FI RST DI VI SI ON

PHI PPS, C. J.

, ELLI NGTON, P. J.

, and M CM ILLI A N, J.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

http://w w w .ga a ppe a ls .us /r ule s /

October 16, 2014



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 4 A0 88 5 . NELSON v

. THE STATE.

E LLI N G T O N , Pres i d i n g J ud g e.

Leo n ard Nel s o n en t ered a n eg o t i at ed p l ea o f g u i l t y t o v i o l at i o n o f OCGA § 1 6

-

1 4 -4 (a) o f t h e Geo rg i a Rack et eer In fl u en ced an d Co rru p t Org an i zat i o n s Act

, s ee

OCGA § 1 6 -1 4 -1 et s eq

. (“ RICO”), an d t h e t ri al co u rt sen t en ced h i m t o t en y ears

p ro b at i o n

. Th e tri al co u rt o rd ered as a co n di t i o n o f pro b at i o n th at Nel s o n pay a t o t al

o f $ 7 2 5 ,0 0 0 in res t i t u t i o n t o h i s v ict i m s

. On ap p eal

, Nel s o n co nt en d s t h at t h e t ri al

co u rt erred b ecau s e h e es t ab l i s h ed b y a p rep o n d eran ce o f t h e ev id en ce t h at h e l ack ed

t h e fi n an ci al res o u rces t o p ay res t i t u ti o n i n t h e am o u n t o rd ered

. He al s o co n t en d s t h at

t h e t ri al co u rt erred i n award i n g res t i t u t i o n to t h e vi ct im n am ed i n Co u n t s 6 t h ro u g h

1 2 o f t h e i n d i ct m en t b ecau s e t he t ri al co u rt en t ered an o rd er o f n o ll e p ro s eq u i at t h es t at e’ s req u es t o n th os e c o u nts. W e d i sag ree an d affi rm fo r t he reas o n s s et fo rt h b el o w.

“ An y di s p u t e as t o th e p ro p er am o u n t or t y pe o f res t i t u t i o n sh al l b e res o l v ed by

t h e ord eri n g au t ho ri t y b y t h e p rep o n d eran ce o f t h e ev id en ce.” OCGA § 1 7 -1 4 -7 (b ).

On a p p e a l

, t h is Co u rt rev i ews t h e reco rd “ t o d et erm i n e wh et h er each p art y h as m et

h i s o r h er s p eci fi ed bu rd en an d wh et h er a res t it u t i o n award was s u p p o r t e d b y t h e

p rep o n d eran ce o f t h e ev i d en ce.” (Ci t at i o n an d p u n ct u at i o n o m i t t ed

. ) In t h e In t er es t

o f E. W

., 2 90 Ga. A p p. 9 5

, 96 (2 ) (6 5 8 SE2 d 8 5 4 ) (2 0 08 ). “ It i s wel l es t ab l i s h ed t h at

rev i ew o f ev i den ce b y t h i s Co u rt i s l i m i t ed t o q u es t io n s o f s u ffi ci en cy .” (Ci t at i o n an d

p u n ct u at i o n o m i t ted .) Ti nd o l v. S t a t e

, 2 8 4 G a. Ap p. 4 5

, 4 8 (4 ) (6 4 3 SE2 d 3 2 9 ) (2 0 0 7 ).

1

. Th e ev i d en ce ad du ced at t h e res t it u t i o n h eari n g s h o wed t h at Nel so n was a

real es tat e i n ves to r wh o b o rro wed m o n ey fro m i n d iv i d u al s

, o f t en fro m t h ei r

ret i rem en t acco u n t s

, t o p u rs ue v ari o u s real es tat e d eal s

. Nel so n ad m i t t ed t h at h e s t o l e

m o ney fro m h is i n v es t o rs

. Nu m ero u s v ict i m s t es t i fi ed at t h e res t i tu t i o n h eari n g an d

es t ab l i s h ed t h e am o u n t s t h ey h ad t en d e red t o Nel s on t h ro u g h t h ei r tes t i m o n y an d

t h ro u g h p ro m i s s o ry n o tes an d o t h er in s t ru m en t s N e l s o n s i g n ed

. Fo l l o w i n g t h e

p res en t at i o n o f ev i d en ce, t h e t ri al co u rt fo un d t h a t Ne l s o n “ h ad a p l an

, h e h ad a

p u r p o s e. He to o k fro m al l t h es e p eo p l e. He h ad n o in t en t i o n of p ay in g t h em b ack .”

