October 4, 1994
                                   DO-94-034

MEMORANDUM 

TO:       Designated Agency Ethics Officials,
          General Counsels and Inspectors General

FROM:     Stephen D. Potts
          Director

SUBJECT:  Reports of Referral for Possible Prosecution

     Section 535 of Title 28 of  the United States Code imposes
upon every agency a duty to report to the Attorney General any
information, allegations or complaints relating to violations of
Title 18 of the Code involving Government officers and employees,
including  possible  violations of 18 U.S.C. 207 by  former
officers and employees.  When any matter involving an alleged
violation of Federal conflict of  interest law is  referred to the
Attorney General, agencies are to concurrently notify the Director
of the Office of Government Ethics (OGE) of the referral (5 U.S.C.
App. 402(e)(2); 5 C.F.R. § 2638.603(b)) and provide a copy of the
referral document.

     Each agency shall also provide the Director follow-up reports
of any indictment, information, or declination of prosecution as
well as any disciplinary or corrective action initiated, taken, or
to be taken by the agency.

     Agencies are again encouraged to use the "Notification of
Conflict of  Interest Referral"  form  (OGE  Form 202)  to meet 
the statutory requirement to notify OGE (See DAEOgram dated
September 20, 1994).     

     We previously requested that the Designated Agency Ethics
Official (DAEO) in each agency inform us as to the name and
telephone number of the individual who would be providing referral
and follow-up information to us (See DAEOgram dated April 4, 1991). 
In order to ensure the ongoing facilitation of the regulatory
requirements, we request that each DAEO provide us with an updated
point of contact.  This point of contact is needed by October 31,
1994.  Your cooperation will ensure compliance with the statutory
requirement.  In addition, the information supplied by your agency
through this contact will enable us to track the types of
violations occurring and develop programs to address recurring
ethics problems.