A sole proprietorship constitutes an enterprise under RICO if it is formally or practically separable from the proprietor, such as by having employees or associates.
A defendant who defrauded investors through a sole proprietorship appealed a judgment awarding treble damages under the Racketeer Influenced and Corrupt Organizations Act (RICO). The court considered whether a sole proprietorship constitutes an enterprise with which its proprietor can be associated under 18 U.S.C. § 1962(c). The court holds that a sole proprietorship can be an enterprise if it has a separate and distinct existence from the proprietor, such as through the presence of employees or associates. Because the defendant's business employed several people, the business was an enterprise distinct from the individual, allowing for recovery under the statute.
At page 144 Determining enterprise separateness under RICO statutes73 citing cases“be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)”
- Marshall v. Goguen, No. 9:21-cv-00019 (D. Mont. May 24, 2022).([Y ]Jou cannot associate with yourself, any more than you can conspire with yourself.)
- City of New York v. Smokes-Spirits. Com, Inc., 541 F.3d 425 (2d Cir. 2008).published (The only important thing is that [the enterprise] be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization) separable from th…)
- Jaguar Cars, Inc. v. Royal Oaks Motor Car Co., Inc. Theodore J. Forhecz, Sr. Mark M. Forhecz Theodore J. Forhecz, Jr. Richard Kirsh Jack Rusher Edward Zeller, Mark M. Forhecz, Jaguar Cars, Inc. v. Royal Oaks Motor Car Co., Inc. Theodore J. Forhecz, Sr. Mark M. Forhecz Theodore J. Forhecz, Jr. Richard Kirsh Jack Rusher Edward Zeller, Theodore J. Forhecz, Sr., 46 F.3d 258 (3d Cir. 1995).published (If [a] one-man band incorporates, it gets some legal protections from the corporate form, such as limited liability; and it is just this sort of legal shield for illegal activity that RICO tries to pierce.)
- Applied Sys., Inc. v. PBC Consulting Inc., No. 1:25-cv-14251 (N.D. Ill. Aug. 31, 2026).Because one cannot conspire with oneself, see McCullough v. Suter, 757 F.2d 142, 144 (7th Cir. 1985), Applied’s conspiracy claim is dismissed.6 F. Computer Fraud and Abuse Act Comulate says that Applied fails to state a claim under the Com…
- Malik v. Prairie Raynor LLC, No. 1:23-cv-01182 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
- Sor v. TCF Nat'l Holdings, Inc., No. 1:23-cv-02401 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
- Stafford v. Chojnacki, No. 1:23-cv-03173 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
- Michel v. Chojnacki, No. 1:23-cv-02546 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
- Shankar v. Fairview Avenue Props. LLC, No. 1:23-cv-01469 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
- Haynes v. Fairview Avenue Props., LLC, No. 1:23-cv-01596 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
Show 58 more citing cases
- Hui v. Chojnacki, No. 1:23-cv-03430 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
- Chen v. Chojnacki, No. 1:23-cv-02520 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
- Abbas v. Mikosz, No. 1:23-cv-01691 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
- Said v. Chojnacki, No. 1:23-cv-02858 (N.D. Ill. Dec. 6, 2023).To satisfy RICO’s distinctness requirement, the enterprise can “be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization)” separate from the “pers…
- Sharif v. Newman, No. 1:21-cv-03500 (N.D. Ill. Oct. 11, 2022).“you cannot associate with yourself”
- Sharif v. Newman, No. 1:21-cv-01330 (N.D. Ill. Oct. 11, 2022).“you cannot associate with yourself”
- Calavan v. First Love Int'l Ministries, 590 F. Supp. 3d 1131 (N.D. Ill. 2022).published“you cannot associate with yourself”
- Foster v. Demk, LLC, No. 2:18-cv-04853 (E.D. Pa. Dec. 11, 2019).“The only important thing is that [the enterprise] be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization) separable from the individual.” Jagua…
- Oriska Ins. Co. v. Avalon Gardens Rehab. & Health Care Ctr., LLC, No. 6:18-cv-01030, 2019 WL 4195267 (N.D.N.Y. Sept. 4, 2019).“[t]he only important thing is that [the RICO enterprise] be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in - 23 - the organization) sepa…”
- Roberts v. C.R. England, Inc., 318 F.R.D. 457 (D. Utah 2017).published (The only important thing is that it be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization) separable from the individual.)
