U.S. v. Black

On remand from U.S. Supreme Court, Ct. of Appeals affirmed defendant’s conviction on charge of obstruction of justice stemming from allegation that defendant removed certain corporate records during grand jury investigation. While defendant argued that said conviction could not stand in light of fact that U.S. Supreme Court had vacated his conviction for honest-services fraud that was prosecuted during same trial, Ct. of Appeals found that obstruction of justice conviction could still stand where evidence of defendant’s guilt was compelling and where giving jury erroneous instruction on honest services fraud charge was irrelevant to jury’s resolution of obstruction of justice charge. Ct. similarly found that defendant’s pecuniary fraud charge stemming from receipt of portion of $600,000 payment in exchange for alleged covenant not to compete could still stand based upon defendant’s unbelievable explanation for receipt of said funds. Ct., though, held that another pecuniary fraud conviction concerning payment of $5.5 million as disguised management fee could not stand where jury was given both pecuniary and erroneous honest-services fraud instructions arising out of same incident.