Criminal Restitution: United States v. Qurashi

U.S. Court of Appeals, Second Circuit

Criminal Restitution

Interest

United States v. Qurashi
10-348-cr
Appealed from the Eastern District of New York

Background: This appeal is from an order of restitution entered by the district court following defendant-appellant Imran Qurashi’s plea of guilty to a nine-count indictment for insurance fraud. Qurashi argues it was error for the district court to add prejudgment interest to the restitution awarded to the defrauded insurers.
Qurashi twice faked his brother’s death to collect millions of dollars in life insurance proceeds; it was only after the second time that he was caught. In 1993 and 1994, Qurashi and his brother, Adnan Qurashi, purchased two $3 million life insurance policies on Adnan’s life from the Metropolitan Life Insurance Co. and New York Life Insurance Co. In 1995, Qurashi submitted claims to both companies that falsely asserted that Adnan had died in a car accident in Pakistan. The following year, the insurers paid Qurashi more than $6 million on the policies.

Ruling: The judgment is affirmed. The court holds that a prejudgment interest award can be included in a criminal restitution order to ensure that a victim’s losses are fully compensated. The court also remands to allow the district court to conform the statement of reasons supporting the sentence to Qurashi’s stipulation with the government.

Norman Trabulus for the appellant; Charles P. Kelly, assistant U.S. attorney, for the appellee