Thursday, December 3, 2015
HONEST SERVICES FRAUD: Resumption Of Steven Ingersoll's Sentencing Hearing Proceedings On December 8 May Not Spell The End Of The Grand Traverse Academy's Legal Woes...It Could Be The Beginning!
Honest services fraud refers to a 28-word sentence of 18 U.S.C. § 1346 (the federal mail and wire fraud statute), added by the United States Congress in 1988, which states: "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 statute has been applied by federal prosecutors in cases of public corruption as well as in cases in which private individuals breached a fiduciary duty to another. Honest services fraud is generally more easily proven in the public sphere than in the private, because honest services fraud by public officials can include most unethical conduct, whereas honest services fraud by private individuals only includes some unethical conduct.
Federal courts have generally recognized two main areas of public-sector honest service fraud: bribery (direct or indirect), where a public official was paid in some way for a particular decision or action, and failure to disclose a conflict of interest, resulting in personal gain.
Coming later today, Miss Fortune examines potential accomplice liability and additional legal woes facing current and former members of the Grand Traverse Academy's Board of Directors.
And look, the Board has a conflicts of interest policy...and it's not even printed in small-Quickbooks type!