Honest services fraud
Definition
A federal crime, 18 U.S.C. § 1346, that punishes a scheme to deprive the public or an employer of a fiduciary's honest services through bribery or kickbacks. It targets officials who secretly trade their duty of loyalty for personal gain, even without a direct theft of money.
Why it matters
The statute reaches corruption that ordinary fraud law misses, since no one is deceived into handing over money directly. The Supreme Court's 2010 ruling in Skilling v. United States narrowed it to only bribery and kickback schemes, after critics argued the original law was too vague, limiting its use against broader self-dealing or undisclosed conflicts of interest.
Seen in the wild
The 2019 "Varsity Blues" college admissions scandal charged more than 30 parents and coaches under honest services and related fraud statutes for a bribery scheme in which parents paid to fraudulently secure their children's admission, corrupting university employees' duty to admit students honestly.1