Restitution in Federal Criminal Cases

What is Restitution in Federal Criminal Cases?

In federal criminal cases, restitution is court-ordered payment for losses covered by the applicable restitution law. It compensates victims for qualifying harm caused by the offense; it does not cover every type of civil damages.

Restitution rules can differ depending on whether the case is in federal court or state court. If your case is being prosecuted in state court, you should also understand how restitution works in Florida criminal cases, including how courts calculate losses, set payment schedules, and handle disputes over the amount owed.

Why is Restitution Ordered in Federal Criminal Cases?

Criminal restitution serves a few key purposes:

  • Repay victims for their tangible losses from the crime, like stolen property, damaged property, or medical bills
  • Hold defendants financially accountable and require them to make amends to those they harmed
  • Deter future criminal behavior by making defendants pay up
  • Give victims a faster way to be repaid without needing to pursue a separate civil lawsuit

Mandatory vs. Discretionary Restitution

The Mandatory Victims Restitution Act generally requires restitution for covered crimes when an identifiable victim suffers physical injury or financial loss. Covered offenses include qualifying crimes of violence, Title 18 property crimes (including offenses involving fraud or deceit), certain drug-premises offenses, consumer-product tampering, medical-product theft, and specified anti-doping offenses. Limited exceptions apply to certain categories when restitution would be impracticable or unduly complicate sentencing.

Other statutes authorize discretionary restitution or require restitution for particular offenses. Under the discretionary restitution statute, the court considers the defendant’s finances when deciding whether to order restitution and how much.

Who Qualifies as a Victim for Restitution Purposes?

A victim generally must have been directly and proximately harmed by the offense. When a scheme, conspiracy, or pattern is an element of the offense, restitution can extend to people directly harmed by the defendant’s conduct within it. A plea agreement may also authorize restitution to additional people.

What Types of Losses are Covered by Restitution?

Recoverable losses depend on the offense and the restitution statute. Under the general federal restitution laws, they may include:

  • Property losses: Return of the property or, when return is impossible, impractical, or inadequate, payment based on the statutory valuation rules, with credit for property returned.
  • Bodily injury losses: Necessary medical care, mental health treatment, rehabilitation, and income lost because of the offense.
  • Death-related expenses: Necessary funeral and related costs when the offense causes death.
  • Participation expenses: Lost income and necessary childcare, transportation, and other qualifying expenses tied to participation in the government’s investigation or criminal proceedings.

Attorney’s fees are not automatically recoverable. In Lagos v. United States, the Supreme Court held that § 3663A(b)(4) does not cover a victim’s self-directed private investigation or civil or bankruptcy proceedings. Other restitution statutes may cover additional losses.

The Procedure for Criminal Restitution Orders

If restitution is a possibility in your federal case, here is how it works:

  • The Probation Office gathers loss and financial information for the federal presentence investigation report or a separate restitution report.
  • Prosecutors provide information on victims’ losses
  • Victims submit claims directly to the Probation Office
  • Defendant submits financial affidavit with assets, income, obligations
  • Judge resolves any disputes over restitution amount
  • When restitution is mandatory, the judge orders the full amount of legally recoverable losses without reducing it because of the defendant’s finances.
  • Judge sets a payment schedule based on defendant’s current and future ability to pay

Enforcing Payment of Federal Criminal Restitution

Under 18 U.S.C. § 3613, restitution liability generally lasts until the later of 20 years after entry of judgment or 20 years after release from imprisonment. Completing probation or supervised release does not erase the debt. Collection tools include:

  • Wage garnishment
  • Seizing assets & property
  • Civil lawsuit against defendant
  • Offset tax refunds & other federal payments
  • Enforcement through probation or supervised release conditions; willful failure to pay can lead to revocation, but imprisonment is not automatic and cannot rest solely on poverty.
  • Federal lien against defendant’s property
  • Requiring substantial funds received during imprisonment, including an inheritance or settlement, to be applied toward unpaid restitution.

Challenging Restitution and Seeking Manageable Payments

I review the claimed losses for unsupported amounts, losses outside the lawful scope of restitution, and payments that should receive credit. Before you sign a federal plea agreement, I also review whether its restitution terms expand your obligations.

When restitution is mandatory, financial hardship generally cannot reduce the amount owed. It can affect payment terms. A later material change in your finances may support a request to adjust the payment schedule. Civil recoveries may qualify for credit when they compensate the victim for the same loss.