GE Capital $16M Restitution Award in Jeopardy at High Court (1)

The practice of using of a restitution law to make criminal fraud defendants pay internal investigation costs and fees unprompted by the government might be in jeopardy in light of U.S. Supreme Court oral argument April 18 in a case involving General Electric Capital Corp.

Some of the justices expressed skepticism of the practice, though the argument of the ex-CEO convicted of wire fraud challenging it didn’t go unscathed.

Besides the millions at stake here, the high court’s ruling could affect payments in tens of thousands of restitution cases a year.

Ponzi-like Scheme

Sergio Lagos was convicted of defrauding GE ...