- July 20, 1989
- All Alaska Agents
- Racketeer Influenced and Corrupt Organizations Act (RICO) 18 U.S.C. Sec. 1963 and Continuing Criminal Enterprise Act (CCE) 21 U.S.C. Sec. 881.
At the ALTA convention in Anchorage last month the title problems with RICO were briefly discussed.
Both RICO and CCE provide for forfeiture to the United States of real property used for the commission of certain crimes. They also require the forfeiture of real property purchased with money derived from these crimes.
The forfeitures are automatic. Title vests in the United States "upon commission of the act giving rise to the forfeiture".
These statutes protect bona fide purchasers "without cause to believe that the property was subject to forfeiture". Mortgagees fall within this protection. U.S. V. Real Property, (E.D. La. 1987) 650 F. Supp. 1534.
We may be asked to insure property where the U.S. obtained title through forfeiture. Please refer any such requests to me.
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