[ Signed on June 16, 1999 ]

M E M O R A N D U M
TO: All Component Heads and United States Attorneys
FROM: THE DEPUTY ATTORNEY GENERAL
SUBJECT: Bringing Criminal Carges Against Corporations
!ore and more o"ten# "ederal prose$%tors are "a$ed &it $riminal $ond%$t $ommitted 'y or on 'eal" o"
$orporations( Te Department is $ommitted to prose$%ting 'ot te $%lpa'le indi)id%als and# &en
appropriate# te $orporation on &ose 'eal" tey a$ted(
Te atta$ed do$%ment# Federal Prosecution of Corporations# pro)ides g%idan$e as to &at "a$tors
so%ld generally in"orm a prose$%tor in ma*ing te de$ision &eter to $arge a $orporation in a
parti$%lar $ase( + 'elie)e tese "a$tors pro)ide a %se"%l "rame&or* in &i$ prose$%tors $an analy,e
teir $ases and pro)ide a $ommon )o$a'%lary "or tem to dis$%ss teir de$ision &it "ello&
prose$%tors# s%per)isors# and de"ense $o%nsel( Tese "a$tors are# o&e)er# not o%t$ome-determinati)e
and are only g%idelines( .ederal prose$%tors are not re/%ired to re"eren$e tese "a$tors in a parti$%lar
$ase# nor are tey re/%ired to do$%ment te &eigt tey a$$orded spe$i"i$ "a$tors in rea$ing teir
de$ision(
Te "a$tors and te $ommentary &ere de)eloped tro%g te ard &or* o" an ad hoc &or*ing gro%p
$oordinated 'y te .ra%d Se$tion o" te Criminal Di)ision and made %p o" representati)es o" United
States Attorneys0 O""i$es# te E1e$%ti)e O""i$e o" United States Attorneys# and Di)isions o" te
Department &it $riminal la& en"or$ement responsi'ilities( E1perien$e &it tese g%idelines may lead
to $anges or ad2%stments in te te1t and $ommentary( Tere"ore# please "or&ard any $omments a'o%t
te g%idelines# as &ell as instan$es in &i$ te "a$tors pro)ed %se"%l or not %se"%l in spe$i"i$ $ases to
Sira Neiman# Dep%ty United States Attorney# So%tern Distri$t o" Ne& Yor*# and Pilip Uro"s*y#
Trial Attorney# .ra%d Se$tion# Criminal Di)ision( + loo* "or&ard to earing $omments "rom te "ield as
to te appli$ation o" tese "a$tors in pra$ti$e(
En$l(


