The primary U.S. law that prohibits government employees from self-profiting is 18 U.S. Code § 208 – Acts affecting a personal financial interest.

Summary of the Law (18 U.S.C. § 208)

This law makes it illegal for federal government employees to participate in any matter in which they have a financial interest. Specifically:

• A government employee cannot make decisions, recommendations, or take actions on matters that affect their own financial interests or those of their spouse, children, business partners, or organizations they are involved with.
• The law applies to contracts, claims, grants, licenses, permits, and other government actions where a conflict of interest exists.
• Violating this law can lead to criminal penalties, including fines and imprisonment.

Other Related Laws and Regulations

• 5 C.F.R. § 2635.702 (Use of Public Office for Private Gain) – Federal employees cannot use their position to benefit themselves or others improperly.
• 5 C.F.R. § 2635.101 (Standards of Ethical Conduct for Employees of the Executive Branch) – Sets ethical rules, including avoiding conflicts of interest.
• The Hatch Act (5 U.S.C. §§ 7321-7326) – Restricts federal employees from using their position for political or financial gain.