IEC Journal

Industry Liaisons Raise Questions at FDA

POGO questions why "voting members of the FDA panel, including its chairperson, turned out to have prior relationships with Bayer or a company that markets a generic equivalent of Yaz and Yasmin. In one case, the ties involved thousands of dollars in fees, while some of the other panel members had conducted research funded by Bayer or the generic manufacturer. The four all voted in favor of the Bayer pills and related contraceptives, tipping the balance.

Shelby's STOCK Act

GovExec article discusses the implications of Congressman Shelby's amendments to the STOCK Act, introduced to address concerns about Congressmen not being covered by insider trading laws.  Under the amendment the impact has been expanded to try to cover many Executive Branch personnel.  As currently contemplated, the law could require:

• Electronic availability of Public Financial Disclosure report
• Posting of all stock trades of certain personnel, where the transaction exceeds $1,000, for all or some financial disclosure filers

See full article at http://www.govexec.com/oversight/2012/02/momentum-builds-require-feds-disclose-stock-trades/41092/.

For details about the various STOCK Act versions, see http://insidertrading.procon.org/view.resource.php?resourceID=004520.

Interesting article on Congress' Insider Trading Bill

If you missed it, the Senate overwhelmingly (96-3) passed the bill that would impose insider training restrictions on lawmakers this week.  The House is expected to take it up next week.  Interestingly, attached conflicting amendments would further impose this on certain Executive Branch employees.  See Associated Press article at http://www.foxnews.com/us/2012/02/03/house-ready-to-consider-insider-trading-ban/.

Ex-S.E.C. Official Settles Conflict-of-Interest Case - NYTimes.com

The NY Times reports on a conflict of interest case at the SEC:

A former enforcement official for the Securities and Exchange Commission who was accused of blocking or closing at least three investigations into the activities of the Stanford Financial Group, which the authorities claim was a $7 billion Ponzi scheme, has settled civil charges brought by the Justice Department accusing him of violating conflict-of-interest rules by later representing Stanford before the commission.

Thanks to Rosa Koppel for the tip.

Documentary Inspires Economist Ethics Rules

The Wall Street Journal reports that the "Inside Job," a documentary about the 2007-2008 financial crisis, provided additional public pressure on economists to implement conflict of interest rules.  The new rules will require economists to disclose financial ties and other potential conflicts of interest in papers published by academic journals.  Because many economists serve as consultants for government, companies and other groups outside of their formal academic work, the argument is that the relationships formed through consulting may have influenced the economists' work, causing them to initially miss the signs of the impending financial crisis and to recommend policy prescriptions that served their clients' interests, at the expense of the economy as a whole. 

Alleged Conflicts With FDA Drug Approval Panels

A Washington Monthly article discusses perceived problems with FDA drug approval procedures. Here is an excerpt:

Last month, the U.S. Food and Drug Administration convened a committee of medical experts to weigh new evidence concerning the potential dangers of drospirenone, a synthetic hormone contained in popular birth control pills including Bayer AG’s Yaz and Yasmin. In a decision that helped ensure the continued presence of these drugs on American pharmacy shelves, the committee concluded by a four-vote margin that the benefits of drugs with drospirenone outweigh the risks. However, an investigation by the Washington Monthly and the British medical journal BMJ has found that at least four members of the committee have either done work for the drugs’ manufacturers or licensees or received research funding from them. The FDA made none of those financial ties public.

...

Bayer spokesperson, Rosemarie Yancosek, said in an e-mailed statement: “Bayer had no input on who serves on the U.S. FDA Advisory Committee panel as the FDA has its own process for selecting panel members. Furthermore, it is Bayer’s understanding that the FDA has a procedure for determining conflicts of interest for potential panel members.” 