Federal Prosecution of Corporations
! C"ar#in# Corporations: $eneral

A( General Principle3 Corporations so%ld not 'e treated leniently 'e$a%se o" teir arti"i$ial
nat%re nor so%ld tey 'e s%'2e$t to arser treatment( 4igoro%s en"or$ement o" te $riminal
la&s against $orporate &rongdoers# &ere appropriate# res%lts in great 'ene"its "or la&
en"or$ement and te p%'li$# parti$%larly in te area o" &ite $ollar $rime( +ndi$ting
$orporations "or &rongdoing ena'les te go)ernment to address and 'e a "or$e "or positi)e
$ange o" $orporate $%lt%re# alter $orporate 'ea)ior# and pre)ent# dis$o)er# and p%nis
&ite $ollar $rime(
B( Comment3 +n all $ases in)ol)ing $orporate &rongdoing# prose$%tors so%ld $onsider te
"a$tors dis$%ssed erein( .irst and "oremost# prose$%tors so%ld 'e a&are o" te important
p%'li$ 'ene"its tat may "lo& "rom indi$ting a $orporation in appropriate $ases( .or instan$e#
$orporations are li*ely to ta*e immediate remedial steps &en one is indi$ted "or $riminal
$ond%$t tat is per)asi)e tro%go%t a parti$%lar ind%stry# and t%s an indi$tment o"ten
pro)ides a %ni/%e opport%nity "or deterren$e on a massi)e s$ale( +n addition# a $orporate
indi$tment may res%lt in spe$i"i$ deterren$e 'y $anging te $%lt%re o" te indi$ted
$orporation and te 'ea)ior o" its employees( .inally# $ertain $rimes tat $arry &it tem a
s%'stantial ris* o" great p%'li$ arm#e.g.# en)ironmental $rimes or "inan$ial "ra%ds# are 'y
teir nat%re most li*ely to 'e $ommitted 'y '%sinesses# and tere may# tere"ore# 'e a
s%'stantial "ederal interest in indi$ting te $orporation(
Carging a $orporation# o&e)er# does not mean tat indi)id%al dire$tors# o""i$ers#
employees# or sareolders so%ld not also 'e $arged( Prose$%tion o" a $orporation is not a
s%'stit%te "or te prose$%tion o" $riminally $%lpa'le indi)id%als &itin or &ito%t te
$orporation( .%rter# imposition o" indi)id%al $riminal lia'ility on s%$ indi)id%als pro)ides
a strong deterrent against "%t%re $orporate &rongdoing(
Corporations are 5legal persons#5 $apa'le o" s%ing and 'eing s%ed# and $apa'le o"
$ommitting $rimes( Under te do$trine o" respondeat superior# a $orporation may 'e eld
$riminally lia'le "or te illegal a$ts o" its dire$tors# o""i$ers# employees# and agents( To 'e
eld lia'le "or tese a$tions# te go)ernment m%st esta'lis tat te $orporate agent0s a$tions
6i7 &ere &itin te s$ope o" is d%ties and 6ii7 &ere intended# at least in part# to 'ene"it te
$orporation( +n all $ases in)ol)ing &rongdoing 'y $orporate agents# prose$%tors so%ld
$onsider te $orporation# as &ell as te responsi'le indi)id%als# as potential $riminal targets(
Agents# o&e)er# may a$t "or mi1ed reasons -- 'ot "or sel"-aggrandi,ement 6'ot dire$t and
indire$t7 and "or te 'ene"it o" te $orporation# and a $orporation may 'e eld lia'le as long
as one moti)ation o" its agent is to 'ene"it te $orporation( T%s# in nited States !.
"utomated #edical $a%oratories# 889 .(:d ;<< 6=t Cir( ><?@7# te $o%rt a""irmed te
$orporation0s $on)i$tion "or te a$tions o" a s%'sidiary0s employee despite its $laim tat te
employee &as a$ting "or is o&n 'ene"it# namely is 5am'itio%s nat%re and is desire to
as$end te $orporate ladder(5 Te $o%rt stated# 5Part%$$i &as $learly a$ting in part to 'ene"it
A!L sin$e is ad)an$ement &itin te $orporation depended on A!L0s &ell-'eing and its
la$* o" di""i$%lties &it te .DA(5 Similarly# in nited States !. Cincotta# A?< .(:d :;?#
:=>-=: 6>st Cir( ><?:7# te $o%rt eld# 5$riminal lia'ility may 'e imposed on te $orporation
only &ere te agent is a$ting &itin te s$ope o" is employment( Tat# in t%rn# re/%ires
tat te agent 'e per"orming a$ts o" te *ind &i$ e is a%tori,ed to per"orm# and tose
a$ts m%st 'e moti)ated -- at least in part -- 'y an intent to 'ene"it te $orporation(5 Applying
tis test# te $o%rt %peld te $orporation0s $on)i$tion# not&itstanding te s%'stantial
personal 'ene"it reaped 'y its mis$reant agents# 'e$a%se te "ra%d%lent s$eme re/%ired
money to pass tro%g te $orporation0s treas%ry and te "ra%d%lently o'tained goods &ere
resold to te $orporation0s $%stomers in te $orporation0s name( As te $o%rt $on$l%ded#
5!ysti$--not te indi)id%al de"endants--&as ma*ing money 'y selling oil tat it ad not paid
"or(5
!oreo)er# te $orporation need not e)en ne$essarily pro"it "rom its agent0s a$tions "or it to
'e eld lia'le( +n "utomated #edical $a%oratories# te .o%rt Cir$%it stated3
BBCene"it is not a 5to%$stone o" $riminal $orporate lia'ilityD 'ene"it at 'est is an
e)idential# not an operati)e# "a$t(5 T%s# &eter te agent0s a$tions %ltimately
redo%nded to te 'ene"it o" te $orporation is less signi"i$ant tan &eter te
agent a$ted &it te intent to 'ene"it te $orporation( Te 'asi$ p%rpose o"
re/%iring tat an agent a)e a$ted &it te intent to 'ene"it te $orporation#
o&e)er# is to ins%late te $orporation "rom $riminal lia'ility "or a$tions o" its
agents &i$ 'e inimi$al to te interests o" te $orporation or &i$ may a)e
'een %nderta*en solel& to ad)an$e te interests o" tat agent or o" a party oter
tan te $orporation(
'd( at =98 6empasis addedD /%oting (ld #onaster& Co. !. nited States# >=8 .(:d <9@# <9?
6=t Cir(7# cert. denied# ;:A U(S( 8;= 6><=@77(

