Criminal Defense Lawyers

Understanding Federal Criminal Restitution and Fines

Introduction to Federal Criminal Restitution and Fines

Restitution and fines are two of the main financial penalties that can be imposed on individuals or organizations convicted of federal crimes. Restitution refers to money paid by the defendant to compensate victims for their losses, while fines are monetary penalties paid to the government.This article will provide an overview of federal criminal restitution and fines, including key laws, how restitution and fines are calculated, limitations, how they are enforced, and the implications for defendants. We’ll also look at some pros, cons and defenses related to restitution and fines.

Key Laws Governing Restitution

There are two main federal statutes that give courts the authority to order restitution in criminal cases:

• The Victim and Witness Protection Act of 1982 (VWPA) – Gave federal courts discretion to order restitution for victims of most federal crimes 1.
• The Mandatory Victims Restitution Act of 1996 (MVRA) – Made restitution mandatory for certain federal crimes of violence and property crimes where there is an identifiable victim 2.

The MVRA greatly expanded mandatory restitution, applying it to more crimes like fraud and property destruction. The MVRA also specifies procedures for issuing and enforcing restitution orders.

How Criminal Restitution is Calculated

Federal courts determine the full amount of each victim’s losses from the defendant’s criminal conduct then order restitution equal to the full amount of those losses. The losses must be directly caused by the defendant’s offense conduct.Restitution is based on the actual out-of-pocket losses victims suffer due to medical expenses, lost income, funeral costs, lost or damaged property, etc. The prosecution has the burden of proving losses by a “preponderance of evidence.”Courts can consider a defendant’s financial situation when setting a restitution payment schedule, but not for the full restitution amount.

Limitations on Criminal Restitution Orders

While restitution is intended to make victims whole, there are some limitations:

• Only victims of the offense(s) for which the defendant was convicted can receive restitution, not other uncharged conduct per the Supreme Court’s 1990 Hughey v. United States ruling 3.
• Losses caused by conduct outside the offense(s) of conviction are not included.
• Restitution generally cannot include noneconomic damages like pain and suffering.
• A victim’s losses from the offense must be directly causally linked to the defendant’s offense conduct.

How Criminal Fines are Determined

Federal criminal fines are monetary penalties imposed on defendants, paid to the government rather than victims. They are imposed for deterrence and punishment.For individual defendants, federal sentencing guidelines provide guidance on fine ranges based on the offense level and other factors. Courts can impose higher or lower fines than the guideline range by considering statutory factors like the defendant’s ability to pay.Fines for organizational defendants can be much larger based on the seriousness of the offense and the organization’s culpability, assets, revenues, and ability to pay.

Enforcing and Collecting Criminal Restitution and Fines

Criminal restitution and fines can be very difficult to actually collect from defendants. The court may set up an installment schedule, requiring periodic partial payments after sentencing.The U.S. government has 20 years to enforce restitution orders as civil judgments against defendants. Various methods like wage garnishment or property liens can be used to collect owed restitution 4.

If a defendant fails to pay court-ordered restitution or fines, probation may be revoked and further imprisonment imposed. But if a defendant truly lacks assets/income, then restitution and fines may never be fully paid.

Implications of Restitution and Fines for Defendants

Restitution and fines can have major financial implications for convicted defendants. Restitution in particular may be ordered in very large amounts for certain financial and property crimes, while fines can also impose heavy burdens.This highlights the importance of checking a defendant’s ability to pay before imposing exorbitant restitution or fines. While intended to punish and deter, amounts defendants have no hope of ever paying are ultimately ineffective.

Potential Defenses Related to Restitution and Fines

There are a few potential defenses that may dispute or limit restitution and fines:

• Causation defense – Argue some or all of the claimed losses did not directly result from or were not caused by the defendant’s offense conduct.
• Valuation disputes – Dispute the alleged value of damaged/lost property or question the amount of a victim’s claimed losses.
• Limited/minor role – Argue the defendant played a very limited or minor role in the offense, so should not be liable for the entire loss amount.
• Inability to pay – Provide evidence showing a defendant clearly lacks assets or income to pay large restitution or fines.

Conclusion

Ordering restitution and fines in federal criminal cases involves balancing punishment for offenses against compensation for victims. While restitution is limited to losses from the offense(s) of conviction, amounts can still be substantial depending on the crime.As with any financial penalty, courts should consider a defendant’s actual ability to pay to avoid imposing unrealistic burdens. But for those convicted of fraud or financial crimes, courts will seek restitution and fines to make victims whole and punish offenders.

References

 https://www.justice.gov/criminal/criminal-vns/restitution-process

 https://sgp.fas.org/crs/misc/RL34138.pdf

 https://supreme.justia.com/cases/federal/us/495/411/

 https://www.ussc.gov/sites/default/files/pdf/training/online-learning-center/supporting-materials/Imposition-of-Restitution-in-Federal-Criminal-Cases.pdf