Second Circuit Permits Companies to Recover Costs of Investigation as Restitution under the VWPA

The Second Circuit recently decided in United States v. Cuti that a corporate employer can recover as restitution the costs of an internal investigation that assisted in an employee’s subsequent conviction. The court clarified the meaning of “necessary expenses” under the Victim and Witness Protection Act of 1982 to include any expenses the victim was “required to incur to advance the investigation or prosecution of the offense.” The court concluded that these expenses included costs associated with an internal investigation, including legal fees paid for the company’s employees, but did not include expenses incurred in a related civil-investigation. The alert memo provides further details on these decisions.