! C"ar#in# Corporations %% Factors to Be Considered

A( General Principle3 Generally# prose$%tors so%ld apply te same "a$tors in determining
&eter to $arge a $orporation as tey do &it respe$t to indi)id%als( See U(S(A(!( E
<-:8(::9# et se)( T%s# te prose$%tor so%ld &eig all o" te "a$tors normally $onsidered in
te so%nd e1er$ise o" prose$%torial 2%dgment3 te s%""i$ien$y o" te e)iden$e# te li*eliood
o" s%$$ess at trial# te pro'a'le deterrent# rea'ilitati)e# and oter $onse/%en$es o"
$on)i$tion# and te ade/%a$y o" non-$riminal approa$es( See id. Ho&e)er# d%e to te nat%re
o" te $orporate 5person#5 some additional "a$tors are present( +n $ond%$ting an
in)estigation# determining &eter to 'ring $arges# and negotiating plea agreements#
prose$%tors so%ld $onsider te "ollo&ing "a$tors in rea$ing a de$ision as to te proper
treatment o" a $orporate target3
>( Te nat%re and serio%sness o" te o""ense# in$l%ding te ris* o" arm to te p%'li$# and
appli$a'le poli$ies and priorities# i" any# go)erning te prose$%tion o" $orporations "or
parti$%lar $ategories o" $rime 6see se$tion +++,infra7D
:( Te per)asi)eness o" &rongdoing &itin te $orporation# in$l%ding te $ompli$ity in#
or $ondonation o"# te &rongdoing 'y $orporate management 6see se$tion +4# infra7D
;( Te $orporation0s istory o" similar $ond%$t# in$l%ding prior $riminal# $i)il# and
reg%latory en"or$ement a$tions against it 6see se$tion 4# infra7D
=( Te $orporation0s timely and )ol%ntary dis$los%re o" &rongdoing and its &illingness to
$ooperate in te in)estigation o" its agents# in$l%ding# i" ne$essary# te &ai)er o" te
$orporate attorney-$lient and &or* prod%$t pri)ileges 6see se$tion 4+# infra7D
@( Te e1isten$e and ade/%a$y o" te $orporation0s $omplian$e program 6see se$tion 4++#
infra7D
A( Te $orporation0s remedial a$tions# in$l%ding any e""orts to implement an e""e$ti)e
$orporate $omplian$e program or to impro)e an e1isting one# to repla$e responsi'le
management# to dis$ipline or terminate &rongdoers# to pay restit%tion# and to $ooperate
&it te rele)ant go)ernment agen$ies 6see se$tion 4+++# infra7D
8( Collateral $onse/%en$es# in$l%ding disproportionate arm to sareolders and
employees not pro)en personally $%lpa'le 6see se$tion +F# infra7D and
?( Te ade/%a$y o" non-$riminal remedies# s%$ as $i)il or reg%latory en"or$ement
a$tions 6see se$tion F# infra7(
B( Comment3 As &it te "a$tors rele)ant to $arging nat%ral persons# te "oregoing "a$tors are
intended to pro)ide g%idan$e rater tan to mandate a parti$%lar res%lt( Te "a$tors listed in
tis se$tion are intended to 'e ill%strati)e o" tose tat so%ld 'e $onsidered and not a
$omplete or e1a%sti)e list( Some or all o" tese "a$tors may or may not apply to spe$i"i$
$ases# and in some $ases one "a$tor may o)erride all oters( .%rter# national la&
en"or$ement poli$ies in )ario%s en"or$ement areas may re/%ire tat more or less &eigt 'e
gi)en to $ertain o" tese "a$tors tan to oters(
+n ma*ing a de$ision to $arge a $orporation# te prose$%tor generally as &ide latit%de in
determining &en# &om# o&# and e)en &eter to prose$%te "or )iolations o" .ederal
$riminal la&( +n e1er$ising tat dis$retion# prose$%tors so%ld $onsider te "ollo&ing general
statements o" prin$iples tat s%mmari,e appropriate $onsiderations to 'e &eiged and
desira'le pra$ti$es to 'e "ollo&ed in dis$arging teir prose$%torial responsi'ilities( +n doing
so# prose$%tors so%ld ens%re tat te general p%rposes o" te $riminal la& -- ass%ran$e o"
&arranted p%nisment# deterren$e o" "%rter $riminal $ond%$t# prote$tion o" te p%'li$ "rom
dangero%s and "ra%d%lent $ond%$t# rea'ilitation o" o""enders# and restit%tion "or )i$tims and
a""e$ted $omm%nities -- are ade/%ately met# ta*ing into a$$o%nt te spe$ial nat%re o" te
$orporate 5person(5

! C"ar#in# a Corporation: Special Polic& Concerns

A( General Principle3 Te nat%re and serio%sness o" te $rime# in$l%ding te ris* o" arm to te
p%'li$ "rom te $riminal $ond%$t# are o')io%sly primary "a$tors in determining &eter to
$arge a $orporation( +n addition# $orporate $ond%$t# parti$%larly tat o" national and m%lti-
national $orporations# ne$essarily interse$ts &it "ederal e$onomi$# ta1ation# and $riminal
la& en"or$ement poli$ies( +n applying tese prin$iples# prose$%tors m%st $onsider te
pra$ti$es and poli$ies o" te appropriate Di)ision o" te Department# and m%st $omply &it
tose poli$ies to te e1tent re/%ired(
B( Comment3 +n determining &eter to $arge a $orporation# prose$%tors so%ld ta*e into
a$$o%nt "ederal la& en"or$ement priorities as dis$%ssed a'o)e( See E <-:8(:;9( +n addition#
o&e)er# prose$%tors m%st 'e a&are o" te spe$i"i$ poli$y goals and in$enti)e programs
esta'lised 'y te respe$ti)e Di)isions and reg%latory agen$ies( T%s# &ereas nat%ral
persons may 'e gi)en in$remental degrees o" $redit 6ranging "rom imm%nity to lesser
$arges to senten$ing $onsiderations7 "or t%rning temsel)es in# ma*ing statements against
teir penal interest# and $ooperating in te go)ernment0s in)estigation o" teir o&n and
oters0 &rongdoing# te same approa$ may not 'e appropriate in all $ir$%mstan$es &it
respe$t to $orporations( As an e1ample# it is entirely proper in many in)estigations "or a
prose$%tor to $onsider te $orporation0s pre-indi$tment $ond%$t# e.g(# )ol%ntary dis$los%re#
$ooperation# remediation or restit%tion# in determining &eter to see* an indi$tment(
Ho&e)er# tis &o%ld not ne$essarily 'e appropriate in an antitr%st in)estigation# in &i$
antitr%st )iolations# 'y de"inition# go to te eart o" te $orporation0s '%siness and "or &i$
te Antitr%st Di)ision as tere"ore esta'lised a "irm poli$y# %nderstood in te '%siness
$omm%nity# tat $redit so%ld not 'e gi)en at te $arging stage "or a $omplian$e program
and tat amnesty is a)aila'le only to te "irst $orporation to ma*e "%ll dis$los%re to te
go)ernment( As anoter e1ample# te Ta1 Di)ision as a strong pre"eren$e "or prose$%ting
responsi'le indi)id%als# rater tan entities# "or $orporate ta1 o""enses( T%s# in determining
&eter or not to $arge a $orporation# prose$%tors so%ld $ons%lt &it te Criminal#
Antitr%st# Ta1# and En)ironmental and Nat%ral Reso%r$es Di)isions# i" appropriate or
re/%ired(