- Kerik v. Tacopina, 64 F. Supp. 3d 542 (S.D.N.Y. 2014).publishedHemi Grp., LLC v. City of New York, 559 U.S. 1 , 130 S.Ct. 983 , 175 L.Ed.2d 943 (2010), the Second Circuit Court of Appeals held that even a sole proprietorship could be a RICO "enterprise” and satisfy the distinctness requirement, so lon…
- 4 K & D Corp. v. Concierge Auctions, LLC, 2 F. Supp. 3d 525 (S.D.N.Y. 2014).publishedHemi Grp., LLC v. City of New York, 559 U.S. 1 , 130 S.Ct. 983 , 175 L.Ed.2d 943 (2010), the Second Circuit Court of Appeals held that even a sole proprietorship could be a RICO “enterprise” and satisfy the distinctness requirement, so lon…
- Negrete v. Allianz Life Ins. Co. of North Am., 926 F. Supp. 2d 1143 (C.D. Cal. 2013).published The Court cited with approval to McCullough v. Suter, 757 F.2d 142, 144 (7th Cir.1985), which found that formal or practical separation would suffice to render an enterprise distinct from an individual.
- Sunlight Elec. Contracting Co. v. Turchi, 918 F. Supp. 2d 392 (E.D. Pa. 2013).publishedMoreover, in Jaguar Cars the Court quoted Judge Posner with approval on this point, particularly his assessment that it “[t]he only important thing is that [the enterprise] be either formally (as when there is incorporation) or practically…
- Allstate Ins. v. St. Anthony's Spine & Jt. Inst., P.C., 691 F. Supp. 2d 772 (N.D. Ill. 2010).publishedThe Seventh Circuit has also held that sole proprietorships can be considered an enterprise as long as they have employees to distinguish them from the RICO “person.” See McCullough v. Suter, 757 F.2d 142, 144 (7th Cir.1985) (“if [an indiv…
- Schuster v. Anderson, 413 F. Supp. 2d 983 (N.D. Iowa 2005).publishedAs the Ninth Circuit noted in Feldman , this “is just the sort of legal shield for illegal activity that RICO tries to pierce.” Id. at 656 (citing McCullough v. Suter, 757 F.2d 142, 144 (7th Cir.1985)).
- Lockheed Martin Corp. v. Boeing Co., 314 F. Supp. 2d 1198 (M.D. Fla. 2004).publishedMcCullough, II v. Suter, 757 F.2d 142, 144 (7th Cir.1985).