The FDA does indeed have such a procedure, but critics argue that its guidelines define conflicts of interest too narrowly and provide too much flexibility in how they are applied. The guidelines are technically “suggested or recommended, but not required” provisions (http://www.fda.gov/downloads/RegulatoryInformation/Guidances/UCM125646.pdf). Whether an advisor can participate depends on “whether the discussion at the meeting or outcomes of the meeting will have a direct and predictable effect on the individual’s interest.” For instance, someone who was previously involved in another role for a manufacturer, or whose university received money from a manufacturer, may be allowed to participate. Even having a contract for $100,000 over a five-year period would not necessarily exclude an advisor, according to the guidelines.

 

 

Controversy Over Ouside Organization's Cash Payment to Whistleblower

Thanks to an IEC member for  alerting us to a Fedsmith.com story about legal wrangling over a $383,600 cash payment from POGO to a Department of Interior economist who helped POGO win a false claim action. After the Department of Justice intervened, the defendan oil companies settled the case  for about $440 million.

The Department of Interior attempted to fire the economist, citing 18 U.S.C. 209(a) (prohibiting supplementation of salary).

P.S. We were a little late following up on this tip due to the holidays and medical issues of one IEC reporter. If you submitted a tip, but did not see it published, please send us a reminder. We get a lot of excellent tips from readers, and don't want to inadvertently fail to follow up.

2011 Conflict of Interest Survey

The 2010 OGE Conflict of Interest Prosecution Survey is available:

 

http://www.usoge.gov/OGE-Advisories/Legal-Advisories/LA-11-08--2010-Conflict-of-Interest-Prosecution-Survey/

 

Govt attorney pleads guilty to conflict of interest

Consumer Products Safety Commission attorney plead guilty to a conflict of interest violation and filing false statements on his "ethics forms."  The charges stem from his claim to have “Insider Knowledge” in advertising his private law practice and his failure to disclose this outside business on his disclsoure reports.  He also represented a private client before the Federal Government.

Read the full DOJ press release, see http://www.justice.gov/usao/md/Public-Affairs/press_releases/press08/GovernmentLawyerGuiltyofConflictofInterestandFilingFalseDisclosureForms.html.

The removal appeal of the employee implicated in US v. POGO is remanded

Consequences of United States v. Project on Government Oversight, 525 F.Supp.2d, 161, 164 (D.D.C. 2007).  The Dept. of Interior employee, Robert Berman received notice of his proposed removal for misuse of public office for personal gain.  The Federal Circuit suspended its review of the case pending the outcome of the DC Circuit case on whether he violated 18 USC 209 by accepting an award from POGO.  Since that case was remanded for a new jury verdict, so was the personnel removal case. 

See Berman v. Department of the Interior, C.A.F.C. No. 2010-3052 (nonprecedential) (Nov. 7, 2011) at http://www.cafc.uscourts.gov/images/stories/opinions-orders/10-3052.pdf.

Read related article at: http://www.fedsmith.com/articles/articles_display.php?a=3183&p=1

NSF Conflict of Interest Issues

POGO reports:

The National Science Foundation (NSF) was recently slammed by an Office of Inspector General report for failing to perform sufficient oversight of financial conflicts of interests. Now, the agency is looking to the National Institutes of Health (NIH) as a model for strengthening its regulations.

A copy of the NSF OIG report referenced is available.

GAO Criticizes Federal Reserve Conflicts of Interest

A new GAO report exposes financial links between directors of Federal Reserve banks and financial institutitons that the Federal Reserve supervisess. POGO and the Washington Post have commentary on this significant report.

DHS proposes additional restrictions on their employees

DHS' proposed supplemental ethics rules for its employees.  They include restrictions on the
purchase of certain Government-owned property, requiring employees to report allegations of waste, fraud, and abuse, requiring employees to seek prior approval for certain outside employment and activities, prohibiting employees in some DHS components from engaging in certain types of outside employment and activities, requiring designated components to develop instructions regarding the procedures for obtaining prior approval for outside employment and activities, and designating components within DHS as a separate agency for purposes of determining whether the donor of a gift is a "prohibited source" and of identifying an employee's agency for the regulations governing teaching, speaking, and writing.

