United States v. Bahel
2011 U.S. App. LEXIS 21675
| 2d Cir. | 2011Background
- Bahel, a UN procurement officer, was alleged to have aided the Kohli family’s UN bids in exchange for benefits; the Kohlis paid Bahel cash, provided goods, and aided his housing and travel arrangements.
- Bahel’s trial evidence showed inside information disclosure, guidance to the Kohlis on bid strategy, and concealment of his friendship with the Kohlis.
- The UN waived Bahel’s immunity via a November 1, 2006 letter; the waiver scope covered Bahel’s conduct through May 2005, with later cooperation by the UN and Bahel’s own post-trial participation.
- Bahel was convicted on four counts of honest-services fraud (18 U.S.C. §§ 1341, 1346; counts 1-2 for mail, and 3-4 for wire), one count of corrupt receipt of things of value under § 666, and one count of conspiracy under § 371.
- Bahel received substantial benefits in exchange for his assistance, including a costly apartment purchase, aircraft tickets, a laptop, and cash; the district court calculated gains for sentencing, and ordered restitution.
- The court sentenced Bahel to 97 months’ imprisonment, with restitution of $932,165.39 and forfeiture, and Bahel appealed challenging immunity, §666 application, honest-services reach, jury charge, and restitution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Immunity waiver sufficiency | Bahel asserts UN immunity not expressly waived for his conduct | Bahel contends waiver required for officials under Article II | Waiver found; alternative implied waiver by Bahel’s participation also affirmed |
| § 666 reach to UN officials | UN dues constitute a federal program and benefits | Treaty obligations alone do not create a federal program | UN dues under UN Participation Act are a federal program; § 666 applicable |
| Honest-services reach to foreign workers | 1346 applies to Bahel as UN official | Limitation to domestic officials or state actors | § 1346 reaches Bahel; overrules Giffen/Lazarenko/Rybicki distinctions |
| Sufficiency of evidence and jury charge | Government proved fraud and causation; phone call aided scheme | Evidence insufficient to prove honest-services or wire fraud elements | Evidence supports conviction; jury instructions adequate under Skilling framework |
Key Cases Cited
- United States v. Zyskind, 118 F.3d 113 (2d Cir.1997) (defines federal program for § 666 purposes via statutory scheme)
- United States v. Fischer, 529 U.S. 667 (U.S. 2000) (benefits analysis of federal program payments)
- Skilling v. United States, 130 S. Ct. 2896 (2010) (limits honest-services to bribery/kickbacks core)
- Sun-Diamond Growers of California, 526 U.S. 398 (U.S. 1999) (distinguishes bribery from gratuities; intent requirement)
- United States v. Ganim, 510 F.3d 134 (2d Cir.2007) (limits of honest-services reach to different actor contexts)
- United States v. Rybicki, 354 F.3d 124 (2d Cir.2003 (en banc)) (defines honest-services scope post-McNally)