Insight

Court-ordered Restitution for Corporate Crime Is ‘Likely Here to Stay’

Best Lawyers highlights the Mandatory Victims Restitution Act and how victims are now utilizing beyond cases of violent crime.

Push for Restitution in Corporate Crime
JE

John Ettorre

May 10, 2022 12:52 PM

In 1996, amid a nationwide push against violent crime, Congress passed the Mandatory Victims Restitution Act. Originally designed to compensate individual victims of violent crimes in federal cases, its use has since expanded to entities such as classes of investors seeking financial redress for incidents of corporate crime.

A 2005 General Accounting Office report found that the law led to a four-fold increase in the amount of criminal debt amassed by white collar criminals in federal prosecutions. Then-Senator Byron Dorgan of North Dakota, who had requested the GAO report, complained the government was too slow in collecting this debt. But the Department of Justice responded that by its very nature, this personal debt owed by often-incarcerated individuals was difficult to collect.

A more recent case, however, made it clear that federal prosecutors conducting MVRA cases could seek deeper pockets in search of collecting these debts. Corporations would now have a major new concern about their expanded liability for crimes committed by their employees and management teams.

In 2019, a federal judge in New York ruled that a group of shareholders of a Canadian mining company qualified as victims under the MVRA, apparently the first time the act was used to resolve a case against a legal entity rather than a person.

The plea agreement the company, OZ Africa, had signed with the U.S. Department of Justice three years earlier had not contemplated court-ordered restitution—since the MVRA had never before been used this way—and that omission raised the possibility the defendant could pay as much as four times the damages it had initially expected.

In the wake of this ruling, Jesse Van Genukten, now an associate at Latham & Watkins LLP, wrote in an influential law review article, “court-ordered restitution for corporate criminal liability is likely here to stay.”

John Ettorre is an Emmy-award-winning writer, based in Cleveland. His work has appeared in more than 100 publications, including the New York Times and the Christian Science Monitor.

Related Articles

Class-Action Claims to Increase in the Wake of Societal Emphasis of ESG


by Agenique Smiley

Corporate litigators and state lawmakers anticipate a mounting rise in ESG-related issues surrounding class-action lawsuits. One Best Lawyers recognized firm is weighing in with survey data supporting this increase.

Abstract silhouettes of faces in blue, green and beige

Whistleblower Legislation Opens the Doors for More International Claims


by Justin Smulison

An Anti-Money Laundering Act, part of a recently passed Omnibus Budget in the U.S. Senate, is expanding protection for whistleblowers both domestically and internationally.

Shadow figure in spotlight against red and blue brick wall

A New Spin on Continuing Legal Education


by Sara Collin

Attorney Humira Noorestani is launching a program for continuing legal education, one that she’s dubbed the “Netflix of CLE,” allowing lawyers in the U.S. to explore legal knowledge from prominent lawyers around the world.

Hands emerging from computer and cellphone screens

Protecting High-level Executives With the Apex Doctrine


by Sara Collin

The Apex Doctrine, developed to shield high-level executives from inappropriate depositions, is a beneficial asset to lawyers and clients, at least in the states where it’s been adopted.

Apex Doctrine Protects Executives

NYC Pay Transparency Law Gets New Start Date


by Justin Smulison

This historic law regarding pay transparency in New York City originally scheduled to take effect last week was rescheduled to Fall 2022.

NYC Stand Resolute on Pay Transparency

Will Recent Boeing Settlements Create Tailwinds In Corporate Law?


by Justin Smulison

Prominent litigation against Boeing is setting a precedent of accountability, professionalism and commitment among company boards as well as ushering ESG further into the courtroom to help monitor and prevent safety issues.

Recent Boeing Settlements and Corporate Law

Racial Discrimination Suit Against NFL May End in Arbitration


by John Ettorre

A former Miami Dolphins head coach is up against the NLF in a discrimination case that is on a path to arbitration; the NFL remains focused on equality for their diverse coaching staff.

Arbitrating Discrimination Suit Against NFL

Opioid Settlement Clears One Obstacle, but There Is More To Go


by Rasha Aly

A recent court settlement is requiring a family most notable for their production of Oxycontin to pay billions to recovery organizations, a huge win in the battle against the opioid crises plaguing the country.

Opioid Settlement with Purdue Pharma

Newly Launched COVID-19 Litigation Project Offers Open Access To Pandemic-Related Court Judgments From Over 70 Countries


by Sara Collin

A worldwide database of COVID-19 cases is uniting more than 70 countries as judges, lawmakers and lawyers continue to navigate pandemic related litigation and the ways in which it’s evolving amid year three.

COVID-19 Worldwide Litigation Project

SEC Whistleblower Awards Are Spiraling. Could It Be Part of MeToo Movement?


by John Ettorre

The MeToo movement has had an unexpected impact on SEC-related whistleblower cases, and many are receiving substantial payouts for the financial fraud they are reporting.

