Court Error – Garnishment Order

Listen to this article

7^th Circuit Court of Appeals

Case Name: United States of America v. Rafi Sayyed

Case No.: 16-2858

Officials: BAUER and WILLIAMS, Circuit Judges, and DEGUILIO, District Judge

Focus: Court Error – Garnishment Order

Rafi Sayyed was ordered to pay $940,000 in mandatory restitution to the American Hospital Association after pleading guilty to mail fraud. The United States sought to collect part of the restitution with approximately $327,000 contained in Sayyed’s retirement accounts. The district court granted the government’s motion for turnover orders. On appeal, Sayyed maintains that the district court erred in failing to find that his retirement funds qualify as “earnings” subject to the 25% garnishment cap under the Consumer Credit Protection Act. We disagree. Because the garnishment cap only protects periodic distributions pursuant to a retirement program and the government may reach Sayyed’s present interest in his retirement funds, the district court properly granted the government’s turnover motion.

Affirmed

Full Text

Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.