United States District Court, D. Connecticut
ORDER GRANTING GOVERNMENT'S MOTION FOR
JEFFREY ALKER MEYER UNITED STATES DISTRICT JUDGE.
Government has moved for resentencing of defendant Diane
Dalmy on the ground that she willfully failed to pay
restitution. The Court will grant the Government's
was a securities law attorney based in Colorado. For several
years from 2009 to 2016, she conspired with others to defraud
penny stock investors. Dalmy traded on her position as an
attorney to help make the fraud succeed by writing fraudulent
legal opinion letters or letting one of her co-conspirators
do so in her name. Dalmy also used her attorney trust fund
account to launder proceeds from the fraudulent scheme on
behalf of her co-conspirators. Doc. #4 at 11-12; Doc. #16 at
February 6, 2018, Dalmy pleaded guilty to a charge of
conspiracy to engage in wire fraud. Doc. #3. She agreed in
her plea agreement to be subject to a restitution order. Doc.
#4 at 2. She also agreed that “[r]estitution is payable
immediately unless otherwise ordered by the Court.”
Id. When the Court accepted her plea, she was told
that restitution would be mandatory and that the Government
might seek restitution of more than $10 million. Doc. #10 at
conclusion of the plea proceeding, the Court emphasized the
importance to Dalmy of her promptly making restitution
payments in advance of sentencing. Doc. #10 at 37. The Court
told her that “[r]estitution is an important concern in
my mind, especially with victims who have lost, it seems to
me, quite a bit of money in the overall scheme.”
Ibid. She replied: “Absolutely.”
Ibid. The Court added that “I really expect by
the time of sentencing that there's either actually a
beginning of payment, of sacrifices of restitution being
made, o[r] being set aside, or an extremely clear payment
plan” and that “[w]ords don't mean as much to
me, I have to say, when we have people who have lost money
and through an investment scheme.” Ibid.
to sentencing, Dalmy completed a sworn financial affidavit.
Doc. #13-4. In response to a query on the affidavit whether
she had any “cash on hand, ” Dalmy said,
“None.” Id. at 5.
15, 2018, Dalmy appeared before the Court for sentencing.
During the sentencing hearing, she claimed to take
“full responsibility for the actions I took”
while also claiming that she “had no idea of the impact
on investors.” Doc. #23 at 44-45. She added that she
“intend[ed] to write each and every one of these
investors a letter, a card, saying I am so sorry, and
then do whatever I can to make restitution and to
make their lives whole, because I understand that some lives
have been drastically impacted by this.” Id.
at 45 (emphasis added).
Court sentenced Dalmy principally to a term of 3 years of
imprisonment, to be followed by 3 years of supervised
release. Id. at 86-87. The Court also ordered Dalmy
to pay restitution of $2 million. Id. at 87. This
amount was significantly less than the actual financial loss
attributable to Dalmy's fraudulent scheme (about $10.7
million) and significantly less than the amount of
restitution requested by the Government (about $3.3 million).
Doc. #16 at 17-21.
the timing for payment of restitution, the Court stated at
the sentencing hearing that the “amount of restitution
is due and payable immediately.” Doc. #23 at 87. In
addition, as part of her conditions of supervised release
that would begin after service of her term of
imprisonment, the Court required that Dalmy pay restitution
in the amount of $500 per month or 10 percent of her gross
income, whichever amount was higher. Id. at 88.
the sentencing hearing, the Court entered a judgment order
including $2 million in restitution:
Restitution: $2, 000, 000.00 to be joint and
several with respect to the related defendants. See special
conditions of supervised release as to restitution.
Restitution order to follow.
#21 at 2.
judgment order further specified the terms of Dalmy's
supervised release following her imprisonment, including
among other conditions her obligations during ...