Department Of Justice Revised Principles Of Prosecution Of Business Organizations Require Increased Corporate Vigilance

On January 20, 2003, the Department of Justice (the “Department”) issued revised Principles of Federal Prosecution of Business Organizations (“Revised Principles”), signaling increased emphasis on corporate white-collar prosecutions for the foreseeable future. The revisions indicate a strong cultural and legal shift in the government’s attitude toward prosecuting corporations for crimes committed by their officers, directors or employees. This White Paper addresses the substance and implications of those and other changes in light of the significantly enhanced abilities of the government to prosecute white-collar crimes. This White Paper also describes how the changes will affect businesses’ dealings with the Department in the future and what companies should do now to protect themselves in the unfortunate event that they become the subject of a government investigation.

The outline of this White Paper is as follows:

1. Introduction
2. Historical Background on Corporate Liability
3. Recent Changes in Policy and Law Regarding White-Collar Criminal Prosecutions
1. Corporate Fraud Task Force
2. The Department’s Revised Principles of Federal Prosecution of Business Organizations and Recent Developments
1. Effective “Corporate Governance Mechanisms” and History of Misconduct
2. Initial Response to Investigation and Cooperation with the Government
3. Attorney-Client Privilege and Work-Product Protection Waivers
3. The Guideline Amendments
4. What a Corporation Can Do to Prepare for the Future

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