Opinion ID: 153666
Heading Depth: 1
Heading Rank: 5

Heading: Imposition of Restitution in Excess of the Amount Lost

Text: 49 Defendant Sealander claims the district court committed plain error by imposing restitution at sentencing, which exceeded the amount of money lost by Security National Bank. Usually our review of the legality of a sentence of restitution is de novo and factual findings is for clear error. United States v. Herndon, 982 F.2d 1411, 1420 (10th Cir.1992). In this case, however, our review is for plain error because Mr. Sealander's trial counsel failed to object to the restitution order on this ground. United States v. Wainwright, 938 F.2d 1096, 1098 (10th Cir.1991). We vacate the restitution order and remand on this issue because the district court plainly erred by imposing restitution on Defendants Veatch and Sealander in an amount which exceeded the amount lost. 50 The Victim and Witness Protection Act permits the federal courts to order a defendant at sentencing to make restitution to any victim of the offense. 18 U.S.C. § 3663(a)(1). We have previously explained that the purpose of the Act is to ensure that victims, to the greatest extent possible, are made whole for their losses. United States v. Arutunoff, 1 F.3d 1112, 1121 (10th Cir.), cert. denied, 114 S.Ct. 616 (1993). Restitution under the Act, however, may not be ordered in an amount greater than the total loss caused by a defendant's conduct. Id. The statute does not explain how multiple defendants are to be treated, but we have explained that courts should either apportion the total loss among the defendants or make the obligation to pay joint and several. Id. at 1121 n. 10. 51 In this case, the district court found that the amount of the loss to Security National Bank caused by the Defendants' bank fraud was $96,572.99. The court then ordered Mr. Sealander to pay $96,572.99 in restitution, and it ordered Mr. Veatch to pay $96,572.99. During Mr. Sealander's sentencing hearing, the court acknowledged that the bank will not be entitled to recover more than $96,572.99 total. (R., Sealander Sentencing Tr. at 30 (Dec. 19, 1994)). Nevertheless, the court entered restitution orders for $96,572.99 to be repaid by each defendant. Instead, the restitution orders should have reflected either that the Defendants were joint and severally liable for the full amount or they should have proportioned the restitution between the two Defendants. The district court exceeded its statutory jurisdiction and imposed an illegal sentence when it ordered restitution in an amount greater than the total loss caused by the Defendants' conduct. Thus, the restitution orders in Mr. Veatch's and Mr. Sealander's cases must be vacated and remanded for resentencing.