See Fed. Reg. at http://www.gpo.gov/fdsys/pkg/FR-2011-10-12/html/2011-26160.htm

See articles discussion same: http://www.federalnewsradio.com/?nid=85&sid=2591216 and http://www.govexec.com/story_page.cfm?articleid=49068&dcn=e_gvet

Washington Times: Retired Officers to be Cleared of Allegations

The Washington Times reports:

A three-year government investigation has found no wrongdoing by Bush-era Pentagon officials when they gave war briefings to retired military analysts who served as TV and radio commentators.

The probe by the Pentagon inspector general was in response to a 2008 Pulitzer Prize-winning article in the New York Times that implied the former military officers, some of whom worked for or were defense contractors, received financial favors in return for their commentary and were tools in a propaganda campaign.

Sources familiar with the IG’s final report said it will say officials broke no rules or laws when they provided information briefings, some from Defense Secretary Donald H. Rumsfeld, during the Iraq and Afghanistan wars.

POGO on SEC Conflict of Interest Allegations

POGO has a summary of the conflict of interest allegations against Former SEC General Counsel David Becker. Here's an excerpt:

This isn’t the first time the OIG has cited SEC employees for misconduct in cases where the employees received advice from the Ethics Office. For instance, in its report on alleged insider trading by SEC employees —which was also referred to the Justice Department —the OIG reported that the employees sought approval from the Ethics Office for most of the trades that later aroused suspicion.

This also isn’t a problem that’s unique to the SEC. POGO has highlighted several instances in which it appears that ethics officials at the Bureau of Land Management did not take appropriate action or provide knowledgeable advice when confronted with revolving door and conflict-of-interest issues.

We’re glad to see that the SEC has recently taken measures to improve its ethics program. At last week’s National Government Ethics Conference , SEC officials highlighted the release of an online searchable ethics handbook , the agency-wide ethics emails that are now being distributed twice a week , and a new online, real-time database in which SEC staff are required to report their financial holdings and pre-clear securities transactions. The OIG also recommended that the SEC Ethics Counsel should report directly to the Chairman rather than the General Counsel, and that the SEC Ethics Office should take all necessary steps to ensure that its advice is “well-reasoned, complete, objective, and consistent” and “documented in an appropriate and consistent manner.”

Along these lines, the Government Accountability Office (GAO) recently recommended that the SEC Chairman “establish standards for documentation of ethics advice.” We made a similar recommendation in our report on the SEC revolving door.

More SEC Developments

Two items:

1. Bloomberg: SEC IG refers SEC Ex-Counsel conflict of interest allegations to Department of Justice.
2. POGO has questions about the circumstances under which an SEC case was dropped.

Criminal Referral in Madoff Case?

Here's an excerpt from a September 16 New York Times story, perhaps related to our previous post:

Federal ethics officials are expected to recommend that the Justice Department begin a criminal investigation into actions taken by David M. Becker, the former general counsel of the Securities and Exchange Commission, who determined the agency’s proposal for compensating victims of the Bernard Madoff Ponzi scheme when he had a financial interest in the outcome.

A possible criminal referral from the Office of Government Ethics is expected to be part of a report issued next week by H. David Kotz, the inspector general of the S.E.C., according to two people briefed on the report’s contents.

Ethics Waivers at HHS

An alert IEC member tipped us off to an interesting August 2011 Office of Inspector General report on conflicts of interest waivers granted at HHS in 2009. 

Among the report's findings: "Fifty-six percent of the 50 HHS conflict-of-interest waivers in our review were not documented as recommended in provisions of selected Governmentwide Federal ethics regulations and the Secretary's instructions."

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OMB Watch Praises NOAA's Scientific Integrity Program

OMB Watch has good things to say about the National Oceanic and Atmospheric Administration's efforts to maintain a high level of integrity in scientific research. represents some of the best efforts so far.

