Friday, June 25, 2010

Honest services

The protestations of prosecutors aside, the US Supreme Court's decisions in Skilling (of Enron) and Black (of Hollinger) are significant defeats for the US government.

The case law that had developed under the honest services doctrine made a conflict of interest potentially the subject of criminal prosecution. The fact that no one could point with certainty as to what was criminal activity and what was merely problematic corporate governance underlies the two decisions.

By limiting criminal activities under the honest services doctrine to bribery and taking kickbacks, the Court has radically diminished the potential for abuse of the process by extremist prosecutors.
James Morton
1100-5255 Yonge Street
Toronto, Ontario
M2N 6P4

416 225 2777

www.jmortonmusings.blogspot.com

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