AP

DOJ to use ‘carrot and stick’ approach on corporate crime

Sep 15, 2022, 4:26 AM | Updated: Sep 16, 2022, 12:02 pm

WASHINGTON (AP) — Faced with a decline in the number of corporate criminal prosecutions over the last decade, a top Justice Department official on Thursday unveiled new sweeteners for companies that cooperate with the government and a $250 million Congressional budget request to expand its work.

Every division that prosecutes corporate crime must now develop programs to incentivize companies to report misconduct, Deputy Attorney General Lisa Monaco said in a speech at New York University Law School. In some cases, no one will have to plead guilty to criminal charges if the violation was self-reported and the company fixed it.

The Justice Department’s top priority is prosecuting individuals who commit corporate crime, she said. She pointed to companies like Theranos, whose disgraced CEO Elizabeth Holmes was convicted on felony counts earlier this year.

“We will hold those who break the law accountable, regardless of their position, status, or seniority,” Monaco said.

Companies will also be required to come forward more quickly with evidence of suspected misdeeds to get leniency, and could eventually be rewarded for clawing back money from executives that break the law.

The new policies include alluring carrots for companies, but if they’re not accompanied by the stick of increased enforcement they may not have a big impact, so the $250 million request is a key piece, said Julian Andre, a former federal prosecutor who is now in private practice with the Los Angeles-based firm McDermott Will and Emery.

“Corporate prosecutions are still declining,” he said. “Until the DOJ devotes substantial additional resources to pursuing these time-intensive and complex investigations … many companies may still decide that voluntary disclosures are not in its best interests.”

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Image: A cargo ship is stuck under the part of the structure of the Francis Scott Key Bridge after ...

Associated Press

Authorities identify 2 bodies recovered at site of Baltimore bridge collapse

A major bridge in Baltimore snapped and collapsed after a container ship rammed into it early Tuesday, and several vehicles fell into the river below.

15 hours ago

Photo: Mountaineer Jim Whittaker has died at 95....

Gene Johnson, The Associated Press

Lou Whittaker, among the most famous American mountaineers, has died at age 95

Lou Whittaker, a legendary American mountaineer who helped lead ascents of Mount Everest, K2 and Denali, has died at age 95.

16 hours ago

File photo: Former Sen. Joe Lieberman speaks in Washington on Jan. 18, 2024....

Associated Press

Former Sen. Joe Lieberman, Democrats’ VP pick in 2000, dead at 82

Former U.S. Sen. Joe Lieberman of Connecticut, who nearly won the vice presidency on the Democratic ticket with Al Gore in 2000, has died.

16 hours ago

islamic state attack...

Vanessa Gera, The Associated Press

What we know after the Islamic State group claims responsibility for Moscow massacre

The Islamic State group has claimed responsibility for an attack on a suburban Moscow concert hall that killed at least 133 people.

4 days ago

Moscow shooting...

The Associated Press

Russia: 60 dead, 145 injured in concert hall raid; Islamic State group claims responsibility

Assailants burst into a concert hall in Moscow on Friday and sprayed the crowd with gunfire, killing over 60 people, injuring more than 100.

6 days ago

Photo: Britain's Kate, Duchess of Cambridge visits 282 (East Ham) Squadron, RAF Air Cadets, Cornwel...

Associated Press

Kate Middleton announces she has cancer, is undergoing chemotherapy

Kate Middleton, Princess of Wales, says she is undergoing chemotherapy to treat cancer. She has been out of view since Christmas.

6 days ago

DOJ to use ‘carrot and stick’ approach on corporate crime