SUNDAY, JULY 18, 2010
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Politics & The Nation
could affect several connected to Abramoff
by Spencer S. Hsu
A Supreme Court ruling last month that gutted an anti-cor- ruption tool favored by federal prosecutors is jeopardizing high- profile investigations into politi- cians and business executives, in- cluding several related to con- victed 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 sen- tencing for one close Abramoff associate, Michael Scanlon, and ordered the government to ex- plain why the court should not dismiss several charges against another, Kevin Ring. Legal experts predict a flood of similar litigation by defense law- yers based on the Supreme Court ruling. The court ruled unani- mously that a 1988 federal stat- ute that makes it a crime to “de- prive another of the intangible right of honest services” is un- constitutionally vague. The jus- tices limited the law’s application to bribes and kickbacks, which several former prosecutors say will make corruption convictions against members of Congress more difficult.
“I am worried about whether there is sufficient evidence to sustain an indictment with the new definition of bribery/materi- ality,” Huvelle told lawyers at a July 6 hearing in advance of Ring’s trial, scheduled for next month. She asked both sides to file briefs assessing the recent de- cision. In their June decision, the jus- tices directed lower courts to re- consider the honest-services fraud convictions of former En- ron executive Jeffrey K. Skilling, another business leader and a former state lawmaker. Elsewhere, attorneys for for- mer Illinois governor Rod Blago- jevich (D) moved unsuccessfully to delay his trial in Chicago, where he faces charges of honest- services fraud, racketeering, at- tempted extortion, bribery and conspiracy. Attorneys for former U.S. representative William J. Jefferson (D-La.) may raise the matter in the appeal of his 2009 conviction and 13-year prison sentence for crimes including so- liciting bribes, money laundering and racketeering. “We don’t know how many cases may be affected, but this is one of the most-used tools in public corruption investiga- tions,” said Melanie Sloan, exec- utive director of Citizens for Re- sponsibility and Ethics in Wash- ington. Public interest groups say Con- gress should tighten federal cor- ruption laws, citing court deci- sions since 2007 that narrowed the types of “official actions” that public servants are barred from performing for people who give them money or gifts. Those rul- ings also require that prosecu- tors show more specifically that illegal actions were done in re- turn for money. “All these things are combin- ing to really give members of Congress . . . much less to fear from watchdogs than 10 years ago,” Sloan said. Legal experts say the effect of the Skilling decision will vary case by case. Prosecutors increas- ingly turned to honest-services fraud charges in recent years to target patterns of self-dealing and conflicts of interest by gov- ernment and corporate officials, even without a direct quid pro quo.
Critics said that the law was so
vague that it could apply to a gov- ernment employee skipping work to see a ballgame and that it gave prosecutors too much dis- cretion over whom to charge. Jefferson and Blagojevich may
find it hard to benefit from the situation, because their cases in- clude allegations of bribery, and in Blagojevich’s case, prosecutors obtained a new indictment with other charges, anticipating the Supreme Court’s decision. Abramoff-related cases pre- sent some examples of how the high court’s decision might be applied. Abramoff is in a halfway house finishing a four-year term after he pleaded guilty to run- ning a wide-ranging fraud and public corruption scheme. The former powerhouse Washington
lobbyist admitted dishing out campaign donations, tickets to sporting events, lavish trips and expensive meals to public offi- cials who helped his clients with federal funds, inside information and legislative favors. At least 19 lawmakers, Capitol
Hill aides and government offi- cials have been convicted. Still under scrutiny is former House majority leader Tom DeLay (R- Tex.).
Scanlon, a former DeLay aide and public relations executive, is seeking to renegotiate the terms of his 2005 plea deal with pros- ecutors. Scanlon pleaded guilty to a single count of conspiracy, and he admitted kicking back to Abramoff half of the exorbitant fees he charged Native American tribes after Abramoff recom- mended Scanlon’s firm to them. Scanlon’s attorneys say his agreement to serve up to five
years and repay the tribes as much as $20million was driven by the honest-services law. The government did not oppose de- laying his sentencing 60 days, until Oct. 4. But federal prosecutors have said that the high court decision should have no effect on the case against Ring because bribery is a central component. The former lobbyist and congressional aide allegedly helped Abramoff ar-
range campaign contributions to then-Rep. John T. Doolittle, lied about his knowledge of a lucra- tive job arranged by lobbyists for Doolittle’s wife, Julie, and treated Doolittle’s staff to rock concerts, football games and fancy meals. Attorneys for Ring, who have said he is not guilty, argue that the case was grounded in the honest-services law, and they have asked Huvelle to dismiss several counts from his first trial,
A5
High court ruling raises bar for corruption, fraud prosecutions Decision in Enron case
Staff researcher Alice Crites contributed to this report.
which ended in a hung jury. The Doolittles say that they are innocent of wrongdoing and that authorities have told them the in- vestigation of them is over. Justice Department spokes- woman Laura Sweeney declined to estimate how many cases are affected by the court’s ruling.
hsus@washpost.com
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