Summary
The Fifth Circuit held that business entities qualify as "victims" under the Mandatory Victims Restitution Act (MVRA) for Hobbs Act robbery restitution, rejecting the argument that only natural persons are eligible. The court also modified the restitution award from $5,000 to $4,500, reducing the lost-income component from $4,000 to $3,500 because the record supported only $3,500 in average Monday sales, not the higher estimate. The case clarifies that corporate victims may receive restitution under the MVRA and that restitution amounts must be supported by adequate evidentiary basis, with the government bearing the initial burden of proof.
Topics
Practice areas
Questions Presented
- Whether a business entity qualifies as a 'victim' under the Mandatory Victims Restitution Act (MVRA)
- Whether the district court erred in ordering restitution in the amount of $5,000, specifically the $4,000 for lost income.
Holdings
- A business entity can be a victim under the MVRA because the statutory definition of 'person' includes corporations, and the MVRA's definition of 'victim' does not exclude them.
- The district court abused its discretion in ordering $4,000 for lost income; the proper amount is $3,500 based on the evidence of average Monday sales.
Key quotations
“we have routinely found that restitution may be ordered to non-natural persons.”
“we modify the judgment to reduce the restitution ordered to be paid to Parks Food Mart to $3,500.”
“Nothing in Lagos suggests that its holding extends so far—indeed, Lagos itself cabined its discussion of the benefits of a 'narrow' rather than 'broad' reading to the specific provision at issue.”
Factual background
Devonsha Richardson robbed Parks Food Mart, stealing approximately $600 in cash, seventy-five lottery tickets, and a Beretta handgun. The store was closed for about six hours for investigation. The district court ordered restitution of $5,000: $1,000 for stolen property and $4,000 for lost income.
Procedural history
Defendant pleaded guilty to Hobbs Act robbery. The district court sentenced him and ordered restitution of $5,000 to Parks Food Mart. Defendant appealed the restitution order.
Remand instructions
The judgment is modified to reduce restitution to $3,500 for lost income; otherwise affirmed.