Last week I posted about the First Circuit's big decision in Varsity Blues, reining in a rogue federal prosecution.
The hits keep coming -- this time the Supreme Court unanimously reversed the Second Circuit's "right-to-control" theory which they have been using to punish defendants for decades. The case is Ciminelli v. United States. Here's the intro to SCOTUSblog summary:
For decades, the Supreme Court has steadily narrowed the scope of the
federal criminal wire fraud statutes, and Thursday’s decision in Ciminelli v. United States
is no exception. The court held that the federal criminal wire fraud
statutes do not incorporate a “right to control” theory of fraud. The
court referenced both federalism and overcriminalization concerns in
narrowing the scope of the wire fraud statutes, pushing federal
prosecutors to be more precise in articulating fraud cases against
suspicious state contractor activity. As Justice Samuel Alito’s
concurrence explains, though, the precise outcome for Louis Ciminelli
himself or others accused of fraud is less clear.
And in another case, the High Court reversed an honest services conviction in Percoco v. United States. From SCOTUSblog because the jury instructions were wrong:
Before his 2018 trial, Percoco asked the judge to dismiss the “honest
services” charge against him, arguing that a private citizen cannot be
convicted of depriving the public of its right to honest services. The
court rejected that request, and Percoco was convicted and sentenced to a
total of six years in prison. The U.S. Court of Appeals for the 2nd
Circuit upheld his conviction.
In an opinion by Justice Samuel Alito, the Supreme Court on Thursday
threw out Percoco’s conviction. Like the lower courts before them, the
justices declined to adopt a bright-line rule holding that private
citizens can never have the kind of fiduciary responsibility to the
public that would allow them to be held liable for depriving the public
of its right to their honest services.
Percoco’s conviction still cannot stand, the justices ruled, because
the instructions that the trial judge gave to the jury in his case were
too vague. The judge told the jury, Alito observed, that Percoco “owed a
duty of honest services to the public if (1) he ‘dominated and
controlled any governmental business’ and (2) ‘people working in the
government actually relied on him because of’” his relationship with the
government. But that standard does not, Alito continued, provide enough
information about what conduct is or is not allowed, nor does it shield
against arbitrary enforcement by prosecutors.
So I urge district judges again -- it's okay to grant motions to dismiss and Rule 29s! It's okay to give defense instructions and not the patterns. The Supreme Court has your back.