Can RICO Be Used in a Trust Dispute?

In UMB Bank v. Guerin, a trustee, UMB Bank, sued the beneficiaries of a trust under the Racketeer Influenced and Corrupt Organizations Act (RICO), typically used against organized crime. The trust involved valuable assets, and the beneficiaries had sued the trustee for mismanagement, initiating a media campaign against them. 

UMB Bank retaliated with a RICO suit, alleging mail, wire, and bank fraud. However, the court rejected most claims, stating that actions like demanding records, communicating with their attorney, and engaging with the media did not constitute fraud under RICO. The court emphasized the need for a pattern of racketeering activity, which UMB failed to establish, leading to the dismissal of the entire RICO claim. The article highlights the challenges of using aggressive legal tactics and the importance of proving each element in such cases.

For more information see Jeffrey H. Skatoff “Can RICO Be Used in a Trust Dispute?”, Probate Stars, December 2023.

Special thanks to Jeffrey Skatoff for bringing this article to my attention.