§ 905.737-102 Enforcement proceedings. ( a ) *Delegation.* The Chairman of the Corporation may delegate his or her authority under this subpart.
( b ) *Initiation of disciplinary hearing.* ( 1 ) Information regarding a possible violation of 18 U.S.C. 207 or 5 CFR part 737 should be communicated to the Chairman. The Chairman shall promptly initiate an investigation to determine whether there is reasonable cause to believe that a violation has occurred.
( 2 ) On receipt of information regarding a possible violation of 18 U.S.C. 207, and after determining that such information appears substantiated, the Chairman of the Corporation shall expeditiously provide such information, along with any comments or regulations of the Corporation, to the Director of the Office of Government Ethics and to the Criminal Division, Department of Justice. The Corporation shall coordinate any investigation with the Department of Justice to avoid prejudicing criminal proceedings, unless the Department of Justice communicates to the Corporation that it does not intend to initiate criminal prosecution.
( 3 ) Whenever the Corporation has determined after appropriate review, that there is reasonable cause to believe that a former employee has violated 18 U.S.C. 207 or 5 CFR part 737, it shall initiate a disciplinary proceeding by providing the former employee with notice as defined in paragraph (c) of this section.
( 4 ) At each stage of any investigation or proceeding under this section, the Chairman shall take whatever steps are necessary to protect the privacy of the former employee. Only those individuals participating in an investigation or hearing shall have access to information collected by the Corporation pursuant to its investigation of the alleged violation.
( c ) *Adequate notice.* ( 1 ) The Corporation shall provide the former employee with adequate notice of its intention to institute a proceeding and an opportunity for a hearing.
( 2 ) Notice to the former employee must include: ( i ) A statement of the allegations (and the basis thereof) sufficiently detailed to enable the former employee to prepare an adequate defense;
( ii ) Notification of the right to a hearing;
( iii ) An explanation of the method by which a hearing may be requested; and
( iv ) Notification that if a hearing is not requested within thirty days of receipt of notice, the Corporation will issue a final decision finding the alleged violations to have occurred.
( 3 ) Failure to request a hearing within thirty days of the receipt of notice will be deemed an admission of the allegations contained in the notice and will entitle the Corporation to issue a final decision finding the alleged violations to have occurred.
( d ) *Presiding official.* ( 1 ) The presiding official at proceedings under this subpart shall be the Chairman, or an individual to whom the Chairman has delegated authority to make an initial decision (hereinafter referred to as *examiner*).
( 2 ) An examiner shall be an employee of the Corporation who is familiar with the relevant provisions of law and who is otherwise qualified to carry out the duties of that position. He or she shall be impartial. No individual who has participated in any manner in the decision to initiate the proceedings may serve as an examiner.
( e ) *Time, date and place.* ( 1 ) The hearing shall be conducted at a reasonable time, date, and place.
( 2 ) On setting a hearing date, the presiding official shall give due regard to the former employee's need for: ( i ) Adequate time to prepare a defense properly; and
( ii ) An expeditious resolution of allegations that may be damaging to his or her reputation.
( f ) *Hearing rights.* A hearing shall include the following rights: ( 1 ) To represent oneself or to be represented by counsel;
( 2 ) To introduce and examine witnesses and to submit physical evidence;
( 3 ) To confront and cross-examine adverse witnesses;
( 4 ) To present oral argument; and
( 5 ) To receive a transcript or recording of the proceedings, on request.
( g ) *Burden of proof.* In any hearing under this subpart, the Corporation has the burden of proof and must establish substantial evidence of a violation.
( h ) *Hearing decision.* ( 1 ) The presiding official shall make a determination exclusively on matters of record in the proceeding, and shall set forth in the decision all findings of fact and conclusions of law relevant to the matters at issue. If the hearing is conducted by the Chairman, the resulting written determination shall be an initial decision.
( 2 ) Within thirty days of the date of an initial decision, either party may appeal the decision to the Chairman. The Chairman shall base his or her decision on such appeal solely on the record of the proceedings on those portions thereof cited by the parties to limit the issues.
( 3 ) If the Chairman modifies or reverses the initial decision, he or she shall specify such findings of fact and conclusions of law as are different from those of the examiner.
( 4 ) If no appeal is taken from an initial decision within thirty days, the initial decision shall become a final decision.
( i ) *Sanctions.* The Chairman shall take appropriate action in the case of any individual who is found to be in violation of 18 U.S.C. 207 or 5 CFR part 737 after a final decision by: ( 1 ) Prohibiting the individual from making, on behalf of any other person except the United States, any formal or informal appearance before, or, with the intent to influence, any oral or written communication to, the Corporation on any matter of business for a period not to exceed five years, which may be accomplished by directing employees of the Corporation to refuse to participate in any such appearance or to accept any such communication; or
( 2 ) Taking other appropriate disciplinary action.
( j ) *Judicial review.* Any person found by the Corporation to have participated in a violation of 18 U.S.C. 207 or 5 CFR part 737 may seek judicial review of the determination in an appropriate United States District Court.
[48 FR 38233, Aug. 23, 1984]