Civil Settlement Does Not Reduce Estate Attorney's Sentence After Guilty Plea

The Eighth Circuit Court of Appeals upholds a 30-month prison sentence and restitution imposed on an attorney who defrauded an estate. The attorney had argued that the federal sentencing guidelines called for a lighter sentence because she returned a majority of the funds pursuant to a civil settlement agreement. U.S. v. Stennis-Williams (8th Cir., No. 08-2461, March 10, 2009).

Lavon Stennis-Williams, a Nebraska attorney, defrauded one of the estates she represented out of $238,340. After an investigation and civil suit by the deceased's only heir, Attorney Stennis-Williams agreed to a settlement and paid back $215,000. Although the settlement contained a covenant not to prosecute, the United States Attorney's office charged Attorney Stennis-Williams with mail and wire fraud. She pled guilty to one count of mail fraud and the trial court, applying federal sentencing guidelines, sentenced her to 30 months in prison and ordered her to pay $56,134 in restitution.

Attorney Stennis-Williams appealed the sentence and the restitution. In regards to the sentence, she argued that because she returned $215,000, the actual loss to the estate was only $23,340. If this figure was used to calculate her sentence under the federal guidelines, Attorney Stennis-Williams argued that she would have received a sentence of between four and ten months. She also argued that she did not have to pay any further restitution because the estate waived its right to payments when it agreed to the civil settlement.

The Eighth Circuit Court of Appeals upholds both the sentence and the restitution. The court points out that the federal sentencing guidelines allow a judge to reduce the victim's loss if the money is returned before the offense is detected, not years afterwards as in this case. Addressing the restitution, the court holds that since the "victim does not have an independently enforceable right to receive criminal restitution, the victim cannot waive such a right in a civil settlement." (emphasis added)

For the full text of this decision, go to: https://www.ca8.uscourts.gov/opndir/09/03/082461P.pdf

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