* I’m not totally sure yet how this impacts the Rod Blagojevich case or the George Ryan conviction, but the US Supreme Court just handed down its ruling in the Skilling case. AP…

The Supreme Court has sided with former Enron CEO Jeffrey Skilling in limiting the use of a federal fraud law that has been a favorite of white-collar crime prosecutors.

The court said Thursday that the “honest services” law could not be used in convicting Skilling for his role in the collapse of Enron. But Justice Ruth Bader Ginsburg said in her majority opinion that the ruling does not necessarily require Skilling’s conviction to be overturned.

Houston Chronicle…

In an opinion written by Ruth Bader Ginsburg with varying support from other justices the court finds the honest services law only covers bribery and kickback schemes, and Skilling was not accused of either.

This means some of his charges could be retried or dismissed and his 24-year sentence could be further reduced.

At issue is the “honest services” law, a broad anti-fraud law that makes it a crime to “deprive another of the intangible right of honest service.” Skilling and others argued the law was too vague and was misused by prosecutors.

Tribune…

Former Gov. Rod Blagojevich is being tried on multiple charges of corruption, including depriving the public of honest services.

Over the past two decades, the law against “honest services” fraud has been used routinely in cases in which public officials or corporate executives were accused of secretly scheming to benefit themselves at the expense of the public or their stock holders.

From the ruling…

The Government charged Skilling with conspiring to defraud Enron’s shareholders by misrepresenting the company’s fiscal health to his own profit, but the Government never alleged that he solicited or accepted side payments from a third party in exchange for making these misrepresentations. Because the indictment alleged three objects of the conspiracy—honest-services wire fraud, money–or-property wire fraud, and securities fraud—Skilling’s conviction is flawed. See Yates v. United States, 354 U.S. 298. This determination, however, does not necessarily require reversal of the conspiracy conviction, for errors of the Yates variety are subject to harmless-error analysis. The Court leaves the parties’ dispute about whether the error here was harmless for resolution on remand, along with the question whether reversal on the conspiracy count would touch any of Skilling’s other convictions. Pp. 49–50.

554 F. 3d 529, affirmed in part, vacated in part, and remanded.

* The Supremes also ruled that Conrad Black’s appeal was improperly denied. From the ruling…

We decided in Skilling that §1346, properly confined, criminalizes only schemes to defraud that involve bribes or kickbacks. That holding renders the honest-services instructions given in this case incorrect, and brings squarely before us the question presented by the Seventh Circuit’s forfeiture ruling: Did Defendants, by failing to acquiesce in the Government’s request for special verdicts, forfeit their objection, timely made at trial, to the honest-services instructions? […]

We hold, in short, that, by properly objecting to the honest-services jury instructions at trial, Defendants secured their right to challenge those instructions on appeal. They did not forfeit that right by declining to acquiesce in the Government-proposed special-verdict forms. Our decision in Skilling makes it plain that the honest-services instructions in this case were indeed incorrect. As in Skilling, ante, at 40–41, we express no opinion on the question whether the error was ultimately harmless, but leave that matter for consideration on remand.

For the reasons stated, we vacate the judgment of the Court of Appeals and remand the case for further proceedings consistent with this opinion.

*** UPDATE 1 *** From the Illinois Campaign for Political Reform…

Here in Illinois, most will ask how the ruling may affect the case against former Gov. Rod Blagojevich. We note that the indictment against the ex-governor was already revised to minimize its reliance on the Honest Services law. Even if the Honest Services law had been wiped out entirely, most of the charges against the ex-governor would survive.

Testimony in the trial to date certainly makes it appear that Rod Blagojevich saw public office as a tool for forcing payments to benefit himself. Whether the subject was the issuance of state grants, the signing of legislation, or even the filling of the US Senate seat, Rod Blagojevich approached his public duties with both eyes focused on what he could get for himself — a job, a campaign contribution, a personal benefit.

We hope the trial will continue, and that justice will be done. The people of Illinois have endured an impeachment and removal from office; we have seen our state’s reputation dragged through the mud. Politicians, like everyone else should be held accountable for their criminal actions. The trial must proceed. Justice is served by having the trial continue.

*** UPDATE 2 *** Judge Zagel won’t stop the trial…

Lawyers for Rod Blagojevich were quick to pounce on the U.S. Supreme Court decision this morning weakening the so-called honest-services law on which some of the charges against the former governor are based.

Aaron Goldstein, one of Blagojevich’s many lawyers, filed a motion to suspend the trial until at least next week so the defense team could digest the high court’s 114-page decision.

It has been known for months that the Supreme Court ruling was coming, and Blagojevich’s lawyers sought to seize on that even before the trial began to get Zagel to postpone the proceedings. He consistently said no dice.

And Zagel did so again this morning, telling Blagojevich’s lawyer that “my preliminary reading (of the Supreme Court ruling) is it may not offer a lot of hope for you.”

*** UPDATE 3 *** I was gonna do a separate Blagojevich trial post, but here’s a roundup instead…

* Harris: Obama knew of Blagojevich plot

* Blago trial a distant, unwanted headache for Obama

* ‘Prince of Darkness’ plotted with Blagojevich to sell Obama Senate seat

* $190,000 not enough for Blagojevich: “I want to make money.”

* Blagojevich on Jarrett: “How bad does she want to be U.S. Senator?”

* Blago saw Obama’s rise as an obstacle

* Blagojevich frustrated by gridlock

* Blago calls Obama ‘hen-pecked’ by Michelle

* Blagojevich ‘depressed’ on re-election night

* In a clash of styles, judge favors reserve in Blagojevich trial

* Rod Blagojevich on foundation jobs: “Salvation Army… have to wear a uniform, forget that.”

* Tape: Rod Blagojevich considers union foundation job for himself, his wife

* Blagojevich, Harris prep for job bargaining with Tom Balanoff

* Testy exchange between husband and wife

* Rod Blagojevich snaps at Patti on recording: “You’re just wasting f-ing time!”

* Judge Zagel says no gag order; Blagojevich can keep on claiming innocence

* Hinz: Blago shows true colors in court tapes

* Sneed: Grand plans on Blago’s Indian pad

* RR Star: Blago’s trial paints ugly portrait of indifference