United States v. Nation

• Decision Date: 16 September 2015
• Docket Number: Case No.: CR 13–0106–DOC
• Citation: 132 F.Supp.3d 1207
• Court: U.S. District Court — Central District of California
• Parties: United States of America, Plaintiff, v. Mongol Nation, an unincorporated association, Defendant.

132 F.Supp.3d 1207

United States of America, Plaintiff,

v.Mongol Nation, an unincorporated association, Defendant.

Case No.: CR 13–0106–DOC

United States District Court, C.D. California, Southern Division.

Signed September 16, 2015

George S. Cardona, Office of US Attorney, Los Angeles, CA, for Plaintiff.

ORDER RE: RENEWED MOTION TO DISMISS THE INDICTMENT AND FOR SANCTIONS [105]

DAVID O. CARTER

, UNITED STATES DISTRICT JUDGE

Before the Court is Defendant's Renewed Motion to Dismiss the Indictment (Dkt. 105).

I. Background

Defendant Mongol Nation is an unincorporated association of "full patched" members of the "Mongols Outlaw Motorcycle Gang" (the "Mongols Gang"). Indictment (Dkt. 1) ¶¶ 1, 10–12, 36. The Mongols Gang has a national presence, with 68 identified chapters, most of which are located in Southern California, where approximately 400 full patched members reside. Id. ¶¶ 3, 9. The Government contends Defendant participated in and conducted the affairs of the Mongols Gang, including, among other acts, "murder, conspiracy to commit murder, attempted murder, conspiracy to traffic in narcotics, narcotics-trafficking, robbery, extortion, money laundering, and witness intimidation." Id. ¶¶ 1, 35.

On February 13, 2013, following criminal proceedings against 79 individual members of the Mongols Gang, a grand jury indicted Defendant on two counts: racketeering in violation of the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. § 1962(c)

; and racketeering conspiracy in violation of RICO, 18 U.S.C. § 1962(d). Id. ¶ 1. Pursuant to the RICO forfeiture provisions, 18 U.S.C. § 1963(a)(1), the Government seeks the forfeiture of two trademarks registered to Defendant in the Indictment. Id. ¶¶ 105–109. The Government subsequently filed a Bill of Particulars that identified two other related trademarks (Dkt. 91).

By this Motion, Defendant seeks dismissal of the Indictment for defects in the Government's forfeiture theory and for failing to adequately plead a RICO violation. Defendant also seeks sanctions for the Government's conduct in this litigation.

II. RICO Overview

RICO renders criminally and civilly liable "any person" who, being employed by or associated with such an enterprise, conducts or participates in the conduct of its affairs "through a pattern of racketeering activity," § 1962(c)

; or who conspires to violate the first three subsections of § 1962, § 1962(d). The term "enterprise" is defined as including "any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity." 18 U.S.C. § 1961(4)

. "There is no restriction upon the associations embraced by the definition: an enterprise includes any union or group of individuals associated in fact." United States v. Turkette, 452 U.S. 576, 580, 101 S.Ct. 2524, 69 L.Ed.2d 246 (1981). A "person" includes any individual or entity capable of holding a legal or beneficial interest in property. 18 U.S.C. § 1961(3).

In order to secure a conviction under RICO, the Government must prove both the existence of an "enterprise" and the connected "pattern of racketeering activity." "The enterprise is an entity, [defined as] a group of persons associated together for a common purpose of engaging in a course of conduct. The pattern of racketeering activity is, on the other hand, a series of criminal acts as defined by the statute." United States v. Turkette, 452 U.S. 576, 583, 101 S.Ct. 2524, 69 L.Ed.2d 246 (1981)

.

III. Facts Alleged in the Indictment

The following facts are drawn from the Indictment and are taken as true for the purposes of this Motion.

The Indictment refers to the RICO "enterprise" as the "Mongols Outlaw Motorcycle Gang," or "the Mongols Gang," and alleges that the enterprise "functioned as a continuing unit for a common purpose of achieving the objectives of the organization." Indictment ¶ 1. The Mongols Gang had an established hierarchy that included: its leadership; other "full patched" members; prospective and probationary members; and other associates (often referred to as "hang-arounds") (collectively, "Mongols"). Id. ¶¶ 1, 2. The Mongols Gang maintained a constitution and by-laws. Id. ¶ 2.

The Mongols Gang was led and controlled by and through its "Mother Chapter," which exercised authority over regional chapters and individual Mongols. Id. ¶ 4. The Mother Chapter collected taxes, fees, and dues from Mongols that were used to fund the organization and pay the legal fees of members. Id. The Mother Chapter also approved new members, resolved internal disputes, and issued incentives to members for "committing acts of violence on behalf of the Mongols Gang, incurring physical injury on behalf of the Mongols Gang, and performing specific sexual acts at Mongols Gang events." Id . The Mother Chapter's decisions were binding on the regional chapters, and it controlled a network of regional chapters. Id. ¶ 6.

