18 U.S.C. § 208 – Acts Affecting a Personal Financial Interest
A conflict-of-interest statute governing federal decision-making.
What § 208 covers.
Section 208 makes it a federal offense for certain government officials or employees to participate personally and substantially in an official matter when they have a financial interest in the outcome.
The statute applies to decisions, approvals, recommendations, investigations, advice, or other official actions that could affect a covered financial interest.
Whose financial interests matter.
The prohibition extends beyond the official’s own interests and includes financial interests held by:
- A spouse or minor child
- A general partner
- An organization in which the official serves as an officer, director, trustee, partner, or employee
- A person or entity with whom the official is negotiating future employment
Who is covered.
Section 208 applies to a wide range of federal actors, including:
- Executive branch officers and employees
- Employees of independent federal agencies
- Federal Reserve Bank directors, officers, and employees
- District of Columbia officers and employees
- Special Government Employees
Exceptions and waivers.
The statute allows limited exceptions where a written waiver is granted, a regulatory exemption applies, or the financial interest is deemed too remote or inconsequential to affect the integrity of government service.
Penalties.
Violations of § 208 are punished under 18 U.S.C. § 216, which may include criminal penalties, civil penalties, or administrative consequences depending on the nature of the violation.
Why § 208 matters.
Conflict-of-interest allegations frequently arise alongside public corruption, procurement fraud, and ethics investigations. Whether an official “participated personally and substantially” is often a central point of dispute.
If a federal investigation involves alleged conflicts of interest or ethics violations, call (314) 900-HELP or contact our federal criminal defense attorneys to discuss how the statute applies and what defenses may be available.
