Prosecutions for honest-services fraud in the wake of Skilling have been precarious while courts have dealt with the impact of that opinion. But an en banc Ninth Circuit revived some of the breadth of 18 U.S.C. 1346 in this opinion. Here, the defendants were independent contractors who were alleged to have taken bribes to issue commercial driver's licenses for truckers. While the parties agreed that Skilling requires the government to prove a breach of a fiduciary duty to succeed in a prosecution for honest-services fraud, they disagreed about "whether the Supreme Court intended to require a formal, or classic, fiduciary duty or whether the statute also reaches those who assume a comparable duty of loyalty, trust, or confidence" such as the defendants. The court sided with the government, holding that a fiduciary duty for the purposes of section 1346 "is not limited to a formal 'fiduciary' relationship well-known in the law, but also extends to a trusting relationship in which one party acts for the benefit of another and induces the trusting party to relax the care and vigilance which it would ordinarily exercise."
Register now for your free, tailored, daily legal newsfeed service.
Questions? Please contact firstname.lastname@example.orgRegister
Trucking along with honest-services fraud
Popular articles from this firm
If you would like to learn how Lexology can drive your content marketing strategy forward, please email email@example.com.
Related topic hubs
Wal-Mart Stores Inc
"Generally, this service is wonderful. I find that the employment law newsfeeds are extremely helpful and relevant. The quality of the articles is usually quite good. The website provides an avenue for quick research regarding various employment law issues."