Jay E. Hayden Foundation v. First Neighbor Bank, N.A.

Dist. Ct. did not err in granting defendants’ motion to dismiss instant RICO action alleging that defendants, who were connected to either law firm or bank, formed RICO enterprise beginning in 1985 for purpose of defrauding plaintiffs out of their assets by forging endorsements and signatures on checks and funneling money through bank to entities controlled by defendants. Instant fraudulent acts occurred between 1985 and 1994, and instant 2008 action was untimely since it had been filed more than four years after start of limitations period. Moreover, while plaintiffs alleged that defendants engaged in obstructive behavior that prevented them from timely discovering fraudulent acts, plaintiff knew by 2003 that individual defendants had stolen money and that others were trying to prevent further investigation. Ct. rejected plaintiffs’ contention that limitations period does not start until pre-complaint investigation is complete, as opposed to earlier date when plaintiffs discovered both injury and identity of individuals causing injury.