Honest Services Fraud: Federal Prosecution of Public Corruption at the State and Local Levels

Honest services fraud is when a public official or government worker is accused of not doing their job honestly. This can include things like not disclosing conflicts of interest. The government has used this law to prosecute many different types of government workers. The basic idea is that the public deserves honest and faithful service from their officials, and if they don’t get it, that’s a crime. This law was developed as a way to catch people who use the mail or internet to cheat others. To be convicted, the government has to prove that the person had a plan to cheat someone, intended to cheat them, and used the mail or internet to carry out their plan. In the 1970s, federal prosecutors started using mail and wire fraud laws to fight corruption in state and local governments. They used a new theory that public officials were depriving people of their right to honest and impartial services. One famous case involved a governor who got gifts from a horse racing association and helped them pass legislation without telling anyone. The court said this was fraud because the governor didn’t give the public the honest services they deserved. But in 1987, the Supreme Court said this theory didn’t actually have clear legal backing. Congress then made a new law in 1988 to say that dishonest dealings by government officials are a theft from the public. The meaning of “honest services” is not clearly defined in the law, so the courts have struggled to figure out what it covers. This has given prosecutors a lot of leeway to argue that almost any misuse of power is a violation. Some people have challenged the law, saying it’s too vague and gives prosecutors too much power, but the courts have generally upheld it. They say that the concept of being honest in your job is clear enough for people to know what not to do, so there’s no need for specific rules. The Supreme Court hasn’t made a final decision on this yet. The honest services statute is a law that has been criticized for being unclear and difficult to apply. It has been used in cases where public officials are accused of taking money or favors in exchange for making decisions that are not in the public’s best interest. Different court circuits have different opinions on what actions violate this law and what kind of gain is necessary for a conviction. This has led to confusion and disagreement among the courts. Between 1999 and 2008, there were 794 convictions of public officials in Florida for not being honest in their jobs. For example, a county commissioner named Mary McCarty didn’t tell the public about her husband’s job and the gifts they got from people who wanted her to vote a certain way. Another commissioner, Warren Newell, didn’t tell anyone about his financial interests in some land when he voted to make it more valuable. Another commissioner, Anthony Masilotti, was convicted for doing something similar. The law about being honest in public office is being debated and questioned right now. The U.S. Supreme Court is hearing three important cases about honesty in public and private sectors. They involve people like a former CEO and a newspaper head who were convicted of dishonesty. The Court is deciding if the law on this issue is too vague and if proof of harm is needed. They’re also looking at a case involving a former politician in Alaska. The Court wants to decide if someone must break a state law to be convicted of dishonesty in public office. Legislator Weyhrauch was charged with fraud for not telling his constituents about a conflict of interest. Even though he didn’t break any Alaska laws, he could still be found guilty of fraud. There are also new laws being considered in Congress and Florida to make it easier to prosecute corrupt public officials. Senator Gelber sponsored two bills to clarify Florida’s official misconduct statute and increase penalties for crimes committed by public officials, but they were not passed. The Florida Supreme Court also impaneled a grand jury to investigate public corruption among local and state officials. It’s important for state and local officials to understand the law on honest services fraud and to disclose any conflicts of interest, even if the law is later changed. When lawyers represent public officials, they need to make sure they are following their job descriptions and ethical rules. If there’s a conflict of interest, the public official may need to get their own lawyer. Honest services fraud laws apply to public officials who don’t do their job honestly. These are references to court cases and articles about the mail and wire fraud statutes, which are used to prosecute corruption and fraud at the federal level. They discuss how these statutes have been used to prosecute state and local officials for public corruption, and the changes in the law that have happened over time. It also mentions a Supreme Court case, Neder v. United States, which is important for understanding these laws. The law about honest services fraud can be confusing because it’s not always clear what counts as a crime. Some cases have said that it’s okay as long as the person meant to deceive the public, while others have said it’s only a crime if the person made a specific promise to do something in return for a payment. This makes it hard for regular people to understand what’s really against the law. There is a lot of disagreement and confusion about what counts as “misuse of office for private gain” in cases of government corruption. Some courts say it has to be for personal benefit, while others say it just needs to be dishonest. This has led to different rulings in different cases. The Supreme Court refused to hear a case about this issue, which means the confusion will continue. This article talks about a law passed in Florida and the rules that lawyers have to follow. It also mentions a lawyer from a law firm who wrote the article and gives credit to another lawyer for helping. The article was submitted by a section of the Florida Bar that deals with local government law.

Source: https://www.floridabar.org/the-florida-bar-journal/honest-services-fraud-federal-prosecution-of-public-corruption-at-the-state-and-local-levels/