WASHINGTON, July 29, 2005 (PRIMEZONE) -- Former U.S. Department of Education Undersecretary for Safe & Drug-Free Schools Eric Andell's case was resolved Friday with an order for unsupervised probation, community service and a fine.

In an agreement with the Justice Department Andell pleaded guilty to one misdemeanor charge of unlawful conflict-of-interest. In April 2005 Andell reimbursed the Department of Education for all questioned expenses.

The ruling called for one year unsupervised probation, 100 hours of community service and a $5,000 fine.

"From the beginning I have taken full responsibility for the violation of the conflict of interest statute," said Andell.

"I have always been keenly aware of the privilege and the responsibility of serving the public and I am eager to regain the trust of the community I've served for so long."

                             FACT SHEET
                     CONFLICT OF INTEREST STATUTE

     --  The federal conflict of interest statute is located at
         18 U.S.C. Section 208.  It prohibits federal officials from
         "participat(ing)" in any government matter in which the
         official "has a financial interest."  It states in relevant
         part:

              (W)hoever, being an officer or employee of the executive
              branch of the United States Government, ... participates
              personally and substantially as a Government officer or
              employee ... in ... (a) particular matter in which, to
              his knowledge, he ... has a financial interest ...
              (s)hall be subject to the penalties set forth in section
              216 of this title.

     --  The penalties for a violation of the federal conflict of
         interest statute are set forth in 18 U.S.C. Section 216.  The
         first subsection of this provision -- the only subsection
         with which Eric Andell was charged -- describes a
         misdemeanor.  It states that a person who violates the
         statute "shall be imprisoned for not more than one year."
         18 U.S.C. Section 216(a)(1).  By definition, an offense that
         is limited to one year imprisonment or less is a misdemeanor.

         The subsection described above does not apply when a person
         acts "willfully."  In such a case, the provision's second
         subsection applies.  This second subsection makes it a felony
         to "willfully" violate the statute.  18 U.S.C. Section
         216(a)(2).  The government did not charge Eric Andell with a
         "willful" violation under this more severe subsection.

     --  A violation of the conflict of interest statute is not fraud.
         Fraud is a distinct and more serious offense that is located
         in an entirely different provision of the U.S. Code
         (18 U.S.C. Section 1341).  The government did not charge
         Mr. Andell with fraud.  It charged him only with conflict of
         interest.

     --  The U.S. Supreme Court has described the federal conflict of
         interest statute as follows:

              (T)he statute does not specify as elements of the crime
              that there be actual corruption or that there be any
              actual loss suffered by the government as a result of
              the defendant's conflict of interest.  This omission
              indicates that the statute establishes an objective
              standard of conduct, and that whenever a government
              agent fails to act in accordance with that standard, he
              is guilty of violating the standard, regardless of
              whether there is positive corruption.  The statute is
              thus directed not only at dishonor, but also conduct
              that tempts dishonor.  This broad proscription embodies
              a recognition of the fact that an impairment of
              impartial judgment can occur even in the most
              well-meaning men when their personal economic interests
              are affected ... To this extent, therefore, the statute
              is more concerned with what might have happened in a
              given situation than with what actually happened ...

         United States v. Mississippi Valley Generating Co., 364 U.S.
         520 (1961) (discussing predecessor statute to 18 U.S.C.
         Section 208).

CONTACT:  Eric Delinksy, Washington
          (202) 778-1831

          Richard Mithoff, Houston
          (713) 654-1122