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: Law Blog - WSJ.comOfficials Take a Fresh Look At Honest Services Fraud
By Michael Rothfeld
Defense lawyers rejoiced in June when the U.S. Supreme Court narrowed the way prosecutors could use "honest services fraud," limiting it to bribery and kickbacks. Not so fast.
Congress and the Department of Justice have in recent weeks been taking input on how to deal with the Supreme Court's ruling and again allow prosecutions under the law for undisclosed conflicts of interest, which the ruling basically banned. The story, which appeared in the WSJ weekend edition, is here.
A brief explainer: someone, usually a politician or a corporate executive, can be charged with depriving others of the "intangible right of honest services" if they put their own interests, or someone else's, above the one they owe taxpayers or shareholders. A bribe is the most obvious example of that. The Supreme Court, in a case involving former Enron CEO Jeff Skilling, said it was not clear that a conflict of interest, in which there isn't a quid pro quo (or one can't be proven), was intended by Congress to be covered under the law.
So some in Congress are taking another look. The Senate Judiciary committee is holding a hearing on the matter....
Full post as published by Law Blog - WSJ.com on September 27, 2010 (boomark / email).
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