Percoco v. United States

In Percoco v. United States, Joseph Percoco, a former senior aide to New York Governor Andrew Cuomo, was convicted of honest-services wire fraud and federal funds bribery. The charges arose from $35,000 he received from a Syracuse-area developer in 2014 while he was temporarily managing Cuomo's reelection campaign and not officially employed by the state. Prosecutors argued he sold his influence and future official action. The Supreme Court unanimously vacated the Second Circuit's decision, holding that the honest-services fraud jury instruction was too broad because it allowed conviction of a private citizen without proof that he owed a fiduciary duty to the public. The Court ruled that mere influence over government officials or the expectation of returning to public office is insufficient. The case was remanded for further proceedings.

The United States Supreme Court reversed and vacated the conviction, holding the honest-services fraud jury instruction was erroneous, and remanded the case for further proceedings.

Whether a private citizen temporarily outside government can commit honest-services fraud without holding public office, and whether the jury instruction improperly permitted conviction based solely on influence and future government service rather than a fiduciary duty to the public.

The ruling narrowed the reach of federal honest-services fraud prosecutions against private citizens and political operatives, clarifying that mere influence or pending public service does not create a duty of honest services. It is expected to constrain prosecutors in public corruption cases and reinforce the need to prove a formal fiduciary duty to the public.