On Sept. 21, in In re: IIG Structured Trade Finance Fund Ltd., the U.S. Court of Appeals for the Second Circuit held that where a restitution judgment includes a payment schedule and does not require immediate payment, "the government is not entitled to a turnover order to collect funds for restitution above and beyond the payment schedule." This is so even when a defendant's assets substantially appreciate.
The Second Circuit made clear that the government's enforcement power is strictly cabined by the terms of the judgment. The decision establishes a clear limit on the government's enforcement power under the Mandatory Victims Restitution Act.
It confirms that the district court — not the government — decides the manner of a defendant's restitution payments. It also highlights that defense counsel and counsel for victims should pay close attention to the precise terms of the restitution order at sentencing.
