Supreme Court takes up challenge to federal anti-fraud law used in high-profile prosecutions

Court takes on federal anti-fraud law

WASHINGTON — The Supreme Court appears inclined to rein in federal prosecutors’ use of a fraud law against high-profile corporate executives.

The justices, hearing two challenges Tuesday to the honest services fraud law, seemed to be in broad agreement that the law is vague and has been used to make a crime out of mistakes, minor transgressions and mere ethical violations.

Justice Stephen Breyer said he worries that the Obama administration’s reading of the law makes criminals out of vast numbers of U.S. workers, including possibly employees who read The Daily Racing Form on the job.

The law makes it illegal for officials, executives and others to scheme to deprive those they serve and possibly others of “the intangible right to honest services.”