Background & Case Summary
Judge Hernán D. Vera is a judge of the United States District Court for the Central District of California, nominated by President Joe Biden and confirmed in 2023.
In 2025, Judge Vera presided over a civil federal racketeering and fraud case brought by a group of Burmese immigrant plaintiffs against Levi Sap Nei Thang. The plaintiffs alleged that Thang sold them U.S. federal oil and gas leases at inflated prices, claiming she could help them profit from oil drilling and other energy investments.
The ruling described the conduct as widespread fraud and racketeering under the Racketeer Influenced and Corrupt Organizations Act (RICO), resulting in significant economic harm to the plaintiffs.
Judgment, RICO Finding & Damages
On June 12, 2025, Judge Vera entered judgment against Thang, awarding the plaintiffs more than $3.2 million in damages, including:
- Economic damages (actual losses suffered by the plaintiffs),
- Punitive damages (to punish and deter misconduct), and
- Treble damages under the racketeering statutes.
The court emphasized that Thang’s actions met the elements of racketeering and constituted intentional deception of investors.
Amended Judgment
Later in 2025, the federal court reduced the total judgment from roughly $3.2 million to approximately $1.8 million. This reduction resulted from a ruling that vacated a large portion of the punitive damages because the evidence presented at trial did not satisfy legal requirements for awarding punitive damages against the defendant.
Even after that adjustment, a substantial monetary award remained against Thang, and the defendants counsel will appeal aspects of the case.
Significance
The case drew attention not only because of the size of the award but because it applied RICO law in a civil context involving alleged fraud on buyers.
Purpose of RICO
The Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S. Code §§ 1961–1962, is a federal statute created to address organized criminal enterprises. It is designed to punish intentional and repeated criminal activity such as fraud schemes, extortion, money laundering, and other serious offenses.
What RICO Requires
To establish a violation of RICO, a plaintiff must prove:
1. The existence of an “enterprise”
2. A pattern of racketeering activity
3. At least two qualifying criminal acts
4. Intent to defraud
5. Direct causation between the criminal acts and the claimed losses
These are strict legal requirements. Without proof of each element, a RICO claim must fail.
Definitions Under the Statute
“Racketeering activity” includes specific serious crimes such as mail fraud, wire fraud, bribery, extortion, money laundering, and similar offenses. Ordinary civil disputes or contractual disagreements do not qualify as racketeering.
A “pattern of racketeering activity” requires more than a single incident. It requires repeated, intentional criminal acts carried out as part of an ongoing scheme.
Application to Levi Sap Nei Thang Case
The RICO claims asserted against Levi Sap Nei Thang were based entirely on allegations of fraud. However, the evidence presented at trial showed:
– No misrepresentations were made
– No intent to deceive was proven
– No criminal enterprise existed
– The buyers’ losses resulted from their own failure to pay required government fees
Because these essential elements were never established, the RICO statute does not apply to this matter.
Improper Award of Damages
The District Court awarded compensatory damages, treble damages, and attorneys’ fees under RICO. Since the underlying findings of fraud were erroneous, these awards are legally invalid and should be reversed.
Conclusion
RICO is intended for organized criminal conduct. The lawful sale of government-issued leases with full disclosure does not meet the legal definition of racketeering activity. For these reasons, the RICO judgment and related fee award should be overturned.
Judge Hernán D. Vera is the United States District Court for the Central District of California. He was nominated by President Joe Biden.