Hobbs Act

The Hobbs Act, codified at 18 U.S.C. § 1951, is a United States federal law enacted in 1946 that makes it a crime to commit, attempt to commit, or conspire to commit robbery, attempted robbery, or extortion that affects interstate or foreign commerce. The Act is named for United States Representative Sam Hobbs (D-AL).

The statute, despite being conceived and enacted as an anti-racketeering measure in disputes between labor and management, is frequently used in connection with cases involving public corruption, commercial disputes, and corruption directed at members of labor unions.^{[clarification needed]}

(a) Whoever in any way or degree obstructs, delays, or affects commerce or the movement of any article or commodity in commerce, by robbery or extortion or attempts or conspires so to do, or commits or threatens physical violence to any person or property in furtherance of a plan or purpose to do anything in violation of this section shall be fined under this title or imprisoned not more than twenty years, or both.

(b) As used in this section—

(c) This section shall not be construed to repeal, modify or affect section 17 of Title 15, sections 52, 101–115, 151–166 of Title 29 or sections 151–188 of Title 45.

In interpreting the Hobbs Act, the Supreme Court has held that the statute employs the fullest extent of federal authority under the Commerce Clause. Thus, the lower federal courts have recognized that an actual effect on commerce is sufficient to satisfy the federal jurisdictional element even if it is slight or de minimis.

The government will often use the depletion of assets theory to prove the jurisdictional element. Under this theory, interstate commerce is affected when an enterprise, which either is actively engaged in interstate commerce or customarily purchases items in interstate commerce, has its assets depleted through extortion, thereby curtailing the victim's potential as a purchaser of such goods. While the courts have interpreted the jurisdictional element liberally, it is not a formality; courts have drawn a distinction under the depletion of assets theory between individuals and businesses. While depletion of a business' assets is usually sufficient to show an effect on interstate commerce, depletion of an individual's assets generally is not. Representatively, the Second Circuit reasoned in United States v. Perrotta (2002) that making no distinction between individuals and businesses would bring under the ambit of the Hobbs Act every conceivable robbery or extortion.

The Hobbs Act covers extortionate threats of physical, economic and informational harm (i.e. blackmail). To be "wrongful," a threat of physical violence must instill some degree of duress in the target of the extortion. Furthermore, it is unlikely an economic threat is "wrongful" for Hobbs Act purposes unless a defendant purports to have the power to harm another person economically and that person believes the defendant will use that power to deprive him of something to which he is legally entitled. Finally, in the context of blackmail, a Hobbs Act prosecution is probably proper if there is no nexus between the information the defendant threatens to expose and the defendant's claim against the property of the target.