PREVENTING CONFLICTS OF INTEREST ON THE PART OF ADVISORS AND CONSULTANTS TO THE GOVERNMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66R00546R000200100006-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 33
• Document Creation Date: November 11, 2016
• Document Release Date: August 28, 1998
• Sequence Number: 6
• Content Type: MEMO

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.THE WHITE HOUSE
MEMORANDUM TO THE HFADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
Preventin,~Conflicts of Interest on the- Part pf Advisers and
1 I ~~ 11 I? 1+-
Consultants to the Government
Over the past twenty or more years depar~mer~ts and
agencies of the Government have made increasing use of part-
time consultants and advisers and of advisory groups The
services of highly skilled persons on a part-time and inter-
mittent basis is in the interest of the Government and pro-
rides the Government with an indispensable source of expert
advice and knowledge Since, however, such persons have
their principal employment outside the Government, and fre-
quently with business entities which are doing business with
the Government or with universities which receive Government
grants, a number of conflict-of interest problems arise from
time to timed It is important that departments and agencies
of-the Government oversee the activities of such consultants
in order to insure that the public interest is protected
from improper conduct and that consultants will not, through
ig~noranc~` br inadvertance, embarrass the Government or them-~
selves in their activities4
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Many intermittent personnel s~rvin~g the Government
today are individuals with specialized scientific knowl-
edge and skills who are regularly employed in industry,
research institutes or education. ;Their employers in many
cases have contracts with or research grants from the
Government, The areas in which the skills and talents of
these individuals are put to use by the Government on a
part--time basis may be the same as the areas with which
the contracts or grants received by;thear employers from
the Government are concernedo An i:ndiv:l.dual employed by
a university may act as an intermittent consultant not only
for the Government but for a private firm and. either .his
university or the firm or bath may be engaged in work for
or supported by the Government. A consultant to 'the Govern-
ment may have other financial connections with firms doing
business with the Government in the ;general area of h.is ex-
pertise and, therefore, his consultancy. The many possible
interrelationships between a consultant?s service to th.e
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Government and his own and his employer's financial in-
terests demonstrate that conflicts problems may fre'?
quently arise,
Both the part time adviser and the department or
agency which makes use of his services must be alert to
the possibility of conflictso 7Ct is, of course, incum~
bent upon the consultant to fam3,7.iarize himself with laws
and regulations applicable to himo The responsibility of
the agency is equally great. It maxst assist the consul-
taut to understand those laws and regulations. It vault
obtain from him such information concerning his financial
interests as is necessary to disclose possible conflictso
It must take measures to avoid the use of 1~1.s services in
any situation in which, a violation of law or regulation is
likely to oecurQ And it must-take prompt and propex dis-
ciplinary or remedial action when a violai:ion~, whether in-
tentional or innocent, is detectedo -
Most of the departnnents and agencies of the Government
currently have regulations applicable to intermittent con-
sultants and advisersa There is, however, considerable
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diversity in their detail and, in some cases, their inter-
pretation of applicable lawn ~Thile the problems will un-
doubtedly vary from department to agency, and different
rules and regulations may in some instances be appropriates
I believe it desirable to achieve the zua.ximum uniformity
possible in order to insure general standards of Gammon ap-
plication throughout the Government. This memorandum is
designed to achieve that purpose,
Conflict-of-Interest Statutes
There are six basic conflict-of-interest laws which
are pertinent to the subject mattez of this memorandum.