- Josephine Pizzo v. Bekin Van Lines Co., 258 F.3d 629 (7th Cir. 2001).published The RICO claim fails, although the “enterprise” allegations are sufficient, Cedric Kushner Promotions, Ltd. v. King, — U.S. —, 121 S.Ct. 2087 , 150 L.Ed.2d 198 (2001); McCullough v. Suter, 757 F.2d 142, 144 (7th Cir.1985), and we’ll assume…
- Cedric Kushner Promotions, Ltd. v. King, 533 U.S. 158 (2001).published(finding either formal or practical separateness sufficient to be distinct under § 1962(c))
- Donald Saucier v. Elliot M. Katz & in Def. of Animals, 533 U.S. 194 (2001).published(finding either formal or practical separateness sufficient to be distinct under 1962(c))
- Emcore Corp. v. Pricewaterhousecoopers LLP, 102 F. Supp. 2d 237 (D.N.J. 2000).published Tellingly, the Jaguar Court quoted Seventh Circuit Judge Posner’s observation in McCullough v. Suter, 757 F.2d 142, 144 (7th Cir.1985): “The only important thing is that it [the enterprise] be either formally (as when there is incorporatio…
- Molloy v. Primus Auto. Fin. Servs., 247 B.R. 804 (C.D. Cal. 2000).publishedThe reason for this “distinctness” requirement is that “logic alone dictates that one entity may not serve [both] as the enterprise and the person associated with it because ... ‘you cannot associate with yourself.’ ” Yellow Bus Lines, Inc…
- Brannon v. Boatmen's First Nat'l Bank Of Oklahoma, 153 F.3d 1144 (1st Cir. 1998).publishedThis interpretation flows from the statute's mandate that the person who engages in the pattern of racketeering activity be "employed by or associated with" the enterprise. 18 U.S.C. § 1962 (c); see Yellow Bus Lines, Inc. v. Local Union 63…
- Brannon v. Boatmen's First Nat'l Bank, 153 F.3d 1144 (10th Cir. 1998).publishedThis interpretation flows from the statute’s mandate that the person who engages in the pattern of racketeering activity be “employed by or associated with” the enterprise. 18 U.S.C. § 1962 (e); see Yellow Bus Lines, Inc. v. Local Union 63…
- Williams v. Ford Motor Co., 11 F. Supp. 2d 983 (N.D. Ill. 1998).published“[t]he only important thing is that [the enterprise] be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization) separable from t…”
- Emery v. Am. Gen. Fin., Inc., 134 F.3d 1321 (7th Cir. 1998).published The Third Circuit, relying in part on our decision in McCullough v. Suter, 757 F.2d 142, 144 (7th Cir.1985), has held that an allegation that corporate officers or employees are using their corporation to perpetrate the frauds or other pre…
- Khurana v. Innov Hlth Care, 164 F.3d 900 (5th Cir. 1998).publishedSee Jaguar Cars, Inc. v. Royal Oaks Motor Car Co., 46 F.3d 258, 266-269 (3d Cir. 1995); United States v. Robinson, 8 F.3d 398, 407 (7th Cir. 1993); Sever v. Alaska Pulp Corp., 978 F.2d 1529, 1534 (9th Cir. 1992); Ashland Oil, Inc. v. Arnet…
- Rajiv Khurana v. Innovative Health Care Sys., Inc. Karry Teel Carl Holden William Malone I.H.S. River Region Hosp. of Vacherie, La., Inc., 130 F.3d 143 (5th Cir. 1997).publishedSee Jaguar Cars, Inc. v. Royal Oaks Motor Car Co., 46 F.3d 258, 266-269 (3d Cir.1995); United States v. Robinson, 8 F.3d 398, 407 (7th Cir.1993); Sever v. Alaska Pulp Corp., 978 F.2d 1529, 1534 (9th Cir.1992); Ashland Oil, Inc. v. Arnett,…
- State v. Hutchings, 950 P.2d 425 (Utah Ct. App. 1997).published There, a section 1962(c) count was brought against a defendant whose sole proprietorship was also the RICO “enterprise” with which the government argued the defendant, as proprietor, “associated.” Id. at 143; see generally 18 U.S.C.A. § 19…
- Eagle Traffic Control, Inc. v. James Julian, Inc., 933 F. Supp. 1251 (E.D. Pa. 1996).publishedMcCullough v. Suter, 757 F.2d 142, 144 (7th Cir.1985).
