Opinion ID: 3045262
Heading Depth: 3
Heading Rank: 2

Heading: The Post-Trial Restitution Order

Text: The probation officer filed a presentence report proposing Edwards pay $6,820,620.05 in restitution to the Defendants’ victims. Edwards objected to the presentence report and moved the court to bar consideration of all alleged victims 4 Case: 11-15953 Date Filed: 09/06/2013 Page: 5 of 23 who did not testify at trial. (Dkt. 266.) Particularly relevant to this appeal, the report proposed $850,000 in restitution to the Heavenly Abundance Foundation owned by Teana Reese [sic] and $1,635,000 in restitution to Camencita Jocson. (PSI at ¶ 65.) The proposed restitution for Jocson consisted of $675,000 sent to Edwards’s personal account for investment in the high yield program and $960,000 sent to an account belonging to Edwards’s company, Grandview LLC. Jocson was persuaded to send $960,000 to the Grandview account because Edwards told her it would be used to earn “rich rewards” through real estate investment. Edwards opened the Grandview account on June 21, and Jocson wired the $960,000 five days later. Over the next two and a half weeks, Edwards transferred the money into his personal account. Edwards then spent the money on personal expenditures, not investments. At the sentencing hearing, Edwards objected to restitution for Jocson, victims who did not testify, and victims whose related counts were dismissed at trial. Edwards also asked the court to consider his dependents and financial situation when calculating restitution. At the conclusion of sentencing, Edwards was sentenced to 108 months, (Dkt. 271 at 2,) and Frontier Holdings was placed on probation for one year. (Dkt. 272 at 2.) The district court said that a restitution order would be entered later. 5 Case: 11-15953 Date Filed: 09/06/2013 Page: 6 of 23 Ninety-one days later, the district court ordered Edwards to pay $6,820,620.05 in restitution to various victims. (Dkt. 311.) Frontier Holdings was not required to pay restitution. (Dkt. 272 at 2.) Edwards moved to vacate the restitution order on four grounds and requested a hearing. (Dkt. 315.) First, Edwards argued the court improperly considered facts outside the record in determining restitution. Second, he asserted the court should have considered his finances in determining restitution. Third, Edwards argued that the court wrongfully transferred the restitution proposed for Reece to the Caldwells, Colovin, Freeman, Perry, and Wilson (who were allegedly Reece’s victims). Fourth, Edwards argued the court wrongfully ordered restitution for the victims whose related counts were dismissed at trial. The court denied Edwards’s motion. (Dkt. 333.) The court held that it did not need to consider Edwards’s finances to determine the amount of restitution and properly ordered restitution for victims whose related counts were dismissed at trial. The court also held that the transfer of the $850,000 in restitution from Reece to the Caldwells, Colovin, Freeman, Perry, and Wilson was appropriate since Edwards never objected to the proposed restitution to Reece in the presentence report. No evidence in the record shows why the restitution was changed from Reece to these individuals. 6 Case: 11-15953 Date Filed: 09/06/2013 Page: 7 of 23 According to the Government, shortly before sentencing the Government learned that Reece was not a victim, but a co-conspirator in the fraud. (Red Br. at 55.) Allegedly, Reece solicited money from her victims and then transferred it to the Defendants. Thus, on the eve of sentencing, the probation officer proposed that the district court change the restitution order to prevent Reece from receiving an unjust windfall. These events were never related to the Defendant. The Government concedes that no evidence in the record supports this change in restitution. (Red. Br. at 58.)