United States v. Rao, 1:23-cr-00047

Samir Rao pleaded guilty to conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft arising from a fraudulent scheme at Ozy Media.
The total victims’ loss from the charged scheme was previously determined to be $36,769,153.97 in related cases involving Rao’s co-conspirators.
Sentencing for Rao was held on January 7, with restitution calculation deferred per statute.
Rao, the "second in command" at Ozy Media under Carlos Watson, was less culpable than Watson, who was the "primary architect" of the scheme.
The court faced the question of what portion of total restitution Rao should be ordered to pay, given his role and contribution to the losses.
Presidential commutation had reduced Watson’s and Ozy Media’s financial liability, raising potential argument about Rao’s share.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Total victims’ loss amount	Should match prior finding	Should match	$36,769,153.97 applies (as previously determined)
Rao's percentage of restitution	N/A	1/3 is fair due to role	Rao liable for 1/3 of total: $12,256,384.66
Impact of co-defendants’ commutation	No adjustment to Rao's share	No effect	Commutation irrelevant to Rao’s restitution amount
Timing of order beyond 90 days	Allowed if previously noticed	No opposition	Court can enter order past 90 days if noticed before

United States v. Benz, 282 U.S. 304 (1931) (Clemency shortens enforcement of the judgment but does not alter it as a judgment.)
Dolan v. United States, 560 U.S. 605 (2010) (Court retains power to order restitution after the 90-day period if restitution was announced prior to expiration.)
United States v. Yalincak, 30 F.4th 115 (2d Cir. 2022) (Court may apportion restitution among co-defendants based on culpability and contribution.)