The United States Department of Justice (DOJ) is implementing a new policy designed to encourage companies to self-report criminal misconduct. According to a DOJ memo shared with Reuters, the policy is intended to provide reduced fines and other benefits to companies that proactively disclose wrongdoing and cooperate fully with government investigators. The move expands a similar program already in place within the DOJ’s criminal division in Washington and will now apply to all U.S. attorneys’ offices and divisions, with the exception of antitrust cases. This change addresses past criticism regarding inconsistent application of cooperation benefits. The Department of Justice is responsible for law enforcement and the administration of justice in the United States. It ensures the fair and impartial administration of justice for all Americans.
Under the new policy, companies that report previously undisclosed misconduct to the DOJ and cooperate fully will face more lenient consequences. While they must still provide compensation to victims and return any ill-gotten gains, they will avoid fines and third-party oversight. For companies that already report known problems to the DOJ, prosecutors will offer a troop of illegal contracts if they meet certain conditions over a set period of time. These companies can expect a 50% to 75% reduction in fines and avoid monitoring.
Deputy Attorney General Todd Blanche emphasized that the DOJ will reward businesses in good faith that self-disclose wrongdoing, cooperate with investigations, and address misconduct. He also warned that companies that fail to do so will face appropriate sanctions, with the DOJ seeking action against both companies and individuals involved in white-collar crimes that harm American interests. Companies can also receive up to 50% reduced fines for cooperation and remediation, even if they don’t self-report.
The new program will replace any similar policies that individual U.S. Attorneys’ offices already have in place, ensuring a consistent and standardized procedure across the department.
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