the purpose of this prohibition, the private interests of a spouse, minor child,
and any household member are treated as private interests of the naval
(1) Unless otherwise expressly authorized by action taken under 18
USC 208(b), all naval personnel who have or acquire an affiliation or a finan-
cial interest which creates a conflict or appearance of a conflict with their
official duties must report the possibly disqualifying interest to the appropriate
supervisor and immediate subordinates. If the individual cannot adequately
perform his official duties after such disqualification, he must divest himself
of such involvement or be removed from that position.
(2) Naval personnel need not disqualify themselves under this
section, however, for holding shares of a widely held, diversified mutual fund
or regulated investment company. Such holdings are exempted as being too
remote or inconsequential to affect the integrity of the services of govern-
b. Using inside information. Naval personnel must not use, directly
or indirectly, inside information to further a private gain for themselves or
others if that information is not generally available to the public and was
obtained by reason of their DOD positions.
c. Using naval position. Naval personnel are prohibited from using
their official positions to induce, coerce, or in any manner unlawfully influence
any person, including subordinates, to provide any benefit, financial or other-
wise, to themselves or others.
d. Dealing with present and former military and civilian personnel.
Naval personnel must not knowingly deal on behalf of the government with
present or former government personnel, military or civilian, whose participa-
tion in the transaction would be in violation of a statute, regulation, or policy
set forth in this instruction. While all applicable prohibitions are within the
prohibition established by this subparagraph, attention is directed to the pro-
hibition on retired regular officers selling to the government through the depart-
ment in which they hold a retired status, 18 USC 281; the prohibition on former
personnel acting as an agent or attorney for anyone other than the United
States in connection with claims against the government, 18 USC 207; and
the prohibition on paying appropriated funds to retired regular officers who
are selling to certain government agencies, 37 USC 801(c).
e. Commercial soliciting by naval personnel. To eliminate the
appearance of coercion, intimidation, or pressure from rank, grade, or posi-
tion, full-time naval personnel, except special government employees and
Reserve enlisted personnel on active duty for training, are prohibited from
making personal commercial solicitations or sales to DOD personnel who are
junior in rank or grade, at any time, on or off duty.
(1) This limitation includes, but is not limited to, the solicitation
and sale of insurance, stocks, mutual funds, real estate, and any other com-
modities, goods, or services.
(2) This prohibition is not applicable to the one-time sale by an
individual of his own personal property or privately owned dwelling, or to
the off-duty employment of naval personnel as employees in retail stores or
other situations not including solicited sales.
(3) With regard to solicitation by and of civilian personnel,
the limitation applies only to solicitation of personnel under the supervision,
at any level, of the solicitor.
f. Assignment of Reserve personnel for training. Naval personnel
who are responsible for assigning Reserves for training must not assign them
to duties in which they will obtain information that could be used by them