Honest-services fraud is a federal law law passed in conjunction with mail and wire fraud laws. It is a crime for executives and government officials to deny their constituents the “intangible right to honest services.”   The law cites two categories of fraud: public and private.  The public version applies to elected or appointed public officials. The second version applies to private citizens who fail to provide honest services to others. As a result, private honest-services fraud can be a universal crime with far reaching implications.

Honest services fraud is a felony that is punishable by five years in prison, a $250,000 fine, or both.