Al-Rayes v. Willingham, No. 18-11059 (11th Cir. 2019)Annotate this Case
Creditors filed suit alleging that a husband and wife worked together to commit multiple acts of mail and wire fraud over several years for the purpose of hiding the husband's assets—acts which, in the creditors' telling, violated the Racketeer Influenced and Corrupt Organizations Act (RICO). The district court found in favor of the wife, finding that no reasonable juror could conclude that they formed an organization with some sort of framework, formal or informal, for the purpose of engaging in racketeering activity.
The Eleventh Circuit reversed and held that there was a genuine factual dispute as to whether the couple formed an association-in-fact enterprise separate and apart from their marital relationship. In this case, the district court erred by applying a heightened standard for association-in-fact enterprises consisting of married couples, rather than applying the sames rules to married couples as to everyone else. Accordingly, the court remanded for further proceedings and vacated the district court's order awarding the wife costs.