Munz

MEMORANDUM **

George West Munz and Perry G. Deluna appeal the district court’s denial of their 18 U.S.C. § 3663 (e)(1) motion to offset restitution. 1 We affirm.

Defendants argue that the $2.6 million deficiency judgment that Rock Island Bank (“RIB”) obtained against Alvin Steffien should be used to fully offset their restitution obligations. This argument is without merit. The deficiency judgment that RIB obtained against Steffien failed to “restore [RIB] to [its] prior state of well-being,” United States v. Cloud, 921 F.2d 225, 226-27 (9th Cir.1990) (internal *556 citation omitted), because there is no evidence that Steffien had, in fact, fully satisfied the deficiency judgment.

Defendants also argue that RIB received significant value from Steffien’s deficiency judgment, because it conveyed the judgment to a third party as part of the consideration to obtain a release from liability for certain potential claims against the bank. It is not entirely clear on what basis the district court rejected that argument and denied the motion. We note two possibilities, but neither requires reversal of the order on appeal.

RIB disputed defendants’ factual position, contending that the…