Forfeiture of Retired Pay for Contracting With the Government in Violation of Federal Regulations

The agency requested a determination as to whether certain business activities engaged in by a retired member constituted a violation of 37 U.S.C. 801(c) so as to require forfeiture of retired pay for the period in question. The retired Marine Corps officer who within 3 years of his name being placed on a retired list made precontract contacts with contracting officials of the Marine Corps in his capacity as a representative of a firm selling to the Marine Corps may be presumed to be engaged in selling within the meaning of 37 U.S.C. 801(c). In the absence of convincing rebuttal evidence, the officer's retired pay for the period of the prohibited activities is subject to recovery.