Retired General Goes to Work for Contractor - Gets Nailed for Conflict of Interest

Government employees, including military service members, often develop experience and expertise that makes the attractive to companies in the private sector. If an employee is seeking post-Government employment and the employee's Government work offers the opportunity to benefit a potential employer, the public may be concerned that the employee will do that work in a way that favors the prospective employer. After leaving Government, a former government employee could make unfair use of prior Government employment to influence Government action on behalf of another person or organization.

Accordingly, the U.S. Office of Government Ethics has published extensive rules, regulations, and guidance for Executive Branch employees seeking post-Government employment and former employees engaging in certain activities after leaving Government service.

An Executive Branch employee (including military) may be affected by conflict of interest restrictions after leaving Government service. There are several legal authorities that address post-Government employment, and certain authorities contain more than one restriction. One of those restrictions applies to all former Government employees:

A former employee may be prohibited from having contact with an employee of any Federal agency or court, on behalf of another person or entity, concerning an official matter with which the former employee was involved as a Government employee.

All of this is background to an announcement yesterday from the Justice Department that a retired Air Force General agreed to pay $125 thousand to settle allegations that he engaged in conflict of interest activities after retiring.

The General retired in October 2010 and became CEO of a contractor with Air Force contracts the following February. From June 2011 to July 2012, while serving as the contractor CEO, the retired General engaged in communications and appearances on behalf of the contractor, before US officer regarding a military defense program, a program that he participated in "personally and substantially" while he was with the Air Force.

The retired General agreed to pay $125 thousand to resolve the allegations that his conduct violated conflict of interest prohibitions under federal law. The Government claims were allegations only and there was no determination of liability. Nevertheless, the guy is out $125 thousand plus plenty of legal fees.

This case is similar to one we wrote about in 2013 involving an auditor who left the Government for contractor employment and proceeded to represent the contractor in matters she was involved in during her Government employment (or so it was alleged). She settled for a paltry $5 thousand.

Government contractors, as well as the former Government employees they hire, need to know and understand these conflict of interest rules.