and Submitted November 10, 2016 Portland, Oregon
from the United States District Court for the District of
Oregon Ann L. Aiken, District Judge, Presiding D.C. No.
C. Fisher (argued), Eugene, Oregon, for Defendant-Appellant.
Potter (argued), Assistant United States Attorney; Kelly A.
Zusman, Appellate Chief; Billy J. Williams, United States
Attorney; United States Attorney's Office, Eugene,
Oregon, for Plaintiff-Appellee.
Before: M. Margaret McKeown and William A. Fletcher, Circuit
Judges, and Jennifer A. Dorsey, [*] District Judge.
panel affirmed the district court's denial of Anne Marie
Hankins's motion seeking full satisfaction of the
restitution judgment entered following her conviction for
bank fraud and submitting a false loan application.
panel held that a defendant may not discharge a restitution
judgment based on a private settlement between the victim and
the defendant; and that the Mandatory Victims Restitution Act
of 1996 permits a district court to redirect restitution
payments to the Crime Victims Fund, when a victim later
disclaims restitution without making a direct assignment to
McKEOWN, Circuit Judge
appeal we resolve two related questions of first impression
in our circuit that arise out of the Mandatory Victims
Restitution Act of 1996 ("MVRA"), a statute that
requires certain criminal defendants to pay restitution to
compensate and assist victims. We first determine whether a
defendant may discharge a restitution judgment based on a
private settlement between the victim and the defendant. The
answer is no-restitution is a criminal sentence that cannot
be extinguished by a victim's disclaimer of benefits.
Relatedly, we decide whether a district court may redirect
restitution payments to the federal Crime Victims Fund, 42
U.S.C. § 10601 et seq., ("the Fund"),
when a victim later disclaims restitution without making a
direct assignment to the Fund. The answer is yes-the statute
provides leeway for the court to fashion this practical
factual background here is not complicated. In 2001, Anne
Hankins pled guilty to bank fraud under 18 U.S.C. § 1344
after submitting a false loan application for $350, 000 to
U.S. Bank Special Assets Group ("U.S. Bank"). The
district court sentenced Hankins to thirty days in jail and
entered a judgment under the MVRA ordering her to pay U.S.
Bank $350, 000 in restitution. The restitution, payable
"in full immediately" or, if any unpaid balance
remained at the time of Hankins's release from custody,
"at the maximum installment possible, and not less than
$50 per month, " was to be deposited with the clerk of
the court "for transfer to the payee."
2002, U.S. Bank assigned its interest in the restitution
judgment to Horton & Associates LLC ("Horton").
In 2011, the district court entered an order substituting
Horton as the assigned victim. Although neither the record
nor the district court docket explains the time lag between
the assignment and the substitution order, the delay is
immaterial for our purposes.
2002 to 2013, Hankins made sporadic payments: she paid most
months, and the payments ranged from $50 to $400. On several
occasions between 2011 and 2013, the Treasury Offset Program
also garnished funds, taking from Hankins as much as $3,
310.22 at a time. By July 2013,
Hankins had paid $13, 044.30 towards her $350, 000
judgment-leaving her with a remaining balance of $336,
September 2013, Hankins and Horton purported to settle the
outstanding restitution obligation for a mere $5, 000. Soon
after, Horton filed with the court a notice entitled
"Full Satisfaction of Judgment." The record reflects that neither the
district court, Hankins, nor the government took any action
in court in response to Horton's notice, although Hankins
stopped making payments.
April 2015, more than a year and a half after Horton filed
its notice, the Treasury Offset Program garnished $21, 765
from Hankins to be applied towards her restitution balance.
Hankins, likely displeased by this turn of affairs, filed a
motion a few weeks later seeking full satisfaction of the
restitution judgment. By that time, ...