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less than sixty days in a given calendar companied by a notice to the former year, who has been an employee in an employee to show cause within a speciexecutive level position or a position fied time of not less than 30 days after with a comparable or greater rate of receipt of the notice why he or she pay, or in a position which involved should not be prohibited from engaging significant decision making or super- in representational activities in relavisory responsibility as designated by tion to matters pending before the the Director of Office of Government Commission, as authorized by 18 U.S.C. Ethics under 18 U.S.C. 207(d)(1)(C), 207(j), or subjected to other appropriate shall, within one year after such em disciplinary action under that statute. ployment has ceased, knowingly en The notice to show cause shall include: gage in conduct described in the next (1) A statement of allegations, and sentence. The prohibited knowing con- their basis, sufficiently detailed to enduct is that of acting as attorney or able the former employee to prepare an agent for, or otherwise representing adequate defense; anyone other than the United States, (2) Notification of the right to a hearin any formal or informal appearance ing; and before, or with the intent to influence, (3) An explanation of the method by making any oral or written commu- which a hearing may be requested. nication on behalf of anyone other (b) If a former employee who submits than the United States (1) to the Com an answer to the notice to show cause mission, or any employee thereof, (2) in does not request a hearing or if the connection with any rulemaking or Designated Ethics Officer does not reany matter enumerated and described ceive an answer within five days after in paragraph (a)(2) of this section and the expiration of the time prescribed (3) which is pending before the Com- by the notice, the Designated Ethics mission or in which it has a direct and Officer shall forward the record, insubstantial interest.

cluding the report(s) of investigation, (e) No partner of an employee shall to the Chairman. In the case of a failact as agent or attorney for anyone ure to answer, such failure shall conother than the United States before an stitute a waiver of defense. organization enumerated in paragraph (c) Upon receipt of a former employ(a)(1) of this section, or any officer or ee's request for a hearing, the Desemployee thereof, in connection with ignated Ethics Officer shall notify him any matter enumerated and described or her of the time and place thereof, in paragraph (a)(2) of this section in giving due regard both to such person's which such Government employee is need for an adequate period to prepare participating or has participated per- a suitable defense and an expeditious sonally and substantially as a Govern- resolution of allegations that may be ment employee through decision, ap- damaging to his or her reputation. proval, disapproval, recommendation, (d) The presiding officer at the hearthe rendering of advice, investigation ing and any related proceedings shall or otherwise, or which is the subject of be a Federal administrative law judge his or her official responsibility.

or other Federal official with com

parable duties. The presiding officer 8500.6 Disciplinary proceedings shall insure that the former employee against former employees.

has, among others, the rights: (a) Upon a determination by the (1) To self-representation or represenCommission's Designated Ethics Offi- tation by counsel; cer, after investigation, that there is (2) To introduce and examine witreasonable cause to believe that a nesses and submit physical evidence; former officer or employee, including a (3) To confront and cross-examine adformer special Government employee, verse witnesses; has violated 18 U.S.C. 207 (a), (b) or (c), (4) To present oral argument; and the Designated Ethics Officer shall (5) To a transcript or recording of the cause a copy of written charges of the proceedings, upon request. violation(s) to be served upon such in- (e) The Designated Ethics Officer dividual, either personally or by reg- shall designate one or more officers or istered mail. The charges shall be ac- employees of the Commission to

(ii) Prescribing other appropriate disciplinary action.


501.1 Extent of authority.
501.2 Subpoenas.
501.3 Service of process.
501.4 Witnesses.
501.5 Depositions.
501.6 Documentary evidence.
501.7 Time.

AUTHORITY: Sec. 2, Pub. L. 80-896, 62 Stat. 1240, as amended (50 U.S.C. App. 2001); sec. 3, Pub. L. 81-455, 64 Stat. 12, as amended (22 U.S.C. 1622).

SOURCE: 52 FR 17559, May 11, 1987, unless otherwise noted.

present the evidence against the former employee and perform other functions incident to the proceedings.

