October 23, 2018

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Restitution for the Corporate Victim

Corporations and businesses of all varieties risk falling victim to crimes committed by their employees and becoming ensnared in criminal investigations of their vendors and business partners. When wrongdoers are convicted federally, the Mandatory Victims Restitution Act (MVRA) requires that they make restitution for losses directly caused by their criminal conduct. In addition to direct losses, entities often incur additional losses when cooperating with and responding to a government investigation.

The MVRA provides for the recovery of these ancillary losses, but there is more to the process than simply submitting an invoice to the government to qualify for restitution. Indeed, recent cases make clear that there are limits to how far courts will go in making victims whole. To ensure maximum recovery for their clients, counsel should know of the limitations and how to present a successful claim.

Corporations as a "Victim"

Of course, to qualify as a victim entitled to restitution under the MVRA, a corporation must be "directly and proximately harmed as a result of the commission of an offense for which restitution may be ordered." Qualifying offenses include: (i) crimes of violence; (ii) offenses against property, including any offense committed by fraud or deceit; and (iii) offenses related to tampering with consumer products.

Republished with permission from the Connecticut Law Tribune.  Originally published here.

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Fourth Amendment Exception Allows Customs to Search Personal Devices.

Exploring the Boundaries of the Fifth Amendment.

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About this Author

James Glasser, partner, Wiggin and Dana

James I. Glasser is a Partner in the New Haven and New York offices of Wiggin and Dana and is Chair of the Litigation Department and Co-Chair of the International Trade Compliance Practice Group. Mr. Glasser represents clients in complex civil litigation and in investigations and prosecutions conducted by the Department of Justice, the Securities and Exchange Commission, FINRA, the State Department, the Commerce Department, State Attorneys General, and other federal and state regulators. He also conducts regulatory investigations to ensure compliance in  areas of law including: health care...

Joseph Martini, Internal Investigations, Wiggin and Dana Law Firm, Washington DC, New York

Joseph W. Martini, is a Partner and Chair of the firm's White Collar Defense, Investigations and Corporate Compliance Group. In 2014, 2015 and 2016, the White Collar Group was awarded the Litigation Department of the Year for Government Investigations and Corporate Compliance by the Connecticut Law Tribune. Mr. Martini, a member of the firm's Executive Committee, maintains offices in New York, Stamford, and Washington, D.C.

Mr. Martini is often retained by entities facing crisis situations to conduct internal investigations, and has regularly done so in the financial, health care, manufacturing, construction and defense industries. Mr. Martini also has experience representing clients in matters involving the United Nations, and before hospital boards of directors and hearing panels in connection with disciplinary matters and other administrative proceedings. He also advises educational institutions in connection with Title IX investigations.

203-363-7603 fax