State v. Cerasani, 316 P.3d 819

In 2007–2008 Anthony Cerasani solicited Linda and Gerald Cintron to buy three 5‑acre lots for $480,000 and induced them to withdraw retirement savings, providing $180,000 down.
The Cintrons withdrew retirement funds early, incurring ordinary income tax and a federal early‑distribution excise tax (withheld from their distribution).
Cerasani did not convey title and shortly transferred the property to a third party; the Cintrons never received the land and lost their down payment.
After reporting to police, Cerasani returned $50,000 and later paid $75,000 under a deferred prosecution agreement but failed to complete agreed payments; prosecution resumed and he pleaded no contest to felony theft, receiving a deferred sentence.
At restitution hearing the District Court ordered Cerasani to repay outstanding principal, interest, $3,280 attorney fees for tax advice, and $88,964 representing tax liabilities (including the $21,366 excise tax), totaling $164,861.27.
On appeal Cerasani contested inclusion of tax liabilities as restitution; the Supreme Court affirmed recovery of excise tax and tax‑advice fees but reversed as to ordinary income tax tied to retirement withdrawals.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether restitution may include tax consequences of victims’ early retirement withdrawals	State: restitution may include all pecuniary losses causally caused by the crime, including tax consequences from the withdrawals	Cerasani: he should only repay the $180,000 (plus interest); ordinary income tax would have been owed later regardless and is not his responsibility	Court: restitution can include losses causally caused by the crime; excise tax and tax‑advice fees are recoverable, but ordinary income tax on the withdrawn funds is not recoverable from Cerasani
Whether attorney fees for addressing tax consequences are recoverable as restitution	State: fees were incurred to address effects of criminal conduct and are a compensable pecuniary loss	Cerasani: (implicitly) such fees are not directly tied to the theft principal	Court: fees are properly included as restitution

State v. Jent, 299 P.3d 332 (Mont. 2013) (causal connection is touchstone for restitution; mixed law‑fact review)
State v. Warclub, 114 P.3d 254 (Mont. 2005) (standard of review for mixed legal and factual questions)
State v. LaTray, 11 P.3d 116 (Mont. 2000) (restitution not limited to direct elements of offense; may include expenses to rectify harm)
State v. Cantu, 296 P.3d 461 (Mont. 2013) (sentencing conditions valid if nexus to offense or offender)
State v. Ness, 216 P.3d 773 (Mont. 2009) (restitution for collateral expenses causally linked to offense)
State v. Perkins, 208 P.3d 386 (Mont. 2009) (but‑for causal connection sufficient for restitution measured by civil obligations)
State v. Grindheim, 101 P.3d 267 (Mont. 2004) (future counseling costs recoverable when causally connected to sexual assault)