Scott

Section 107 of the Private Securities Litigation Reform Act of 1995 (“PSLRA”) *942 amended 18 U.S.C. § 1964 (c) to eliminate as a predicate for civil claims under the Racketeer Influenced and Corrupt Organizations Act (“RICO”) any conduct actionable as fraud in the purchase or sale of securities. See Pub.L. No. 104-67, § 107 , 109 Stat. 737 , 758 (1995). Frank Scott brought a civil RICO claim alleging fraud in connection with the sale of securities. We must decide whether section 107 of the PSLRA bars civil RICO claims filed after the PSLRA’s effective date based on conduct occurring prior to its effective date. Because we hold that section 107 cannot be applied retroactively, we reverse.

BACKGROUND

Frank Scott (“Scott”) was the sole shareholder of Scott Walker Boudwin, Inc. (“Scott Walker”), a Nevada corporation. This corporation owned various leasehold interests within the state. In May 1993, Bernard Boos (“Boos”), acting as an agent for the White Plains Resources Corp. (“White Plains”), approached Scott about acquiring his corporation to develop a plant for processing wollastonite, a substance which has a wide variety of uses.

After a series of negotiations in which Scott…