Supreme Court of the United States

Percoco v. United States

May 11, 2023598 U.S. 319

Summary

The Court held that a private person's influence over government and special relationship with government personnel do not, under the vague Margiotta standard, establish a duty of honest services under 18 U.S.C. §1346. It rejected Percoco's categorical argument that private persons can never owe that duty, explaining that actual government agents may have fiduciary obligations without formal public employment. The Court declined to affirm on the Government's alternative theories, reversed the Second Circuit's judgment, and remanded. Justice Alito wrote for the Court; Justice Jackson joined except for the discussion of the Government's alternative theories in Part II–C–2. Justice Gorsuch, joined by Justice Thomas, concurred in the judgment, arguing that the honest-services statute itself remains impermissibly vague and that Congress, rather than courts, must define the prohibited conduct.

Holding

  • Whether private status categorically precludes a duty of honest services to the public.. A person outside formal public employment may owe a duty of honest services when an agreement makes that person an actual agent of the government.
  • Whether the Margiotta-based jury instructions correctly defined Percoco's duty of honest services.. The instructions were erroneous because domination and control of government business, together with governmental reliance based on a special relationship, are too vague to establish a private person's duty of honest services.
  • Whether the Government's alternative theories supported affirmance despite the erroneous instructions.. The Court declined to affirm on either alternative theory presented by the Government.

Docket 21-1158

Cited authorities

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