Ramunno: No Constructive Trust for Victim of Ponzi Scheme

In U.S. v. Ramunno, No. 09-10446 (March 17, 2010), the Court found no abuse of discretion in the district court’s denial of a fraud-victim’s request to amend an order of forfeiture against the defendant and recognize a “constructive trust” under Georgia state law in the amount of funds the victim invested. The Court pointed out that the claimant was just one of a number of victims of Ramunno’s Ponzi scheme, and that if he were granted a constructive trust to recoup his entire loss, the pool of funds available to distribute to Ramunno’s other victims through the Attorney General’s remission process would be reduced. “If the funds are distributed equitably to all victims, then each victim . . . may recover some fraction of their lost investments.”