Title 21 — Food and DrugsRelease 119-73

§854 Investment of illicit drug profits

Title 21 › Chapter CHAPTER 13— - DRUG ABUSE PREVENTION AND CONTROL › Subchapter SUBCHAPTER I— - CONTROL AND ENFORCEMENT › Part Part D— - Offenses and Penalties › § 854

Last updated Apr 6, 2026|Official source

Summary

It makes it illegal for anyone who got money from certain serious drug crimes (those punishable by more than one year where the person was a main participant) to use that money to buy, run, or invest in a business that does work across state lines or with other countries. Buying stocks on the open market is allowed only if you do not plan to control the company and, after buying, you and your close family and accomplices own less than 1% of any class of the company’s stock and cannot pick any directors. Breaking this rule can lead to a fine up to $50,000, up to 10 years in prison, or both. “Enterprise” here means any person, business, corporation, association, union, or any group of people working together. The rule must be read broadly to make it effective.

Full Legal Text

Title 21, §854

Food and Drugs — Source: USLM XML via OLRC

(a)It shall be unlawful for any person who has received any income derived, directly or indirectly, from a violation of this subchapter or subchapter II punishable by imprisonment for more than one year in which such person has participated as a principal within the meaning of section 2 of title 18, to use or invest, directly or indirectly, any part of such income, or the proceeds of such income, in acquisition of any interest in, or the establishment or operation of, any enterprise which is engaged in, or the activities of which affect interstate or foreign commerce. A purchase of securities on the open market for purposes of investment, and without the intention of controlling or participating in the control of the issuer, or of assisting another to do so, shall not be unlawful under this section if the securities of the issuer held by the purchaser, the members of his immediate family, and his or their accomplices in any violation of this subchapter or subchapter II after such purchase do not amount in the aggregate to 1 per centum of the outstanding securities of any one class, and do not confer, either in law or in fact, the power to elect one or more directors of the issuer.

(b)Whoever violates this section shall be fined not more than $50,000 or imprisoned not more than ten years, or both.

(c)As used in this section, the term “enterprise” includes any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity.

(d)The provisions of this section shall be liberally construed to effectuate its remedial purposes.

Reference

Citations & Metadata

Citation

21 U.S.C. § 854

Title 21 — Food and Drugs

Last Updated

Apr 6, 2026

Release point: 119-73