Third Circuit Hears Challenges to $31 Million Restitution Order

A successful entrepreneur convicted of defrauding securities class action claims administrators of settlement funds meant to be distributed to defrauded investors is urging the the Third Circuit to toss a $31.2 million restitution order.

The trial court made restitution payable to various class action claims administrators. But the claims administrators weren’t the victims here, Joseph Cammarata’s lawyer Peter Goldberger told the three-judge panel.

Restitution, like any other criminal penalty, is governed by statute. By ordering the restitution to be paid to entities that didn’t suffer any loss, the lower court violated the statute, he said. If anyone lost anything, it ...