Prosecutors Push for Outbreak Restitution Order

By Walter F. Roche Jr.

Federal prosecutors are asking a judge to reverse a decision which could delay for months a decision on a $74 million restitution order to benefit victims of a deadly 2012 fungal meningitis outbreak.
In a seven-page motion filed today in U.S. District Court in Boston, Mass. Assistant U.S. Attorneys George Varghese and Amanda Strachan asked U.S. District Court Judge Richard G. Stearns to reverse himself and immediately consider the order which could bring financial relief to outbreak victims.
Stearns, in a decision issued Nov. 21, concluded that he could not consider the restitution because of pending appeals in the case of Barry J. Cadden. A decision on those appeals is not expected for months.
Cadden, who was president and part owner of the company blamed for the outbreak, was convicted in March on racketeering and mail fraud charges and is serving a nine-year federal prison sentence. Both his conviction and sentence are on appeal. Prosecutors have asked that Cadden be forced to make restitution of $73.7 million.
"The government submits that this court's jurisdiction is unaffected by Cadden's appeal from his conviction (or the government's appeal of his sentence)," the motion states.
While acknowledging that in many cases an appeal would delay such decision, the prosecutors cited two U.S. Supreme Court rulings to the contrary.
In addition they noted the federal Mandatory Victims Restitution Act of 1996 makes restitution "a mandatory component of sentencing for criminal offenses, including crimes for which Cadden has now been convicted."
They also noted a provision of the restitution statute that mandates restitution where an identifiable victim or victims have suffered a physical injury."
"The notice of appeal following the original judgment does not divest the sentencing court from resolving the restitution issue," the decision states.
Stearns already has issued an order requiring Cadden to forfeit $7.5 million in assets, including his BMW and Wrentham, Mass. home.
The 2012 fungal meningitis outbreak caused by fungus laden steroids sickened some 778 patients killing 76 of them.
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