140 F.4th 351
6th Cir.2025Background
- Irene Michelle Fike was an accountant who defrauded her client, J.M., by using J.M.'s financial accounts to pay her own bills and make purchases, totaling $363,657.67 in losses from 2018 to 2022.
- Fike concealed the fraud by manipulating financial reports and continued the fraudulent conduct even after her employment ended.
- In 2024, Fike pleaded guilty to wire fraud and aggravated identity theft.
- The district court sentenced Fike to prison and imposed restitution totaling $405,867.08, which included both the stolen principal and $42,209.41 in prejudgment interest to make J.M. whole.
- Fike appealed, arguing that the Mandatory Victims Restitution Act (MVRA) does not permit prejudgment interest as part of restitution, and that the district court's interest calculation was speculative.
- The appellate court reviewed the district court’s decision for abuse of discretion and affirmed the restitution award, including prejudgment interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MVRA authorizes prejudgment interest | MVRA is silent; does not authorize interest as part of restitution | Interest is allowed to ensure victim's full compensation due to time value of money | MVRA permits prejudgment interest to make victim whole at district court's discretion |
| Reliability of interest calculation | Calculation based on victim’s declaration was speculative and unfounded | Declaration under penalty of perjury, with itemized interest using market rates, is reliable | Court found declaration reliable and calculation supported by sufficient evidence |
Key Cases Cited
- United States v. Cox, [citation="665 F. App'x 457"] (6th Cir. 2016) (MVRA does not exclude interest from a restitution award)
- Shearson/Am. Express, Inc. v. Mann, 814 F.2d 301 (6th Cir. 1987) (court can award prejudgment interest as part of restitution to make the victim whole)
- United States v. Qurashi, 634 F.3d 699 (2d Cir. 2011) (MVRA allows prejudgment interest to ensure full victim compensation)
- United States v. Gordon, 393 F.3d 1044 (9th Cir. 2004) (prejudgment interest may be included in restitution under MVRA to address victim’s lost use of funds)