Opinion ID: 679963
Heading Depth: 2
Heading Rank: 1

Heading: 18 U.S.C. Sec. 666 (Count III)

Text: 10 We begin our discussion with Count III, in which Rooney was convicted of corruptly soliciting a thing of value intending to be influenced in connection with a federally funded project in violation of 18 U.S.C. Sec. 666(a)(1)(B). We note at the outset that the facts in this case are a departure from the typical Sec. 666 prosecution. In the usual Sec. 666(a)(1)(B) case, a government employee or private individual demands or accepts a kickback, personal bribe, or gratuity from an individual in exchange for the awarding of a contract, the disbursement of federal funds, or some other favorable treatment. See, e.g., United States v. Coyne, 4 F.3d 100, 111 (2d Cir.1993) (county executive provided assistance in obtaining architectural contract for individual in exchange for $30,000 payment), cert. denied, --- U.S. ----, 114 S.Ct. 929, 127 L.Ed.2d 221 (1994); United States v. Santopietro, 996 F.2d 17, 18 (2d Cir.1993) (mayor used his political position to influence decisions by various city agencies in return for bank loans and cash payoffs), cert. denied, --- U.S. ----, 114 S.Ct. 921, 127 L.Ed.2d 215 (1994); United States v. Concepcion, 795 F.Supp. 1262, 1268 (E.D.N.Y.1992) (employee of New York City Human Resources Administration assisted in welfare fraud in exchange for cash payments). In such cases, the government's interests are sacrificed by the corrupt activities of the responsible parties. 11 In this case, by contrast, Rooney is not a public official. Nor is he a member of a private nonprofit organization which has responsibility for distributing federal funds. Rather, he is a private individual involved in a private development project that happens to have as its lender the federal agency FmHA. Further, unlike the typical case, the charge against Rooney is unrelated to any dispensing of government largesse. Rather, as a private developer, Rooney remains personally liable for the costs of the project, whether to the contractor directly or to the FmHA for loans made on behalf of the project. Thus, the only government favor that Rooney had within his control to dole out was the proceeds of a FmHA loan upon which he himself would remain liable. Finally, Rooney did not seek to divert government funds for the project to himself through a kickback or otherwise. Neither party has brought to our attention nor has our own research disclosed any case in which Sec. 666 has been applied in such a situation. 12 Our concern in this opinion is with the allowable reach of Sec. 666. When evaluating the scope of a federal criminal statute, we must look closely to its language, legislative history, and purpose. See Dowling v. United States, 473 U.S. 207, 214-18, 105 S.Ct. 3127, 3131-34, 87 L.Ed.2d 152 (1985); Bifulco v. United States, 447 U.S. 381, 387, 100 S.Ct. 2247, 2252, 65 L.Ed.2d 205 (1980). We are also mindful of the proposition that [b]ecause interpretations of criminal statutes which would 'criminalize a broad range of apparently innocent conduct' are disfavored, it is our task to ascertain whether Congress intended the statute to be so all-encompassing. United States v. Yip, 930 F.2d 142, 149 (2d Cir.) (quoting Liparota v. United States, 471 U.S. 419, 426-27, 105 S.Ct. 2084, 2088-89, 85 L.Ed.2d 434 (1985)), cert. denied, --- U.S. ----, 112 S.Ct. 197, 116 L.Ed.2d 157 (1991). 13 In beginning our analysis, it is important to understand the context in which Sec. 666 was enacted. Section 666 was originally enacted in 1984 in response to several federal appellate decisions that held that state and local government officials and members of private organizations that distribute federal monies did not fall within the definition of a public official subject to the provisions of the federal bribery statute, 18 U.S.C. Sec. 201. See S.Rep. No. 225, 98th Cong., 2d Sess. 369 (1984), reprinted in 1984 U.S.C.C.A.N. 3182, 3510. According to the Senate Report, Sec. 666 was enacted to augment the ability of the United States to vindicate significant acts of theft, fraud, and bribery involving Federal monies that are disbursed to private organizations or State and local governments pursuant to a Federal program. Id. The provision, modeled after the bribery statute, 18 U.S.C. Sec. 201, expanded the class of individuals subject to federal penalties for prohibited conduct to virtually anyone who either receives federal funds or participates in a federal program that meets the jurisdictional threshold. Congress intended the terms of the statute to be construed broadly, consistent with the purpose of this section to protect the integrity of the vast sums of money distributed through Federal programs from theft, fraud, and undue influence by bribery. Id. at 3511. Thus, as is evident from the circumstances surrounding its adoption, Sec. 666's manifest purpose is to safeguard finite federal resources from corruption and to police those with control of federal funds. See generally, United States v. Crozier, 987 F.2d 893, 898-900 (2d Cir.), cert. denied, --- U.S. ----, 114 S.Ct. 222, 126 L.Ed.2d 177 (1993). 14 With this background in mind, we examine the pertinent statutory language of Sec. 666, entitled Theft or bribery concerning programs receiving Federal funds, which provides: 15 (a) Whoever, if the circumstance described in subsection (b) of this section exists-- 16 (1) being an agent of an organization, or of a State, local, or Indian tribal government, or any agency thereof-- 17