USA v. King et al

UNITED STATES DISTRICT COURT
DISTRICT OF SOUTH DAKOTA
SOUTHERN DIVISION
UNITED STATES OF AMERICA, 4:20-CR-40028
Plaintiff,
vs. ORDER
SPENCER WILLIAM BROWN,JR.,
Defendant.
Pending before the Court is the Government's motion for an order authorizing the Bureau
of Prisons ("BOP") to turn over to the Clerk of Court funds held in Defendant's BOP inmate
trust aceount pursuant to 18 U.S.C. §§ 3613, 3664(n), and 3664(k). (Doc. 103.) For the
following reasons, the motion will be granted.
BACKGROUND
On November 13, 2020, this Court sentenced Spencer William Brown, Jr.("Brown") to
72 months' imprisonment, three years' supervised release, a $100 special assessment, and joint
and several restitution in the amount of $1,621 for interference with commerce by threats and
violence in violation at 18 U.S.C. §§ 1951 and 2.(Doc. 96.) Interest was waived. Id. at 6. The
Schedule of Payments in the Judgment provides:
Payment of the total restitution and other criminal monetary penalties shall be due
in regular quarterly installments of 50% of the deposits in your inmate trust
account while you are in custody, or 10% of your inmate trust account while
serving custody at a Residential Reentry Center. Any portion of the monetary
obligation(s) not paid in full prior to your release from custody shall be due in
monthly installments of $25 such payments to begin 60 days following your
release.
Id. at 7.
According to the Government, Brown has failed to make any payments toward his
special assessment and restitution. Prior to filing this motion on January 4,2022, prison officials
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advised the Government that Brown had a balance of $3,667.05 in his inmate trust account, of
which $1,721.00 was encumbered pursuant to a Letter of Encumbrance sent by the U.S.
Attorney's Office to the BOP on December 29, 2021. The Government's recent supplement
indicates that Brown's inmate trust account totaled $3,698.85 as of March 1, 2022. (Doc. 105.)
After the Government filed the motion to obtain funds from Brown's BOP trust account,
the Eighth Circuit issued a decision in United States v. Kidd, 23 F.4th 781 (8th Cir. 2022),
holding that one of the statutes relied on by the Government for its request, 18 U.S.C. § 3664(n),
does not apply to prison wages that have accumulated in a prisoner's trust account. The
Government was directed to address the effect that Kidd had on its motion. (Doc. 104.)
The Government's response details the sources of money in Brown's trust account.
(Docs. 105, 106.) The Government could not confirm but it believes that $556.60 of the monies
deposited in Brown's trust account may be prison wages. In light of Kidd, the Government is no
longer seeking any money that Brown might have earned as prison wages. Rather, it is seeking
$1,571.13, which represents 50% of the money in Browm's trust account after subtracting the
$556.60 in possible prison wages. (Doc. 105, p. 3.)
The Government submitted a "Money Received" report showing all deposits into
Brown's trust account from January 1, 2021 to March 1, 2022. (Doc. 106, Exhibit 1.) The
largest deposits are from the Yankton Sioux Tribe in the amount of $685.00 and $2,000. The
Government was able to confirm that the $685.00 deposit was a settlement payment related to
"the Bernhardt settlement," and the $2,000.00 deposit was a payment given to all tribal members
related to the COVID economic stimulus fund. (Doc. 106, 6.)
On March 29, 2022, Brown filed a response to the Government's motion, indicating that
he had agreed to have $50.00 taken out of his account every three months and that he would like
to continue that practice, though Brown admits that money has not been taken out of his account.
(Doc. 107.)
DISCUSSION
Section 3664(n) of the Mandatory Victims Restitution Act("MYRA) provides that "If a
person obligated to provide restitution, or pay a fine, receives substantial resources from any
source, including inheritance, settlement, or other judgment, during a period of incarceration.
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such person shall be required to apply the value of such resources to any restitution or fine still
owed." 18 U.S.C. § 3664(n). Section 3613 provides that a restitution judgment "is a lien in
favor of the United States on all property and rights to property" of the defendant. 18 U.S.C. §
3613(c). Under this authority, the Government argues that it is entitled to an Order directing the
BOP to tum over the amount it has requested from Brown's inmate trust account. In addition,
because the property is cash, the Government argues it does not fall within any applicable
categories of exempt property that a defendant may claim in a criminal case. See 18 U.S.C. §
3613(a)(1). Finally, the Government asserts that payments issued pursuant to the CARES Act
are not exempted from the lien created by a restitution judgment, and that applying funds from
an inmate trust account that were derived from a CARES Act payment is consistent with the
interest ofjustice.
Courts have held that CARES Act stimulus payments can be applied to a defendant's
restitution obligations. See United States v. Long, No. 3:15-CR-30118-RAL, 2022 WL 703220,
at *4 (D.S.D, Mar. 9, 2022)(citing cases). This Court agrees with the reasoning in those cases.
In addition. Section 3664(n) expressly allows money from a settlement to be applied to
restitution obligations.
After careful consideration of the legal authority, the Court concludes that $1,571.13 of
the $3,698.85 in Brown's inmate trust account should be applied to his outstanding restitution
obligation, leaving Brown with a $2,127.72 balance. This holding is consistent with 18 U.S.C.
§ 3664, and with this Court's restitution order which set Brown's restitution payments in
regular quarterly installments of 50% of the deposits in his inmate trust account while he is in
custody. See, e.g.. United States v. Diehl, 848 F.3d 629, 634-635 (5th Cir. 2017)(noting courts
have recognized that the Government may pursue immediate or adjusted enforcement of
criminal monetary sanctions as long as the judgment contains no language to the contrary; and
holding that a BOP-created payment schedule "does not supersede the terms of the court's
sentencing order"). The amount requested by the Government is less than 50% of the deposits in
Brown's account. Accordingly,
IT IS ORDERED:
1. That the United States of America's Motion to Authorize Payment from Inmate Trust
Account is granted.(Doc. 103.)
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2. That the Bureau of Prisons shall turn over to the Clerk of the United States District
Court for the District of South Dakota funds held in the inmate trust account of
Defendant Spencer William Brown, Register Number 09904-073, in the amount of
One Thousand Five Hundred Seventy-One Dollars and Thirteen Cents ($1,571.13), as
payment towards criminal monetary penalties owed by Defendant Brown in this case.
Dated this 26th day of April, 2022.
BY THE COURT:
IOUJUAUjl
^wrence L. Piersol
United States District Judge
ATTEST:
MATTHEW W. THELET
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