2Th e t ri al co u rt t h ereaft er o rd ered t h at Nel so n p ay res t i t u t io n t o 2 2 v i ct i m s in

t h e t o t al am o un t of $ 72 5 ,0 0 0

, an d t h at as a co n d i t i o n o f p ro b at io n Nel so n m ak e

m onthly pa

y m e nts tow ard s t h at am o u n t at $6 ,0 4 1 .6 6 a m o n t h b eg i n n i n g o n Sep t em be r

1

, 2 0 1 3

. Th e t ot al am o u n t o f res t i t u t i o n was i n cl us i v e o f $ 2 30 ,0 0 0 t o wh i ch Nel so n

h ad p rev i o u s l y s t i p u l at ed as “ p art i al res t i t u t i o n.” T h e s t i p u l at i o n al s o p ro v i d ed t h at

“ fu rt h er res t i tu t i o n m ay b e o rd ered aft er a Res t i t u t i o n h eari n g

. ” Nel s o n d o es n ot

co n tes t t h at h e h ad fi nan ci al res o u rces t o rep ay t he $ 2 3 0

, 0 0 0

. Nel s on m ai n t ai n s

,

h o wev er, t hat h e es t ab l i s h ed b y t h e p rep o n d eran ce o f t h e ev i d en ce th at h e l ack ed t h e

fi nan ci al res o u rces wi t h wh i ch t o p ay m o re t h an t he s t i p u l at ed am o u nt o f res t i t u t i o n,

an d t h at t h e t ri al co urt erred i n fi n d i n g o t h erwi s e. W e d is ag ree.

Su b ject t o t he p ro v i s i o n s of O C GA § 1 7 -1 4 -1 0

, th e t ri al co u rt “ s h al l

, in

s en t en ci n g an offen d er, m ak e a fi n di n g as to t h e am o u nt o f res t i t u ti o n d u e an y v i ct i m

,

an d o rd er an o ffen d er t o m ak e fu l l res t i t u t io n to s u ch v i ct i m

. ” OCGA § 1 7 -1 4 -3 (a).

In tu rn

, OCGA § 1 7 -1 4 -1 0 set s fo rt h a l i s t o f fact o rs wh i ch t h e t ri al c o u r t s h al l

co n si d er i n det erm i n i n g t h e n at u re a n d am o u n t o f res t i t u t i on

. Th es e i n cl u d e “ [t ] h e

fi nan ci al res o u rces an d o t h er as s et s of t h e o ffen d er or p ers on o rd ered t o p ay

res t it u t i o n

. . . .,” “ [t ] h e earn i n g s an d o t her i n co m e o f t h e o ffen d er or p ers o n o rd ered

t o p ay res t i tu ti o n ,” an d “ [a] n y fi n an ci al o bl i g at i o ns o f t h e o ffen der o r p ers o n o rd ered

3t o p ay res t i t u t i on

, i ncl u d i ng o b l i g at i o n s t o dep en d en t s .” OCGA § 1 7 -1 4 -1 0 (a) (1 ),

(2 ), (3 ). Th e fact o rs al so i n cl ud e, ho wev er, t h e am o u n t o f d am ag es

, an d t he g o al o f

res t it u t i o n t o t h e v i ct im an d reh ab i l i t at i o n o f t h e o ffen d er. O CGA § 1 7 -1 4 -1 0 (4 ), (5 ).

Th e s t at e had t h e b u rd en o f d em o n s t rat i n g t h e am o u n t o f th e v i ct im s ’ l o s s es

.

OCGA § 1 7-1 4 -7 (b ). Nel s o n

, h o wev er h ad t h e b u rd en o f d em on s trat i n g hi s fi n an ci al

res o u rces an d t h e fi n an ci al n eed s o f h is d e p e n d en t s

. See id

. Nel s o n t es t i fi ed at t h e

res t it u t i o n heari n g th at h e h ad n o as s et s o f an y v al u e. Acco rd i n g to Nel s o n

, h e was

“ 8 0 p ercen t d i s ab l ed

, ” l i v ed wi t h h i s m ot h er, an d was u nem p lo y ed

. He t es t i fi ed t h at

h e recei v ed n et d i s ab i l i t y b en efi t s o f $ 1 ,9 0 1 a m o n t h fro m t h e Dep art m en t o f Vet eran s

Affai rs (t h e “ VA”), 1 an d t h at he pai d m o n t h l y c h i l d s u p po rt t o hi s t w o y o u n g es t

ch i l d ren i n t h e am o un t of $ 7 2 5

. Nel s o n was em pl o y ed i n l aw en fo rcem en t u n t i l 2 0 0 6,

wh en h e l eft t h e fi el d t o p u rs ue real es t at e.

