Honest Services Fraud involves kickbacks and bribery, and the stakes are high when it comes to the consequences for committing it. Keep reading to learn more about honest services fraud and what to do if you’re accused of it.
Honest Services Fraud
The name might lead you to think that fraud has been committed by doing something good, hence, an “honest service”. However, honest services fraud is anything but positive. This type of fraud consists of someone offering a bride or kickback, another person accepting that bride or kickback, and a victim who loses out on the intangible right at an honest service because of these actions.
The term “honest services fraud” was most recently in the news during the College Admissions Scandal of 2019 when a handful of celebrities were caught paying brides to admissions officers at prestigious colleges in order to get their children admitted over other applicants. These celebrities offered “kickbacks” or “brides” that deprived worthy applicants of their intangible right, or the “honest service”, of acceptance into these schools.
Honest services fraud is described under federal statute 18 U.S.C. 1346 as a scheme to defraud another of the intangible right to honest services using a scheme to violate a fiduciary duty by bribery or kickbacks. A fiduciary duty means a duty to act only for the benefit of the public, employer, shareholders, or a union.
Prior to 1988, mail and wire fraud in the United States pertained strictly to schemes that defrauded victims of tangible property, including money. In 1988, Congress added a new statute that criminalized schemes that defraud people of “the intangible right of honest services”.
Honest services fraud is prosecuted under the same laws used to prosecute traditional mail and wire fraud, as honest services fraud uses the mail or wire services to defraud people of their chance at receiving “honest services”.
The penalties for honest services fraud are severe. It is a federal crime and carries a maximum prison sentence of up to 20 years, and/or a fine of up to $250K. The prison sentence can be issued for each instance of mail or wire fraud, explicitly each letter, each telephone call, and each email.
If the case of honest services fraud involves a financial institution or affects the benefits being provided in a nationally declared disaster or emergency, fines of up to $1 million and prison terms of up to 30 years are applicable.
Conviction of honest services fraud can be life-altering. Long prison terms and very high fines can completely destroy the life of anyone. If you’ve been accused of honest services fraud, you should secure the services of an experienced criminal defense attorney.
If You’re Accused of Honest Services Fraud…
Fraud accusations can be difficult to navigate on your own. There are a lot of details, a lot of investigation, and a lot is at stake. You will need competent legal advice if you are facing charges and should enlist the help of a respected, experienced defense attorney as soon as you know of the charges against you.
Prosecutors have the burden of proving four critical elements beyond a reasonable doubt in order to convict you of honest services fraud. These four elements include:
- There was a scheme in place to defraud others
- You willfully participated in the scheme–whether providing a bribe or kickback, or accepting one
- The scheme had the potential to deprive other people of tangible or intangible “honest services”–even if it did not end up doing so
- The scheme used mail or wire services–including the phone or internet
You will want to seek out a defense attorney who has knowledge of this type of crime. It will be up to that attorney to refute one or more of the four critical elements that must be proven for conviction. Defense strategies should include: challenging the evidence, proving lack of intent, highlighting any errors made by the prosecution and law enforcement, presenting evidence that casts doubt on the charges, and questioning the credibility of witnesses brought in to testify against you.
The legal team at the Law Offices of Robert J. DeGroot is the right choice when it comes to defending against accusations of honest services fraud. Experienced, knowledgeable, compassionate, and trustworthy attorneys with a track record of success can help you avoid the harsh penalties associated with honest services fraud.
Reach out to the Law Offices of Robert J. DeGroot if you or someone you know has been charged with honest services fraud!