Four of the laws, sections 281,. 283, 434 and 1914 of Title
18 of the United States Code, in general prohibit certain
activities by a person who is in the em~,ploy of the Govern
mento Two statutes, section 284 of Title 18 and section 99
of Title S, prohibit a person who has left the employ of the
Government from engaging in certain activities during a two-
year period following the termination of his Government
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service. -The six statutes are set forth in full in the
appendix to this memorandum. They contain restrictions
which, with an exception discussed hereafter, are fully
applicable to an individual who serves or has served the
Government as an adviser or consultant, whether with or
without compensationo The six statutes. are discussed sepa-
rately belowa
18 U.SoC. 281. This statute prohibits an "officer or
employee of the United States or any department or agency
thereof" from receiving or agreeing to receive compensation
far any services rendered in relation to any "proceeding,
contract, claim, controversy, charge, accusation, arrest,
or other matter in which the United States is a party or
directly ar indirectly interested, before any department,
agency, court martial, [or) officer. . ." ]Cn general,
the effect of this section is to preclude a Government em--
ployee from acting, in most of the important matters that
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come before the Government departments and agencies, on
behalf of a non-Government employer or other person from
whom he receives compensationo
I have received an opinion -from th.e Attorney General
concluding that 18 UoS.C. 281 applies to all intermittent
consultants and advisers on those days on which they are
actually employed by the Government but that it applies
only to certain consultants and advisers on the days during
the period of their availability far Government service when
they are not so employedo Thase to whom section 281 applies
am their days away from the Govern~~nt service a.re: intermit
tent consultants and advisers whose Gavernment employment
during the period of their availability occupies a substan~
tial portion of that period, or affords their principal means
of livelihood,
In order to clarify the application of section 281 and
promote its policies, each department and agency should take
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steps to insure that at the time a consultant or adviser is
appointed, an accurate estimate is made of the extent to
-which it will make use of his services The fallowing rules
should be employed
(a) No appointment should extend beyond the end of the
current fiscal yearp
(b) The period of appointment to be made for a part,
or a11, of the fiscal year, or of the remaining
(c)
part of the fiscal year, should reflect the
agency's best estimate of its employment o# the
individual.
Whether the estimate is .that the consultant or
adviser will be employed 3.ntermittently throughout
the entire fiscal year or that part of the year
which remains at the time. of appointment, or
throughout a shorter interval,- the appointment
should be ;made as follows:
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(1) If the agency estimates that the consultant
or adviser will be employed 40% or more of
the time within the period designated, the
individual should be :carried on the rolls
as a Government employee for the entire
period and should be .informed that he is
administratively regarded as subject to
section 281 for the entire period,
(2) If the agency estimates the consultant.or
adviser will be employed less than 40% of
the period designated;, the individual may
be carried on the rolls as an intermittent
consultant or adviser pursuant to an arrange
meet by which he would re~~eive implementing
appointments from time to time within the
period, rather than an appointment for the
entire period, and the. individual should be
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informed tYia.t he will be treated as a
Government employee for purposes of sec-
tion 2$l only on the day or days within
the pertinent period covered by implement-
ing appointments.
(3) If the consultant or adviser is serving
more-than one department or agency, he
shall inform each of his arrangements with
the others so that appropriate administra-
tive measures may be effected by the depart-
ments or agencies involved.
(4) For consultative or advisory boards, indivi-
dual appointments should be made for the en-
tire fiscal year, or saxch other period as
may be prescribed by law, and the appointee
informed that insofar as his board member-
ship is concerned, he will be regarded as a
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Government officer or employee only on
.the days when the board meets.
To a considerable extent the prohibitions of section
281 are aimed at the sale of influence ~C.o gain special
favors for private business and at the misuse of govern-
mental position or information. Inaccardance with these
aims, it is desirable that even a consultant or adviser who
is subject to the section only on the days hA serves the
Government should make every effort to avoid any pQrsonal
contact with respect to negotiations far contracts or
grants with the department or aen~cy which h~e is advising
if the subject matter is related tojthe subject matter of
his consultancy. I recognize that this will not always
b~e possible to achieve since there acre .instances where
.the consultant or adviser may have an ex~ecurive position
and responsibility wit'~n his regular employer,which, will
require him to participate personally in contract
negotiations with the department or agency h?=_ is advising.