(1) A decision adverse to the former employee must be sustained by substantial evidence that he or she violated 18 U.S.C. 207 (a), (b) or (c).

(8) The presiding officer shall issue an initial decision based exclusively on the transcript of testimony and exhibits, together with all papers and requests filed in the proceeding, and shall set forth in the decision findings and conclusions, supported by reasons, on the material issues of fact and law presented on the record.

(h) Within 30 days after issuance of the initial decision, either party may appeal to the Chairman, who in that event shall issue the final decision based on the record of the proceedings or those portions thereof cited by the parties to limit the issues. If the final decision modifies or reverses the initial decision, the Chairman shall specify the findings of fact and conclusions of law that vary from those of the presiding officer.

(i) If a former employee fails to ap peal from an adverse initial decision within the prescribed period of time, the presiding officer shall forward the record of the proceedings to the Chairman.

(j) In case of a former employee who filed an answer to the notice to show cause but did not request a hearing, the Chairman shall make the final decision on the record submitted by the Designated Ethics Officer pursuant to subsection (b) of this section.

(k) The Chairman, in a case where:
(1) The defense has been waived;

(2) The former employee has failed to appeal from an adverse initial decision; or

(3) The Chairman has issued a final decision that the former employee violated 18 U.S.C. 207 (a), (b) or (c) may issue an order:

(i) Prohibiting the former employee from making on behalf of any person or party (other than the United States), any informal or formal appearance before, or, with the intent to influence, any oral or written communication to, the Commission on a pending matter of business for a period not to exceed five years, or

8501.1 Extent of authority.

(a) Subpoenas, oaths and affirmations. The Commission or any member thereof may issue subpoenas, administer oaths and affirmations, take affidavits, conduct investigations and examine witnesses in connection with any hearing, examination, or investigation within its jurisdiction.

(b) Certification. The Commission or any member thereof may, for the purpose of any such hearing, examination, or investigation, certify the correctness of any papers, documents, and other matters pertaining to the administration of any laws relating to the functions of the Commission.

8501.2 Subpoenas.

(a) Issuance. A member of the Commission or a designated employee may, on such member or employee's own volition of upon written application by any party and upon a showing of general relevance and reasonable scope of the evidence sought, issue subpoenas requiring persons to appear and testify or to appear and produce documents. Applications for issuance of subpoenas duces tecum shall specify the books, records, correspondence, or other documents sought. The subpoena shall show on its face the name and address of the party at whose request the subpoena was issued.

(b) Deposit for costs. The Commission or designated employee, before issuing any subpoena in response to any appli

cation by an interested party, may re- istered mail, or by telegraph or by pubquire a deposit in an amount adequate lication. to cover fees and mileage involved.

(c) Personal service. Service by deliv(c) Motion to quash. If any person sub- ering in person may be accomplished poenaed does not intend to comply by: with the subpoena, such person shall, (1) Delivering a copy of the document within 15 days after the date of service to the person to be served, to a member of the subpoena, petition in writing to of the partnership to be served, to an quash the subpoena. The basis for the executive officer or a director of the motion must be stated in detail. Any corporation to be served, or to a person party desiring to file an answer to a competent to accept service; or motion to quash must file such answer (2) By leaving a copy thereof at the not later than 15 days after the filing residence, principal office or place of of the motion. The Commission shall business of such person, partnership, or rule on the motion to quash, duly rec- corporation. ognizing any answer thereto filed. The (3) Proof of service. The return remotion, answer, and any ruling thereon ceipt for said order, other process or shall become part of the official record supporting papers, or the verification

(d) Appeal from interlocutory order. An by the person serving, setting forth the appeal may be taken to the Commis- manner of said service, shall be proof of sion by the interested parties from the the service of the document. denial of a motion to quash or from the (4) Service upon attorney or agent. refusal to issue a subpoena for the pro- When any party has appeared by an auduction of documentary evidence.