The agency's draft scientific integrity policy and procedural handbook, released to the public in June, are thoughtful and detailed. In addition, NOAA has been an exemplar of openness in developing its policy, most importantly by soliciting public comments on its draft policy.

Fundamentally, an effective scientific integrity policy must do two things: prevent political interference with science and protect the free flow of scientific information. NOAA's draft policy makes strong provisions for both.

NIH Revises Conflict of Interest Rules

An NIH press release explains the organization's new conflict of interest rules. A Government Executive story and some Wall Street Journal comments are available. The NIH Conflict of Interest page has links to related resourcess.

Defense Think Tank Conflict Allegations Bring Scrutiny

Wired magazine has a report on an investigation into alleged conflicts of interest at the Defense Advanced Research Projects Agency (DARPA). An excerpt:

“With [the previous DARPA director], there wasn’t a little line. There was a valley. You either sell your stock [in your old firm], or there’s the door,” one former Darpa program manager says. “With [the current DARPA director], things were very different.”

And not without some justification. Tether’s bright ethical guidelines had unintended consequences. If a company allowed an employee to take a sabbatical to join Darpa, the firm was essentially blocking itself from millions of dollars in agency research projects.

Under Dugan, program managers with potential ethical conflicts could designate someone else at Darpa — usually someone in a more senior position — to make decisions about their former company or university. In a speech last year, Darpa deputy director Ken Gabriel called the new conflict of interest rules “more realistic.”

One of the things that makes Darpa’s deals with RedXDefense so unusual is that those decisions weren’t passed to a more senior defense official, who would, in theory, be immune to any influence from Dugan. The decisions were left to a subordinate, who might feel all kinds of pressure to do right by the boss, and by the company run by her dad.

Advisory Committee Issues at FDA

Food and Drug Administration advisory committee policies have come under criticism:

“The facts at this time do not support the public statements that there are not qualified people to serve on these panel,” POGO investigator Paul Thacker said in an interview. “All agencies are under pressure to loosen regulations to make industry happy. This isn’t acceptable.”

The FDA’s website lists 49 different advisory committees or panels that it uses “to obtain independent expert advice on scientific, technical and policy matters.”

Senior Official Resignation Follows USPS IG Report

Federal Times has a lengthy story about the resignation of a member of the Postal Service Board of Governors after an IG report alleged ethical abuses. Here is an excerpt:

The IG report found that Kessler pressed other postal executives to back off a plan to purchase property that the Postal Service was leasing for a post office and vehicle maintenance facility in Sarasota, Fla. The agency had been leasing the property since 1965 and had an option to buy it at any time at a highly favorable price, the IG report said.

In a May 2 statement to Inspector General David Williams, Kessler's attorney said Kessler denied those charges. Kessler received many inquiries from members of the public and forwarded their concerns to the appropriate postal officials, the attorney said.

The statement said Kessler's involvement in the matter was sporadic and limited to a handful of phone calls with Band and emails to arrange those phone calls. Kessler forwarded emails from Band to postal officials and sent follow-up emails, his attorney said.

"There is no indication that Mr. Kessler improperly influenced or even attempted to improperly influence the Postal Service on this matter, nor did he have any reason to do so," the statement said. "Mr. Kessler had no personal, professional or financial interest in the outcome of the dispute."

Federal Times obtained a copy of the IG report through a FOIA request.

Former DOJ Lawyer Disbarred Over Conflicts

A BLT (Blog of Legal Times) post describes the debarment of a former Department of Justice lawyer over a conflict of interest related to the Jack Abramoff lobbying scandal. The D.C. Court of Appeals opinion on the matter is available.

U.S. v. Stadd, No. 09-3121 (D.C. Cir., March 4, 2011)

FINDLAW posted the decision of the D.C. Circuit on a former NASA employee's appeal of conviction for one count of committing an act affecting a personal financial interest in violation of 18 U.S.C. §§ 208(a) and 216(a)(2) and two counts of making false statements in violation of 18 U.S.C. § 1001(a)(2).  The discussion is interesting and citations to case law may be of interest.  See full opinion at http://caselaw.findlaw.com/us-dc-circuit/1557957.html.

