United States v. Sayyed, No. 16-2858 (7th Cir. 2017)Annotate this Case
From 2003-2006, while employed as Director of Application for the American Hospital Association (AHA), Sayyed directed overpriced contracts to companies in exchange for kickbacks. Sayyed eventually pled guilty to mail fraud, 18 U.S.C. 1341, was sentenced to three months’ imprisonment, and was ordered to pay the AHA $940,450.00 restitution under the Mandatory Victims Restitution Act. 18 U.S.C. 3663A. As of November 2015, Sayyed still owed $650,234.25. In post‐conviction proceedings, the government sought to enforce the restitution judgment under 18 U.S.C. 3613, which permits such enforcement “in accordance with the practices and procedures for the enforcement of a civil judgment.” The government served citations to Vanguard and Aetna to discover assets in Sayyed’s retirement accounts, then sought turnover orders alleging that the companies possessed retirement accounts with approximately $327,000 in non‐exempt funds. Sayyed argued that his retirement accounts were exempt “earnings” subject to the 25% garnishment cap of the Consumer Credit Protection Act. The district court granted the government’s motion. The Seventh Circuit affirmed, agreeing that because Sayyed, who was 48‐years‐old at the time, had the right to withdraw the entirety of his accounts at will, the funds were not “earnings.” The CCPA garnishment cap only protects periodic distributions pursuant to a retirement program.