Supreme Court ruling raises bar for corruption, fraud prosecutions

A Supreme Court ruling last month that gutted an anti-corruption tool favored by federal prosecutors is jeopardizing high-profile investigations into politicians and business executives, including several related to convicted ex-lobbyist Jack Abramoff, according to legal experts and new court filings. Since the June 24 decision, U.S. District Judge Ellen Huvelle in Washington has delayed sentencing for one close Abramoff associate, Michael Scanlon, and ordered the government to explain why the court should not dismiss several charges against another, Kevin Ring. Legal experts predict a flood of similar litigation by defense lawyers based on the Supreme Court ruling. The court ruled unanimously that a 1988 federal statute that makes it a crime to "deprive another of the intangible right of honest services" is unconstitutionally vague. The justices limited the law's application to bribes and kickbacks, which several former prosecutors say will make corruption convictions against members of Congress more difficult. Posted in: Internal Fraud