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Supreme Court Ruling May Toss Out Local Corruption Cases

'Honest Services' Fraud Law Ruled Too Vague By US Supreme Court

POSTED: 7:12 pm PDT June 24, 2010
UPDATED: 7:43 pm PDT June 24, 2010

A decision made by the U.S. Supreme Court Thursday could lead to several of San Diego's most high-profile corruption cases being thrown out.

The U.S. Supreme Court handed a partial victory to former Enron chief Jeff Skilling on Thursday, as it ruled the "honest services" fraud statute used was too vague.

A narrowing of the scope of the statute, which also allows the federal government to go after local officials for corruption, could mean big headaches for prosecutors in some San Diego-area cases.

"The impact could be huge," said former U.S. Attorney Chuck La Bella.

With the Supreme Court's ruling that the law was too vague, La Bella pointed out, "What they're saying is this provision can only be used to address traditional bribes or kickbacks. It can't be used for improper conduct."

The ruling may have an impact on local cases, including the so-called "Strippergate" case in 2003, where former San Diego City Council members were convicted of conspiring with a strip club owner to relax the "no-touch" laws.

In the case, former councilman Michael Zucchet was later acquitted on all but two charges. La Bella said prosecutors have a tough road in a new trial as they must now prove a clear-cut bribe.

"It's a little tougher in this case because you don't have a bag of money into an office. You have something more subtle … that's campaign contributions," said La Bella.

The case against former councilman Ralph Inzunza -- on appeal -- is also hurt, although he was convicted on other charges which should not be affected by the court ruling.

The biggest impact of the Supreme Court decision could be the case against five former San Diego Pension Board members accused of making moves to boost their own pension benefits.

A judge tossed out the charges against the five ex-members and Thursday's court decision could mean a setback for the government's appeal.

"It could potentially be the end of the government's case," said La Bella.

To win its appeal, prosecutors would now have to, again, show a clear bribe -- something a lower court judge said they failed to do.

The impact of the court decision may also extend to former Congressman Randy "Duke" Cunningham, who was convicted on the same fraud law for getting too close to defense contractors. He is expected to be released from prison in 2013.

Legal experts said a lot of the redefining of the fraud law will be worked out in lower courts.

10News' calls to the attorneys for Cunningham, Zucchet and Inzunza were not returned.
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