Private Party May Face Criminal Liability for Aiding Honest Services Fraud, Rules 3rd Circuit

A private citizen may be guilty of aiding a public official to hide a conflict of interest -- even if that citizen is unaware of the official's ethical reporting requirements -- if there is evidence that the citizen tried to avoid creating a "paper trail," a federal appeals court has ruled. The 3rd Circuit ruling is likely to be required reading for white-collar criminal defense lawyers because it clarifies the prosecution's burden of proof in an honest services fraud case.