Bank of America has been named as a defendant in the civil RICO (“Racketeer Influenced and Corrupt Organizations Act”) lawsuit filed in federal court in Oregon in June of 2017. This will send shock waves through the financial and insurance industries:
“Defendant Bank of America, N.A. (“Defendant Bank of America”) is a nationally chartered banking association with its principal place of business in North Carolina. Defendant Bank of America does business in Oregon and holds a mortgage on the Beddow Property. As further described herein, Defendant Bank of America knowingly allowed the Beddow Property to be used for the production and processing of marijuana, and profited from such use.”
The complaint goes on to state:
“Defendant Bank of America holds the mortgage on the Beddow Property. As the mortgagee of the Beddow Property, Defendant Bank of America controls the Beddow Property. In November 2015, Bank of America received written notice that the Beddow Defendants, the mortgagors, were leasing the Beddow Property to Defendant Hidden Acres for the purpose of producing and processing marijuana, that marijuana was being produced and processed on the Beddow Property, and that the Beddow Defendants were investors in the marijuana production and processing operation. In violation of 18 U.S.C. § 856(a)(2), since November 2015, Defendant Bank of America has knowingly permitted the production and processing of marijuana to continue on the Beddow Property, and derived a profit from such activity via the monthly mortgage payments it received. Since November 2015, in violation of 21 U.S.C. § 843(b), Defendant Bank of America has communicated via mail with the Beddow Defendants to facilitate use of the Beddow Property in violation of 18 U.S.C. § 856(a)(2).”
The plaintiffs are seeking treble damages, costs, and “other and further relief as the Court shall deem equitable.” Interestingly, one of the two plaintiffs, Rachel McCart, is a lawyer and is representing herself and her sister. There is no request for attorney’s fees.