'! C"ar#in# a Corporation: Per(asi(eness of )ron#doin# )it"in t"e Corporation

A( General Principle3 A $orporation $an only a$t tro%g nat%ral persons# and it is tere"ore
eld responsi'le "or te a$ts o" s%$ persons "airly attri'%ta'le to it( Carging a $orporation
"or e)en minor mis$ond%$t may 'e appropriate &ere te &rongdoing &as per)asi)e and
&as %nderta*en 'y a large n%m'er o" employees or 'y all te employees in a parti$%lar role
&itin te $orporation# e.g(# salesmen or pro$%rement o""i$ers# or &as $ondoned 'y %pper
management( On te oter and# in $ertain limited $ir$%mstan$es# it may not 'e appropriate
to impose lia'ility %pon a $orporation# parti$%larly one &it a $omplian$e program in pla$e#
%nder a stri$t respondeat superior teory "or te single isolated a$t o" a rog%e employee(
Tere is# o" $o%rse# a &ide spe$tr%m 'et&een tese t&o e1tremes# and a prose$%tor so%ld
e1er$ise so%nd dis$retion in e)al%ating te per)asi)eness o" &rongdoing &itin a
$orporation(
B( Comment3 O" tese "a$tors# te most important is te role o" management( Alto%g a$ts o"
e)en lo&-le)el employees may res%lt in $riminal lia'ility# a $orporation is dire$ted 'y its
management and management is responsi'le "or a $orporate $%lt%re in &i$ $riminal
$ond%$t is eiter dis$o%raged or ta$itly en$o%raged( As stated in $ommentary to te
Senten$ing G%idelines3
Per)asi)eness BisC $ase spe$i"i$ and B&illC depend on te n%m'er# and degree o"
responsi'ility# o" indi)id%als B&itC s%'stantial a%tority ( ( ( &o parti$ipated in#
$ondoned# or &ere &ill"%lly ignorant o" te o""ense( .e&er indi)id%als need to
'e in)ol)ed "or a "inding o" per)asi)eness i" tose indi)id%als e1er$ised a
relati)ely ig degree o" a%tority( Per)asi)eness $an o$$%r eiter &itin an
organi,ation as a &ole or &itin a %nit o" an organi,ation(
U(S(S(G( E ?C:(@# $omment( 6n( =7(

'! C"ar#in# t"e Corporation: T"e Corporation*s Past +istor&

A( General Principle3 Prose$%tors may $onsider a $orporation0s istory o" similar $ond%$t#
in$l%ding prior $riminal# $i)il# and reg%latory en"or$ement a$tions against it# in determining
&eter to 'ring $riminal $arges(
B( Comment3 A $orporation# li*e a nat%ral person# is e1pe$ted to learn "rom its mista*es( A
istory o" similar $ond%$t may 'e pro'ati)e o" a $orporate $%lt%re tat en$o%raged# or at
least $ondoned# s%$ $ond%$t# regardless o" any $omplian$e programs( Criminal prose$%tion
o" a $orporation may 'e parti$%larly appropriate &ere te $orporation pre)io%sly ad 'een
s%'2e$t to non-$riminal g%idan$e# &arnings# or san$tions# or pre)io%s $riminal $arges# and
yet it eiter ad not ta*en ade/%ate a$tion to pre)ent "%t%re %nla&"%l $ond%$t or ad
$ontin%ed to engage in te $ond%$t in spite o" te &arnings or en"or$ement a$tions ta*en
against it( +n ma*ing tis determination# te $orporate str%$t%re itsel"# e.g(# s%'sidiaries or
operating di)isions# so%ld 'e ignored# and en"or$ement a$tions ta*en against te
$orporation or any o" its di)isions# s%'sidiaries# and a""iliates so%ld 'e $onsidered( See
U(S(S(G( E ?C:(@6$7 G $omment( 6n( A7(

