Public entity crime: Overview, definition, and example

What is a public entity crime?

A public entity crime refers to a criminal act that is committed by or within a public organization or agency, or by individuals working for such entities in their official capacity. These crimes may involve corruption, fraud, bribery, misconduct, or abuse of power by public officials or employees. Public entity crimes are serious offenses because they undermine the trust and integrity of governmental institutions and can harm the public interest, especially when committed by those entrusted with the responsibility to serve the community.

For example, a public entity crime could occur if a government official accepts bribes in exchange for awarding contracts to certain companies.

Why are public entity crimes important?

Public entity crimes are important because they pose significant risks to public trust in governmental institutions and the proper functioning of public services. These crimes can lead to inefficiency, waste of public resources, and unfair practices that harm citizens or businesses. They also erode confidence in the rule of law and government accountability, which are essential for a functioning democracy.

For businesses and individuals, public entity crimes can have far-reaching consequences, such as legal penalties, loss of contracts, and reputational damage. For society, these crimes undermine the fair distribution of resources and may divert funds from essential public services like education, healthcare, or infrastructure.

Understanding public entity crimes through an example

Let’s say a local government official accepts a bribe from a construction company to award them a lucrative government contract. This act of bribery is considered a public entity crime because it involves a government official misusing their authority for personal gain, rather than acting in the public interest. The crime can lead to legal charges against the official and the company, and the contract awarded may be deemed invalid, leading to a loss of resources for taxpayers.

In another example, a police officer who uses their position to extort money from business owners in exchange for protection would also be committing a public entity crime. This type of misconduct damages public confidence in law enforcement and can have serious repercussions for both the officer and the community.

An example of a public entity crime clause

Here’s how a clause like this might appear in a contract or agreement involving public contracts:

“The Contractor warrants that neither it, nor any of its employees, agents, or subcontractors, have committed any public entity crimes, including but not limited to bribery, fraud, or corruption, in connection with obtaining this contract. The Contractor agrees to comply with all applicable laws, including those governing ethical conduct and the prevention of public entity crimes, and will immediately notify the Agency if any such crimes are discovered.”

Conclusion

Public entity crimes are offenses committed by government officials or individuals working within public organizations that harm the public interest and undermine the trust in government institutions. These crimes include corruption, fraud, bribery, and other forms of misconduct that are detrimental to society. Addressing public entity crimes is essential for maintaining government integrity, ensuring fair practices, and protecting public resources. By preventing such crimes and holding offenders accountable, governments can maintain public confidence and uphold the principles of justice and fairness.


This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.