Background
Ten medical students enrolled at the University of Science, Arts and Technology (USAT), an international medical school based in Montserrat. They alleged that USAT and several officials represented that the school could provide an education qualifying them to seek Educational Commission for Foreign Medical Graduates certification and take the U.S. medical licensing examinations. The students paid tuition and fees ranging from $21,075 to $120,000.
ECFMG investigated after learning that USAT offered classes at U.S. locations. In August 2018, ECFMG announced a policy requiring international medical schools to teach basic sciences and clinical rotations in their home country and to obtain authorization for foreign satellite campuses. Effective January 1, 2019, USAT students graduating in 2019 or later could not seek ECFMG certification. The students sued under RICO and Puerto Rico law, but the district court granted summary judgment on the RICO claim and declined supplemental jurisdiction over the local claims.
The Court’s Holding
The First Circuit affirmed. Even assuming the students could establish predicate acts of mail or wire fraud, they did not show the continuity required for a RICO “pattern of racketeering activity.” The record did not support their contention that USAT’s alleged scheme extended from 2010 through 2018: before ECFMG adopted its policy in August 2018, USAT’s alleged representations about its ability to provide qualifying education were not shown to be false.
At most, the alleged conduct ran from August 2018 through December 31, 2018—a four-month period that was insufficient for closed-ended continuity under First Circuit precedent. The students also failed to establish open-ended continuity because USAT did not continue collecting tuition and fees for classes after December 31, 2018, leaving no evidence of a threat that the alleged racketeering would continue. The students waived any challenge to the dismissal of their Puerto Rico-law claims by not briefing it.
Key Takeaways
- A RICO claim requires more than multiple alleged mail- or wire-fraud acts; the acts must show relatedness and continuity.
- Four months of alleged conduct did not establish closed-ended continuity on this record.
- Open-ended continuity was absent where the alleged tuition-collection scheme had ended and posed no demonstrated threat of future repetition.
Why It Matters
The decision underscores the First Circuit’s narrow application of RICO’s continuity requirement. A dispute involving alleged misrepresentations and repeated payments may support other claims, but it does not become a civil RICO case without evidence of enduring or ongoing racketeering conduct.