Supreme Court Limits Honest Services Fraud Law

In a June 24, 2010 opinion, the U.S. Supreme Court has limited the scope of the crime of "honest services" fraud. The case involving a private sector actor (former Enron executive Jeffrey Skilling).  To avoid unconstitutional vagueness, the Court found that this special type of fraud should be limited to instances of bribery and kickbacks.

The case before the United States Supreme Court involving public corruption (Weyrauch, see story below) was remanded for further consideration in light of the Skilling case.

At issue in Weyrauch is whether there needs to be a violation of underlying state law to support a federal deprivation of honest services by a public official. 

The issue created by the Skilling decision is whether those state laws must relate to bribery and kickbacks or can extend to other state laws designed to protect the public's trust and confidence in public officials. The answer to that question, it appears, will come from the federal Ninth Circuit Court of Appeals.