Good Restitution Case

Tjoflat wrote a nice opinion, which was published today:

"The Government had the burden of proving, with respect to each of the mortgages for which it sought restitution, that the mortgage was the product of a fraudulent misrepresentation. The district court’s statement in the July 22 restitution order that “restitution of at least $1,000,000 has been established by the Government” did not identify the mortgages that had been fraudulently obtained and caused losses totaling that sum.

To enable meaningful appellate review, a district court's calculation of restitution must be supported by specific factual findings. Huff, 609 F.3d at 1248.  In the context of the case here, the district court’s task was, first, to determine by a preponderance of the evidence which of the 56 mortgages the loan officers handled was obtained through a false “gift” letter, a false “credit explanation” letter or a false employment verification form, and, second, where fraud is found, to determine the extent of the actual loss HUD may have incurred due to the mortgage’s foreclosure.The district court failed to carry out this task.

We therefore VACATE the restitution provisions of the Singletarys’ judgements and REMAND the case so that the court may perform this task. We do so with this caveat: the Government is not receiving another bite of the apple. The district court shall render the necessary findings of fact and conclusions of law with respect to each of the 56 mortgages at issue on the basis of the evidentiary record as it now exists."

Basically, the opinion stands for not allowing the government to prove restitution through generalized testimony.  But I also like the part about not allowing the government to have another hearing to fix its case.

Keep it in your pocket à la Bobby Aaron for a sentencing hearing one day.  It will come in useful.