William S. Poff v. United States

Petitioner is a disabled military veteran currently serving a federal prison sentence. While incarcerated, Petitioner is entitled to approximately $133 a month in veterans disability benefits. At sentencing, the district court issued a restitution payment schedule based on Petitioner’s financial circumstances. Petitioner has fully complied with that payment schedule. Without notice, the government seized Petitioner’s accumulated monthly veterans disability benefits as payment toward the restitution he owes. Petitioner challenged the seizure as beyond the scope of the Mandatory Victims Restitution Act of 1996 (“MVRA”). The questions presented are:

1. Under the MVRA, an individual who “receives substantial resources from any source, including inheritance, settlement, or other judgment, during a period of incarceration, . . . shall be required to apply the value of such resources to any restitution . . . still owed.” 18 U.S.C. § 3664(n). Does the periodic deposit of regular payments that were in effect at sentencing qualify as the receipt of windfall payments akin to “inheritance, settlement, or other judgment” that constitute “substantial resources” and can be immediately seized under the MVRA?

2. The MVRA exempts from restitution enforcement “[a]ny amount payable to an individual as a service-connected . . . disability benefit.” 26 U.S.C. § 6334(a)(10); 18 U.S.C. § 3613. Do veterans disability benefits lose their exempt status when paid by the government?