'! C"ar#in# t"e Corporation: Cooperation and 'oluntar& Disclosure

A( General Principle3 +n determining &eter to $arge a $orporation# tat $orporation0s timely
and )ol%ntary dis$los%re o" &rongdoing and its &illingness to $ooperate &it te
go)ernment0s in)estigation may 'e rele)ant "a$tors( +n ga%ging te e1tent o" te
$orporation0s $ooperation# te prose$%tor may $onsider te $orporation0s &illingness to
identi"y te $%lprits &itin te $orporation# in$l%ding senior e1e$%ti)es# to ma*e &itnesses
a)aila'le# to dis$lose te $omplete res%lts o" its internal in)estigation# and to &ai)e te
attorney-$lient and &or* prod%$t pri)ileges(
B( Comment3 +n in)estigating &rongdoing 'y or &itin a $orporation# a prose$%tor is li*ely to
en$o%nter se)eral o'sta$les res%lting "rom te nat%re o" te $orporation itsel"( +t &ill o"ten
'e di""i$%lt to determine &i$ indi)id%al too* &i$ a$tion on 'eal" o" te $orporation(
Lines o" a%tority and responsi'ility may 'e sared among operating di)isions or
departments# and re$ords and personnel may 'e spread tro%go%t te United States or e)en
among se)eral $o%ntries( Here te $riminal $ond%$t $ontin%ed o)er an e1tended period o"
time# te $%lpa'le or *no&ledgea'le personnel may a)e 'een promoted# trans"erred# or
"ired# or tey may a)e /%it or retired( A$$ordingly# a $orporation0s $ooperation may 'e
$riti$al in identi"ying te $%lprits and lo$ating rele)ant e)iden$e(
+n some $ir$%mstan$es# tere"ore# granting a $orporation imm%nity or amnesty may 'e
$onsidered in te $o%rse o" te go)ernment0s in)estigation( +n s%$ $ir$%mstan$es#
prose$%tors so%ld re"er to te prin$iples go)erning non-prose$%tion agreements generally(
See USA! E <-:8(A99-A@9( Spe$i"i$ally# tese prin$iples permit a non-prose$%tion
agreement in e1$ange "or $ooperation &en a $orporation0s 5timely $ooperation appears to
'e ne$essary to te p%'li$ interest and oter means o" o'taining te desired $ooperation are
%na)aila'le or &o%ld not 'e e""e$ti)e(5 Prose$%tors so%ld note tat in te $ase o" national
or m%lti-national $orporations# m%lti-distri$t or glo'al agreements may 'e ne$essary( See
USA! E <-:8(A=>(
+n addition# te Department# in $on2%n$tion &it reg%latory agen$ies and oter e1e$%ti)e
'ran$ departments# en$o%rages $orporations# as part o" teir $omplian$e programs# to
$ond%$t internal in)estigations and to dis$lose teir "indings to te appropriate a%torities(
Some agen$ies# s%$ as te SEC and te EPA# as &ell as te Department0s En)ironmental
and Nat%ral Reso%r$es Di)ision# a)e "ormal )ol%ntary dis$los%re programs in &i$ sel"-
reporting# $o%pled &it remediation and additional $riteria# may /%ali"y te $orporation "or
amnesty or red%$ed san$tions(
6>7
E)en in te a'sen$e o" a "ormal program# prose$%tors may
$onsider a $orporation0s timely and )ol%ntary dis$los%re in e)al%ating te ade/%a$y o" te
$orporation0s $omplian$e program and its management0s $ommitment to te $omplian$e
program( Ho&e)er# prose$%tion and e$onomi$ poli$ies spe$i"i$ to te ind%stry or stat%te
may re/%ire prose$%tion not&itstanding a $orporation0s &illingness to $ooperate( .or
e1ample# te Antitr%st Di)ision o""ers amnesty only to te "irst $orporation to agree to
$ooperate( Tis $reates a strong in$enti)e "or $orporations parti$ipating in anti-$ompetiti)e
$ond%$t to 'e te "irst to $ooperate( +n addition# amnesty# imm%nity# or red%$ed san$tions
may not 'e appropriate &ere te $orporation0s '%siness is permeated &it "ra%d or oter
$rimes(
One "a$tor te prose$%tor may &eig in assessing te ade/%a$y o" a $orporation0s
$ooperation is te $ompleteness o" its dis$los%re in$l%ding# i" ne$essary# a &ai)er o" te
attorney-$lient and &or* prod%$t prote$tions# 'ot &it respe$t to its internal in)estigation
and &it respe$t to $omm%ni$ations 'et&een spe$i"i$ o""i$ers# dire$tors# and employees and
$o%nsel( S%$ &ai)ers permit te go)ernment to o'tain statements o" possi'le &itnesses#
s%'2e$ts# and targets# &ito%t a)ing to negotiate indi)id%al $ooperation or imm%nity
agreements( +n addition# tey are o"ten $riti$al in ena'ling te go)ernment to e)al%ate te
$ompleteness o" a $orporation0s )ol%ntary dis$los%re and $ooperation( Prose$%tors may#
tere"ore# re/%est a &ai)er in appropriate $ir$%mstan$es(
6:7
Te Department does not#
o&e)er# $onsider &ai)er o" a $orporation0s pri)ileges an a'sol%te re/%irement# and
prose$%tors so%ld $onsider te &illingness o" a $orporation to &ai)e te pri)ileges &en
ne$essary to pro)ide timely and $omplete in"ormation as only one "a$tor in e)al%ating te
$orporation0s $ooperation(
Anoter "a$tor to 'e &eiged 'y te prose$%tor is &eter te $orporation appears to 'e
prote$ting its $%lpa'le employees and agents( T%s# &ile $ases &ill di""er depending on te
$ir$%mstan$es# a $orporation0s promise o" s%pport to $%lpa'le employees and agents# eiter
tro%g te ad)an$ing o" attorneys "ees#
6;7
tro%g retaining te employees &ito%t san$tion
"or teir mis$ond%$t# or tro%g pro)iding in"ormation to te employees a'o%t te
go)ernment0s in)estigation p%rs%ant to a 2oint de"ense agreement# may 'e $onsidered 'y te
prose$%tor in &eiging te e1tent and )al%e o" a $orporation0s $ooperation( By te same
to*en# te prose$%tor so%ld 'e &ary o" attempts to sield $orporate o""i$ers and employees
"rom lia'ility 'y a &illingness o" te $orporation to plead g%ilty(
.inally# a $orporation0s o""er o" $ooperation does not a%tomati$ally entitle it to imm%nity
"rom prose$%tion( A $orporation so%ld not 'e a'le to es$ape lia'ility merely 'y o""ering %p
its dire$tors# o""i$ers# employees# or agents as in lie% o" its o&n prose$%tion( T%s# a
$orporation0s &illingness to $ooperate is merely one rele)ant "a$tor# one tat needs to 'e
$onsidered in $on2%n$tion &it te oter "a$tors# parti$%larly tose relating to te
$orporation0s past istory and te role o" management in te &rongdoing(

