00-549 Cedric Kushner Promotions, Ltd. v. King

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“Linguistically speaking, an employee who conducts the affairs of a corporation through illegal acts comes within the terms of a statute that forbids any ‘person’ unlawfully to conduct an ‘enterprise,’ particularly when the statute explicitly defines ‘person’ to include ‘any individual … capable of holding a legal or beneficial interest in property,’ and defines ‘enterprise’ to include a ‘corporation.’ 18 U.S.C. secs. 1961(3), (4). And, linguistically speaking, the employee and the corporation are different ‘persons,’ even where the employee is the corporation’s sole owner. After all, incorporation’s basic purpose is to create a distinct legal entity, with legal rights, obligations, powers, and privileges different from those of the natural individuals who created it, who own it, or whom it employs.”

Reversed and remanded.

Local Effect:

The decision is consistent with current Seventh Circuit law: McCullough v. Suter, 757 F.2d 142, 144 (7th Cir.1985) (finding either formal or practical separateness sufficient to be distinct under sec.1962(c)).