Over the last few years, the U.S. Supreme Court has limited the scope of anti-corruption laws, arguably making it harder to convict public officials. The recent decision in Snyder v. United States continues this trend, addressing a federal law prohibiting state and local officials from accepting bribes. The Court found that the payment made to the official was a gratuity, which was not prohibited. How this may impact other cases remains to be seen.
Facts of the Case
The mayor of Portage, Indiana, was convicted of bribery under 18 U.S. Code § 666, which prohibits corruptly soliciting, demanding, or accepting anything of value from any person with the intention of being influenced or rewarded. Synder had received a $13,000 check from a trucking company awarded two city contracts the previous year. He claimed it was payment for consulting services he provided, but that was contradicted by other evidence. On appeal, Snyder argued that § 666 only criminalizes bribes, not gratuities, and the prosecution failed to show an agreement was made in exchange for the payment before the contract was awarded.
The Supreme Court Decision
The Court found that § 666 prohibits bribes made or agreed to before an official act but not gratuities given after the official act with no agreement beforehand. Part of the rationale was that § 666 didn’t address gratuities given to state and local officials; it only covered bribes. In a similar law that prohibits bribery of federal officials, a separate section applies to gratuities. In addition, gratuities given to state and local officials are typically regulated under state laws. Reading § 666 to apply to gratuities would subject those officials to a new federal regulatory regime. The federal law could also potentially expose them to high penalties for even small gifts.
Impact of the Decision
Synder may result in fewer prosecutions of state and local officials under federal law for gratuities after an official act. When cases are brought, the focus will necessarily be on proving that there was an agreement to provide a gift before the official act.
Because of the danger of having a gift perceived as an illegal bribe, individuals and businesses considering giving a gratuity should always take care to comply with federal, state, and local laws. That includes adopting clear policies and providing training to any employees interacting with government officials to avoid any appearance of bribery.
State and local officials must also stay abreast of the restrictions that apply to them regarding accepting gifts to avoid legal problems.
If you have questions about how the Synder case may apply to your situation, contact us for a consultation.