Sentencing – restitution — mortgage fraud

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United States Court of Appeals For the Seventh Circuit

Criminal

Sentencing – restitution — mortgage fraud

In calculating restitution for mortgage fraud, the offset value is the eventual cash proceeds recouped following a foreclosure sale.

“We reach this decision based on the plain language of the MVRA. The MVRA states that the offset value is ‘the value (as of the date the property is returned) of any part of the property that is returned.’ 18 U.S.C. § 3663A(b)(1). ‘The property’ for purposes of offset value must mean ‘the property stolen.’ The property originally stolen was cash. Some amount of cash is the only way part of the property can be returned. In the mortgage fraud case we have before us, the property stolen is cash—not the real estate which serves as collateral. Accordingly, the property stolen is only returned upon the resale of the collateral real estate and it is at that point that the offset value should be determined by the part of the cash recouped at the foreclosure sale.”

“We also agree with the government that the victims are entitled to expenses (other than attorney’s fees and unspecified fees) related to the foreclosure and sale of the collateral property because those expenses were caused by Robers’s fraud and reduced the amount of the property (cash) returned to the victim lenders. Because the district court included attorney’s fees and unspecified fees in the restitution award, we vacate that portion of the district court’s award, but otherwise affirm, and remand for proceedings consistent with this opinion.”

Affirmed in part, and Vacated in part.

10-3794 U.S. v. Robers

Appeal from the United States District Court for the Eastern District of Wisconsin, Randa, J., Manion, J.