Second Circuit Upholds Garnishment of Retirement Accounts to Satisfy Restitution Order

On August 24, 2022, the U.S. Court of Appeals for the Second Circuit approved of a district court’s orders for garnishment of retirement accounts to satisfy a restitution order under the Mandatory Victims Restitution Act, notwithstanding the Consumer Credit Protection Act and the anti-alienation provisions of the Employee Retirement Income Security Act of 1974, but vacated and remanded for a determination of the impact of a potential 10% tax on early distributions.  United States v. Shkreli, 47 F4th 65 (2d Cir. 2022).

This excerpt is from an article published in the eNewsletter of the Insolvency Law Committee of the California Lawyers Association on December 5, 2022. View the article here.

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