United States v. John Hedman, Michael Jercich, Thomas Karnick and Henry Larsen, Defendants Case Brief

Court of Appeals for the Seventh Circuit1980Docket #262173
630 F.2d 1184

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Case Brief Summary & Legal Analysis

4 min read

tl;dr: Chicago building inspectors were convicted of extortion for accepting payments from contractors to overlook code violations. The court affirmed, holding that accepting money due to one’s official position, even without proof of inducement or coercion, constitutes extortion under the Hobbs Act.

Legal Significance: This case solidifies the broad interpretation of “extortion under color of official right” under the Hobbs Act, clarifying that the government need not prove the public official induced the payment. The official’s wrongful use of their public office to obtain property is sufficient for a conviction.

United States v. John Hedman, Michael Jercich, Thomas Karnick and Henry Larsen, Defendants Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Defendants, a group of Chicago Building Inspection Supervisors, were responsible for ensuring new construction and remodeling projects complied with the city’s building code. Several construction companies, including Danley Lumber and All State Lumber, regularly engaged in a practice of building non-conforming structures without proper permits. To avoid official action, these companies established a routine system of making regular cash payments to the defendants. For example, Danley Lumber paid $25 for each non-conforming garage, with an employee maintaining a detailed diary of the payoffs. The funds for these payments came from company assets. The evidence showed a coordinated scheme where defendants would sometimes accept payments on behalf of the other supervisors. The victim companies all purchased substantial amounts of building materials from out-of-state suppliers. The defendants were charged with conspiracy to commit extortion and substantive extortion under the Hobbs Act, 18 U.S.C. § 1951, as well as filing fraudulent tax returns for failing to report the illicit income. A jury convicted them on nearly all counts.

Court Holding & Legal Precedent

Issue: Does extortion “under color of official right” pursuant to the Hobbs Act require the government to prove that the public official initiated or induced the payment, or is it sufficient to show the official wrongfully used their position to obtain money to which they were not entitled?

Yes. The court held that extortion under color of official right does Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat

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Legal Issue

Does extortion “under color of official right” pursuant to the Hobbs Act require the government to prove that the public official initiated or induced the payment, or is it sufficient to show the official wrongfully used their position to obtain money to which they were not entitled?

Conclusion

The case serves as a key precedent in the Seventh Circuit for Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea com

Legal Rule

Under the Hobbs Act, 18 U.S.C. § 1951, extortion "under color of Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in

Legal Analysis

The court rejected the appellants' central argument that their conduct constituted bribery Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do e

Flash-to-Full Case Opinions

Flash Summary

  • Extortion “under color of official right” (Hobbs Act) does not require
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui off

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