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US v. Black, 07-4080

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By FindLaw Staff on October 29, 2010 2:41 PM

Convictions of senior executives under the theory of honest-services fraud reversed

US v. Black, 07-4080, concerned a challenge to the convictions of a senior executive of Hollinger International for mail and wire fraud and obstruction of justice, under theories of a scheme of fraudulent appropriation of money to which the company was legally entitled, and of a scheme to deprive the company of "intangible right of honest services," on remand from the Supreme Court.

In affirming in part, the court held that no reasonable jury could have acquitted defendant of obstruction if only it had not been instructed on honest-services fraud. Also, the evidence of pecuniary fraud is so compelling that no reasonable jury could have refused to convict the defendants of it.  However, the court reversed and remanded for resentencing as the convictions for honest-services fraud is reversed and remanded for a new trial as, under the Supreme Court's recent ruling, honest services fraud requires proof of a bribe or kickback.

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