The Tribune

By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

THE United States District Court for the Southern District of New York has dismissed a complaint by Peter Nygard made under the Racketeer Influenced and Corrupt Organisations (RICO) Act in the United States.

Nygard was charged in December with sex trafficking and racketeering offences when the US Attorney’s Office in the Southern District of New York alleged that he showed a pattern of criminal conduct involving at least dozens of victims in the United States, The Bahamas and Canada over several decades. Nygard’s complaint under RICO alleged that Louis Bacon, his longtime Lyford Cay foe, planned to destroy him and businesses associated with him.

His first amended complaint alleged that the “plaintiff’s claims against defendant began with a property dispute in The Bahamas that expanded into several incidents over 10 years: (1) the filing of ‘Jane Doe’ lawsuits against plaintiff alleging sexual misconduct, with associated attempts to bribe, coerce, and threaten witnesses; (2) attempts to frame plaintiff in a murder for hire scheme, and related reports to [and raids by] the FBI and the Department of Homeland Security; (3) associated media reports in The New York Times and other media outlets; (4) successful attempts to have retailers and business partners drop plaintiff’s fashion brands; (5) promotion of plaintiff’s resignation from certain companies; (6) appointment of a receiver for companies with which plaintiff was associated and (7) institution of receivership proceedings involving certain companies.”

 Nygard International Partnership and Nygard Incorporated brought suits alongside Nygard.

 According to the ruling, “The FAC claims that defendant engaged in racketeering activity by bribing, coercing or extorting witnesses to give false statements; laundering money to those witnesses and others; tampering with witness protection programmes; transmitting obscene materials and stolen goods in interstate commerce and trafficking in persons.”

 In his report and recommendation on Nygard’s complaint, Magistrate Kevin Fox recommended that the complaint be dismissed for failure to state claim.

 District Judge Lorna Schofield adopted the magistrate’s recommendation.

 The ruling says:  “Judge Fox first concluded that the FAC failed to state a civil RICO claim because the FAC alleges three classes of injuries, none of which are cognizable under RICO: (1) harm to plaintiff’s personal reputation and resulting public relations expenses; (2) follow-on reputational harm to businesses associated with plaintiff, including diminution in the value of their trademarks and other intellectual property and (3) legal fees related to criminal proceedings and unspecified other litigation. Judge Fox also recommended that, absent federal question jurisdiction, the court should decline to exercise supplemental jurisdiction. Plaintiff filed objections to the R&R, and defendant responded.”