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).

Recommended for you

Career Offender Enhancement Cannot Be Based On Texas Possession With Intent To Distribute Conviction

United States v. Tanksley – Career Offender Enhancement  : Dantana Tanksley was previously convicted in Texas under Section 481.112(a) of the Texas controlled substances act of possessing with intent to distribute a controlled substance. He was later enhanced as a career offender under federal sentencing guidelines. Under the federal sentencing guidelines, an individual can be…

Read More about Career Offender Enhancement Cannot Be Based On Texas Possession With Intent To Distribute Conviction

Attorney Abandonment Claim Remanded For A Hearing

Mark Christeson filed a motion to re-open his habeas proceedings under Rule 60(b) arguing that his attorney’s failure to timely submit his 28 U.S.C. § 2254 petition (used by state prisoners but similar to a 2255) constituted attorney abandonment. The abandonment issue was key to resolving whether “extraordinary circumstances” existed to warrant granting Rule 60…

Read More about Attorney Abandonment Claim Remanded For A Hearing

Oregon Drug Delivery Conviction Not A Federal “Controlled Substance Offense” For Career Offender Purposes

Oregon drug delivery conviction under Oregon Revised Statutes 475.992(1)(a) is not a “controlled substance offense” under federal law, according to the Ninth Circuit. Sandoval v. Yates, No. 13-71784 (9th Cir. 2017). This is an important case for criminal defendants because of its impact on individuals with career offender enhancements. The court held that Oregon drug delivery…

Read More about Oregon Drug Delivery Conviction Not A Federal “Controlled Substance Offense” For Career Offender Purposes