- Court: U.S. Supreme Court Certiorari Granted
- Area(s) of Law: Civil Law
- Date Filed: October 21, 2013
- Case #: 12-9012
- Judge(s)/Court Below: 698 F.3d 937 (7th Cir. 2012)
- Full Text Opinion
Petitioner submitted fraudulent loan documents that materially misrepresented his income, assets, desire to use each home as his primary residence, and ability to repay loans. After defaulting on the two mortgages, the houses were foreclosed and resold for less than the value of the mortgages.
Petitioner pled guilty to conspiracy to commit wire fraud. The lower court determined that under the Mandatory Victims Restitution Act of 1996, 18 U.S.C. § 3663A ("MVRA"), Petitioner must pay restitution equal to the difference in value between the mortgages and actual sale price. Petitioner appealed and the Court of Appeals for the Seventh Circuit affirmed holding that MVRA required the offset value to be the cash value of the difference between mortgage and sale price of the home after foreclosure.
Petitioner argues that restitution should be based on the fair market value of the real estate. The Supreme Court granted certiorari to determine whether the Mandatory Victims Restitution Act of 1996, 18 U.S.C. § 3663A limits the scope of restitution to the value difference of a mortgage and final sale price of real estate.