" means engaging in at least 3 incidents of racketeering activity that have the same or similar intents, results, accomplices, victims or methods of commission or otherwise are interrelated by distinguishing characteristics, provided at least one of the incidents occurred after April 27, 1982 and that the last of the incidents occurred within 7 years after the first incident of racketeering activity. Acts occurring at the same time and place which may form the basis for crimes punishable under more than one statutory provision may count for only one incident of racketeering activity.
“Racketeering activity" means any activity specified in 18 USC 1961
(1) in effect as of April 27, 1982, or the attempt, conspiracy to commit, or commission of any of the felonies specified in: chs. 945
, subch. V of ch. 551
, and ss. 49.49
, 139.44 (1)
, 201.09 (2)
, 553.41 (3)
, 553.52 (2)
, 940.19 (4)
, 940.302 (2)
, 941.20 (2)
, 943.01 (2)
, or (2g)
, 943.20 (3) (bf)
, 943.23 (1g)
, 943.24 (2)
, 943.34 (1) (bf)
, and (c)
, 943.41 (8) (b)
, 943.50 (4) (bf)
, and (c)
, 944.21 (5) (c)
, 945.03 (1m)
, 945.04 (1m)
, 945.05 (1)
, 946.32 (1)
, and 948.30
History: 1981 c. 280
; 1983 a. 438
; 1985 a. 104
; 1985 a. 236
; 1987 a. 266
; 1987 a. 332
; 1989 a. 121
; 1991 a. 32
; 1993 a. 50
; 1995 a. 133
; 1997 a. 35
; 1999 a. 9
; 2001 a. 16
; 2003 a. 36
; 2005 a. 212
; 2007 a. 116
; 2009 a. 180
; 2011 a. 174
; 2013 a. 362
The definition of “pattern of racketeering" is not unconstitutionally vague. The definition of “enterprise" is discussed. State v. O'Connell, 179 Wis. 2d 598
, 508 N.W.2d 23
(Ct. App. 1993).
Repeated use of illegally copied computer software did not constitute a pattern of racketeering. Management Computer Services v. Hawkins, 196 Wis. 2d 578
, 539 N.W.2d 111
(Ct. App. 1995), 93-0140
WOCCA does not require proof of intent or knowledge beyond that required for the underlying predicate offense. State v. Mueller, 201 Wis. 2d 121
, 549 N.W.2d 455
(Ct. App. 1996), 93-3227
The analysis for a “pattern of racketeering activity" under WOCCA is the same as under RICO. Brunswick Corp. v. E.A. Doyle Mfg. Co. 770 F. Supp. 1351
Prohibited activities. 946.83(1)
No person who has received any proceeds with knowledge that they were derived, directly or indirectly, from a pattern of racketeering activity may use or invest, whether directly or indirectly, any part of the proceeds or the proceeds derived from the investment or use thereof in the acquisition of any title to, or any right, interest, or equity in, real property or in the establishment or operation of any enterprise.
No person, through a pattern of racketeering activity, may acquire or maintain, directly or indirectly, any interest in or control of any enterprise or real property.
No person employed by, or associated with, any enterprise may conduct or participate, directly or indirectly, in the enterprise through a pattern of racketeering activity.
History: 1981 c. 280
Sub. (3) requires that the person be separate from the enterprise; as matter of law, an individual is separate from a solely-owned enterprise if it is a corporation. State v. Judd, 147 Wis. 2d 398
, 433 N.W.2d 260
(Ct. App. 1988).
Any person convicted of engaging in racketeering activity in violation of s. 946.83
is guilty of a Class E felony.
In lieu of a fine under sub. (1)
, any person convicted of engaging in conduct in violation of s. 946.83
, through which he or she derived pecuniary value, or by which he or she caused personal injury or property damage or other loss, may be fined not to exceed 2 times the gross value gained or 2 times the gross loss caused, whichever is the greater, plus court costs and the costs of investigation and prosecution, reasonably incurred. In calculating the amount of fine based on personal injury, any measurement of pain and suffering shall be excluded.
