Corporate Law News

Honest Services Fraud Statute Covers Only
Bribery and Kickbacks, Supreme Court Says

June 25, 2010, 4:00 AM

The U.S. Supreme Court June 24 significantly restricted federal prosecutors’ ability to rely on a favorite statute for going after corruption in both the public and private sectors (Skilling v. United States, Black v. United States, and Weyhrauch v. United States).

The statute, 18 U.S. Code Section 1346, prohibits “honest services” fraud, and the court decided that in order to keep the very broadly worded law from being vague in violation of the Due Process Clause, it needed to restrict the scope of the statute to bribery and kickback schemes

The ruling came on...

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