1646

Protection of Government Property—Nonappropriated Funds

The Department has in the past successfully maintained the position that money and property of nonappropriated fund activities--such as armed services post exchanges--are within the scope of 18 U.S.C. § 641. See United States v. Cotten, 471 F.2d 744 (9th Cir.), cert. denied, 411 U.S. 936 (1973). This position rests on the fact that employees of these activities are employees of the United States under 5 U.S.C. § 2105(c) and on the fact that these entities have been considered federal agencies for a number of purposes. See, e.g., Jaeger v. United States, 394 F.2d 944 (D.C.Cir. 1968); Brethauer v. United States, 333 F.2d 302 (8th Cir. 1964); United States v. Holcomb, 277 F.2d 143 (4th Cir. 1960). [cited in USAM 9-66.200]