18 U.S.C. § 1346 – Definition of “scheme or artifice to defraud” (honest services fraud)
This law defines fraud to include schemes that deprive others of the honest services they are owed, typically involving bribery or kickbacks.
Section 1346 does not create a standalone crime. Instead, it defines what counts as a “scheme or artifice to defraud” for purposes of federal fraud statutes such as mail fraud and wire fraud.
Under this law, fraud includes schemes that deprive another person or entity of the intangible right to honest services. In practical terms, this statute is used to prosecute corruption cases involving bribery or kickback schemes.
What the law covers.
A person can fall under this statute if they participate in a scheme that:
- Involves bribery, such as accepting or offering something of value to influence official or professional decisions.
- Involves kickbacks, where a person secretly receives compensation in exchange for steering business, contracts, or favorable treatment.
- Deprives an employer, the public, or an organization of honest decision-making free from undisclosed conflicts of interest tied to bribes or kickbacks.
Courts have limited honest services fraud to cases involving bribes or kickbacks. Mere unethical behavior, poor judgment, or undisclosed conflicts of interest—without bribery or kickbacks—are generally not enough to support criminal liability under this statute.
How this statute is used.
Section 1346 is most often charged alongside:
- mail fraud (§ 1341),
- wire fraud (§ 1343), or
- conspiracy or attempt statutes tied to fraud offenses.
The penalties depend on the underlying fraud statute being charged, not § 1346 itself.
If you are facing allegations involving honest services fraud, bribery, or kickbacks, call (314) 900-HELP or contact our criminal defense attorneys for guidance.