thorized attorney or agent, service (e) Order of court upon failure to com- upon such attorney or agent shall be ply. Upon the failure or refusal of any deemed service upon the party. person to comply with a subpoena, the (d) Service by first class mail. Service Commission may invoke the aid of the by first class mail shall be regarded as United States District Court within complete upon deposit in the United the jurisdiction of which the hearing, States mail properly stamped and adexamination or investigation is being dressed. conducted, or wherein such person re- (e) Service by registered mail. Service sides or transacts business. Such court, by registered mail shall be regarded as pursuant to the provisions of Public complete on the date the return post Law 81-696, approved August 16, 1950 (50 office registered receipt for said orders, U.S.C. App. 2001(d)), may issue an order notices and other papers is received by requiring such person to appear at the the Commission. designated place of hearing, examina- (1) Service by telegraph. Service by tion or investigation, then and there to telegraph shall be regarded as complete give or produce testimony or documen- when deposited with a telegraph comtary evidence concerning the matter in pany properly addressed and with question. Any failure to obey such an order may be punished by the court as (8) Service by publication. Service by a contempt thereof. All processes in publication is completed when due noany such case may be served in the ju- tice shall have been given in the publidicial district wherein such person re cation for the time and in the manner sides or transacts business or wherever provided by law or rule. such person may be found.

(h) Date of service. The date of service

shall be the day upon which the docu8501.3 Service of process.

ment is deposited in the United States (a) By whom served. The Commission mail or delivered in person, as the case shall serve all orders, notices and other may be. papers issued by it, together with any (i) Filing with Commission. Papers reother papers which it is required by quired to be filed with the agency shall law to serve.

be deemed filed upon actual receipt by (b) Kinds of service. Subpoenas, or the Commission accompanied by proof ders, rulings, and other processes of the of service upon parties required to be Commission may be served by deliver- served. Upon such actual receipt the ing in person, by first class or reg- filing shall be deemed complete as of

the date of deposit in the mail or with and cause to be served upon the parties the telegraph company as provided in an order which will specify the name of paragraphs (e) and (f) of this section. the witness whose deposition is to be

taken, the time, the place, and where $ 501.4 Witnesses.

practicable the designation of the offi(a) Examination of witnesses. Wit- cer before whom the witness is to tesnesses shall appear in person and be ex- tify. Such officer may or may not be amined orally under oath, except that the one specified in the application. for good cause shown, testimony may The order shall be served upon all parbe taken by deposition.

ties at least 10 days prior to the date of (b) Witness fees and mileage. Witnesses the taking of the deposition. summoned by the Commission on its (b) Who may take. Such deposition own behalf or on behalf of a claimant may be taken before the designated ofor interested party shall be paid the ficer or, if none is designated, before same fees and mileage that are allowed any officer authorized to administer and paid witnesses in the District oaths by the laws of the United States. Courts of the United States. Witness If the examination is held in a foreign fees and mileage shall be paid by the country, it may be taken before a secCommission or by the party at whose retary of an embassy or legation, conrequest the witness appears.

sul-general, consul, vice consul, or con(c) Transcript of testimony. Every per sular agent of the United States. son required to attend and testify or to (c) Eramination and certification of tessubmit documents or other evidence timony. At the time and place specified shall be entitled to retain or, on pay in said order the officer taking such ment of prescribed costs, procure a deposition shall permit the witness to copy of the transcript of the testimony be examined and cross-examined under or the documents produced.

oath by all parties appearing, and the

testimony shall be reduced to writing $ 501.5 Depositions.

by, or under the direction of, the pre(a) Application to take. (1) An applica- siding officer. All objections to question to take a deposition shall be in tions or evidence shall be deemed writing setting forth the reason why waived unless made in accordance with such deposition should be taken, the paragraph (d) of this section. The offiname and address of the witness, the cer shall not have power to rule upon matters concerning which it is ex- any objections but shall note them pected the witness will testify, and the upon the deposition. The testimony time and place proposed for the taking shall be subscribed by the witness in of the deposition, together with the the presence of the officer who shall atname and address of the person before tach a certificate stating that the witwhom it is desired that the deposition ness was duly sworn, that the deposibe taken. If such deposition is being of- tion is a true record of the testimony fered in connection with a hearing or and exhibits given by the witness and examination, the application for depo that said officer is not counsel or atsition shall be made to the Commission torney to any of the interested parties. at least 15 days prior to the proposed The officer shall immediately seal and date of such hearing or examination. deliver an original and two copies of

