United States v. Mario Biaggi, Stanley Simon, Richard Biaggi, Peter Neglia, John Mariotta, and Bernard Ehrlich
909 F.2d 662 | Court of Appeals for the Second Circuit | 1990
What This Case Means for Subcontractors
Six defendants, including a former U.S. Congressman, were convicted of bribery and corruption related to Wedtech Corporation's defense contracts. The appeals court upheld most convictions but reversed some counts due to evidentiary errors. The case highlights how payments to politicians and lawyers can blur the line between legitimate political contributions and illegal bribes—a critical distinction for contractors working with government agencies.
Key Takeaways
- •Payments to politicians or their associates for 'political assistance' can be prosecuted as bribes even if framed as legal fees or campaign contributions. Document the legitimate business purpose of any payments.
- •When seeking government contracts, avoid making payments to politicians, their family members, or their law firms in connection with contract negotiations. This creates legal exposure regardless of intent.
- •Contractors should use independent legal counsel unaffiliated with local politicians to navigate government contracting. The appearance of impropriety can trigger criminal investigation.
The distinction is clear in theory, but this case demonstrates how blurred the line can become in practice.
Frequently Asked Question
Can we pay a politician's law firm for help getting a government contract?
Not safely. This case shows courts scrutinize payments to politicians or their associates in connection with contract awards. Even if labeled as legal fees or political contributions, prosecutors may charge bribery. Use independent counsel with no political ties to handle government contract work.
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