Prosecutors Cut 6 Fraud Counts in Wedtech Case

Federal prosecutors on Wednesday dropped some of the fraud charges against U.S. Rep. Mario Biaggi (D-N.Y.) and three other defendants in the Wedtech Corp. scandal, citing a Supreme Court ruling limiting use of the mail fraud law.

Six mail and wire fraud counts were cut from the 58-count indictment. The most serious charges, racketeering and racketeering conspiracy, remain in effect against Biaggi and the six men with whom he is charged.

They are accused of using Wedtech to make payoffs to public officials in exchange for their help in winning the firm military contracts. Investigations of Wedtech, including links to Atty. Gen. Edwin Meese III, continue.

In addition to dropping some counts, the government revised its theory of the alleged crime in four other mail fraud counts to bring them into line with the June 24 ruling by the Supreme Court.

The court, ruling in a Kentucky case, said mail fraud charges must relate to the taking of money or property, not to the denial of “intangible rights” such as the public’s right to honest government.