Former Army Contracting Officials Charged with ... Filing False Ethics Forms

A Justice press release reports that a former Army contracting official and his spouse were indicted for conspiracy to defraud the US, filing false tax statements, and filing false statements on their Government ethics financial disclosure documents.  See full press release at http://www.justice.gov/opa/pr/2011/June/11-tax-821.html.

Revolving Door Perspective: "One Man's Evil Empire Is Another's Home Team"

A front page story in this morning's New York Times arguably raises questions about whether existing revolving door rules are adequate to maintain confidence in public service. Here's an excerpt:

Michael K. Loucks was arguably the nation’s most influential prosecutor of health care fraud. He racked up numerous convictions and mega-settlements in nearly a quarter-century, using whistle-blowers and secret grand juries to pressure major pharmaceutical and health companies into ending illegal practices like kickbacks to doctors and misuse of blockbuster drugs.

But a year and a half ago, Mr. Loucks, a Republican, left the United States attorney’s office in Boston after he was passed over for the top post and President Obama appointed a Democrat. Instead, Mr. Loucks joined Skadden, Arps last July, and has startled former allies by emerging in recent months as zealous a corporate defender as he was a prosecutor, complete with proposals seeking more lenient treatment for the medical companies he once vilified.

A quote at the end of the article could provide a platform for discussion during ethics training:

For his part, Mr. Loucks uses a baseball reference. Johnny Damon left his beloved Boston Red Sox in late 2005 to sign with “the evil empire, the New York Yankees,” Mr. Loucks said. Both teams won World Series with help from Mr. Damon.

Asked whether the “evil empire” analogy fit the Justice Department or Skadden, Mr. Loucks said, “One man’s evil empire is another’s home team.”

POGO report on "revolving door" conflicts for former SEC employees

On May 13, 2011, the Project on Government Oversight (POGO) released a report discussing entitled: Revolving Regulators: SEC Faces Ethic Challenges with Revolving Door.  The report was features not only discussion of the potential conflicts between former employees and their post-SEC positions, but also includes a public database of post-employment statements filed by former SEC employees between 2006 and 2010.  See POGO report at http://www.pogo.org/pogo-files/reports/financial-oversight/revolving-regulators/fo-fra-20110513.html.  And GovExec article summarizing the same: http://www.govexec.com/story_page.cfm?articleid=47807&dcn=e_gvet.

OGE on YouTube

OGE has training videos at YouTube:

1. Criminal conflict of interest statute (18 U.S.C. 208)
2. Impartiality (5 C.F.R. 2635,Subpart E)
3. Gifts from Outside Sources (5 C.F.R.2635, Subpart B)

POGO on Federal Advisory Committee Website

The Project On Government Oversight reacts to the recent unveiling of the upgraded Federal Advisory Committee website:

[I]t's already a huge improvement over the previous database. Moving forward, we hope GSA can work with Congress, agencies, advisory committees, the Office of Government Ethics, and the NGO community to explore how the government can provide even more information on federal advisory committees and their members. For instance, many agencies have already created exemplary webpages for their advisory committees with links to conflict-of-interest waivers and recusal statements, agency responses to committee reports, and archived video webcasts of committee meetings. This is the kind of thing POGO and other good government advocates would like to see more of as agencies continue to implement their open government initiatives.

OGE Proposes Exemption to COI Laws Regarding Fed Employees Sitting on Boards

A recent Wall Street Journal blog post states that the Office of Government Ethics has proposed an exemption to the conflict of interest rules that will allow federal employees to sit on the boards of non-profit organizations in their official capacity.  The proposal will be published in the Federal Register today.  The proposal is at odds with the Office of Legal Counsel, which takes the view that "directors of outside organizations are beholden to fiduciary duties under state law that could conflict with the obligations of federal employees."  OGE's Director states that a thorough review process and resignation from the board should a conflict arise would keep potential conflicts at bay. 