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Whenever this is the case the consultant or adviser should
participate in the negotiations for his employer only with
the knowledge and approval of a responsible government of-
ficial., who should note his approval in appropriate forma
In other instances an occasional consultant or adviser may
have technical knowledge which is indispensable to his
regular employer in his efforts to formulate a research
and development contract or a research grant and, for ,the
same reason, it is in the governmental interest that he
should take part in negotiations for his private employerp
Again he should participate only with-the knowledge and
approval of a responsible government official,. who should
note his approval in appropriate forma
The aim of preventing the sale of influence and the mis-
use of governmental position or information that is reflected
by section 281 should be furthered in yet another way with
respect to a consultant or adviser who under the foregoing
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rules is subject to section 281 only one the days he serves
the Government. He should be barred, n,ot only on those days
but at all times during the designated period of his avail-
ability for service, from activities before a Government
department or agency in relation to a matter in which the
Government is interested if he is to receive compensation
for such activities from a non-Governmental source?in addition
to or in lieu of a normal salary or fee arrangement.
It should be noted that the prohibition of section 281
against certain compensated activities "before" a department
or agency may go beyond an individuals personal appearance
at the department or agency, A consultant or adviser should
not, at times when he is subject to the prohibition of the
section, prepare or assist in preparing proposals for cones
tracts or grants to be presented to a d,~partment or agency
by or on behalf of a non-Governmental f:~rm or organization
from which he receives compensation.
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18 U.S.C. 283 18 U.S.C. 284 and 5 UaS.C. 99o Section
283 in general prohibits ari officer or employee of the
Government from ~.cting as agent or attorney-for prosecuting
any other p~rson~s claim against the Government, or assis-
ting in the prosecution of any such claim other than in the
discharge of his official dutieso -This statute! which ex-
tends to both compensated and uncompensated activities,
overlaps l8 U.S.C. 281 insofar as the latter section pertains
to claims activities. Therefore a consultant or adviser who
is not subject to section 281 at times when not actually em~
ployed by the Government may nevertheless be subject at those
times to the interdiction of section 283. Even if not. inter-
dieted by that sectian9 however, he would be subject to the
two post-employment statutes, 18 U.S.C. 284 and 5 U'.S.C. 990
The first of these prohibits a fo_,_,r~ Government employee, for
a period of two years after his employment has closed, from
prosecuting in a representative capacity any claim against the
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United States involving any subject matter directly con-
nected with. which he was employed. S U.S~Ca 99 prohibits
a fo~m~r officer or employee of an executive department,
for a period of two years after his: employment with the de-
partment has ceased, from prosecuti~tg in a representative
capacity, or aiding in the prosecution of, any claim pending
in any department during his emp~.oy?ment. It is apparent
that a consultant or adviser would be subject to the pro-
hibition of 18 U. S o C, 283 or one or both of 18 U.S.C. 284
and S U.S.C. 99 at all times until the ~~termination of his
last period of service to the Governnaen~t. In addition he
would be bound by the provisions of 18 iJoS.C, 284 and 5 U.S.C.
99 for two years thereafter,.
18 U.S.Co 434. This section sets 1Eorth a prohibition
against certain actions on the part of a~ Government employee
in his capacity as sucho More particularly, the section,
which applies to all consultants and ad~risers at all times
during their span of service, prohibits a Government employee
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who is interested in the profits of any business entity
from acting for the Government in the transaction of busi-
Hess with such entity,
It is in the best interests of the Government that the
policy of this section be extended to consultants and ad-
visers beyond its literal languageo Accordingly, an adviser
or consultant should be disqualified from the performance of
duties involving the transaction of business with, o_r the
rend_ erin~of advice whic~i will hav? a ,direct and predictable
effect upon the interes~, is of, a business entity by which he
is employed, or to which he renders consultant service, or
in which he has a financial. interest. Txi particular, he
should be excluded from participation in the evaluation of
contract or grant proposals which will directly affect the
interests of such business. entity. However, he need not be
precluded from rendering general advice in ,situations .where
no preference or advantage m3.ght be gained therefrom by any
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particular business entityo ,~ non-profit organization or
educational institution shall be deemed a "business entity"
for the purposes of this paragrapho
18 U.S.C. 1914. Section 1914 forbids a Government em--
p:toyee to receive compensation "in ~onn~ection with11 his
Government service from a source other Ethan the-Government
or a State, county or municipality.; Th~a statute applies to
an uncompensated as well as a compensated consultant or ads
viser. In cases where a consultant or adviser serves oc-
casionally and for short periods, he may continue to receive
his usual compensation-from an outside private. employer. And
the continuation of the consultant or adviser's outside private
compensation during a period of as much as 30 days a year of
Government service would ordinarily be permissible on the asp
sumption that it is not paid "in connection with" his Govern~-
went services but rather as part of ;his normal salary arrange-
meets with his private employero However, if the length of
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his service exceeds these limits, it wil"1 be necessary to
determine specifically whether the continued outside com-
pensation is related to the consultant or adviser's serv-
ices to ~Che Government, and thus improper, or whether it
is permissible because made ~ri.th respect to present, past,
or future services for the outside employer, Cases of this
nature should be referred to the ..chief 1ega1 officer of the
department or agency for examination and recommendation as
to the proper action to be taken.
