Skilling v. United States
Issues
Is the federal statute making it a crime for someone to “deprive another of the intangible right of honest services” unconstitutionally vague?
When an entire community is outraged by the events giving rise to a criminal trial, is it possible to draw a jury that does not share the community’s presumed prejudice? If so, what standard should a court use to determine if the presumption of prejudice has been overcome?
Former Enron Corporation executive Jeffrey K. Skilling was convicted by a federal jury in Houston, Texas of numerous counts of conspiracy, securities fraud and insider trading relating to Enron’s bankruptcy. After the Fifth Circuit upheld Skilling’s conviction, the Supreme Court granted certiorari to resolve two key issues. First, the court will determine the scope and constitutionality of 18 U.S.C. § 1346, which makes it a crime for an employee of a corporation to fraudulently deprive the corporation of that employee’s “intangible honest services.” Second, the Court will determine whether and to what extent the government was required to prove—to the satisfaction of the parties and the district court—that no member of the Houston jury that convicted Skilling was actually prejudiced by the widespread negative media attention the Enron bankruptcy received in the Houston area before and during Skilling’s initial trial. The rulings on these issues may give much needed guidance to the lower courts in dealing with vague statutes, and may affect the scope of Sixth Amendment rights for every criminal defendant.
Questions as Framed for the Court by the Parties
1. Whether the federal "honest services" fraud statute, 18 U.S.C. § 1346, requires the government to prove that the defendant's conduct was intended to achieve "private gain" rather than to advance the employer's interests, and, if not, whether § 1346 is unconstitutionally vague.
2. When a presumption of jury prejudice arises because of the widespread community impact of the defendant's alleged conduct and massive, inflammatory pretrial publicity, whether the government may rebut the presumption of prejudice, and, if so, whether the government must prove beyond a reasonable doubt that no juror was actually prejudiced.
Jeffrey K. Skilling, former President, COO and CEO of the now-defunct Enron Corporation, was convicted by a federal jury in the United States District Court for the Southern District of Texas on numerous counts of conspiracy, securities fraud, making false representations to auditors, and insider trading, all relating to his role in the highly-publicized failure of Enron. See U.S. v. Skilling, 554 F.3d 529, 534 (5th Cir.