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Standards of Conduct, Continued - 14237_221
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 personnel. (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- ment  personnel. 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 AII-12

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