Spe_ci_a1 Exempts
Some consultants or advisers are appointed pursuant to
a statute which exe~onpts them froa~a one or more of the conflict-
of-interest'laws. Nevertheless, a consultant or adviser so
appointed should not participate in any matter where that
participation, except for such exemption, would be within
any of the .statutes unlessr_he receives pernnission to par-
ticipate therein from the head of the department or agency
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he serveso The latter shall not consent to the participa-
tion of such consultant or adviser in the matter unless he
finds that such participation is,on i~he particular facts,
consistent with the interests of the (government. Nothing
in this paragraph shall be deemed; to ~.elieve any department
or agency head, or appointee of such department or agency
head, of the obligation to file a!stafiement for publication
in the Federal Register pursuant to t1Ye requirements of
section 710 (b) of the Defense Production Act of 1950 (50
U.S.C. Appo 2160 (b) ) or of Executive (?rder No, 10647 of
November 2$, 1955 (20 F.Ro $769),;
Ethical Standards of Conduct
Aside from the conflict-of-interE~st laws, there are
elementary rules of ethics in the conduct of the public busi-
Hess by which all those who serve the Government are bound,
That an individual may serve the GoveY~nment only occasionally
and for brief periods does not relieve him from the obligation
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to~abide by those ruleso That he may be needed to bring
rare or specialized talents and skills to the Government
does not mean that he should be considered-for a waivers
The peaple of the nation are entitled to ethical behavior
of the highest order in the conduct of their Government's
affairs from the. sometime worker to no lesser degree than
from the career workerQ
Inside Informationo The first principle of ethical be-
havior for the intermittent consultant or adviser is that he
must refrain from any use of his public office which is moti-
vated bye or gives the appearance of being motivated byy the,
desire for private gain far himself or persons with whom he
has family, ~busine?cs or financial ties. The fact that the
desired gains if it materializes, will not take place at the
expense of the Government makes his action no less impropero
An adviser or consultant must conduct himself in a manner
devoid. of the slightest suggestioxt of the extraction of private
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advantage from his Government employme~~t, Thus, a consultant
or adviser must not, on the basis of any inside information,
enter into speculation, or recommend speculation to members
of his family or business associates, aLn the securities of
any private company engaged in work for the Government in
the field of his Government duties; He must obey this in~
,junction even though those duties have no connection whatever
with the financial and o-they arrangements between the company
and the Governmento And he should be careful in his personal
financial activities to avoid any appea:ra.rlce of acting on the
basis of information obtained in the course of those dutieso
It is important for consultants and advisers to have
access to Government data pertinent to their duties and to
maintain familiarity wibh the Government's plans and programs
and the requirements thereof, within the area of their com-
petence, Since it in frequently in the Government's interest
that information of this nature be made generally availab~.e
to an affected industry, there is generally no impropriety in
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a consultant or adviser s utilizing such information in the
course of his non-Government employmento However, a con-
sultant or adviser may, in addition, acquire information
which is not generally available to those outside the Govern-
ment. In that event, he may not use such information for the
special benefit of a business or other entity by which he is
employed or retained or in which he has a financial interests
I~n a.rder to avoid any actual or potential abuse,of in-
formation by a consultant or adviser, departments and agencies
should, through information programs, make every effort to
insure to the maximum extent possible that all firms within
an industry have access to the same information that is avail-
able to a consultant or adviser who is employed by any of
them. In addition, regular Government employees should avoid
divulging confidential information to him unnecessary to the
performance of his governmental responsibility, or information