'! C"ar#in# a Corporation: Corporate Co,pliance Pro#ra,s

A( General Principle3 Complian$e programs are esta'lised 'y $orporate management to
pre)ent and to dete$t mis$ond%$t and to ens%re tat $orporate a$ti)ities are $ond%$ted in
a$$ordan$e &it all appli$a'le $riminal and $i)il la&s# reg%lations# and r%les( Te
Department en$o%rages s%$ $orporate sel"-poli$ing# in$l%ding )ol%ntary dis$los%res to te
go)ernment o" any pro'lems tat a $orporation dis$o)ers on its o&n( Ho&e)er# te e1isten$e
o" a $omplian$e program is not s%""i$ient# in and o" itsel"# to 2%sti"y not $arging a
$orporation "or $riminal $ond%$t %nderta*en 'y its o""i$ers# dire$tors# employees# or agents(
+ndeed# te $ommission o" s%$ $rimes in te "a$e o" a $omplian$e program may s%ggest
tat te $orporate management is not ade/%ately en"or$ing its program( +n addition# te
nat%re o" some $rimes# e.g.# antitr%st )iolations# may 'e s%$ tat national la& en"or$ement
poli$ies mandate prose$%tions o" $orporations not&itstanding te e1isten$e o" a $omplian$e
program(
B( Comment( A $orporate $omplian$e program# e)en one spe$i"i$ally proi'iting te )ery
$ond%$t in /%estion# does not a'sol)e te $orporation "rom $riminal lia'ility %nder te
do$trine o" respondeat s%perior( See nited States !. *asic Construction Co(# 8>> .(:d @89
6=
t
Cir( ><?;7 65a $orporation may 'e eld $riminally responsi'le "or antitr%st )iolations
$ommitted 'y its employees i" tey &ere a$ting &itin te s$ope o" teir a%tority# or
apparent a%tority# and "or te 'ene"it o" te $orporation# e)en i" ( ( ( s%$ a$ts &ere against
$orporate poli$y or e1press instr%$tions(57( T%s# in nited States !. +ilton +otels Corp.#
=A8 .(:d >999 6<
t
Cir( ><8:7# cert. denied# =9< U(S( >>:@ 6><8;7# te Nint Cir$%it a""irmed
antitr%st lia'ility 'ased %pon a p%r$asing agent "or a single otel treatening a single
s%pplier &it a 'oy$ott %nless it paid d%es to a lo$al mar*eting asso$iation# e!en though the
agent,s actions -ere contrar& to corporate polic& and directl& against e.press instructions
from his superiors. Te $o%rt reasoned tat Congress# in ena$ting te Serman Antitr%st A$t#
5intended to impose lia'ility %pon '%siness entities "or te a$ts o" tose to &om tey
$oose to delegate te $ond%$t o" teir a""airs# t%s stim%lating a ma1im%m e""ort 'y o&ners
and managers to ass%re aderen$e 'y s%$ agents to te re/%irements o" te A$t(5
6=7
+t
$on$l%ded tat 5general poli$y statements5 and e)en dire$t instr%$tions "rom te agent0s
s%periors &ere not s%""i$ientD 5Appellant $o%ld not gain e1$%lpation 'y iss%ing general
instr%$tions &ito%t %nderta*ing to en"or$e tose instr%$tions 'y means $ommens%rate &it
te o')io%s ris*s(5 See also nited States !. *eusch# @<A .(:d ?8># ?8? 6<
t
Cir( ><8<7 65BAC
$orporation may 'e lia'le "or te a$ts o" its employees done $ontrary to e1press instr%$tions
and poli$ies# '%t ( ( ( te e1isten$e o" s%$ instr%$tions and poli$ies may 'e $onsidered in
determining &eter te employee in "a$t a$ted to 'ene"it te $orporation(57D nited States
!. "merican /adiator 0 Standard Sanitar& Corp.# =;; .(:d >8= 6;
rd
Cir( ><897 6a""irming
$on)i$tion o" $orporation 'ased %pon its o""i$er0s parti$ipation in pri$e-"i1ing s$eme#
despite $orporation0s de"ense tat o""i$er0s $ond%$t )iolated its 5rigid anti-"raterni,ation
poli$y5 against any so$iali,ation 6and e1$ange o" pri$e in"ormation7 &it its $ompetitorsD
5Hen te a$t o" te agent is &itin te s$ope o" is employment or is apparent a%tority#
