Marsh v. Coles

OPINION

NORRIS, Judge:

¶ 1 The issue in this appeal is whether investors may obtain a constructive trust on life insurance proceeds received by the policy beneficiaries after the death of the insured when the insured allegedly acquired the insurance policies with funds wrongfully obtained through an illegal enterprise and a pattern of unlawful activity under state racketeering statutes. We hold a provision in Arizona’s racketeering statute protecting innocent third parties bars the constructive trust requested by the investors. We therefore affirm the superior court’s judgment in favor of the…