Opinion ID: 3026413
Heading Depth: 3
Heading Rank: 1

Heading: Kemp’s Mail Fraud Convictions

Text: Kemp claims that the government presented insufficient evidence to support his convictions for honest services mail fraud concerning his role in the asset-locator business for which he received $1,300. We review sufficiency-of-the-evidence challenges with particular deference to the jury’s verdict. United States v. Dent, 149 F.3d 180, 187 (3d Cir. 1998). Because Kemp did not raise this argument to the District Court in his motion for acquittal, we review for plain error. United States v. Vampire Nation, 451 F.3d 189, 203 (3d Cir. 2006). Plain error requires: “(1) an error; (2) that is plain; and (3) that affected substantial rights.” Id. As we will explain, the jury’s conclusion on this count was supported by the evidence and not plain error. To prove mail fraud, the government must establish “(1) the defendant’s knowing and willful participation in a scheme or artifice to defraud, (2) with the specific intent to defraud, and (3) the use of the mails . . . in furtherance of the scheme.” United States v. Antico, 275 F.3d 245, 261 (3d Cir. 2001). Congress has clarified that “the term ‘scheme or artifice to defraud’ includes a scheme or artifice to deprive another of the intangible right of honest services.” 18 U.S.C. § 1346. Honest services fraud, in turn, typically occurs in either of two situations: “(1) bribery, where a [public official] was paid for a particular decision or action; or (2) failure to disclose a conflict of interest resulting in personal gain.” Antico, 275 F.3d at 262-63. The government pursued both of these discrete theories in prosecuting the mail fraud counts at issue. 32 Kemp maintains that his convictions must be vacated because the government presented insufficient evidence to prove honest services fraud under either the bribery theory or the failure-to-disclose theory.11 Because Kemp challenges the sufficiency of the evidence of these two theories, and has not argued that either was legally invalid or unconstitutional, we will affirm if the evidence is sufficient to support a judgment on either theory. See United States v. Syme, 276 F.3d 131, 144 (3d Cir. 2002) (explaining that “if the evidence is insufficient to support a conviction on one alternative theory in a count but sufficient to convict on another alternative theory that was charged to the jury in the same count, then a reviewing court should assume that the jury convicted on the factually sufficient theory and should let the jury verdict stand”). Here, a reasonable jury could conclude beyond a reasonable doubt that Kemp “was paid for a particular decision or action,” Antico, 275 F.3d at 263, and thus convict him of honest services fraud under a bribery theory. The government presented evidence that Kemp and Anderson had an arrangement where Anderson would locate owners of unredeemed city bonds and attempt to help them cash their bonds. This project required Kemp to exercise his authority as treasurer: he provided Anderson with a list of holders of outstanding bonds and a form letter for her to use; also, the treasurer’s office was responsible for contacting the banks to facilitate the ultimate repayment. When Anderson was asked at trial what Kemp would contribute to the business to earn his share of its proceeds, she identified only these first two official actions. A reasonable jury certainly could have concluded that Kemp was paid for the reasons that Anderson pinpointed – taking official action that aided the business. Kemp argues that he was paid not for taking particular actions but because he held a stake in the business. However, 11 Kemp does not dispute that as treasurer, he was a public official who owed a duty to provide honest services to the public. See 65 Pa. Cons. Stat. § 1102; see also Antico, 275 F.3d at 262 n.18. 33 Anderson testified that the company was formally owned by her and a friend, and not Kemp. While Kemp did suggest the idea of the asset-locator business to Anderson, a reasonable jury could have found it more likely that Kemp was paid $1,300 for taking actions in favor of the business than for providing an inchoate idea. We have repeatedly recognized that accepting money in exchange for an official action is a form of honest services fraud.12 See United States v. Panarella, 277 F.3d 678, 690 (3d Cir. 2002); Antico, 275 F.3d at 262-63. As Pennsylvania law provides, “public office is a public trust and . . . any effort to realize personal financial gain through public office other than compensation provided by law is a violation of that trust.” 65 Pa. Cons. Stat. § 1101.1. Here, the government presented sufficient evidence for a reasonable jury to find beyond a reasonable doubt that Kemp violated that trust by soliciting and accepting payment in exchange for taking official action. Accordingly, we find no plain error and reject Kemp’s challenge to his mail fraud convictions.