On January 2nd, the Tenth Circuit addressed whether a broker-dealer, as the employer of a financial consultant convicted of wire fraud, can be a victim under the Mandatory Victim Restitution Act. The defendant, a financial consultant, pleaded guilty to having converted his wife's funds. In addition to a prison sentence and special assessment, the trial court ordered the defendant to pay restitution to his employer, which lost an NASD arbitration action brought by the wife. Because the basis for the arbitral award was not provided to the trial court, the Tenth Circuit reversed and remanded, holding that before the employer broker-dealer could be eligible for restitution, the government must provide evidence of how the defendant's actions proximately caused the losses sustained by the broker-dealer. According to the Tenth Circuit, proximate cause could be established if the employer was found liable under a theory of respondeat superior or negligent supervision. U.S. v. Speakman.