‘Honest Services’ Law Begins To Face Supreme Court Tests

We want our elected officials and corporate executives to be honest. We expect that they will be honest. But, just in case, we have a law on the books that requires that. Well, the U.S. Supreme Court is going to be hearing argument as to whether that’s constitutional. 

In cases involving newspaper executive Conrad Black, former Alaska legislator Bruce Weyhrauch, and former Enron exec Jeffrey Skilling, the Court will have the opportunity to decide whether the two decade old “honest services” law is enforceable.
 
Is it too vague? Does its application to state legislators who are not charged under state law infringe on principles of federalism? Justice Scalia already has set forth his view against the law, declaring that it “invites abuse by headline-grabbing prosecutors in pursuit of local officials, state legislators and corporate C.E.O.s who engage in any manner of unappealing or ethically questionable conduct."
 
Whether Scalia can persuade four other Justices that the law, which states, "For the purposes of this chapter, the term 'scheme or artifice to defraud' includes a scheme or artifice to deprive another of the intangible right of honest services," should be struck down remains to be seen.
 
For background, see our prior posts about or involving honest services at http://www.financialfraudlaw.com/lawblog/%E2%80%98theft-honest-services%E2%80%99-trial-former-ny-senate-leader-bruno-begins-today/445, http://www.financialfraudlaw.com/lawblog/%E2%80%9Chonest-services%E2%80%9D-law-issue-three-supreme-court-cases-term/371, http://www.financialfraudlaw.com/lawblog/jail-former-nyc-police-commissioner-looks-it/458, and http://www.financialfraudlaw.com/content/memo-former-congressman-william-jefferson-now-do-you-see-putting-90000-freezer-was-bad-idea.
 
There also are articles in today’s newspapers online at http://www.washingtonpost.com/wp-dyn/content/article/2009/12/06/AR2009120602390.html?hpid%3Dmoreheadlines&sub=AR, http://www.nytimes.com/2009/12/07/us/07honest.html?hpw=&pagewanted=print, and http://www.philly.com/dailynews/local/20091207_28-word_federal_law__a_key_tool_against_corruption_here__faces_high_court_scrutiny.html.