April 2, 1997
                                   DO-015-97


MEMORANDUM

TO:       Designated Agency Ethics Officials

FROM:     Stephen D. Potts
          Director

SUBJECT:  Issuance of a Memorandum by the Office of Legal Counsel          
          on the Application of 18 U.S.C. § 208 to Employee Service
          on Boards of Directors of Non-Federal Entities 


     On November 19, 1996, the Office of Legal Counsel issued a
Memorandum addressing whether 18 U.S.C. § 208 would prohibit
Federal Bureau of Investigation (FBI) personnel from serving on the
boards of directors of non-Federal nonprofit entities in their
official capacities.  That office determined that the statutory
prohibition does prevent an employee from such service absent
explicit statutory authority or a waiver under 18 U.S.C. § 208(b). 
Additional relief might be obtained through a release of fiduciary
obligations by the outside organization if permitted under
applicable state law.

     The Office of Legal Counsel found that the prohibition in
section 208 "extends to any official action by a government
employee that affects the employee's financial interests or those
of other specified persons or entities, such as an organization for
which the employee is a director."  Thus, an FBI employee who
performs official duties for the FBI in serving on the board of an
outside organization is subject to section 208 with respect to any
action the employee takes as a director of the outside
organization.  

     A copy of the opinion is attached for your information.