US Department of Justice Tightens Policies Against White Collar Crime

FBI agents will be assigned to corporate misconduct, prosecutors were urged to be bold in holding companies accountable.

A senior official in the United States Department of Justice detailed a series of policy changes aimed at eradicating corporate misconduct and prioritizing individual prosecutions, signaling a shift to a harsher tone by the Biden administration on crimes. White collar.

Speaking at an industry conference Thursday, Assistant Attorney General Lisa Monaco said the Justice Department would reinstate guidance that companies must provide complete lists of individuals involved in any misconduct to receive credit for prosecutors’ cooperation.

Justice Department leaders “will urge prosecutors to be bold in holding criminal conduct accountable,” Monaco said in remarks prepared for the American Bar Association’s annual conference on white-collar crime.

Monaco’s comments indicated a shift in the focus of America’s top law enforcement agency toward white-collar crime under President Joe Biden. Under Biden’s predecessor, Donald Trump, a Republican, the United States government had sought to boost cooperation and found itself more lenient on corporate crime.

US prosecutors in New York have brought charges of tax fraud against the former president’s real estate development company, the Trump Organization, and its chief financial officer Allen Weisselberg; Both have pleaded not guilty.

In San Jose, California, USA, he is prosecuting former founder of biotech startup Theranos, Elizabeth Holmes, for fraud, seeking jail time and a $ 3 million fine.

The department will require prosecutors to consider a company’s entire criminal, civil and regulatory history when considering how to resolve an investigation into wrongdoing, Monaco said. Previously, the department primarily focused on similar types of misconduct when weighing a deal.

Monaco said the department has begun reviewing data on corporate resolutions to better understand when not to use certain types of agreements in which it agrees not to prosecute a company in exchange for a fine and promises of better behavior.

The department will move away from an earlier change in corporate monitors, a costly aspect of many resolutions between prosecutors and businesses, Monaco said.

It will look for ways to “increase resources” for business misconduct issues, including a new squad of FBI agents to be integrated into the department’s Criminal Fraud section tasked with prosecuting economic crimes, Monaco added.

Justice Department officials had previously telegraphed the policy change.

John Carlin, acting deputy attorney general and one of the department’s top officials, told a hearing of white-collar defense attorneys in New York earlier this month that justice would devote more resources to prosecuting corporate wrongdoing, Wall Street reported. Journal.

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