Seventh Circuit: Federal Government Can Garnish Private Disability Insurance Payments for Restitution Order

U.S. v. France
U.S. Ct. Apps., Seventh Cir., Apr. 7, 2015

The Seventh Circuit ruled that the federal government has the power to garnish monthly payments from a private disability insurance policy belonging to a dentist that had been ordered, as part of his guilty plea to mail fraud, to pay restitution to victims for a fraudulent billing scheme.

Here, the dentist was ordered to pay $800,000 in restitution to the victims of his fraudulent billing scheme in 2002. However, in 2014, he had paid …

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