(2) Application to take a deposition said transcript, together with the offimay be made during a hearing or exam cer's certificate, by registered mail to ination, or subsequent to a hearing or the Foreign Claims Settlement Comexamination, only where it is shown mission, Washington, DC 20579 or to the for good cause that the facts as set field office designated. forth in the application to take the (d) Admissibility in evidence. The depodeposition were not within the knowl- sition shall be admissible in evidence, edge of the person signing the applica subject to such objections to the question prior to the time of the hearing ortions and answers as were noted at the examination.

time of taking the deposition, or with(3) The Commission or its representa in ten (10) days after the return theretive shall, upon receipt of the applica- of, and would be valid were the witness tion and a showing of good cause, make personally present at the hearing.

within the jurisdiction of the Commission. The application for the issuance of subpoenas duces tecum shall specify the books, records, correspondence or other documents sought. The production of documentary evidence shall not be required at any place other than the witness' place of business. The production of such documents shall not be required at any place if, prior to the return date specified in the subpoena, such person either has furnished the issuer of the subpoena with a properly certified copy of such documents or has entered into a stipulation as to the information contained in such documents.

(e) Errors and irregularities. All errors or irregularities occurring shall be deemed waived unless a motion to sup press the deposition or some part thereof is made with reasonable promptness after such defect is, or with due diligence might have been, ascertained.

(1) Scope of use. The deposition of a witness, if relevant, may be used if the Commission finds:

(1) That the witness has died since the deposition was taken; or

(2) that the witness is at a distance greater than 100 miles radius of Washington, DC, the designated field office or the designated place of the hearing; or

(3) that the witness is unable to attend because of other good cause shown.

(g) Interrogatories and cross-interrogatories. Depositions may also be taken and submitted on written interrogatories in substantially the same manner as depositions taken by oral examinations. When a deposition is taken upon interrogatories and cross-interrogatories, none of the parties shall be present or represented, and no person, other than the witness, such person's representative or attorney, a stenographic reporter and the presiding officer, shall be present at the examination of the witness, which fact shall be certified by such officer, who shall propound the interrogatories and cross-interrogatories to the witness in their order and reduce the testimony to writing in the witness' own words. · (h) Fees. A witness whose deposition

is taken pursuant to the regulations in this part, and the officer taking the deposition, shall be entitled to the same fees and mileage allowed and paid for like service in the United States District Court for the district in which the deposition is taken. Such fees shall be paid by the Commission or by the party at whose request the deposition is being taken. (52 FR 17559, May 11, 1987, as amended at 52 FR 19731, May 27, 1987) 8 501.6 Documentary evidence.

Documentary evidence may consist of books, records, correspondence or other documents pertinent to any hearing, examination, or investigation

$ 501.7 Time.

(a) Computation. In computing any period of time prescribed or allowed by the regulations, by order of the Commission, or by any applicable statute, the day of the act, event, or default after which the designated period of time begins to run is not to be included. The last day of the period so computed is to be included, unless it is a Saturday, Sunday or legal holiday, in which event the period runs until the end of the next day which is neither a Saturday, Sunday nor a holiday. When the period of time prescribed or allowed is less than 7 days, intermediate Saturdays, Sundays and holidays shall be excluded in the computation.

(b) Enlargement. When by the regulations in this chapter or by a notice given thereunder or by order of the Commission an act is required or allowed to be done at or within a specific time, the Commission for good cause shown may, at any time in its discretion (1) with or without motion, notice, or previous order or (2) upon motion, permit the act to be done after the expiration of the specified period.


Sec. 502.1 Adoption of regulations. 502.2 Review of statements of employment

and financial interests. 502.3 Disciplinary and other remedial ac

tion. 502.4 Gifts, entertainment, and favors. 502.5 Outside employment and other activ


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