- United States v. London, 66 F.3d 1227 (1st Cir. 1995).published The only important thing is that it be either formally (as when there is incorporation) or practically (as when there are people besides the proprietor working in the organization) separable from the individual. 107 McCullough v. Suter, 75…
- Jaguar Cars, Inc. v. Royal Oaks Motor Car Co., 46 F.3d 258 (3d Cir. 1995).In reaching its conclusion, the Robinson panel relied on an earlier opinion by then Judge Posner in McCullough v. Suter, 757 F.2d 142, 144 (7th Cir.1985), which held that an unincorporated sole proprietorship was a *269 distinct enterprise…
- United States v. Robert Feldman, 853 F.2d 648 (9th Cir. 1988).published
- Robert J. Guidry v. Bank of Laplace, 954 F.2d 278 (5th Cir. 1992).published
- State v. Ivanhoe, 798 P.2d 410 (Ariz. Ct. App. 1990).published
- United States v. Cyrus Yonan, 800 F.2d 164 (7th Cir. 1986).published
- Yellow Bus Lines, Inc. v. Drivers, Chauffeurs & Helpers Local Union 639 James F. Woodward v. Michael Dipalermo Maria Triggs, Sec'y/treasurer, Yellow Bus Lines, 839 F.2d 782 (D.C. Cir. 1988).published
- Yellow Bus Lines, Inc. v. Drivers, Chauffeurs & Helpers Local Union 639 James F. Woodward v. Michael Dipalermo Maria Triggs, Sec'y/treasurer, Yellow Bus Lines, 883 F.2d 132 (D.C. Cir. 1989).published
- Yellow Bus Lines, Inc. v. Drivers, Chauffeurs & Helpers Local Union 639 James F. Woodward v. Michael Dipalermo Maria Triggs, Sec'y/treasurer, Yellow Bus Lines, 913 F.2d 948 (D.C. Cir. 1990).published
- Florian Sever v. Alaska Pulp Corp. Dennis Huse George Woodbury Jesse Cline Frank Roppel George Ishiyama Wayne Funk Ralph Fenner, Florian Sever v. Alaska Pulp Corp. Dennis Huse George Woodbury Jesse Cline Frank Roppel George Ishiyama Wayne Funk Ralph Fenner, 978 F.2d 1529 (9th Cir. 1992).published
- United States v. Noah Ryan Robinson & John Anthony Robinson, & Noah Robinson v. United States of Am., & John A. Robinson v. United States, 8 F.3d 398 (7th Cir. 1993).published
- Richmond v. Nationwide Cassel L.P., 52 F.3d 640 (7th Cir. 1995).published
- In re Tucker Freight Lines, Inc., 789 F. Supp. 884 (W.D. Mich. 1991).published
- Whaley v. Auto Club Ins. Ass'n, 891 F. Supp. 1237 (E.D. Mich. 1995).published
- Hall Am. Ctr. Assocs. Ltd. P'ship v. Dick, 726 F. Supp. 1083 (E.D. Mich. 1989).published
- State v. Judd, 433 N.W.2d 260 (Wis. Ct. App. 1988).published
- Dep't of Econ. Dev. v. Arthur Andersen & Co. (U.S.A.), 683 F. Supp. 1463 (S.D.N.Y. 1988).published
- Schwartz v. Lawyers Title Ins., 680 F. Supp. 2d 690 (E.D. Pa. 2010).published
- Levine v. First Am. Title Ins., 682 F. Supp. 2d 442 (E.D. Pa. 2010).published
- Coleman v. Commonwealth Land Title Ins., 684 F. Supp. 2d 595 (E.D. Pa. 2010).published
- Yellow Bus Lines, Inc. v. Drivers, Chauffeurs & Helpers Local Union 639, 839 F.2d 782 (D.C. Cir. 1988).published
- Yellow Bus Lines, Inc. v. Drivers, Chauffeurs & Helpers Local Union 639, 883 F.2d 132 (D.C. Cir. 1989).published
- Yellow Bus Lines, Inc. v. Drivers, Chauffeurs & Helpers Local Union 639, 913 F.2d 948 (D.C. Cir. 1990).published
- Sever v. Alaska Pulp Corp., 978 F.3d 1529 (9th Cir. 1992).published
- Cole v. Walhout, 789 F. Supp. 884 (W.D. Mich. 1991).published
- Veltor Underground, LLC v. SBA, 143 F.4th 727 (6th Cir. 2025).published
- Langley v. Am. Bank of Wisconsin, 738 F. Supp. 1232 (E.D. Wis. 1990).published
