The Supreme Court Holds That The “Honest-Services” Fraud Statute Covers Only Bribery and Kickback Schemes
Yesterday, in Skilling v. United States, No. 08-1394, the United States Supreme Court held that prosecutors can only use the federal “honest-services” fraud statute, 18 U.S.C. § 1346, to prosecute cases involving bribery and kickbacks. The Court’s decision, arising out of the prosecution of former Enron CEO Jeffrey Skilling, significantly narrows the application of § 1346, which has heretofore been heavily criticized as being impermissibly vague and susceptible to overly broad constructions.