No t wi t h s t an d i n g Nel s on ’ s t es t i m o n y

, i n i t s w ri t t en ord er th e t ri al co u rt s t at ed

t h at i t h ad ex p res s l y co n s id ered Nel s o n ’ s p res en t fi n an ci al co n d i t i o n

, hi s p ro b ab l e

fu t u re earn i n g s cap aci t y

, an d h i s o b l i g at i o ns

, an d it d et erm i n ed t h at res t it u t i o n co u ld

1 A n ad d i t i on al $ 1 2 5 w as s en t b y t he VA d irect l y t o each o f hi s two o l d es t

ch i l d ren each m o nt h

.

4b e m ad e b y Nel s o n i n t h e am o u n t o rd ered

. 2 Th e t ri al co urt fo u n d

, am o n g o t h er t h i n g s

,

t h at Nel s on h ad t h e p res en t co n d i t i o n t o b e g ai n fu l ly em pl o y ed n o t wi t h s tan d i n g h i s

cl ai m t o b e 8 0 p ercen t d i s ab l ed

. No t ab l y

, Nel s o n ’ s t es t i m o ny at t h e res t i tu t i o n h eari n g

s h o wed t hat he h ad wo rk ed i n real es t at e d u ri n g t h e p eri o d h e cl ai m ed t o b e d i s ab l ed

. 3

Fu rt h er, al t h o u g h Nel s o n t es t i fi ed t h at h e was wi t h o u t an y as s et s

, h e h ad prev i o u s l y

b een i n po ss es s i on of h u n dred s o f t h o u s an ds o f d o l l ars o f th e v i ct i m s’ m o n ey

. So m e

o f th e v ict i m s ’ m o n ey was u s e d b y N e l s o n fo r p u rp o s es of a “ ti m b er d eal ” in

M i s s is s i p p i an d L o u i s i an a. Acco rd i n g t o N el s o n

, h e had a l aws u i t p en d i n g ag ai n s t h i s

fo rm er part n er i n t h e v en t ure an d “ t h e t im b er has n ot b een cu t

. So t h ere i s m o n ey s t i l l

t h ere.” He al s o tes t ifi ed t h at h i s “ p a r t o f t h at d eal ” w as wo rt h $ 4 .8 m i l l i o n an d t h at

an y reco v ery wo u l d co n st i tu te an as s et av ai l ab l e t o p ay res ti t ut i o n

.

2 Th e t ri al co u rt was no t req u i red t o m ak e wri t t en fi n di ng s o f fact co n cern i n g

i t s co n s i d erat i o n of t h e fact ors s et fo rt h i n OCGA § 17 -1 4 -1 0

, al t ho u g h i t d i d s o h ere.

See F u t ch v. S t at e

, 3 1 4 Ga. Ap p

. 2 9 4

, 2 9 8 (3 ) (a) (7 2 3 SE2 d 71 4 ) (2 0 1 2 ) (fi n di n g t h at

“ b as ed o n an am en d m en t t o t h e res t i t u t i o n st at u t es i n 2 00 5

, a t ri al co u rt i s no l o n g er

req u i red t o m ak e wri t t en fi nd i n g s o f fact co n cern i n g t he fact o rs t o b e co n si d ered in

d et erm i n i n g t h e res t i t u t i o n am o u n t

, as s et fo rt h i n OCGA § 1 7 -1 4 -1 0.”) (ci t at i o n

o m it t ed ).

3 Nel s o n al s o s u b m i t t e d co rres p o n d en ce fro m t h e VA t o s h o w t h e am o u n t o f

h i s d i s ab i l i t y p ay m en t s

. T h e VA’ s l et t e r

, h o w ev er, d i d n o t ex pres s l y referen ce

d i s ab i l i t y

.