which directly involves the financial7. interests of his employers
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Consu~.tants and advisers should be instructed that informa-
tion not generally av~?ilable to private industry must remain
confidential in their hands, and must-not be divulged to
their private employers or clients. IIn cases of doubt they
should be encouraged to confer with the chief legal officer
or other designated agency official who c,s.n assist in the
identification of information not generally available and in
the resolution of. any actual or potential conflict between
duties to the Government and to private e~mployersa
Occasionally an individual who becomes a Government conm
sultant or adviser is, subsequent to his designation as such,
requested by a private enterprise to act :~.n a similar capacity,
In some cases the request may give the appearance of being moti~
vated by the desire of the private employer to secure inside
information. Where the consultant or adviser has reason to
believe that the request for his services is so motivated, he
should make a choice between acceptance o:E tFte tendered private
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employment ar~d continuation of his Government consultancy.
In such. circumstances he may not engage in both.' Furthermore,
tie should discuss any such offer of private employment with
the chief legal officer of his Government agency whether or
not he accegts it. .
At times a private enterprise or other organization
urges the appointffient of one of its employees or members to
a particular Government consultancy. The departments and
agencies should discourage this practice. Any initiative
in connection with the appointment of consultants, or in
-securing the names of qualified persons, should come from
the Government.
Abuse of Officea An adviser or consultant shall not use
his position in any way to coerce, or gives the appearance of
coercing, another person~to provide any financial. benefit to
him or persons with whom he has family, business or financial
ties.
Gifts. An adviser or consultant, shall not receive or
__A_.__4
solicit anything of value as a gift, gratuity or favor for
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himself or persons with whom he has family, business or
financier ties if he has reason to believe that it would
not be made but for his position with the Government, or if
the acceptance thereof would result in, o;r give the appear-
ance of resulting in, his loss of ~ compl.et~~ 3.ndependence or
impartiality in serving the Government.
zndustry, Labor or A,~ric~ultural Re~resentati~e~
It is occasionally necessary to distj;nguish consultants
and adv$sers from persons speaking for a f:ii~m or an industry,
or for labor or agriculture, or in some o~:her representative
capacity. ~ consultant or adviser is a person whose advice
is obtained by a department or agency ;because cif his partic-
ular qualifications and who serves as an employee in an in-
dividual and independent capacity.. A representat~.ve o:~ a
firm or industry or organization who is invited to appear
before a Government department or agexacy p;~esents his views
in a representative capacity and is not an employeeo the
representative is not, therefore, within tl~be scope of the
conflicteof~interest laws. Departments and agencies should
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wr'
be careful to make and clarify the distinction mted here
and should not compensate an industry or similar representa-
five for h~.s advice! though they may pay travel expenses and
diem allowances where appropriated
Administrative Steps
ill departments and agencies of the Government sha11
(1,~ bring thl.s memorcandum to the attention of all con-
sultants and advisers employed by them and of all regular
emgloyees dealing with such, consultants and advisers;
(2J review their existing rules and regulations and
whexe appropriate,, revise them or isstize new rules and regula-
tions to promote the policies set forth, ihz this memorandum;
and
(3) take such other., measures as may be appropriate to
impress upon consultants and advisers and upon Go~vetnment
officials with whom they consult tkiat they have a respon$i-
bility to avoid situations in which a potential conflict-of-
interest may existo These individuals should also be cautioned
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to avoid situations in which the consultant or adviser might
be thought to be influencing Governm~nta:'1 act~.on in matters
with regard to which he has a financial ~r~r other personal
interest, ar to be using inside informat:lo~ for private
gain.
