When Can a Securities Fraud Claim Be Used as a Predicate

question 6

Multiple Choice

When can a securities fraud claim be used as a predicate act in a civil case under the Racketeer Influenced and Corrupt Organizations Act (RICO) ?

• A) When the defendant has been arrested in connection with the fraud
• B) When a conspiracy can be proven
• C) When the defendant has been criminally convicted in connection with the fraud
• D) When the defendant has been held liable for other civil damages in connection with the fraud

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Definitions:

Consumer Surplus

The contrast between the total expenditure consumers are willing to make on a good or service and the total expenditure they actually make.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, representing profit.

Import Restrictions

Measures by governments to control the quantity or quality of goods and services coming into a country to protect domestic industries from foreign competition.

Japanese Manufacturers

Refers to companies based in Japan that are involved in the production of goods across various industries, known for innovation and quality.