Sentencing — restitution

Listen to this article

U.S. Court of Appeals for the 7th Circuit

Criminal

Sentencing — restitution

Even if a defendant has a valid claim for contribution against another party, he is not relieved of restitution to the victim.

“Wiley’s misconduct while a partial owner does not change the exchange’s victim status or the propriety of the calculation. Wiley’s encouraging Stein to undertake the risky check-kiting scheme may have created multiple transactions which initially benefitted the exchanges (the victims), and himself by virtue of his relation to the exchanges. But, again, the exchanges provided services to Stein to earn their fees and the exchanges suffered $440,000 in losses when Stein’s checks were not honored by his banks. Stein may have a civil claim against Wiley for contribution arising from Wiley’s facilitating conduct, but that does not relieve Stein of his obligation to compensate his victims. 18 U.S.C. §§ 3663A (making full restitution mandatory), 3664(h) (allowing the district court to apportion liability only among defendants). The district court’s decision to treat the exchanges as the victims and calculate the losses based on the dishonored checks was within ‘the realm of permissible computations.’ White, 737 F.3d at 1142. We will not disturb the district court’s decision to impose restitution under 18 U.S.C. § 3663A to make the exchanges whole.”

Affirmed.

13-2358 U.S. v. Stein

Appeal from the United States District Court for the Northern District of Illinois, Pallmeyer, J., Manion, J.