- Bernstein v. Misk, 948 F. Supp. 228 (E.D.N.Y. 1997).published
At page 143 Determining association-in-fact for sole proprietorship15 citing caseswe do not suppose that ‘Murder Inc.’ was really a corporation; and we cannot believe that Congress would have wanted gangsters [associated in fact] to be able to escape the clutches of section 1962(c) just by avoiding the corporate form
- United States v. Ronald J. Perholtz, United States of Am. v. Franklin W. Jackson, United States of Am. v. Gregory W. Fletcher, 842 F.2d 343 (D.C. Cir. 1988).published (we do not suppose that ‘Murder Inc.’ was really a corporation; and we cannot believe that Congress would have wanted gangsters [associated in fact] to be able to escape the clutches of section 1962(c) just by avoiding…)
- Roberts v. C.R. England, Inc., 318 F.R.D. 457 (D. Utah 2017).published McCullough v. Suter, 757 F.2d 142, 144 (7th Cir. 1985) ("The only important thing is that it be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organizat…
- State v. Rivera, 2009-NMCA-132, 223 P.3d 951.publishedThe State’s sole support for its contentions regarding Defendant’s wife is a case that is found in a footnote in the State’s brief, McCullough v. Suter, 757 F.2d 142, 143-44 (7th Cir.1985).
- Wade v. Gaither, 623 F. Supp. 2d 1277 (D. Utah 2009).published“a sole proprietorship can be an ‘enterprise’ with which the proprietor can be ‘associated”
- Ronald D. Smart v. Int'l Bhd. of Elec. Workers, Local 702, 315 F.3d 721 (7th Cir. 2003).published Two plaintiffs are listed, but one is a sole proprietorship and the other the proprietor, so they are one, not two, in the eyes of the law (with an irrelevant exception for cases in which an individual is charged under RICO with using for…
- State v. Hutchings, 950 P.2d 425 (Utah Ct. App. 1997).published There, a section 1962(c) count was brought against a defendant whose sole proprietorship was also the RICO “enterprise” with which the government argued the defendant, as proprietor, “associated.” Id. at 143; see generally 18 U.S.C.A. § 19…
- United States v. George I. Benny, 786 F.2d 1410 (9th Cir. 1986).published
- United States v. Robert Feldman, 853 F.2d 648 (9th Cir. 1988).published
- Harry E. Fleischhauer v. C. Elvin Feltner, Jr., 879 F.2d 1290 (6th Cir. 1989).published
- Robert J. Guidry v. Bank of Laplace, 954 F.2d 278 (5th Cir. 1992).published
Show 5 more citing cases
- State v. Ivanhoe, 798 P.2d 410 (Ariz. Ct. App. 1990).published
- United States v. Weinberg, 656 F. Supp. 1020 (E.D.N.Y. 1987).published
- Vietnam Vets. of Am., Inc. v. Guerdon Indus., Inc., 644 F. Supp. 951 (D. Del. 1986).published
- McCullough v. Suter (In Re Suter), 59 B.R. 944 (Bankr. N.D. Ill. 1986).published
- Comwest, Inc. v. Am. Operator Servs., Inc., 765 F. Supp. 1467 (C.D. Cal. 1991).published
v.
Richard W. SUTER, d/b/a National Investment Publishing Company
The question for decision — one of first impression so far as we are able to determine — is whether a sole proprietorship can be an “enterprise” with which its proprietor can be “associated” within the meaning of a provision of the Racketeer Influenced and Corrupt Organizations Act (Title IX of the Organized Crime Control Act of 1970), 18 U.S.C. § 1962(c), which makes it “unlawful for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity or collection of unlawful debt.” There are no cases on the question and no pertinent legislative history.
