Philadelphia-based Shin Da Enterprises Prevails in Rare Civil RICO Jury Trial $5M+ Judgment

Philadelphia, PA (November 1, 2023): A jury trial in the United States District Court for the Eastern District of Pennsylvania, Shin Da Enterprises, Inc., et al, v. Wei Xiang Yong, et al., yielded a Civil Racketeering Influenced and Corrupt Organizations Act (RICO) judgment of more than five million dollars for violations of RICO 18 U.S.C. 1962(c) and civil conspiracy to violate RICO under 18 USC 1962(d).

Shin Da Enterprises was represented by Edward Kang, David Scott, and Gregory Mathews of Kang Haggerty LLC in Philadelphia. The trial, presided over by Judge Chad F. Kenney, started on October 16th, and concluded on October 24, 2023.

The jury verdict found the defendants liable on both counts–$370,160.80 on Count I under Section 1962(c) and $1,340,000 on Count II under Section 1962(d) for a total of $1,710.160.80.  The Court entered judgment on October 26 for $5,130,482.40 (mandatory treble damages under RICO) exclusive of mandatory attorney’s fees, which will be assessed via motion.

“This is a reminder that the purpose of RICO is to protect unsuspecting victims such as Shin Da Enterprises from unscrupulous businesses set on undermining them through a web of deceit,” said attorney Edward Kang. “The jury saw fit to compensate our clients for the wrongdoing conducted through multiple frauds and extortion,” added attorney David Scott.

This case (2:21-cv-03384-CFK) stemmed from a dispute over construction of an apartment renovation project in Philadelphia, where cabinet and countertop work were provided but proper payment was not made. The Defendants, who controlled the owner and general contractor of the project, submitted invoices to the bank for payment for the work done by Shin Da and were paid for the work through a pattern of wire fraud.

The Plaintiffs alleged that the Defendants had created several fake contracts that were submitted to the bank.  In addition, it was alleged that the defendants created fraudulent invoices to artificially inflate the on-paper costs of the rehabilitation project to boost the amount of a federal historical tax credit received for the rehabilitation.  The jury ultimately found predicate acts of wire fraud, bank fraud, theft by unlawful taking, theft by extortion, and interference with commerce by threats of violence.

To learn more about the facts of this case and the findings, please contact the attorneys at Kang Haggerty for additional information.

Read news coverage in The Legal Intelligencer on Pa. Federal Jury Returns $5M Verdict in Civil RICO Suit

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