Nov. 2 (Bloomberg) -- The corruption trial of former New York state Senate leader Joseph Bruno is scheduled to begin today in U.S. District Court in Albany as prosecutors try to show he used his position to enrich himself, denying the public “honest services.”

Bruno, 80, was a legislator for 32 years and majority leader from 1995 until he resigned in July 2008. Six months later, in January 2009, he was indicted by federal prosecutors after an investigation Bruno said spanned three years.

The indictment said Bruno exploited “his official position for personal compensation and enrichment,” and collected $3.2 million from those activities between 1993 and 2006. He was charged with eight counts of defrauding the state and its citizens of their “right to his honest services.”

The federal law used to prosecute politicians and private individuals for theft of the right to honest services has been criticized as so broad and vague it gives too much leeway to prosecutors, said Peter Henning, a law professor at Wayne State University Law School in Detroit.

“It is one of the most frequently used statutes for public corruption prosecution and is used with great success” Henning said. In earlier cases, courts found that the prosecution “has to show more than just unethical conduct; there has to be a breach of an obligation of the public official,” he said.

“The U.S. Supreme Court may provide some clarification,” about the scope of the law and distinction between unethical conduct and breach of an obligation, he said.

Alaskan Lawmaker

The top U.S. court is considering such a case involving Bruce Weyhrauch, an Alaskan lawmaker who has been accused of helping an oil company so he might gain future employment.

In October, the Supreme Court accepted an honest services case involving former Enron Chief Executive Jeffrey Skilling, and is considering a similar trial for former Hollinger Inc. Chairman Conrad Black.

“The federal charge of ‘theft of honest services’ is in a state of flux” Bruno’s lawyers said in their trial brief. The Weyhrauch and Black cases are scheduled for oral argument on Dec. 8, they said.

U.S. District Court Judge Gary Sharpe denied Bruno’s requests to dismiss the charges or delay the trial until more can be learned from the Supreme Court. The case will be heard by a jury, whose selection is scheduled to begin today.

‘Get Joe Bruno Campaign’

On the day of the indictment, Bruno said he was the target of a politically motivated “get Joe Bruno campaign” that never found any example of criminal activity or illegal intent. Bruno, who was known for using state funds to stimulate economic development in his district near Albany, said the prosecution for theft of honest services “is a frightening message to all elected officials who are not wealthy.”

Bruno wasn’t accused of bribery or extortion, then-acting U.S. Attorney Andrew Baxter said at a press conference announcing the indictment. Rather, he said the former senator “concealed and failed to disclose” his business relationships to collect $2 million in fees from two money managers who obtained business from labor unions, the federal indictment says.

The investigation was complicated by Senate rules and procedures making it difficult to identify individuals promoting legislation involving Bruno’s clients, Baxter said in January. Baxter is now the U.S. attorney for the case.

Bruno also received $1.2 million from others with business before the state, for which he didn’t perform legitimate work commensurate with the size of the fees, Baxter said.

Conflicts of Interest

While New York lawmakers are allowed to have outside employment and businesses, the indictment alleges that Bruno concealed conflicts of interest in violation of state law.

Bruno’s lawyers said federal prosecutors must show he “intentionally violated ethics rules” and assess his compliance with ethics and disclosure laws. They asked the court to make clear to jurors that they cannot convict without first finding Bruno violated state law, according to the trial brief.

Bruno’s lawyers are led by Abbe Lowell of Washington-based McDermott Will & Emery and William Dreyer of Albany-based Dreyer Boyajian.

To contact the reporter on this story: Michael Quint in Albany, New York, at mquint@bloomberg.net.

Last Updated: November 2, 2009 00:01 EST