The court shall hold a hearing to determine the amount of the fine authorized by sub. (2)
Anything of value in the form of money, a negotiable instrument, or a commercial interest or anything else the primary significance of which is economic advantage; or
Any other property or service that has a value in excess of $100.
History: 1981 c. 280
; 2001 a. 109
Continuing criminal enterprise. 946.85(1)
Any person who engages in a continuing criminal enterprise is guilty of a Class E felony.
In this section a person is considered to be engaged in a continuing criminal enterprise, if he or she engages in a prohibited activity under s. 946.83
The activity is undertaken by the person in concert with 5 or more other persons, each of whom acted with intent to commit a crime and with respect to whom the person occupies a supervisory position; and
The person obtains gross income or resources in excess of $25,000 from the activity.
There are 3 separate offenses chargeable under this section, each requiring proof of a fact the others do not. Prosecution of continuing criminal enterprise violations and the predicate offenses does not violate double jeopardy. State v. Evers, 163 Wis. 2d 725
, 472 N.W.2d 828
(Ct. App. 1991).
Criminal forfeitures. 946.86(1)
In addition to the penalties under ss. 946.84
, the court shall order forfeiture, according to the procedures set forth in subs. (2)
, of all real or personal property used in the course of, or intended for use in the course of, derived from or realized through conduct in violation of s. 946.83
. All forfeitures under this section shall be made with due provision for the rights of innocent persons. Property constituting proceeds derived from conduct in violation of s. 946.83
includes, but is not limited to, any of the following:
Any position, office, appointment, tenure, commission or employment contract of any kind that the defendant acquired or maintained in violation of s. 946.83
, through which the defendant conducted or participated in the conduct of the affairs of an enterprise in violation of s. 946.83
, or that afforded the defendant a source of influence or control over the affairs of an enterprise that the defendant exercised in violation of s. 946.83
Any compensation, right or benefit derived from a position, office, appointment, tenure, commission or employment contract that accrued to the defendant during the period of conduct in violation of s. 946.83
Any interest in, security of, claim against or property or contractual right affording the defendant a source of influence or control over the affairs of an enterprise in which the defendant participated in violation of s. 946.83
Any amount payable or paid under any contract for goods or services that was awarded or performed in violation of s. 946.83
Any criminal complaint alleging violation of s. 946.83
shall allege the extent of property subject to forfeiture under this section. At trial, the trier of fact shall return a special verdict determining the extent of property, if any, to be subject to forfeiture under this section. When a special verdict contains a finding of property subject to a forfeiture under this section, a judgment of criminal forfeiture shall be entered along with the judgment of conviction under s. 972.13
If any property included in a special verdict of criminal forfeiture cannot be located, has been sold to a bona fide purchaser for value, has been placed beyond the jurisdiction of the court, has been substantially diminished in value by the conduct of the defendant, has been commingled with other property that cannot be divided without difficulty or undue injury to innocent persons or is otherwise unreachable without undue injury to innocent persons, the court may order forfeiture of any other property of the defendant up to the value of the property that is unreachable.
Any injured person has a right or claim to forfeited property or the proceeds derived therefrom superior to any right or claim the state has under this section in the same property or proceeds. This subsection does not grant the injured person priority over state claims or rights by reason of a tax lien or other basis not covered by ss. 946.80
. All rights, titles and interest in property described in sub. (1)
vest in the state upon the commission of the act giving rise to forfeiture under this section.
History: 1989 a. 121
After making due provision for the rights of innocent persons, any circuit court may enjoin violations of s. 946.83
and may issue appropriate orders and judgments related thereto, including, but not limited to:
Ordering any defendant to divest himself or herself of any interest in any enterprise which is involved in the violation of s. 946.83
, including real property.
Imposing reasonable restrictions upon the future activities or investments of any defendant related to enjoining violations of s. 946.83
, including, but not limited to, prohibiting any defendant from engaging in the same type of endeavor as the enterprise in which he or she was engaged in violation of s. 946.83
Ordering the dissolution or reorganization of any related enterprise.
