Federal Program Fraud (18 U.S.C. § 666)
Prohibits theft, embezzlement, and bribery involving programs that receive federal funds. Extends federal bribery law beyond pure federal employees to agents of any organization receiving federal assistance.
Elements
- Agent of an organization, government, or agency
- That receives ≥ $10,000 in federal benefits in any one-year period
- Who steals, embezzles, obtains by fraud, or intentionally misapplies property worth ≥ 5,000
- The transaction occurred in connection with the federally funded program
Bribery Prong
Salinas v. United States (1997): § 666 does NOT require a quid pro quo linked specifically to the federal funds; it is enough that the bribe relates to the organization’s business and the organization received ≥$10K in federal benefits. The federal funds need not be directly involved in the corrupt transaction.
”In Connection With” Requirement
Fischer v. United States (2000): § 666 reaches agents involved in managing and expending federal funds. The “in connection with” language ensures some nexus between the corrupt conduct and the federal program — purely personal transactions unrelated to the entity’s operations are excluded.
Comparison to § 201 and § 1341/1343
| Statute | Defendant | Scope |
|---|---|---|
| Federal Bribery (18 U.S.C. § 201) | Federal public officials | Requires official act; narrowed by McDonnell |
| § 666 | Agents of federally funded entities | Much broader; no official act requirement |
| Mail Fraud and Wire Fraud (18 U.S.C. §§ 1341, 1343) | Anyone | Requires mail/wire + scheme to defraud |