While it would be most advisable foa: a department or
agency of the Government, in order to minimize the occurrence
of conflicts of intea: est, to avo~.d agpoiYSting individuals to
advisory positions who are employed or consulted by contractors
or others having a substantial amount of business with that
department or agency, I recognize th~.t the Government has,
of necessity, become increasingly concernied with highly tech-
nical areas of specialization, and that the number of indi-
viduals e~cpert in those areas is frequently very small,
7~herefare, in many instances, it wild not ~:e possible for
a department or agency to obtain the iservices of a competent
adviser or consultant who is not in fact employed ar con~-
salted by such, contractors, In addition, an advisory group
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,~.y of necessity be composed largely or wholly of persons
of a comat~on class or group whose employers array benefit from
the advice given, An examgle would be a group of university
scientists advising on research grants to universities,
Only in such a group can the necessary expertise be found.
In all these circumstances, particular care should be ex-
ercised to exclude his employer's or clients' contracts or
other transactions with the Government from the range of
the consultant's or adviser's duties.
Disclosure of Financial Interests
In order to carry out its responsibility to avoid the
urge of the services of consultants or advisers in situations
in which violation of the conflict-of-interest laws or of these
regulations may occur, each department or agency of the Govern-
meet shall, at the time of employment of a consultant or ad~
wiser, require him to supply it with a statement of his private
employment and financial interests, The statement should in-.
dicate the names of all the companies, firms, research organi-
zations and educational institutions which he is serving as
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employee, officer, member, director,or consultant, and the
companies in which he has any other financial interest, such
as the ownership of securities or other interests which have
a significant financial value. He need x~~.ot reveal precise
amounts of investments. Each statement of financial inter-
ests should be forwarded to the chief :legal officer of the
department or agency concerned, for information and for a.d~
vice as to possible conflict of interest. In addition, each
statement should be reviewed by those: persons responsible for
the employment of consultants a.nd advisers to assist them in
applying the criteria for disqualification discussed in this
memorandum as set forth above. Such statements should be
kept current during the period the consulltant is on the Gov
ernment rolls.
LeQa.l Interpretation
TsThhenever the chief legal officer of a department or agency
believes that a. substantial legal question is raised by the
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~'
employment of a particular consultant or adviser he should
advise the Department of .justice, through the Office of
Legal Counsel, in order to insure a consf.stent and authori~
tative interpretation of the lava.
-This meffiorandum shall be pulblished in the Federal Register.
THE WHITE HOUSE
February 9, 1.962
z~. -
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Shall be fined not more than $1,000 ar imprisoned nut
more than six months, or bother
is uos?ca 2s4
~nlhoever, having been employed. in any agency of the United
States, including commi$8ioned officers assigned to duty in
such agency, within two years after the time when such employ-
ment or service has ceased, prosecutes or acts as coun8els
attorney or agent for prosecuting, any claims against the
United States involving any subject matter directly connected
with which such person was so e-mployed or perFarmed duty, shall
be fined not more than $l0,?00 or imprisoned not more than one
year, or bothp
5 UoSoOp 99
It shall not be lawful for any person appointed as an
officer, clerk, or employee in any of the departments, to act
as counsel, attorneys or agent for prosecuting any claim agaix~t
the United States which was pending in either of .said depart-
ments while he was such officer, clerk, or employees nor in any
manner, nor by any means, to aid in the prosecution of any such
claim, within two years next after he shall have ceased to be
such officers c~.erks or employeeq
(~)
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~endix
18 UeSoC4 281
~haever, being a Member of or Delegate to Congress, or
a Resident Gommis~ioner9 either before or after he has quali-~
Pied, or the head of a department, or after officer or employee
of the United States or any department or agency thereof, di-
recbly or indirectly receives or agrees to receive, any compen-
sation for any services rendered or to be rendered, either by
himself or another' in relation to any proceed.ingg contract9
claim9 controversy charge, accusationp arrest,, or other matter
in which the United States is a party or directly or indirectly
interested, before any department,?agency, court martial, officer,
or any civil, military, or naval. commission, shall be fined not
more than $1U~00D or imprisoned-not more than two year;, or both;
a,nd shall. be incapable cf. holding any aff i~:.e df honor, trust,
or profit under the United 5tater~a
Retired officers of the armed forces of the United States,
while not on active du~tyy sha11 not by rea.sor; of the~.r status
as such be subject to the provisioriet of this ,sectione Nothing
herein $hal1, be construed to a11ow a-~y retired officer to rer
present any person in the sale of ar_ything to ~:he Governmen't
through the department in whvge sexvice he holds a reetired $tatuso
This section shall not apply to zany ?persona because of his
membership in the National Guard of the :District of Columbia
nor to any person specially excepted by ~.ct of Congress?
