Federal Judge Denies Stephen Defiore’s Motion to Modify Restitution Payments in SIM Swap Scam Case
On Monday, April 21, 2025, Louisiana Federal Judge Jay C. Zainey denied Stephen Defiore’s motion for a modification of his restitution conditions related to a wire fraud conspiracy. The ruling came after Defiore sought to revert to his original payment plan of $200 per month or adjust the terms of a court-ordered garnishment that required his employer to withhold 25% of his earnings.
Defiore, who was employed at a Verizon Wireless retail store, became involved in a “SIM Swap Scam.” This scheme involved accessing customers’ accounts using his employee credentials in exchange for payment from a co-conspirator. The fraudulent activity allowed the co-conspirator to gain access to victims’ personal accounts, including email, bank, and cryptocurrency accounts. As a result of Defiore’s actions, two victims incurred losses exceeding $70,000.
In April 2021, Defiore pleaded guilty to conspiracy to commit wire fraud, violating 18 U.S.C. § 1343 and § 371. He was sentenced to three years of probation on October 19, 2021, and ordered to pay restitution at a rate of $200 per month starting December 1, 2021. However, he became delinquent in his payments just a few months later, on March 4, 2022, and failed to respond to the government’s demand for payment.
In October 2024, the government filed for a writ of garnishment against Defiore’s employer, McGuires Beautiful Outdoors, Inc., to recover the unpaid restitution. The court subsequently issued a Final Disposition Order of Garnishment on December 13, 2024, mandating that McGuires withhold and pay 25% of Defiore’s non-exempt earnings to the United States.
In his motion, Defiore argued that the garnishment created significant financial hardship, claiming that it interfered with his ability to cover essential expenses like rent, child support, utility bills, and food costs. He expressed a desire to meet his restitution obligations while also maintaining self-sufficiency.
Judge Zainey addressed the legal framework surrounding restitution under the Mandatory Victims Restitution Act (MVRA), which mandates that defendants convicted of property crimes must pay restitution without regard to their economic circumstances. However, if a defendant experiences a material change in their financial situation, they are instructed to notify the court, which can then adjust the payment schedule as necessary.
Despite Defiore’s claims, the judge found that he had not provided sufficient evidence to demonstrate a material change in his economic circumstances. The court reviewed pay stubs that indicated Defiore had a year-to-date net pay of $2,739.81 as of February 1, 2025. After accounting for his rent of $1,500 and child support obligations of $440, he was left with $799.81 for other expenses.
Ultimately, Judge Zainey ruled that Defiore’s request for modification was denied, upholding the terms of the restitution and garnishment. The court’s decision reinforces the strict application of the MVRA, emphasizing that defendants must fulfill their restitution obligations regardless of their financial hardships unless a significant change in circumstances is proven.
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