District court's conviction of a publicly-funded non-profit organization's president and vice-president for honest services mail and wire fraud, arising from personal use of funds that were to be used for a Navy project, is affirmed in part and reversed in part where: 1) the district court did not err in denying plaintiffs' motion to dismiss the Ben Franklin Technology Center (BFTC) counts because a superseding indictment made out the necessary elements of honest services fraud; and 2) district court erred in denying the motion to dismiss the Navy counts as there are no allegations in the indictment suggesting the presence of legally cognizable fiduciary duties owed by BFTC to the Navy.
On Appeal from the United States District Court for the Western District of Pennsylvania
(D.C. Criminal Nos. 03-cr-0125-1 & 03-cr-0125-2)
District Judge: Honorable David Stewart Cercone
Opinion Filed October 22, 2009
Opinion by Scirica, Chief Judge
Counsel for Appellant: John A. Knorr, Stephen H. Begler
Counsel for Appellee: Michael L. Ivory, Laura S. Irwin