5In ad d i t i o n

, fo l l owi n g th e p res en t at io n o f ev i d en ce t he t ri al co u rt fo u n d t h at t h e

s t at e h ad carri ed i t s b urd en

, b ut t h at as t o Nel s o n ’ s co n t en ti o n t h at h e was n o t ab l e to

p ay

, t he j u d g e st at ed

, “ I d on ’ t b el i ev e h i m .” As t h e fi n d er of fact

, t h e t ri al co u rt was

n o t req ui red t o fi n d N el s o n ’ s t es t i m o n y cred i b l e, o r t o co n cl ud e, g iv en t h e lack o f t h at

cred i b i l i t y

, th at N el so n h ad carri ed h i s b u rd en o f d em o n s t r a t in g h i s fi n an ci al

res o u rces

. See g en eral l y La wt o n v. S t a t e

, 2 85 Ga. Ap p

. 4 5

, 4 7 (6 4 5 SE2 d 5 7 1 ) (2 0 0 7 )

( n o t i n g t h a t “ t h e t ri al co u rt

, wh i ch s at as t h e fi n d er of fact fo r p urp o ses o f t h e

. . .

h eari n g

, was en t i t l ed t o d i s b el iev e” t h e d efen d an t ); Ma t h es on v. St at e

, 24 9 G a. Ap p.

2 0 0

, 20 1 (1 ) (5 4 7 SE2 d 7 7 4 ) (2 0 0 1 ) (“ In a b en ch tri al

, th e t ri al co u rt w ei g h s t h e

ev i d en ce an d d et erm i n es t he cred i b i l i t y o f wi t n es ses .”). See al s o OCGA § 1 7 -1 4 -7 (b )

(d i s p u t es as t o t h e am o u nt o f res t i t u t i o n s h al l b e res o l v ed b y t h e o rd eri n g au t h o ri t y ).

No r d o es Nel s o n p o i n t t o an y au t h o ri t y “ fo r t h e p r o p o s i t i o n th at t h e co u rt m u s t

d et erm i n e i n ad v an ce t h at t he d efen d an t ’ s net wo rt h o r fi n an ci al res o u rces p ro ject ed

o v er t he i nt en d ed y ears of rep ay m en t i s m a t h em at i cal l y su ffi ci en t t o al l o w fu l l

p ay m en t o f t h e am o u n t o f res t i t u t i o n o rd ered .” M cMa h o n v. S t a t e

, 2 8 4 Ga. A p p

. 1 9 2,

1 9 4 (2 ) (6 4 3 SE2 d 2 3 6) (2 0 0 7 ). Rat h er, t h e reco rd s ho ws t hat t h e t ri al co u r t

, u p o n

co n si d erat io n o f t he fact o rs l a i d o u t i n OCGA § 17 -1 4 -1 0 (a), “ b as ed i t s res t i t u t i o n

award o n co m

p et en t ev i d en ce pro v in g t h e am o u n t g ran t ed b y a prep o n d eran ce o f t h at

6ev i d en ce.” Gr a f v. S t a t e

, 3 2 7 Ga. Ap p

. 5 9 8

, 6 0 4 (7 6 0 SE2 d 6 1 3 ) (2 0 1 4 ). W e fi n d n o

erro r.

2

. Nel s o n al s o co n ten d s t h at t h e tri al co u rt erred i n o rd e r i n g h i m t o award

res t it u t i o n t o J ay Cro p p er, th e vi ct i m l i s t ed i n Co u nt s 6 t h o u g h 1 2 o f t he In d i ct m en t

,

b ecau s e t h e t ri al co urt en t ered an o rd er o f no l l e p ro s e q u i o n t h o s e co u n t s

. W e

d i s ag ree. “ Becau se t h e t ri al co u rt ’ s ru l i n g o n a l eg al q ues t i o n i s n o t d u e an y

d eferen ce, we a p p l y t he ‘ p l ai n l eg al erro r’ s t an d ard o f rev i ew.” (Pu n ct u at i o n an d

fo o t n o t e o m i t t ed .) S i mmo ns v. S t a t e

, 3 1 5 Ga. Ap p. 8 2

, 8 3 (1 ) (7 2 6 SE2 d 5 7 3) (2 0 1 2 ).

