Thursday, June 24, 2010

Skilling - Commentary

It was a Thanksgiving Day turkey carving by the Court, and they left a lot more meat on the bones then many imagined.

Will We See More Government Stretching? The Court says, "[a]s to arbitrary prosecutions, we perceive no significant risk that the honest-services statute, as we interpret it today, will be stretched out of shape."  Gosh I hope they are correct. Based upon the DOJ's track record, that has not been the case.  They started the ball rolling with intangible rights well before the Supreme Court knocked it out in 1987.  And even when raised  as an issue in these three cases, the government argued for more to be included in the statute's sphere.

Should Congress Rewrite the Statute? The Court said - ""The 'vast majority' of the honest-services cases involved offenders who, in violation of a fiduciary duty, participated in bribery or kickback schemes." -  This should be a statement Congress should look at when and if the government takes up the Court's second invitation to rewrite the statute.

What happens now?  We saw that after the McNally case crushed the government's intangible rights theory, many cases required interpretation to see if they deserved to be tossed, or whether they could survive the holding.  In the next few weeks and months, we are likely to see a good number of these type of arguments being made. 

Will DOJ learn from this?  They have bribery, they have mail fraud and wire fraud with money or property, and they have section 666 for the state/local officials. The government has plenty of tools to prosecute crime.  The question is whether they will be happy with what they have, or instead decide that they want to try for more.

(esp)(blogging from Lisbon, Portugal)

Enron, Fraud, Judicial Opinions | Permalink

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