---
kind: "section"
citation: "24 C.F.R. § 4.36"
title: "24"
number: "4.36"
heading: "Action by the Ethics Law Division."
url: "https://uscodex.org/cfr/24/4.36"
---

# §4.36. Action by the Ethics Law Division.

- (a) After review of the Inspector General's report, the Ethics Law Division shall determine whether or not there is sufficient information providing a reasonable basis to believe that a violation of [Section 103](/cfr/24/103.md) or this subpart B has occurred.
- (b) If the Ethics Law Division determines that there is no reasonable basis to believe that a violation of [Section 103](/cfr/24/103.md) or this subpart B has occurred, it shall close the matter and send its determination to the Office of Inspector General.
- (c) If the Ethics Law Division determines that there is sufficient information to provide a reasonable basis to believe that a violation of [Section 103](/cfr/24/103.md) or this subpart B has occurred, it shall:
  - (1) Send its determination to the Office of Inspector General; and
  - (2) Refer the matter to the appropriate official for review as to whether to impose a civil money penalty in accordance with [24 CFR part 30](/cfr/24/part30.md); provided, however, that the Ethics Law Division shall not make a civil money penalty recommendation unless it finds the violation to have been knowing and material. The decision to impose a civil money penalty in a particular matter may be made only upon referral from the Ethics Law Division.
- (d) In determining whether a violation is material, the Ethics Law Division shall consider the following factors, as applicable:
  - (1) The content of the disclosure and its significance to the person to whom the disclosure was made;
  - (2) The time during the selection process when the disclosure was made;
  - (3) The person to whom the disclosure was made;
  - (4) The dollar amount of assistance requested by the person to whom the disclosure was made;
  - (5) The dollar amount of assistance available for a given competition or program;
  - (6) The benefit, if any, received or expected by the employee, the employee's relatives or friends, or any other person with whom the employee is affiliated;
  - (7) **The potential injury to the Department.**
- (e) If the Ethics Law Division determines that there is sufficient information to provide a reasonable basis to believe that a violation of [Section 103](/cfr/24/103.md) or this subpart B has occurred, it may, in addition to referring the matter under [24 CFR part 30](/cfr/24/part30.md), refer the matter to an appropriate HUD official for consideration of any other available disciplinary action. Any referral authorized by this [paragraph (e)](#e) shall be reported to the Inspector General and may be reported to the employee's supervisor.

## Notes

### Authority

Authority: 42 U.S.C. 3535(d), 3537a, 3545.

### Source

Source: 61 FR 14449, Apr. 1, 1996, unless otherwise noted.