Co u nt s 6 t h ro u gh 1 2 o f t h e In d i ct m en t al l eg ed t h at N el s on co m m i tt ed t h eft by

t ak i n g fu n d s fro m Cro pp er o n s ev en d i fferen t o c c a s i o n s bet ween J u ly 1

, 2 0 0 7 an d

Feb ru ary 2 8

, 2 00 8

. “ T h e act s s et fo rt h ” i n Co un t s 6 t h ro u g h 1 2

, 4 am o n g o th ers

, were

al l eg ed t o b e p red icat e act s t o t h e RICO v i o l a t i o n an d p art o f t h e rack et eeri n g

act i vi t y

, an d were ex pres s l y i n co rp o rat ed i n t o Co u n t 1 3

. Nel s o n p l ed g u i l t y t o Co u nt

1 3 o f t h e i n d i ct m en t , wh i ch ch arg ed t h at h e v i o l at ed OCGA § 1 6 -1 4 -4 (a) o f RICO

i n t h at he u n l awfu l l y

, t hro u gh a p at t ern o f rack et eeri n g act i v it y

, o r pro ceed s d eri v ed

t h erefro m

, acq u i red an i n teres t i n o r co n t ro l o f p ro p ert y

, i n cl ud i n g m o n ey

, b et ween

4 Th e act s i n v ol v ed t h e t en d er b y Cro p per t o Nel s o n o f v ari o u s am o u n ts o f

m o ney fo r i n v es tm en t i n p ro p ert i es i n Geo rg ia an d M i s s i s s i p p i

, wh i ch m o n ey Nel so n

t h en al l eg ed l y

k ep t fo r h i s p ers o n al u s e.

7J an u ary 1

, 2 0 0 7 an d Decem ber 3 1

, 20 0 8

. Th e t ri al co u rt ag reed t o en t er n o l le p ro s eq ui

o n Co u n t s 6 t h ro u g h 1 2 b ecau s e Nel s o n p l ed g u i l t y t o Co u n t 1 3

.

Cro p p er t es t i fi ed at t h e res t i tu t i o n heari n g co n cern i n g t he p red i cat e act s wh i ch

were i n co rp o rat ed i n t o Co u n t 1 3

. Th e t ri al co u rt nam ed Cro p p er as o n e o f Nel s o n ’ s

v i ct i m s i n i t s res t i t u t io n o rd er b ecau s e Cro p p er was a v i ct i m

. Co n s i s t en t l y wi t h t h e

ev i d en ce o f t h e act u al lo s ses i n cu rred b y Cro p p er, t h e t ri al co u rt req u i red Nel s o n to

m ak e res t i tu t i o n t o Cro p p er i n t h e am o u nt o f $ 1 9 3 ,0 0 0

.

It i s t ru e, as Nel s o n p o in t s o u t

, t h at “ a d efen d an t can n o t be ord ered t o p ay

res t it u t i o n fo r a co u n t o n wh i ch h e was acq u i t t ed o r no t ch arg ed

, ” i n cl u di n g co u n t s

t h at hav e b een no l l e p ro s s ed

. (Pu n ct u at i o n an d fo o t n o t e o m i t t ed .) W i l der v. S t a t e

, 3 1 4

G a

. Ap p

. 9 0 5

, 9 0 6 (7 2 6 SE2 d 1 5 4 ) (2 0 1 2 ) (v acat i ng an d rem an d in g o rd er fo r a

d et erm i n at i o n o f wh et her t h e am o u nt of res t i t u t i o n was im p ro p erl y b as ed o n n o l l e

p ro s s ed ch arg es ). A cco rd i n g l y

, we ag ree wi t h Nel s on t h at h e co u l d no t be o rd ered to

p ay res t i tu t i on fo r Co u n t s 6 t h r o u gh 1 2

, as th o s e acco u nt s were n o l le p ro s s ed

.

Nev ert h el es s , Nel s o n p l ed g u i l t y an d was s en ten ced fo r v i o l at i n g OCGA § 1 6 -1 4 -4

(a) o f RICO u n d er Co u n t 1 3 o f t h e i n d i ct m en t

. An d i t was o n acco u nt o f t h at cri m e

t h at t h e t ri al co u rt ord ered res t i t u t i o n t o t h e v i ct im s, i n cl u d i n g Cro p p er. Acco rd i n g l y

,

we fi n d n o erro r.

8Ju d

g men t a f f i r m ed . Ph i

p p s , C. J., a n d

McMi ll i a n , J., co ncu r

.

9