Shankar v. Fairview Avenue Properties LLC
1:23-cv-01469
| N.D. Ill. | Jun 26, 2025Background
- Plaintiffs Shobana Shankar and Raghavendra Jayanth Chakravarthy allege a RICO scheme involving real estate fraud in the purchase and resale of multiple properties in Illinois.
- Defendant Robert Rixer filed a motion to dismiss Count One (a RICO claim) of the Amended Complaint under Rule 12(b)(6).
- Plaintiffs’ Amended Complaint added defendants but did not materially change factual allegations regarding Rixer’s alleged conduct.
- The court had previously denied an earlier motion to dismiss the RICO claim based on similar arguments by Rixer and other defendants.
- Plaintiffs allege Rixer's coordinated involvement with others, including the use of wire communications for fraudulent misrepresentations, supporting claims of substantive and conspiracy RICO violations.
- The court reviews the sufficiency of Plaintiffs’ allegations under the plausibility standard set by Twombly and Iqbal, and Rule 9(b) particularity for fraud.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Successive 12(b)(6) Motions | Rule allows reconsideration if based on failure to state a claim | Rule should bar repetitive 12(b)(6) arguments | Permissible under Rule 12(h); motion considered |
| Sufficiency of RICO Claim (§1962(c)) | Sufficient facts pled for predicate acts & enterprise | Not enough specifics tying Rixer to two predicate acts | Plaintiffs allege sufficient facts for §1962(c) claim |
| Attribution of Predicate Acts | Rixer accountable for co-schemers’ acts in furtherance of scheme | Rixer didn’t personally commit two predicate acts | Predicate acts attributable; foreseeability sufficient |
| RICO Conspiracy (§1962(d)) | Alleged close relationships and coordinated actions infer agreement | Only association, not agreement, with RICO enterprise | Sufficient facts to infer Rixer agreed to conspiracy |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (plausibility standard for pleading under Rule 8)
- Ashcroft v. Iqbal, 556 U.S. 662 (describes facial plausibility requirement and standard for Rule 12(b)(6))
- Cedric Kushner Promotions, Ltd. v. King, 533 U.S. 158 (elements required for §1962(c) RICO claims)
- Salinas v. United States, 522 U.S. 52 (describing agreement requirement for RICO conspiracy under §1962(d))
- Domanus v. Locke Lord LLP, 847 F.3d 469 (requirements for pleading RICO conspiracy)