Cedric Kushner Promotions, Ltd. v. King, 533 U.S. 158 (2001), was a United States Supreme Court case concerning the extent to which the Racketeer Influenced and Corrupt Organizations Act (RICO) applied to certain types of corporation-individual organizations.
In this case, the Court decided unanimously to apply it to respondent Don King.
[1] RICO makes it "unlawful for any person employed by or associated with any enterprise... to conduct or participate... in the conduct of such enterprise's affairs through a pattern of racketeering activity.
In affirming the decision, the Second Circuit Court of Appeals held that RICO applies only where a plaintiff shows the existence of two separate entities, a "person" and a distinct "enterprise," the affairs of which that "person" improperly conducts.
[4] The Court held that "the need for two distinct entities is satisfied; hence, the RICO provision... applies when a corporate employee unlawfully conducts the affairs of the corporation of which he is the sole owner -- whether he conducts those affairs within the scope, or beyond the scope, of corporate authority.