An important note: these rules do not apply unless there is appropriate statutory authority to engage in one's official capacity.

OGE is taking public comments on the proposal for the next 60 days.  Link to Federal Register entry:  http://edocket.access.gpo.gov/2011/pdf/2011-10629.pdf

S.Ct. to hear case on whether COI restrictions violate 1st Amendment Rights

A Nevada public official was centured by the state's ethics commission for voting on a provision which would have impact on his friend.  He is now appealing the ruling to the Supreme Court on the basis that this conflict of interest rule violates his freedom of speech.  Read the Washington Post full article at: http://www.washingtonpost.com/politics/supreme-court-confronts-whether-conflict-of-interest-laws-violate-officials-free-speech/2011/04/23/AF9hsTdE_story.html

Wife Convicted for Preference to Husband in Federal Employment

We missed this Department of Justice press release last spring, but it is such a striking illustration of an ethics issue, it's worth a belated posting. Here is the relevant section:

Biondolillo pled guilty to a one count criminal information charging her with using her official position with NASA Langley to secure and advance her husband’s employment at the Langley Research Center. Sentencing has been set for Sept. 23, 2010.  Biondolillo faces a maximum penalty of one year in prison and a $100,000 fine. 

In a statement of facts filed with her plea agreement, Biondolillo admitted that she was employed by NASA as a Human Resources Specialist (HRS) and Co-op Program Coordinator (CPC) at the Langley Research Center, in Hampton, Va. As part of her job, she screened USAJOBS and inquired at Langley for possible employment for her husband, Elmar R. Koldert.  Thereafter, she used non-public information concerning a job opening to introduce her husband’s resume to the selecting official for that position. She failed to disclose her relationship to the prospective employee and pressured university officials to expedite her husband’s admission and therefore, employment at Langley. Despite being directed to not involve herself in the employment process, she continued to be involved, specifically, regarding the issue of his pay grade. The defendant and her husband had a substantial financial interest in securing a position at Langley.

Coming Soon: A Federal Contractor Ethics Code

This week, a panel of government officials and private sector advisors recommended that the regulations governing federal contracts should include a clear code of ethics.  Under the plan, approved by the Administrative Conference of the United States, the FAR-governing council would create a model conflict of interest policy that would apply both to contractors that work with secret government information and to those that might run into valuable proprietary data about their competitors.  The panel recommended that the model language remain only advisory to agencies.  The ultimate goal of the proposal is to decrease the disparity between ethics rules that apply to government employees and to contract employees.  The article at GovExec.com can be found here:

http://www.govexec.com/story_page.cfm?articleid=47630&oref=todaysnews

Resolving Conflicts If Google Exec Appointed to Cabinet

An IEC member tipped us off to a wonderful CNN article about conflicts of interest implicated by a possible appointment of Google Chairman Eric Google to be Secretary of Commerce. Here's an excerpt:

"Putting it in a blind trust would be hopelessly ineffective," said Alan Morrison, professor at George Washington Law School. "It's the worst kind of fig leaf, because it's not 'blind' in any sense of the word. What's Schmidt going to say? 'Do I own Google? Really?'"

The Office of Government Ethics mandates that employees of the executive branch can't own more than $15,000 of a stock or asset that would conflict with their work. Going from $5 billion to $15,000 isn't going to happen in a day.

To get around that requirement, the OGE allows people in conflict to recuse themselves from certain activities. That means even after his Google shares are put in trust, Schmidt would still have to recuse himself if a conflict arises with Google.

The good news for Schmidt is that the Department of Commerce doesn't deal all that heavily in Google's businesses.

Articles about high-profile, real-life occurrences make some of the best training material. It's hard to imagine a better example than this to illustrate the OGE 278, financial disclosure and divestiture of assets.

IEC Journal lives or dies by reader contributions, so keep us in mind when you come across something of interest to the community, especially something this useful.

