Title 21 — Food and DrugsRelease 119-73not60

§854 Investment of Illicit Drug Profits

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

Last updated Apr 5, 2026|Official source

Summary

It is illegal for anyone who got money from a drug crime that can be punished by more than one year in prison, and who was a principal under section 2 of Title 18 (a main participant), to use or invest that money in buying, starting, or running any business that does business across state lines or affects foreign trade. Buying stock on the open market is allowed only if it is just for investment, not to control the company, and the buyer plus immediate family and accomplices hold less than 1 percent of any one class of stock and cannot pick any directors. "Enterprise" means a person, company, group, union, or similar organization. Violators can be fined up to $50,000, jailed up to ten years, or both. The rule should 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 5, 2026

Release point: 119-73not60