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Gratuities and Honest Services Fraud

By Gary Stein and Eli J. Mark

As noted in Part One of this article, in Skilling v. United States, 130 S.Ct. 2896 (2010), the U.S. Supreme Court limited the scope of the honest services fraud statute (18 U.S.C. ' 1346) to “bribery and kickback” schemes, yet did not define what a “bribery” or “kickback” scheme must entail. So the question becomes this: Must a “bribe or kickback” involve a quid pro quo ' a specific intent to give or receive something in exchange for favorable official action? Or will payment of a gratuity as a reward for official action suffice to support a prosecution for honest services fraud? The debate continues.

Post-Skilling Uncertainty

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