 

Conflict of Interest at DARPA

Thanks to an IEC member for alerting us to a Wired magazine article about a possible conflict of interest at DARPA (Defense Advance Research Projects Agency). An April 4 follow-up article has more information.

Sentenced to 42 months in prison for stealing nearly $250,000

Former employee at the U.S. Embassy in Baghdad, Iraq, was found guilty of two counts of theft of public money and one count of engaging in acts affecting a personal financial interest.  See DOJ press release: http://www.justice.gov/opa/pr/2011/April/11-crm-449.html.

ACUS Groups To Discuss Contractor COI Recommendations

This month there will be three meetings of committees of the Assembly of the Administrative Conference of the United States (ACUS) to discuss draft recommendations regarding conflict of interests of contractors who provide support to Government agencies. A Federal Register notice gives more information.

Thanks to former IEC Chair Steve Epstein for the tip.

SEC GC's Failure to Recuse from Madoff

A good example to use in instructing on immunizing advice and its limits?

ABA Journal: SEC GC Says He Didn't Recuse on Madoff Matters on Advice of Ethics Counsel.

The outgoing general counsel of the Securities and Exchange Commission says he relied on legal advice when he didn't recuse himself in Bernard Madoff matters, despite his mother's profitable investment with the now-convicted Ponzi schemer. ...

 Becker told House Republicans that he informed SEC chairman Mary Schapiro and SEC ethics counsel William Lenox about his mother's Madoff account when he returned to the agency in 2009, a time when the SEC was focused on enforcement actions against Madoff. Becker writes that he consulted with Lenox at least twice, and both times Lenox concluded Becker's legal work wouldn't have a direct effect on his financial interests, the stories say.

Contractor Ethics - FEMA Presentation Materials & Handouts (Mar. 2011)

Please remember to bring your own copies of the relevant handouts for the upcoming meeting. 

Power Point Presentation: Download FEMA Acq Ethics Brief 2011 (black white)

FEMA specific guidance:

• Download Contractor Logo on FEMA Publications and Documents to Congress
• Download Kor FEMA workplace 2007
• Download TRAINING EXAMPLES FOR VIOLATION GAMEREVISED3
• Download DHS Form 11000-6 NDA
• Download 2011_02_23_sourceseltechevalKethicsBW

Other references and resources:

• Download 31 USC 1349
• Download 48 CFR 37 114 contractorID themselvesFAR
• Download DO-06-023 wking with contractors
• Download Subpart 9 FAR OCI

 

Analysis of Conflict of Interest Issues

The most recent issue of the Journal of Public Inquiry has an article by Department of Justice lawyer Mark Greenblatt discussing 18 U.S.C. 208 issues.  For your convenience, we are providing a separate file  containing Mr. Greenblatt's article only:

Download Greenblatt-Conflict of Interest Statute

Prof. Tribe comes close to violating Post-Govt Employment Restrictions

Harvard Law School professor Laurence Tribe's name was yanked from an amicus curiae brief in a major Supreme Court climate change case earlier this month after the Justice Department told him his recent service in the department (as a senior counselor for access to justice issues) made it improper for him to be on the brief.  See full article at http://legaltimes.typepad.com/blt/2011/02/laurence-tribes-name-pulled-from-supreme-court-brief.html#tp.  Interesting assertion from co-counsel that these post-government employment activities amounted to interference with clients rights to petition--including having Prof Tribes name on the brief.

