Theft or bribery concerning programs receiving federal funds (sometimes referred to as program fraud or program bribery) is a federal crime under . The purpose of this statute is protect the integrity of the vast sums of money distributed through federal programs. The section is designed to facilitate the prosecution of persons who steal money or otherwise divert property or services from state and local governments or private organizations—for example, universities, foundations and business corporations—that receive large amounts of federal funds.

Definition of offense

Subsection (a)(1)(A) of Section 666 prohibits the

embezzlement Embezzlement is a crime that consists of withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type ...

stealing Theft is the act of taking another person's property or services without that person's permission or consent with the intent to deprive the rightful owner of it. The word ''theft'' is also used as a synonym or informal shorthand term for some ...

, obtaining by

fraud In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...

or otherwise unauthorized

conversion Conversion or convert may refer to: Arts, entertainment, and media * "Conversion" (''Doctor Who'' audio), an episode of the audio drama ''Cyberman'' * "Conversion" (''Stargate Atlantis''), an episode of the television series * "The Conversion" ...

to the use of any person other than the rightful owner or the intentional misapplication of property having a value of $5,000 or more by an

agent Agent may refer to: Espionage, investigation, and law *, spies or intelligence officers * Law of agency, laws involving a person authorized to act on behalf of another ** Agent of record, a person with a contractual agreement with an insuranc ...

, typically an

employee Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other ...

, of an organization or of a state, local or Indian tribal government agency that receives $10,000 or more annually in federal assistance. The maximum penalty is imprisonment for 10 years and a fine of the greater of $100,000 or twice the amount obtained in violation of the section. Subsection (a)(1)(B) prohibits such agents and employees from soliciting or accepting bribes and gratuities in connection with any business transaction involving $5,000 or more. Subsection (a)(2) prohibits anyone from offering bribes and gratuities in connection with any business transaction involving $5,000 or more.

Bribery

In the US federal criminal code, bribery by public officials is defined in

Title 18 of the United States Code Title 18 of the United States Code is the main criminal code of the federal government of the United States. The Title deals with federal crimes and criminal procedure. In its coverage, Title 18 is similar to most U.S. state criminal codes, w ...

, § 201.

Legislative history and purpose

18 U.S.C § 666 was enacted in 1984. The legislative history of the statute indicates that Congress intended to eliminate a gap in the criminal statutes which made it more difficult to prosecute theft from federally funded programs:

In many cases, such ec. 641prosecution is impossible because title has passed to the recipient before the property is stolen, or the funds are so commingled that the Federal character of the funds cannot be shown. This situation gives rise to a serious gap in the law, since even though title to the monies may have passed, the Federal Government clearly retains a strong interest in assuring the integrity of such program funds. Indeed, a recurring problem in this area (as well as in the related area of bribery of the administrators of such funds) has been that state and local prosecutors are often unwilling to commit their limited resources to pursue such thefts, deeming the United States the principal party aggrieved.S. Rep. No. 225, 98th Cong. 1st Sess. 369, reprinted in 1984 USCCAN 369.

Under prior law, with few exceptions, thefts from such governments or organizations could be prosecuted only under the general theft statute, (which covers theft of U.S. government property), or the statute prohibiting theft of funds under the

Comprehensive Employment and Training Act The Comprehensive Employment and Training Act (CETA, ) was a United States federal law enacted by the Congress, and signed into law by President Richard Nixon on December 28, 1973 to train workers and provide them with jobs in the public service. ...

(CETA), . Use of the general theft statute was often precluded because either the title to the property stolen had passed from the federal government before it was stolen or the funds were so commingled that their federal character could not be shown. Consequently, Congress created a separate offense under 18 U.S.C. § 666 to ensure the integrity of federal program funds administered through private organizations and state, local, or Indian tribal government agencies and to fill an apparent gap in the law that neither 18 U.S.C. § 641 nor § 665 could reach.

References

External links

USAM Chapter 9-46.000 - Program Fraud and Bribery
{{DoJ USAM United States federal public corruption crime statutes 98th United States Congress 1984 in the United States 1984 in law Bribery Program bribery