October Term 2013 · Docket 12-9012
Does returning a foreclosed property fully offset a fraud restitution order?
The dispute centers on whether a bank recovers its full loss when it repossesses a home bought with a fraudulent loan.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Green argued that returning the property satisfies the restitution requirement under the Mandatory Victims Restitution Act.
Ms. Harrington argued that the bank loses the difference between the loan amount and the property value.
Justice Kennedy asked if the property is fully returned when its value is less than the loan.
Justice Ginsburg asked how courts determine the property value at the time of foreclosure.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 35-39 — Transcript, file page 10, lines 35-39
- Official Supreme Court Transcript — file page 10, lines 41-11 — Transcript, file page 10, lines 41-11
- Official Supreme Court Transcript — file page 11, lines 17-23 — Transcript, file page 11, lines 17-23
- Official Supreme Court Transcript — file page 11, lines 27-29 — Transcript, file page 11, lines 27-29
- Official Supreme Court Transcript — file page 11, lines 37-39 — Transcript, file page 11, lines 37-39
- Official Supreme Court Transcript — file page 24, lines 33-9 — Transcript, file page 24, lines 33-9
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
- Official Supreme Court Transcript — file page 3, lines 7-15 — Transcript, file page 3, lines 7-15
- Official Supreme Court Transcript — file page 4, lines 15-25 — Transcript, file page 4, lines 15-25
- Official Supreme Court Transcript — file page 4, lines 41-3 — Transcript, file page 4, lines 41-3
- Official Supreme Court Transcript — file page 5, lines 21-1 — Transcript, file page 5, lines 21-1
- Official Supreme Court Transcript — file page 58, lines 39-25 — Transcript, file page 58, lines 39-25
- Official Supreme Court Transcript — file page 59, lines 27-33 — Transcript, file page 59, lines 27-33
- Official Supreme Court Transcript — file page 59, lines 37-39 — Transcript, file page 59, lines 37-39
- Official Supreme Court Transcript — file page 6, lines 13-5 — Transcript, file page 6, lines 13-5
- Official Supreme Court Transcript — file page 60, lines 45-5 — Transcript, file page 60, lines 45-5
- Official Supreme Court Transcript — file page 60, lines 5-7 — Transcript, file page 60, lines 5-7
- Official Supreme Court Transcript — file page 62, lines 18-20 — Transcript, file page 62, lines 18-20
- Official Supreme Court Transcript — file page 7, lines 29-29 — Transcript, file page 7, lines 29-29
- Official Supreme Court Transcript — file page 7, lines 49-29 — Transcript, file page 7, lines 49-29
- Official Supreme Court Transcript — file page 8, lines 45-49 — Transcript, file page 8, lines 45-49
- Official Supreme Court Transcript — file page 9, lines 37-1 — Transcript, file page 9, lines 37-1
A citizen's guide to the whole case
What this case is about
The case tests how courts calculate restitution for mortgage fraud. the side that brought the case argues that returning the property satisfies the debt. The government argues that the bank loses the difference between the loan and the property value.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 41-11 — Transcript, file page 10, lines 41-11
- Official Supreme Court Transcript — file page 24, lines 33-9 — Transcript, file page 24, lines 33-9
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
- Official Supreme Court Transcript — file page 58, lines 39-25 — Transcript, file page 58, lines 39-25
How the case got here
The Supreme Court heard oral argument in this case on February 25, 2014.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-15 — Transcript, file page 3, lines 7-15
- Official Supreme Court Transcript — file page 60, lines 5-7 — Transcript, file page 60, lines 5-7
What each side wants
the side that brought the case wants the court to rule that returning the property fully offsets the restitution order.
The government wants the court to rule that the bank must recover the difference between the loan and the property value.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 41-11 — Transcript, file page 10, lines 41-11
- Official Supreme Court Transcript — file page 24, lines 33-9 — Transcript, file page 24, lines 33-9
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
- Official Supreme Court Transcript — file page 58, lines 39-25 — Transcript, file page 58, lines 39-25
What each side says
the side that brought the case argues that Section 3663A requires an offset when any part of the property is returned to the victim.
The government argues that the bank suffers a loss equal to the difference between the loan amount and the property value.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 41-11 — Transcript, file page 10, lines 41-11
- Official Supreme Court Transcript — file page 24, lines 33-9 — Transcript, file page 24, lines 33-9
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
- Official Supreme Court Transcript — file page 58, lines 39-25 — Transcript, file page 58, lines 39-25
What the justices asked
Justice Scalia asked if the bank was defrauded of money or if the client never received the funds.
