Supreme Court's tackling of 'honest services' law could affect Blagojevich's corruption case

The U.S. Supreme Court’s decision Tuesday to take up the appeal of Enron executive Jeffrey K. Skilling is a development welcomed by lawyers in the corruption case of Rod Blagojevich.

That’s because it’s the third time this term that the court has agreed to tackle the sometimes controversial “honest services” law, a sign that a component of the massive Blagojevich indictment could be in peril.

The law, often used by prosecutors and often loathed by defense lawyers, says one can be found to have deprived a company or taxpayers of his or her honest services even if there was no financial loss — or personal gain.

Defense lawyers complain prosecutors have too much leeway in interpreting one’s “honest services.”

While Rod Blagojevich faces 16 counts, from racketeering conspiracy to making false statements, Robert Blagojevich, the brother of the ex-governor, is charged in two wire fraud counts and each is tied to honest services, his lawyer said.

“In my humble opinion, the statute is going to be shredded,” said Robert Blagojevich’s defense lawyer Michael Ettinger.

That would roil the case against Robert Blagojevich.

Prosecutors would have to drop the charges against the ex-governor’s brother or seek an updated indictment if the supreme court holds honest services unconstitutional or redefines it, Ettinger said.

As for the ex-governor, a ruling that more narrowly defines a public official’s duty of honest services has the potential to either throw out some counts against Rod Blagojevich or force prosecutors to redefine some of the charges.

“Any change in the law on honest services will have a profound effect on the Blagojevich case,” said Sheldon Sorosky, one of Rod Blagojevich’s lawyers.

Two of the cases the supreme court has taken up — the other is the case of onetime media baron Conrad Black — have to do with private individuals who are accused of depriving their company or its stakeholders of honest services. The third case involves an Alaskan state lawmaker.

Chicago defense lawyer Patrick Deady said the Blagojevich case could end up seeing a delay if the supreme court has not ruled before the June trial date.

The U.S. Attorney’s office in Chicago had no comment.