A recent The Recorder story, “Prosecutors: Nosal Should Foot O’Melveny’s $1 Million Bill,” reports that the federal prosecutors say David Nosal, the former executive recruiter convicted of computer crimes and stealing trade secrets, should have to cover his ex-employer’s legal bills—a request that has stirred fierce opposition from Nosal’s defense team.  The government is seeking nearly $1 million in attorney fees billed to Korn/Ferry International by O’Melveny & Myers.

Nosal, who tapped into Korn/Ferry’s database after he left to start his own recruiting firm, was convicted on charges of conspiracy, stealing trade secrets and violating the Computer Fraud and Abuse Act in April.  Prosecutors have asked for a 27 month sentence in prison.

Federal prosecutors argue the legal expenditure to investigate Nosal’s activity, aid prosecutors, and monitor the criminal case qualifies for restitution under the Mandatory Victim Restitution Act (MVRA).  They are seeking $948,703 in attorney fees and $443,795 in legal expenses from Nosal.

But Nosal lawyer Dennis Riordan of Riordan & Horgan argued that the restitution law was meant to protect individuals rather than corporations.  He pointed out that the provision, which was initially enacted as part of the Violence Against Women Act, holds that defendants must reimburse victims for “lost income and necessary child care,” among other expenses.  “These attorneys’ fees are plainly not covered by the MVRA,” Riordan wrote.  “They were not a direct result of the offense.  They were not a foreseeable result of the offense.”