McCulloch v. United States

Background

In March 1981, people involved in an interstate network that copied and distributed pirated sound recordings were tried and convicted of multiple crimes, including interstate transportation of pirated tapes, wire fraud, and conspiracy. Those convictions were used as the criminal “predicate acts” to prosecute them for running a racketeering enterprise under the federal RICO law. After this Court’s later decision in Dowling (1985) said criminal penalties could not apply to interstate transportation of pirated tapes under §2314, the defendants used a post-conviction motion under §2255 to ask courts to set aside affected convictions. The District Court vacated the §2314 convictions but left the wire fraud and RICO convictions in place, and the Court of Appeals affirmed.

Reasoning

The central question was whether a RICO conviction can stand when some — but not all — of the underlying predicate-act convictions are later vacated. The courts below allowed the RICO convictions to remain, noting that the jury verdict did not say which specific predicate acts formed the basis for finding a pattern of racketeering. The lower courts followed a Fifth Circuit approach that permits RICO convictions to stand if defendants remain convicted of at least two related racketeering acts, while other circuits have reached different conclusions, creating a split.

Real world impact

Because the Supreme Court declined review, the disagreement among federal appeals courts about how to treat partially vacated predicate convictions remains unresolved. For now, defendants whose some predicate convictions are later invalidated may still keep RICO convictions in some circuits. The decision leaves open whether a future case will settle the conflict.

Dissents or concurrances

Justice White, joined by Justice Brennan, dissented and would have granted review to resolve the conflicting approaches among the Courts of Appeals.