The following excerpt is from Moore and Parry v. Painewebber, 189 F.3d 165 (2nd Cir. 1998):
We review a dismissal granted under Rule 12(b)(6) de novo, with all inferences drawn in favor of the nonmoving party. See Jaghory v. New York State Dep't of Educ., 131 F.3d 326, 329 (2d Cir. 1997).
The plaintiffs' theory of RICO liability is based on predicate acts of mail fraud in violation of 18 U.S.C. 1341 and wire fraud in violation of 18 U.S.C. 1343. For RICO liability to exist as a result of a violation of these statutes, the defendant must have made misrepresentations that are material to the harm caused to the victim. See United States v. Frank, 156 F.3d 332, 336 (2d Cir. 1998) (per curiam); United States v. Starr, 816 F.2d 94, 98 (2d Cir. 1987). The causation requirement, which is jurisdictionally mandated, has two different components. There must be "transaction causation," meaning that the
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