Richard Suter, who under the name of the National Investment Publishing Company advises people about investments and buys coins for investment on their behalf, received $23,000 from the Utica National Bank to buy coins for R.D. McCullough’s self-employed retirement account, which the bank manages. Suter represented that he used the money to buy coins, but he sent only three coins, together worth less than $10,000, to the bank, and the bank and McCullough brought this suit. Later Suter pleaded guilty to two counts of having used the mails to defraud coin investors such as the bank and McCullough, in violation of the federal mail-fraud statute. After a bench trial, the district court in this case found that Suter had defrauded the plaintiffs of $14,000, and awarded them treble their damages, plus attorney’s fees, under the civil damages provision of the RICO statute, 18 U.S.C. § 1964(c).
There is no question that Suter’s fraudulent activity constituted a pattern of racketeering activity as that term is defined in the statute, or that Suter conducted the affairs of the National Investment Publishing Company through this pattern, or that this conduct caused the injury to the plaintiffs of which they complain. Hence they are entitled to recover damages under the RICO statute provided that a sole proprietorship can be an “enterprise” with which the proprietor can be “associated.” We think it can be. The statute provides that “ ‘enterprise’ includes any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity.” 18 U.S.C. § 1961(4). A sole proprietorship is a recognized legal entity, and, provided it has any employees, is in any event a “group of individuals associated in fact.” Since it is obvious from the name of the statute (“... and Corrupt Organizations”) that the enterprises to which the statute refers include criminal enterprises, and not just legitimate enterprises penetrated or looted by criminals, it would be passing strange to exclude proprietorships. After all, we do not suppose that “Murder Inc.” was really a corporation; and we cannot believe that Congress would have wanted gangsters to be able to[*144] escape the clutches of section 1962(c) just by avoiding the corporate form, the partnership, or other forms of association named explicitly in section 1961(4) — especially in light of the last part of subsection (4) (“... and any union or group of individuals associated in fact although not a legal entity”).
There would be a problem if the sole proprietorship were strictly a one-man show. If Suter had no employees or other associates and simply did business under the name of the National Investment Publishing Company, it could hardly be said that he was associating with an enterprise called the National Investment Publishing Company; you cannot associate with yourself, any more than you can conspire with yourself, just by giving yourself a nom de guerre. We therefore held in Haroco, Inc. v. American National Bank & Trust Co., 747 F.2d 384, 399-402 (7th Cir.1984), cert. granted, — U.S. -, 105 S.Ct. 902, 83 L.Ed.2d 917 (1985), that an enterprise (a national banking association in that case) could not associate with itself for purposes of section 1962(c). But Suter had several people working for him; this made his company an enterprise, and not just a one-man band; and all section 1962(c) requires, as we said in Haroco, is “some separate and distinct existence for the person [Suter] and the enterprise [National Investment Publishing Company],” 747 F.2d at 402.
It is true that if Suter were all by himself, and yet adopted the corporate form for his activity, he might well fall under section 1962(c), for the corporation would be an enterprise within the meaning of section 1961(4). And from this it could be argued that since subsection (4) defines enterprise so broadly, even a sole proprietorship is an enterprise and Suter is therefore caught by section 1962(c) — thus showing the absurdity of ever treating a sole proprietorship as an enterprise. But these cases are different. If the one-man band incorporates, it gets some legal protections from the corporate form, such as limited liability; and it is just this sort of legal shield for illegal activity that RICO tries to pierce. A one-man band that does not incorporate, that merely operates as a proprietorship, gains no legal protections from the form in which it has chosen to do business; the man and the proprietorship really are the same entity in law and fact. But if the man has employees or associates, the enterprise is distinct from him, and it then makes no difference, so far as we can see, what legal form the enterprise takes. The only important thing is that it be either formally (as when there is incorporation) or practically (as when there are other people besides the proprietor working in the organization) separable from the individual.
The other issues raised by Suter on this appeal have no possible merit. The judgment for the plaintiffs is
Affirmed.