Justice Sotomayor asked why it is impractical to measure the loss by the amount the client received.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 35-39 — Transcript, file page 10, lines 35-39
- Official Supreme Court Transcript — file page 11, lines 17-23 — Transcript, file page 11, lines 17-23
- Official Supreme Court Transcript — file page 11, lines 27-29 — Transcript, file page 11, lines 27-29
- Official Supreme Court Transcript — file page 11, lines 37-39 — Transcript, file page 11, lines 37-39
- Official Supreme Court Transcript — file page 4, lines 15-25 — Transcript, file page 4, lines 15-25
- Official Supreme Court Transcript — file page 4, lines 41-3 — Transcript, file page 4, lines 41-3
- Official Supreme Court Transcript — file page 5, lines 21-1 — Transcript, file page 5, lines 21-1
- Official Supreme Court Transcript — file page 59, lines 27-33 — Transcript, file page 59, lines 27-33
- Official Supreme Court Transcript — file page 59, lines 37-39 — Transcript, file page 59, lines 37-39
- Official Supreme Court Transcript — file page 6, lines 13-5 — Transcript, file page 6, lines 13-5
- Official Supreme Court Transcript — file page 60, lines 45-5 — Transcript, file page 60, lines 45-5
- Official Supreme Court Transcript — file page 62, lines 18-20 — Transcript, file page 62, lines 18-20
- Official Supreme Court Transcript — file page 7, lines 29-29 — Transcript, file page 7, lines 29-29
- Official Supreme Court Transcript — file page 7, lines 49-29 — Transcript, file page 7, lines 49-29
- Official Supreme Court Transcript — file page 8, lines 45-49 — Transcript, file page 8, lines 45-49
- Official Supreme Court Transcript — file page 9, lines 37-1 — Transcript, file page 9, lines 37-1
Why it matters
This case determines how courts calculate restitution for mortgage fraud. It affects the financial recovery of banks and the liability of borrowers. The outcome sets a standard for valuing returned property in fraud cases.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 41-11 — Transcript, file page 10, lines 41-11
- Official Supreme Court Transcript — file page 24, lines 33-9 — Transcript, file page 24, lines 33-9
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
- Official Supreme Court Transcript — file page 58, lines 39-25 — Transcript, file page 58, lines 39-25
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 35-39 — Transcript, file page 10, lines 35-39
- Official Supreme Court Transcript — file page 11, lines 17-23 — Transcript, file page 11, lines 17-23
- Official Supreme Court Transcript — file page 11, lines 27-29 — Transcript, file page 11, lines 27-29
- Official Supreme Court Transcript — file page 11, lines 37-39 — Transcript, file page 11, lines 37-39
- Official Supreme Court Transcript — file page 3, lines 7-15 — Transcript, file page 3, lines 7-15
- Official Supreme Court Transcript — file page 4, lines 15-25 — Transcript, file page 4, lines 15-25
- Official Supreme Court Transcript — file page 4, lines 41-3 — Transcript, file page 4, lines 41-3
- Official Supreme Court Transcript — file page 5, lines 21-1 — Transcript, file page 5, lines 21-1
- Official Supreme Court Transcript — file page 59, lines 27-33 — Transcript, file page 59, lines 27-33
- Official Supreme Court Transcript — file page 59, lines 37-39 — Transcript, file page 59, lines 37-39
- Official Supreme Court Transcript — file page 6, lines 13-5 — Transcript, file page 6, lines 13-5
- Official Supreme Court Transcript — file page 60, lines 45-5 — Transcript, file page 60, lines 45-5
- Official Supreme Court Transcript — file page 60, lines 5-7 — Transcript, file page 60, lines 5-7
- Official Supreme Court Transcript — file page 62, lines 18-20 — Transcript, file page 62, lines 18-20
- Official Supreme Court Transcript — file page 7, lines 29-29 — Transcript, file page 7, lines 29-29
- Official Supreme Court Transcript — file page 7, lines 49-29 — Transcript, file page 7, lines 49-29
- Official Supreme Court Transcript — file page 8, lines 45-49 — Transcript, file page 8, lines 45-49
- Official Supreme Court Transcript — file page 9, lines 37-1 — Transcript, file page 9, lines 37-1
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 10, lines 41-11 — Transcript, file page 10, lines 41-11
- Official Supreme Court Transcript — file page 24, lines 33-9 — Transcript, file page 24, lines 33-9
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
- Official Supreme Court Transcript — file page 58, lines 39-25 — Transcript, file page 58, lines 39-25
- Official Supreme Court Transcript — file page 10, lines 41-11 — Transcript, file page 10, lines 41-11
- Official Supreme Court Transcript — file page 24, lines 33-9 — Transcript, file page 24, lines 33-9
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
- Official Supreme Court Transcript — file page 58, lines 39-25 — Transcript, file page 58, lines 39-25
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.