Rise in Whistleblowing a Result of MeToo

Maxwell Verdict Shines Light on Human Trafficking Claims


by Justin Smulison

The Ghislaine Maxwell verdict brought the spotlight down on the insidious and ever-growing problem of global human trafficking, with more cases emerging in court.

Human Trafficking Illuminated by Maxwell Case

Facebook Whistleblower Testimony Shines A Light On Credibility Factor


by Justin Smulison

Landmark whistleblower testimony was provided on Capitol Hill which may have a national—and even worldwide—effect on how governments regulate Big Tech companies.

Capitol Hill Facebook Whistleblower Testimony

Hollywood Union Strike Threat is Playing Out Under Different Environment


by John Ettorre

Workers in Hollywood are threatening to strike if a deal with studios cannot be reached.

Hollywood Workers Threatening to Strike

Netflix Sued Over Alleged Defamation in Mega Hit The Queen’s Gambit


by John Ettorre

Netflix is facing a lawsuit from a real chess Grandmaster whose name was referenced inaccurately in The Queen's Gambit.

Netflix Sued Over Mega Hit The Queen’s Gambit

Bizarre Murdaugh Case Spotlights State-Based System for Regulating Lawyers


by John Ettorre

The drama surrounding the Murdaugh family case out of a small-town South Carolina court spotlights the need for better system regulations.

Murdaugh Case Spotlights Small-town Court

Prominent 9/11 Lawyer Still Racking Up Awards for Clients


by John Ettorre

Despite 20 years passing since the September 11 terrorist attacks, one lawyer is still working to help families of victims recover compensation.

Prominent Lawyer Helping 9/11 Clients

Trending Articles

Best Lawyers: Ones to Watch in America for 2023


by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

The Best Lawyers in New Zealand™ 2024 Awards


by Best Lawyers

The Best Lawyers in New Zealand 2024 awards include an elite field of top lawyers and law firms.

Auckland, New Zealand Skyline at twilight

Presenting The Best Lawyers in Singapore™ 2024


by Best Lawyers

Best Lawyers offers the most prestigious awards for lawyers and law firms in Singapore for 2024.

Singapore skyline at night

Announcing the 2023 The Best Lawyers in America Honorees


by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

The Best Lawyers in Australia™ 2024 Launch


by Best Lawyers

Best Lawyers is excited to announce The Best Lawyers in Australia™ for 2023, including the top lawyers and law firms from Australia.

Australian Parliament beside water at sunset

Announcing The Best Lawyers in Japan™ 2024


by Best Lawyers

We are proud to present the 2024 edition of Best Lawyers awards for Japan which include the top lawyers and law firms in the country.

Mt. Fuji in the background with fall leaves and structure in front

IN PARTNERSHIP

Paulson & Nace, PLLC: A Pioneer in Personal Injury Law


by Best Lawyers

Since its inception more than 40 years ago, Paulson & Nace, PLLC, a Washington D.C., Maryland and West Virginia-based personal injury firm, has always led with compassion first. Here are some key insights from the firm on how to go about filing a personal injury claim.

Group of lawyers meet around a conference table

The Best Lawyers in South Africa™ 2023


by Best Lawyers

Best Lawyers proudly announces lawyers recognized in South Africa for 2023.

South African flag

IN PARTNERSHIP

Salvi & Maher, LLP: Illinois and Wisconsin's Personal Injury Firm


by Justin Smulison

For more than 35 years, Salvi & Maher LLP has defended their clients throughout Illinois and Wisconsin in various areas of personal injury law, including medical malpractice, motor vehicle accidents, premises liability and trucking litigation.

Skyline of Chicago with green river and blue background

IN PARTNERSHIP

Athea Trial Lawyers


by Justin Smulison

Athea Trial Lawyers is a nationally recognized firm who has received record-breaking victories throughout the country on behalf of personal injury victims.

women with shades of blue in mass arrangement

Announcing The Best Lawyers in Germany™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from Germany.

Black, red and yellow stripes

Choosing a Title Company: What a Seller Should Expect


by Roy D. Oppenheim

When it comes to choosing a title company, how much power exactly does a seller have?

Choosing the Title Company As Seller

Famous Songs Unprotected by Copyright Could Mean Royalties for Some


by Michael B. Fein

A guide to navigating copyright claims on famous songs.

Can I Sing "Happy Birthday" in Public?

What the Courts Say About Recording in the Classroom


by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?

Could Reign Supreme End with the Queen?


by Sara Collin

Canada is revisiting the notion of abolishing the monarchy after Queen Elizabeth II’s passing, but many Canadians and lawmakers are questioning if Canada could, should and would follow through.

Teacup on saucer over image of Queen's eye

IN PARTNERSHIP

Mastering the Art of Trial Practice


by John Fields

With its billion-dollar track record, Morelli Law Firm has earned a reputation as one of the country's most successful trial firms.

Morelli and team at table in office with windows