Membership in the Mongols Gang was designated using "patches, tattoos and insignia that signified [members'] connection to and status within" the Mongols Gang. Id. ¶ 8. All national and regional officers of the Mongols Gang were required to be "full patched" members. Id . In addition to "full patched" members, the enterprise also consisted of probationary and prospective members. Id. ¶ 9. These potential members had to be sponsored by full patched members, and had to "demonstrate their obedience and loyalty to the Mongols Gang" by demonstrating their willingness to commit crimes on behalf of the Mongols Gang. Id. ¶ 9.¹

As described below, the Mongols Gang used certain trademarked images registered with the United States Patent and Trademark Office ("USPTO"), specifically the "Word Image" and the "Rider Image," to identify its members and facilitate the coordination of criminal activity. Id. ¶¶ 8, 23–24. Full patched members were permitted to "wear leather vests with sewn-on patches that included: a ‘top rocker’ patch on the front with the word ‘Mongols' ... (the ‘Word Image’); a patch on the front with the word ‘Mongols,’ most often in smaller capital letters; a ‘center rocker’ patch in the center of the back of the vest that consisted of the image of a Mongols Gang motorcycle rider, that is, a human head with a queue, facial hair, and sunglasses ... (the ‘Rider Image’)." Id. ¶ 8. Many full patched members also displayed a "1%" patch, which distinguished them from the 99% of motorcycle club members who were law-abiding, as well as an "MFFM" patch, which stood for "Mongols Forever Forever Mongols." Id. In addition to membership and status patches, Defendant also awarded patches to members indicating that they had engaged in a specific act that demonstrated their loyalty, for example, by committing acts of violence or engaging in sex acts at Mongols Gang functions. Id. ¶ 13.

The Government contends the Mongols Gang is a group of individuals associated in fact, and, therefore, an "enterprise" for purposes of 18 U.S.C. § 1961(4)

. Id. ¶ 1. The Government further alleges that Defendant Mongol Nation, "an unincorporated association consisting of full patched members of the Mongols Gang criminal enterprise," was "employed by and associated with the Mongols Gang criminal enterprise" and acted on behalf of the Mongols Gang "under the authority conveyed by their display of the Word and Rider images" to commit acts of violence and drug trafficking, described below. Id . ¶¶ 34–36.

The Indictment states that the purposes of the enterprise included, but were not limited to: enriching Mongols Gang through the sale of narcotics; maintaining control over territory controlled by the Mongols Gang; and protecting and expanding the authority of the Mongols Gang and its members through "intimidation, violence, threats of violence, assault, and murder." Id. ¶ 34(a)-(d).

Leaders of the Mongols Gang controlled the group by encouraging certain activities, such as sex acts and acts of violence, as well as internal disciplinary measures including "killing, attempting to kill, conspiring to kill, assaulting, and threatening Mongols and others who were deemed to present a threat to the Mongols Gang or its leadership." Id. ¶ 14. The Government alleges that Mongols committed crimes including theft of credit card information, money laundering, weapons trafficking, extortion, hate crimes directed against African Americans, as well as other violent crimes ranging from battery to murder. Id. ¶ 15.

It is alleged that Defendant "actively engaged in drug-trafficking, especially the distribution of methamphetamine and cocaine, both within the Mongols Gang and to outside customers, as a source of income." Id. ¶ 16. "Portions of the proceeds from drug-trafficking activities were owed to the Mongols Gang leadership and Mother Chapter and were collected in the form of dues, membership fees, and taxes." Id. Tension and violence between Defendant and local street gangs was common. Id. ¶ 17. The Mongols Gang leaders and full patched members encouraged Mongols to violently attack rival motorcycle clubs such as the Hell's Angels and the Sons of Silence. Id. ¶ 18. The Mongols Gang enforced the group's authority by ordering attacks on members of the general public that disrespected or defied the Mongols Gang, as well as law enforcement officers and witnesses who were willing to testify against Defendant or its members. Id. ¶¶ 19–20.

It is alleged that, "[b]eginning on a date unknown but at the latest by on or about March 16, 2002, and continuing to at least on or about May 25, 2012," Defendant, an unincorporated association consisting of full patched members of the Mongols Gang, committed ten RICO predicate acts,² including drug distribution, murder, and attempted murder. Id. ¶¶ 36–47.

It is also alleged that Defendant conspired with "others known and unknown to the Grand Jury, being persons employed by and associated with the Mongols Gang criminal enterprise," to violate RICO § 1962(c)

, by conducting the...