United States v. Loyd Dean Stanley, AKA Dean Stanley

PacShip Repair and Fabrication Inc., the victim of a kickback scheme, suffered a loss of over $900,000. Because of an error at the time of defendant Loyd Stanley’s plea, his restitution liability was capped at $500,000. Stanley’s co-defendants paid over $300,000 in restitution, reducing PacShip’s loss to nearly $600,000. In this appeal, Stanley maintains that the co-defendants’ payments should have been deducted from his $500,000 restitution cap, thus reducing his restitution exposure to less than $200,000. We agree with the district court that the restitution paid by the co-defendants only reduced the victim’s loss; it did not reduce Stanley’s restitution ceiling. Because PacShip’s loss still exceeded $500,000 even after the co-defendants’s payments were credited, the district court did not err in ordering Stanley to pay restitution of $500,000.

I. Background

Stanley was an employee of PacShip, which had a contract with the Navy to perform repairs on aircraft carriers. Gamma Tech Industries, Inc. and Tidelands Testing, Inc., were two of PacShip’s subcontractors, and Michael Gallegos was a principal of Gamma Tech and Tidelands. Stanley, who was in charge of overseeing…