MVRA Restitution And Loss Amount Inadequate, Eleventh Circuit Holds

United States v. Mitchell J. Stein : Mitchell Stein, a former attorney, challenged the district court’s loss and MVRA restitution determination in a mail, wire, and securities fraud prosecution arguing that the Government had failed to demonstrate both factual and legal causation for the loss amount.Using the same standard for Stein’s loss and restitution challenge, the Eleventh Circuit held that it agreed “with Mr. Stein that to establish an actual loss figure under the guidelines or the MVRA restitution based on investors' losses, the government must prove that, in deciding to purchase Signalife stock, investors relied on the fraudulent information Mr. Stein disseminated.

In United States v. Mitchell J. Stein, the district court found that more than 2,000 investors relied on Mr. Stein's fraudulent information, but the only evidence supporting this finding was the testimony of two individuals that they relied on Mr. Stein's false press releases and generalized evidence that some investors may rely on some public information. This evidence was insufficient to permit reliance to be inferred for over 2,000 investors.

Accordingly, the district court erred in calculating an actual loss figure based on the losses of all these investors. The district court also failed to determine whether intervening events caused the Signalife stock price to drop and, if so, whether these events were unforeseeable such that their effects should be subtracted from the actual loss figure.”

The case was remanded for further proceedings. United States v. Stein, No. 14-15621 (11th Cir. 2017).
You can check the latest updates on the case by visiting here.

About Brandon Sample

Brandon Sample is an attorney, author, and criminal justice reform activist. Brandon’s law practice is focused on federal criminal defense, federal appeals, federal post-conviction relief, federal civil rights litigation, federal administrative law, and the Freedom of Information Act (FOIA).

Leave a Comment

Recommended for you

Federal Halfway House – Everything You Need To Know

Over the past several weeks, I have received numerous e-mails and calls from different individuals concerning federal halfway house placements that have been reduced significantly—or denied entirely—by the Federal Bureau of Prisons (“BOP”). What is going on? A variety of things, it seems. I.  Federal Halfway House – A Brief Overview The BOP has long…

Read More

The First Step Act Bill Summary Explained : A Comprehensive Analysis

The First Step Act 2018 Bill Summary: On December 21, 2018, the President signed into law The First Step Act 2018, a bipartisan effort to reform the federal criminal justice system. The Law Office of Brandon Sample has assembled this detailed analysis of the First Step Act 2018 to help the public understand the ins…

Read More

Sentencing Reform And Federal Prison News – January 2018

We are a week into 2018 and there is much buzz about what lies ahead in the year from the courts, Congress, and the U.S. Sentencing Commission for federal prison and sentencing reform. Here’s a summary of some of the highlights. (a) Congress – Sentencing Reform Different bills remain under consideration, but none have yet…

Read More