te $orporation is eld legally responsi'le "or it# alto%g &at e did may 'e $ontrary to is
a$t%al instr%$tions and may 'e %nla&"%l(57(
Hile te Department re$ogni,es tat no $omplian$e program $an e)er pre)ent all $riminal
a$ti)ity 'y a $orporation0s employees# te $riti$al "a$tors in e)al%ating any program are
&eter te program is ade/%ately designed "or ma1im%m e""e$ti)eness in pre)enting and
dete$ting &rongdoing 'y employees and &eter $orporate management is en"or$ing te
program or is ta$itly en$o%raging or press%ring employees to engage in mis$ond%$t to
a$ie)e '%siness o'2e$ti)es( Te Department as no "ormal g%idelines "or $orporate
$omplian$e programs( Te "%ndamental /%estions any prose$%tor so%ld as* are3 5+s te
$orporation0s $omplian$e program &ell designedI5 andC 5Does te $orporation0s $omplian$e
program &or*I5 +n ans&ering tese /%estions# te prose$%tor so%ld $onsider te
$ompreensi)eness o" te $omplian$e program# te e1tent and per)asi)eness o" te $riminal
$ond%$tD te n%m'er and le)el o" te $orporate employees in)ol)edD te serio%sness#
d%ration# and "re/%en$y o" te mis$ond%$t# and any remedial a$tions ta*en 'y te
$orporation# in$l%ding restit%tion# dis$iplinary a$tion# and re)isions to $orporate $omplian$e
programs(
6@7
Prose$%tors so%ld also $onsider te promptness o" any dis$los%re o"
&rongdoing to te go)ernment and te $orporation0s $ooperation in te go)ernment0s
in)estigation(
Prose$%tors so%ld tere"ore attempt to determine &eter a $orporation0s $omplian$e
program is merely a 5paper program5 or &eter it &as designed and implemented in an
e""e$ti)e manner( +n addition# prose$%tors so%ld determine &eter te $orporation as
pro)ided "or a sta"" s%""i$ient to a%dit# do$%ment# analy,e# and %tili,e te res%lts o" te
$orporation0s $omplian$e e""orts( +n addition# prose$%tors so%ld determine &eter te
$orporation0s employees are ade/%ately in"ormed a'o%t te $omplian$e program and are
$on)in$ed o" te $orporation0s $ommitment to it( Tis &ill ena'le te prose$%tor to ma*e an
in"ormed de$ision as to &eter te $orporation as adopted and implemented a tr%ly
e""e$ti)e $omplian$e program tat# &en $onsistent &it oter "ederal la& en"or$ement
poli$ies# may res%lt in a de$ision to $arge only te $orporation0s employees and agents(
Complian$e programs so%ld 'e designed to dete$t te parti$%lar types o" mis$ond%$t most
li*ely to o$$%r in a parti$%lar $orporation0s line o" '%siness( !any $orporations operate in
$omple1 reg%latory en)ironments o%tside te normal e1perien$e o" $riminal prose$%tors(
A$$ordingly# prose$%tors so%ld $ons%lt &it rele)ant "ederal and state agen$ies &it te
e1pertise to e)al%ate te ade/%a$y o" a program0s design and implementation( .or instan$e#
state and "ederal 'an*ing# ins%ran$e# and medi$al 'oards# te Department o" De"ense# te
Department o" Healt and H%man Ser)i$es# te En)ironmental Prote$tion Agen$y# and te
Se$%rities and E1$ange Commission a)e $onsidera'le e1perien$e &it $omplian$e
programs and $an 'e )ery elp"%l to a prose$%tor in e)al%ating s%$ programs( +n addition#
te .ra%d Se$tion o" te Criminal Di)ision# te Commer$ial Litigation Bran$ o" te Ci)il
Di)ision# and te En)ironmental Crimes Se$tion o" te En)ironment and Nat%ral Reso%r$es
Di)ision $an assist U(S( Attorneys0 O""i$es in "inding te appropriate agen$y o""i$e and in
pro)iding $opies o" $omplian$e programs tat &ere de)eloped in pre)io%s $ases(

