The Third Circuit Court of Appeals handed down an interesting ruling in US v. Bagdy, No. 13-2975 (3rd Cir. Aug. 21, 2014), reversing a Federal District Court’s (trial court) revocation of supervised released despite calling the defendant’s conduct “reprehensible.” The Bagdy opinion states:
At issue on this appeal is whether supervised release may be revoked and an offender sent to prison based upon a Federal District Court’s finding that the offender acted in “bad faith” in relation to his obligation to make restitution to the victim(s) of his criminal conduct. Bagby had been ordered to pay back tens of thousands of dollars in restitution during the period of his supervised release, which is a form of probation given to someone who receives a sentence of incarceration in federal court.
In this case, although Appellant David Bagdy complied with the specifics of the District Court’s restitution order by ultimately paying more than one-third of a $435,000 inheritance he had received while on supervised release, he spent the rest of his inheritance on things for himself and went on what the Court described as a “lavish spending spree” that dissipated the balance of the inheritance while delaying the actions intended to modify the restitution order. The Appellate Court, albeit it found Bagdy’s conduct reprehensible, concluded that his supervised release could not be revoked for such bad faith conduct because Bagdy did not violate a “specific condition” of supervised release in relation to the restitution obligation. Under the District Court’s Supervision Order he had been ordered to pay back a certain amount of restitution at differing intervals. So, although he didn’t put all of his inheritance towards restitution the Appellate Court held he was not required to do so and the Appellate Court reversed the trial court’s order revoking his supervised release.
This issue comes up somewhat frequently in Florida State court cases and Federal cases where someone has been ordered to pay restitution during their period of probation or supervised release, is set up on a payment plan by their probation officer, and then the person being supervised comes into a large amount of money. Unless the Judgment and Sentence specifically states that if the person acquires a large amount of money during their period of probation or supervised release and, if so, that money shall be paid towards restitution, someone cannot have their probation or supervised release violated and possibly be sent to prison if they have simply been set up on a payment plan to payback the restitution.