Federal judge tosses corruption convictions

A federal judge has thrown out a corruption conviction against former city tax assessor James F. Lynch and also vacated his sentence.

Lynch, 60, had pleaded guilty in September 2007 to conspiracy to commit honest-services fraud for accepting $20,000 cash from developer James F. Campanella without disclosing it.

Then-U.S. District Judge James T. Giles sentenced Lynch in January 2008 to three years' probation and fined him $25,000.

Lynch, of South Philadelphia. has since completed his probation and continues to make $100 monthly payments on his fine.

U.S. District Judge Jan DuBois, who also tossed Campanella's conviction and sentence, said both men were convicted of conduct that is no longer criminal.

In a 2010 decision, the U.S. Supreme Court confined honest services fraud to its "solid core" of bribery and kickbacks and ruled that, without more, an undisclosed conflict of interest is not a crime, DuBois said in a 15-page decision issued Friday.

At his plea hearing, Lynch repeatedly denied that he was influenced by Campanella's money or that any of his decisions were based on anything other than city policy. Campanella said at his plea hearing he had given Lynch the money to thank him for his prior help with resolving tax disputes on four properties he owned and without any intent to influence Lynch's future conduct.

The feds admitted at the plea hearing that Lynch had not solicited money from Campanella nor expected to receive it.

Prosecutors had argued in legal briefs that the honest services charge was based on a valid bribery theory, but DuBois found otherwise.

"The Court rejects this argument and concludes that the information does not charge honest-services fraud based on bribery," DuBois said.

Campanella had also been charged with conspiracy to commit honest-services fraud. He was sentenced in Jan. 2008 to five years' probation, fined $250,000 and ordered to perform 100 hours of community service.

DuBois also ordered the government to repay Lynch and Campanella whatever money they have paid in fines to date within 90 days.

A spokeswoman for the U.S. Attorneys office here said prosecutors were taking the matter under consideration.