Ordering the suspension or revocation of a license, permit or prior approval granted to any related enterprise by any agency of the state, county or municipality.
Ordering the dissolution of a corporation organized under ch. 180
, 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 s. 946.83
and that, for the prevention of future criminal activity, the public interest requires the action under this paragraph.
All property, real or personal, including money, used in the course of, intended for use in the course of, derived from, or realized through, conduct which has resulted in a conviction for violation of s. 946.83
is subject to civil forfeiture to the state. The state shall dispose of all forfeited property as soon as commercially feasible. If property is not exercisable or transferable for value by the state, it shall expire. All forfeitures or dispositions under this section shall be made with due provision for the rights of innocent persons. The proceeds realized from the forfeitures and dispositions shall be deposited in the school fund.
Notwithstanding par. (a)
, property described in par. (a)
is subject to forfeiture if the person who violated s. 946.83
has not been convicted, but he or she is a defendant in a criminal proceeding, is released, pending trial, on bail, as defined in s. 969.001
, and fails to appear in court regarding the criminal proceeding. However, before making the final determination of any action under this section, the court must determine that the party bringing the action can prove the person committed the violation of s. 946.83
Any injured person has a right or claim to forfeited property or the proceeds derived therefrom superior to any right or claim the state has under this section in the same property or proceeds. This paragraph does not grant the person priority over state claims or rights by reason of a tax lien or other basis not covered by ss. 946.80
The attorney general or any district attorney may institute civil proceedings under this section. Notwithstanding s. 59.42 (2) (b) 4.
, in counties having a population of 500,000 or more, the district attorney or the corporation counsel may proceed under this section. A corporation counsel in a county having a population of 500,000 or more or a district attorney may institute proceedings under this section only with the prior written approval of the attorney general. In any action brought under this section, the circuit court shall proceed as soon as practicable to the hearing and determination. Pending final determination of any action under this section, the circuit court may at any time enter such injunctions, prohibitions or restraining orders or take such actions, including the acceptance of satisfactory performance bonds, as the court deems proper. At any time pending final determination of a forfeiture action under sub. (2)
, the circuit court may order the seizure of property subject to forfeiture and may make such orders as it deems necessary to preserve and protect the property.
Any person who is injured by reason of any violation of s. 946.83
has a cause of action for 2 times the actual damages sustained and, when appropriate, punitive damages. The person shall also recover attorney fees and costs of the investigation and litigation reasonably incurred. The defendant or any injured person may demand a trial by jury in any civil action brought under this section.
The burden of proof under this section is that of satisfying or convincing to a reasonable certainty by a greater weight of the credible evidence that the property is subject to forfeiture under this section.
A final judgment or decree rendered in favor of the state in any criminal proceeding under ss. 946.80
shall stop the defendant from denying the essential allegations of the criminal offense in any subsequent civil action or proceeding.
History: 1981 c. 280
; 1989 a. 121
; Stats. 1989 s. 946.87; 1993 a. 280
; 1995 a. 201
State courts have concurrent jurisdiction over federal civil RICO actions. Tafflin v. Levitt, 493 U.S. 455
, 107 L. Ed. 2d 887
A WOCCA double damage civil action is penal in nature and does not survive the death of a defendant, but a claim against the deceased defendant's employee does survive. Schimpf v. Gerald, Inc. 2 F. Supp. 2d 1150
Reaching deep pocket under RICO. Poker. 72 MLR 511 (1989).
Enforcement and jurisdiction. 946.88(1)
A criminal or civil action or proceeding under ss. 946.80
may be commenced at any time within 6 years after a violation under ss. 946.80
terminates or the cause of action accrues. If a criminal action or proceeding under ss. 946.80
is brought, or intervened in, to punish, prevent or restrain any such violation, the running of the period of limitations with respect to any civil action or proceeding, including an action or proceeding under s. 946.87
, which is based in whole or in part upon any matter complained of in the criminal action or proceeding shall be suspended for 2 years following the termination of the criminal action or proceeding.