Summary
The Second Circuit reviews a district court's grant of a post-trial Rule 29 motion for acquittal in a case involving convictions for conspiracy to commit honest services wire fraud related to FIFA corruption schemes. The district court had ruled that recent Supreme Court decisions limited the scope of 18 U.S.C. § 1346, finding the defendants' conduct outside its ambit. The appellate court reverses, holding that the statute encompasses the defendants' breach of fiduciary duties through foreign commercial bribery and remands for further proceedings.
Topics
Practice areas
Questions Presented
- Whether the defendants' conduct falls within the scope of 18 U.S.C. § 1346 honest‑services wire fraud.
- Whether a fiduciary duty existed between the bribed officials and their organizations sufficient to satisfy the honest‑services element.
Holdings
- The court holds that § 1346, as construed by Supreme Court precedent, encompasses the defendants' bribery conduct; the district court erred in concluding otherwise.
- The court holds that the officials’ duties to FIFA, CONMEBOL and related entities constitute a fiduciary duty, satisfying the honest‑services element.
Key quotations
“We therefore VACATE the judgments of the district court and REMAND for further proceedings consistent with this opinion.”
“For the reasons set forth below, we hold that the district court erred in concluding that Defendants’ conduct did not fall within the ambit of § 1346.”
Factual background
Hernán Lopez, a former top executive of Twenty‑First Century Fox, and Full Play Group, S.A., a sports‑marketing company, participated in bribery schemes to obtain media rights for FIFA‑related tournaments, paying officials of CONMEBOL and other bodies through U.S. bank accounts.
Procedural history
The district court denied pre‑trial motions, convicted the defendants of conspiracy to commit honest services wire fraud, and later granted post‑trial Rule 29(c) motions of acquittal. The government appealed.
Remand instructions
Reinstate the jury's verdict and conduct further proceedings consistent with this opinion, including deciding whether to grant relief under Rule 29 on the basis that the evidence presented by the government was insufficient to prove a conspiracy to deceive CONMEBOL.