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Federal courts have generally recognized two main areas of public-sector honest service fraud: bribery (direct or indirect), where a public official was paid in some way for a particular decision or action, and failure to disclose a conflict of interest, resulting in personal gain.
Honest services fraud is a scheme or artifice to deprive another of the intangible right of honest services, as defined in the related federal statute. It is an extension of mail or wire fraud.
Definition. Makes it a crime for executives and government officials to deny the perople they serve the intangible right to honest services.
Honest services fraud is a felony. It carries a maximum penalty of up to 20 years in state or federal prison and a fine of up to $250,000 for individuals, along with three years of supervised release. (In cases involving financial institutions, the maximum is 30 years.)
Honest services fraud is defined in United States Code Title 18 Section 1346 also known as the federal mail and wire fraud statute as a scheme or artifice to deprive another of the intangible right of honest services. It is a federal crime, and it is broadly applied across the United States.