18 U.S.C. § 666 – Theft or Bribery Concerning Programs Receiving Federal Funds
18 U.S.C. § 666 is a federal criminal statute that targets theft, embezzlement, fraud, and bribery involving programs or organizations that receive federal funds.
The law applies to agents of private organizations, nonprofit entities, state and local governments, and institutions that receive more than $10,000 in federal assistance within a one-year period.
Federal prosecutors use Section 666 to protect the integrity of federal program funding. Charges under this statute can carry severe penalties, including up to ten years in federal prison per count.
If you are under investigation for federal program fraud, embezzlement, or bribery involving federally funded entities, you should consult an experienced federal criminal defense attorney immediately.
Your best hope for a favorable outcome is with an experienced criminal defense attorney at the Hedding Law Firm in Los Angeles. To schedule a consultation, call (866) 986-2092 or use the contact form here.
What Does 18 U.S.C. § 666 Prohibit?
Section 666 makes it a federal crime for an agent of an organization or government that receives federal funds to:
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Embezzle
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Steal
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Obtain by fraud
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Knowingly convert
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Misapply property valued at $5,000 or more
The statute also criminalizes bribery involving:
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Corruptly soliciting
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Demanding
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Accepting
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Offering
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Giving anything of value
when done with intent to influence or reward an agent in connection with business or transactions of $5,000 or more.
Who Can Be Charged Under 18 U.S.C. § 666?
The statute applies to “agents” of organizations or governments that receive federal financial assistance of at least $10,000 within a 12-month period.
An “agent” includes:
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Employees
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Officers
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Directors
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Managers
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Representatives
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Partners
The law does not require the stolen or misapplied funds to be directly traceable to federal dollars. Instead, it applies broadly to organizations receiving federal assistance.
Common Examples of Section 666 Prosecutions
Federal prosecutors often bring charges under 18 U.S.C. § 666 in cases involving:
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Medicare and Medicaid fraud
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Government contract fraud
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Bribery involving local officials
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School district embezzlement
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Nonprofit organization fund diversion
Section 666 charges are frequently accompanied by related federal offenses such as:
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Conspiracy under 18 U.S.C. § 371
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Mail fraud under 18 U.S.C. § 1341
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Wire fraud under 18 U.S.C. § 1343
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Healthcare fraud under 18 U.S.C. § 1347
Key Elements the Government Must Prove
To convict under 18 U.S.C. § 666, federal prosecutors must prove beyond a reasonable doubt:
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The defendant was an agent of an organization or government entity
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The organization received at least $10,000 in federal funds within a 12-month period
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The defendant stole, embezzled, misapplied, or fraudulently obtained property valued at $5,000 or more, or engaged in bribery
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The defendant acted knowingly and with criminal intent
Intent is often the central issue in these cases.
The government must show that the defendant acted deliberately and unlawfully, not by mistake or negligence.
What Is Not Covered Under Section 666?
The statute does not apply to bona fide salary, wages, fees, or legitimate business expenses paid in the ordinary course of operations.
This distinction can be important in cases involving compensation disputes or complex accounting practices.
Penalties for 18 U.S.C. § 666 Violations
If convicted, a defendant may face:
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Up to 10 years in federal prison per count
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A fine of up to $250,000 per count for individuals
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Significant restitution orders
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Asset forfeiture
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Professional and career consequences
Because multiple counts are often charged, sentencing exposure can increase rapidly.
Defenses to Federal Funds Theft or Bribery Charges
While Section 666 is broad, several defense strategies may apply depending on the facts.
Lack of Criminal Intent
If improper conduct occurred accidentally, negligently, or in good faith, the government may not be able to prove intent.
No Federal Funding Threshold
The prosecution must establish that the organization received at least $10,000 in federal assistance within the required period.
No $5,000 Transaction
The statute requires that the property or transaction at issue be valued at $5,000 or more.
Legitimate Compensation
Payments made in the usual course of business may not constitute theft or bribery.
Insufficient Evidence
Federal prosecutors must prove each element beyond a reasonable doubt. Weaknesses in financial documentation or witness credibility can significantly affect the case.
Each case requires careful examination of contracts, financial records, internal policies, and communications.
Frequently Asked Questions About 18 U.S.C. § 666
Does the money have to be federal funds?
No. The organization must receive federal funds, but the specific property involved does not need to be directly traceable to federal dollars.
What is the $10,000 requirement?
The organization must have received more than $10,000 in federal financial assistance within a one-year period.
What is the $5,000 requirement?
The alleged theft, fraud, or bribery must involve property or a transaction valued at $5,000 or more.
Can private nonprofit employees be charged?
Yes. The statute applies to agents of private organizations receiving federal assistance.
Is Section 666 considered a white-collar crime?
Yes. It is typically prosecuted as a federal white-collar offense.
Speak With a Federal Criminal Defense Attorney
Federal theft and bribery charges under 18 U.S.C. § 666 are serious and often involve complex financial investigations.
If you are under investigation or have been charged with federal program fraud or bribery, early legal intervention is critical.
The Hedding Law Firm represents clients nationwide in complex federal criminal cases, including white-collar and public corruption investigations. The firm is located in Los Angeles.
For a confidential consultation, contact us to discuss your case and defense strategy.
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