The section is designed to facilitate the prosecution of persons who steal money or otherwise divert property or services from state and local governments or private organizations—for example, universities, foundations and business corporations—that receive large amounts of federal funds.
[1] Subsection (a)(1)(A) of Section 666 prohibits the embezzlement, stealing, obtaining by fraud or otherwise unauthorized conversion to the use of any person other than the rightful owner or the intentional misapplication of property having a value of $5,000 or more by an agent, typically an employee, of an organization or of a state, local or Indian tribal government agency that receives $10,000 or more annually in federal assistance.
[1] Subsection (a)(1)(B) prohibits such agents and employees from soliciting or accepting bribes and gratuities in connection with any business transaction involving $5,000 or more.
This situation gives rise to a serious gap in the law, since even though title to the monies may have passed, the Federal Government clearly retains a strong interest in assuring the integrity of such program funds.
§ 666 to ensure the integrity of federal program funds administered through private organizations and state, local, or Indian tribal government agencies and to fill an apparent gap in the law that neither 18 U.S.C.