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Much actually well are the Fed's buying Rico.
There are racketeer influenced and corrupt organizations act of course in its massive insider trading investigation.
As a way to crack down on potential target -- Gasparino has more on the story's been following for a long time he's got a special guest does that.
Well guys I don't know if there were -- were there -- Rico and this is a very powerful tool for law enforcement but sources tell the Fox Business Network.
That the feds have not ruled out using Rico in this insider trading probe and what would Rico B.
You would have to get essentially a web but criminal conspiracy and what people closes investigation say that if this goes as far as they think you -- go.
The expert networks to hedge funds the company employees -- put that together doing bad things like trading insider.
Information that could could constitute a criminal conspiracy that equals Rico so.
Now to tell us exactly what Rico is and you know how it's used and just how effective it is as -- of of a long force mental we have markers and he's an FBI agent someone that I guess has used this in the past the squeezed.
What essentially is Rico is facing -- ultimately this is the -- I have always understood as a reporter covering white collar crime.
And it's generally used against the mafia although Rudy Giuliani in the Drexel case back in the 1980s could use this law.
Against against Drexel when you could prove that there's a criminal conspiracy something bigger than just one person a mob enterprise would -- a lot of people.
By a criminal enterprise of on Wall Street would that employs one way that it that involves -- one person.
Upped the ante you can -- you could force them to pay more money in fines if you put them to jet engine out three times as long.
Actually isn't that essentially it fault as you said last night at dinner club sick -- you always have to match at the home of after -- home affordable place to put it was a place they -- used to -- but as you say where I thought.
Don't you think about Rico Rico is extremely helpful tool been around since 1970.
And there are a lot of people.
Lawyers and prosecutors -- prosecutors and politicians that really have a problem with the because it is extremely.
Basically every single crime have statue limitations get.
So you've got him crime you commit would say 1990.
But that you make up you have a murder or should you do current mail fraud must -- -- -- national stature I politics.
Mail fraud statute might do -- for a crime back in 1990 you know -- 12000.
Even a statute has expired.
You can connect those two sides to continuing enterprise so if they use Rico and the sincerity trading case theoretically.
If they can -- this conspiracy doesn't EC securities forms part of the right.
-- -- to make -- -- -- so you can get a blanket on the right so if you see if you really go for Rico because you have it you have networks here.
You're talking about going back in time.
That's the whole point of Rico because if you just look at one instance someone commits a crime or corporation -- -- some sort of act.
One of those 35 pretty good crimes and make -- right.
So you may have just on that but if you can show that back ten years ago they engage in that activity and -- to continue -- Of activity.
That makes a -- child put on your your so with organized crime you commit a murder here you commit a murder there you can continuing it -- -- We're not solving -- murder of -- -- and insider trading Brett.
You know there's always been stuff about is sort of trading among these hedge funds that are under on the rights fees and never been proven before -- Although the got you going after now in the east they claimed -- wiretap and the -- they may have more information.
Do you think the feds will use Rico in this case.
Very possible plot out of the round.
Guys understand that it didn't it might have been raised -- ready circles people having conversations with you as I understand that it's out there but what do you think.
I think it's gonna happen -- real possible very very possible that -- that because it just have to look at the pattern of activities.
We would all of that chart you and I spoke about we have what's -- the head of the organization whether it's been a lot whether it's Carlo Gambino whether it's a hedge fund -- what -- And you know what it's -- -- that -- use a gentleman's name as the head of that thing I got -- I realize they have -- so we -- -- -- -- out -- but.
Can any investigation at that you've got it titular head if you write that you are looking.
And how do you get there.
You take away the people that are under that person and -- the people and you keep going down below that -- so you -- -- -- work up if you show that web but beneath.
The web we talked about the experts the company officials right the hedge funds put it all together.
-- you're talking you're talking not much different than that you talk about could criminal conspiracy we're Rico could be used in a major way granted.
But you're going to have to show that the person at the top knew what was going on remember it's not it's one -- to show someone -- a crime if to prove the intent -- And that's that's for -- -- So let's just see how this goes but it's possible maybe they might use Rico missiles Sunday a tremendous message across the markets.
No question about it.
Well you -- -- their first an expert tells us that.
He thinks is like losing and he's recognizance on trading case we shall see.
It'll be an interest in story guys back to you thanks -- gather its original length of time and -- -- that would talking about it could be encompassing a lot of folks out thanks --
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