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Sunday 7 March 2010

four cases share the common thread of "honest services" fraud

four cases share the common thread of "honest services" fraud, a broad term that encompasses bribery and conflict-of-interest cases and one that raises questions about the scope of its definition. The Supreme Court will begin reviewing the constitutionality of the law beginning with the oral arguments of Skilling v. U.S. next week.The relevant law, U.S. Code title 18, section 1346 reads, "For the purposes of this chapter, the term 'scheme or artifice to defraud' includes a scheme or artifice to deprive another of the intangible right of honest services."The U.S. Attorney's Office is contending Thompson, Coenen and Denmon defrauded by acting in their own interests instead of the public's when they entered into a land deal at Poverty Point Reservoir. Thompson was the reservoir's district executive director, Denmon was lake project engineer and Coenen represented the district as its attorney.A federal grand jury in Shreveport indicted Thompson and the other two on June 26, 2008, for conspiring to secretly purchase land along what would become Poverty Point Reservoir and selling it at substantial profit.Alexandria defense attorney Mike Small, who is representing Coenen in the case, said all parties, including the U.S. Attorney's Office, agreed to put off the trial until the Supreme Court rules on the cases this year."If these cases are decided the way we hope, it will be declared unconstitutional," Small said.Small said in that event, the alleged violation would not rise beyond state ethics conduct.In the case of Skilling v. U.S. — which Small said bears on the Coenen case, "on all fours," — Jeff Skilling, the former CEO of Enron, has appealed his conviction by questioning whether the government has to prove the defendant meant to enrich himself at the expense of his employer and whether the law is too vague. Skilling was convicted of conspiracy and fraud following the implosion of his Fortune 500 energy company.

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