18 UaSoCa 288
W'hoever9 being ar.Z of:~icex or ~mp~J_oyee of the fJn.ted States
or any department or agency thereof,, or of the ~Sez:ate or I'douse
of Repxesentatives,. acts as an agent or, tattorney for prosecut-
ing any china against the CTnit.ed States,, or ?~idts or assir~ts
in the prosecut~.on or slap port of anyT such claim otherwise than
in the proper discharge cif his official duties, or receives any
gratuity, or any sha?e of or iaatere?3t ixz any such claim in
consiaeratxon cif assistance in tt?~e prosebsutioxz of such claims
shall be f ix~ed cxor more than $ l0 ~OQC? or imprisoned. not more than
one year, or bo~:ha
(Z}
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Retired officers of the armed forces of the United Staters,
while not on active duty, shall not by reason of their status
as such be subject to the provisions of this section, Nothing
herein shall be construed to allow any such retired officer
within two years next after his retirement to ac.t as agent or
attorney for prosecuting or assisting in the prosecution of
any claim against the United States involving ~;he department
in whose service he holds a retired sta~:us, or to allow any
such retired officer to act as agent or attorney for prosecut-~
ing or assisting in the prosecution of any claim against the
United States involving any subject matter with which, he was
directly connected while he was in an active--duty status4
This section shall nat apply to any person because of his
membership in the National Guard ?f the District of Columbia
nor to any person specially excepted by enactment of Congress
18 UoSoCo 434
~aThoever, being an officer, agent or member of , or di-
rectly or indirectly interested in the pecuniary profits or.
contracts of any corporation, joint-stack company, or associ_a.--
tion, or of any firm or partnersh3.p;, or ofi~her business entity,
is employed or acts a~ an affi_cer or agent of the United States
for the transaction of business with such business exztity,
shall be fined nat more than $2,000 or imp?risaned not more
than two years, or bothQ
18 UoSoCo 1y14
~Thaever, being a Government official or employee., receives
any salary in connection with hi$ services as such an official
or employee from any source other than the Government of the
~lnited States, except as may be contributed out of the treasury
of any State, countys or municipality; or
Whoever, whether a person, associations or corporation,
makes any contribution to, or in any way supplementt~ the salary
of, any Government official or emp~_oyee for the services per-
formed by him for the Government of the United States --
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Shall be fined not more than $1,000 or imprisoned nut
more than six months, or botho
18 U,SmC~ 284
~Th.oever, having been employeci in any agency of the United
Staters, including commissioned officers assigned to duty in
such agency, within two yearn after the time when such employ-
ment or service has ceased, prosecutes or acts as counsels
attorney or agent for prosecuting, any claims against the
United Staten involving any subject matter directly connected
with which such person was so employed or performed duty, shall
be fined not more than $10,000 or imprisoned not more than one
yeax, or bothp
S UaSoCp 99
It shall not be lawful for any person appointed as an
officer, clerkp or employee in any of the depaxtments, to act
as counsel, attorneys or agent for prosecuting any claim against
the United States which wars pending in either of .said depart-
ments while he was such officer, clerk, or employees nor in any
manner, nor by any means, to aid in the prosecution of any such
claims within two years next after he shall have ceased to be
such officers clerks or employeeq
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