In the class action lawsuit filed against Irving-based online matchmaking giant True.com, plaintiff's counsel has moved to add RICO claims to the lawsuit. The following excerpt is from the attached motion to amend the complaint:
Specifically, the First Amended Complaint alleges a claim under the Racketeer Influenced Corrupt Organizations Act, 18 U.S.C. §§ [protected] ("RICO"). The First Amended Complaint alleges that defendant True Beginnings LLC ("True") committed wire fraud and bank fraud—which are "predicate acts" under RICO—in two ways: (1) through its "auto subscription" function, by submitting Visa and MasterCard charges to financial institutions when the holders of the Visa and MasterCard accounts (namely, True's ex-subscribers) had not authorized those charges; and (2) by engaging in a scheme to defraud Visa and MasterCard by artificially increasing the number of monthly Visa and MasterCard charges, and thus artificially reducing its "chargeback ratio, " through the use of reloadable "gift cards" purchased in the names of True's top executives and their spouses.