79 



Finally, we investigated LAWRENCE P. COTTER, a voting member oC 

 the Council, who had a contract with a consortium of companies 

 that would directly benefit from the amendment. 



Legal Background 



Although we uncovered abuses, our investigation did not 

 substantiate any violations of criminal laws. We found that 

 conduct that is forbidden under criminal conflict of interest 

 laws in other contexts is permitted under the laws establishing 

 the NPFMC and the other regional councils. The legal framework 

 governing NPFMC operations makes this possible: it anticipates 

 conflicts of interest but establishes an exempting mechanism for 

 the Council's voting members and Executive Director. 



The NPFMC is one of eight regional councils established by the 

 Magnuson Fishery Conservation and Management Act, as amended 

 (Magnuson Act), 16 U.S.C. §§ 1801-1882. Regulations promulgated 

 under the Act require that Council members be knowledgeable and 

 experienced in one or more specified areas, including harvesting, 

 processing, or marketing fish. Required experience may also 

 involve holding office in or leading a State, regional, or 

 national organization representing any of these interests. 50 

 C.F.R. § 601.33. 



The regulations, at 50 C.F.R. § 601.35, make clear that Council 

 employees are subject to most federal conflict of interest laws, 

 including 18 U.S.C. § 208 (actions affecting personal financial 

 interests) and § 207 (post employment conflicts) . However, the 

 Magnuson Act, 16 U.S.C. § 1852(k)(7), and regulations, 50 C.F.R. 

 § 601.37(b), exempt the voting members of the Council and its 

 Executive Director from 18 U.S.C. § 208 if they disclose 

 financial interests they hold that may come within the 

 jurisdiction of the Council. 



The regulations, at 50 C.F.R. § 601.35(b)(4), prohibit Council 

 employees from maintaining financial interests that conflict with 

 their duties. Also, under 50 C.F.R. § 601.35(b)(8), Council 

 members are prohibited from participating in (i) particular 

 matters primarily of individual concern in which they have a 

 financial interest, and (ii) matters of general public concern_ 

 that are likely to have a direct and predictable effect on their 

 financial interests, unless those interests are properly 

 disclosed. 



We report the following findings in the context of these 

 standards. 