Senate Armed Services Divestiture Requirement

A Washington Post article that discusses the Senate Armed Services requirement that its staff and DoD Presidential appointees divest and avoid investing in any DoD contractors for the duration of their appointments--regardless of the financial loss to the individual--a requirement they do not adhere to themselves.  Read the full article at http://www.washingtonpost.com/wp-dyn/content/article/2010/12/18/AR2010121802499_pf.html 

Former Bureau of Prisons employee sentenced

A former Bureau of Prisons employee was sentenced to 27 months in prison and then 3 years supervised release, plus payment of $5,000, and forfeiture of $25,000, as well as $1,900 in special monetary assessments.  The charges included conflict of interest.  See full DOJ press release at: http://www.justice.gov/oig/reports/press/2010/2010_12_15c.pdf

Interior IG Report Cites Irregularities in Shell Bids

The Wall Street Journal reports:

The federal agency that controls oil and natural-gas production on U.S.-owned land "appeared to give preferential treatment" to Royal Dutch Shell PLC when the company pursued drilling leases on public land during 2005 and 2006, the acting inspector general of the Interior Department said in a report Friday.

Investigators said they found no evidence that Shell broke the law, and "no conclusive evidence" that then-Interior Secretary Gale Norton—who accepted a job with Shell several months after leaving her government post—broke federal conflict-of-interest laws. ...

The Interior Department's inspector general's office had referred the matter to the Justice Department, which declined criminal prosecution. A Justice Department spokeswoman declined to comment. An Interior Department spokeswoman said the department was reviewing the report. Ms. Norton didn't respond to a request for comment.One Interior ethics official wrote Ms. Norton in an e-mail that "the permanent ban might not apply based on your description of how you were involved in this issue while Secretary," according to the report. The ethics official also asked Norton follow-up questions, but Norton "never responded," the report said.  ...

The U.S. Office of Government Ethics concluded that Norton had "played a significant role" in the oil-shale program while secretary and said that her "participation in the program should subject her to the lifetime ban on communicating with the federal government regarding the program," the report said. ...

Politico and Federal News Radio have more.

Navy Program Manager pleads guilty to 208 violation

A Navy Program Manager plead guilty to a conflict of interest violation for negotiating for employment with a DoD contractor while participating personally and substantially in Navy matters in which the contractor had a financial interest.

See DOJ press release.

Ex-NASA Chief of Staff Sentenced

GovExec.com reports on the former NASA chief of staff who pled guilty to one count of conspiracy in connection with improperly directing contracts to a university and consulting firm:

Stadd first joined the space agency as President George W. Bush's NASA transition chief in 2000 and served as its chief of staff and White House liaison from 2001 to 2003. He returned in 2005 to assist with an agency reorganization effort, during which time he conspired with Liam Sarsfield, NASA's deputy chief engineer of programs, to direct a $600,000 contract to Mississippi State University. The school later subcontracted $450,000 to Capitol Solutions, Stadd's management consulting firm. Sarsfield later left NASA and went to work for the consulting firm on the same subcontract.

Stadd was sentenced to 41 months in prison. His co-conspirator Sarsfield had earlier received a 3 year sentence for acts affecting a personal financial interest.

OGE 2009 Prosecution Survey

The Office of Government Ethics issued DAEOgram DO-10-017 on November 9, 2010 announcing the publication of the 2009 Conflict of Interest Prosecution Survey.   The survey contains summaries of cases involving conflict of interest violations.  The Department of Justice prosecuted the cases. See http://www.usoge.gov/ethics_guidance/daeograms/dgr_files/2010/do10017.pdf

Difference in conflict rules for Congressional and Executive Branch Personnel

An interesting article from the Wall Street Journal which discusses how Congressional staffers can gain from trading on stock related to the Congressional work without fear of legal consenquences in part because Insider Training rules don't apply to Congress.  See full article at http://online.wsj.com/article/SB10001424052748703431604575522434188603198.html#

National Cancer Institute Advisory Board Appointment Controversy

A New York Times article discusses the controversy over the appointment of a wealthy businessman to the National Cancer Institute advisory board.  A letter from pro-health groups cited in the article criticizes existing conflicts of interest rules and requests an OGE review: 

 

It is astounding that NCAB rules permit the selection of any board members with known bias and direct conflicts of interests to be on the NCAB board where they can directly influence matters as important as public health policy. We urge the Office of Government Ethics to complete a full and immediate review of this practice.