'! C"ar#in# t"e Corporation: Restitution and Re,ediation

A( General Principle3 Alto%g neiter a $orporation nor an indi)id%al target may a)oid
prose$%tion merely 'y paying a s%m o" money# a prose$%tor may $onsider te $orporation0s
&illingness to ma*e restit%tion and steps already ta*en to do so# as &ell as oter remedial
a$tions s%$ as implementing an e""e$ti)e $orporate $omplian$e program# impro)ing an
e1isting one# and dis$iplining &rongdoers# in determining &eter to $arge te $orporation(
B( Comment3 +n determining &eter or not a $orporation so%ld 'e prose$%ted# a prose$%tor
may $onsider &eter meaning"%l remedial meas%res a)e 'een ta*en# in$l%ding employee
dis$ipline and "%ll restit%tion(
6A7
A $orporation0s response to mis$ond%$t says m%$ a'o%t its
&illingness to ens%re tat s%$ mis$ond%$t does not re$%r( T%s# $orporations tat "%lly
re$ogni,e te serio%sness o" teir mis$ond%$t and a$$ept responsi'ility "or it so%ld 'e seen
to 'e ta*ing steps to implement te personnel# operational# and organi,ational $anges
ne$essary to esta'lis an a&areness among employees tat $riminal $ond%$t &ill not 'e
tolerated( Among te "a$tors prose$%tors so%ld $onsider and &eig are &eter te
$orporation appropriately dis$iplined te &rongdoers and dis$losed in"ormation $on$erning
teir illegal $ond%$t to te go)ernment(
Employee dis$ipline is a di""i$%lt tas* "or many $orporations 'e$a%se o" te %man element
in)ol)ed and sometimes 'e$a%se o" te seniority o" te employees $on$erned( Ho&e)er#
&ile $orporations need to 'e "air to teir employees# tey m%st also 'e %ne/%i)o$ally
$ommitted# at all le)els o" te $orporation# to te igest standards o" legal and eti$al
'ea)ior( E""e$ti)e internal dis$ipline $an 'e a po&er"%l deterrent against improper 'ea)ior
'y a $orporation0s employees( +n e)al%ating a $orporation0s response to &rongdoing#
prose$%tors may e)al%ate te &illingness o" te $orporation to dis$ipline $%lpa'le
employees o" all ran*s and te ade/%a$y o" te dis$ipline imposed( Te prose$%tor so%ld
satis"y imsel" or ersel" tat te $orporation0s "o$%s is on te integrity and $redi'ility o" its
remedial and dis$iplinary meas%res rater tan on te prote$tion o" te &rongdoers(
+n addition to employee dis$ipline# t&o oter "a$tors in e)al%ating a $orporation0s remedial
e""orts are restit%tion and re"orm( As &it nat%ral persons# te de$ision &eter or not to
prose$%te so%ld not depend %pon te target0s a'ility to pay restit%tion( A $orporation0s
e""orts to pay restit%tion e)en in ad)an$e o" any $o%rt order is# o&e)er# e)iden$e o" its
5a$$eptan$e o" responsi'ility5 and# $onsistent &it te pra$ti$es and poli$ies o" te
appropriate Di)ision o" te Department entr%sted &it en"or$ing spe$i"i$ $riminal la&s# may
'e $onsidered in determining &eter to 'ring $riminal $arges( Similarly# alto%g te
inade/%a$y o" a $orporate $omplian$e program is a "a$tor to $onsider &en de$iding
&eter to $arge a $orporation# tat $orporation0s /%i$* re$ognition o" te "la&s in te
program and its e""orts to impro)e te program are also "a$tors to $onsider(

-! C"ar#in# t"e Corporation: Collateral conse.uences

A( General Principle3 Prose$%tors may $onsider te $ollateral $onse/%en$es o" a $orporate
$riminal $on)i$tion in determining &eter to $arge te $orporation &it a $riminal
o""ense(
B( Comment3 One o" te "a$tors in determining &eter to $arge a nat%ral person or a
$orporation is &eter te li*ely p%nisment is appropriate gi)en te nat%re and serio%sness
o" te $rime( +n te $orporate $onte1t# prose$%tors may ta*e into a$$o%nt te possi'ly
s%'stantial $onse/%en$es to a $orporation0s o""i$ers# dire$tors# employees# and sareolders#
many o" &om may# depending on te si,e and nat%re 6e.g.# p%'li$ly !s. $losely eld7 o" te
$orporation and teir role in its operations# a)e played no role in te $riminal $ond%$t# a)e
'een $ompletely %na&are o" it# or a)e 'een &olly %na'le to pre)ent it( .%rter#
prose$%tors so%ld also 'e a&are o" non-penal san$tions tat may a$$ompany a $riminal
$arges# s%$ as potential s%spension or de'arment "rom eligi'ility "or go)ernment $ontra$ts
or "ederal "%nded programs s%$ as ealt $are( Heter or not s%$ non-penal san$tions are
appropriate or re/%ired in a parti$%lar $ase is te responsi'ility o" te rele)ant agen$y# a
de$ision tat &ill 'e made 'ased on te appli$a'le stat%tes# reg%lations# and poli$ies(
4irt%ally e)ery $on)i$tion o" a $orporation# li*e )irt%ally e)ery $on)i$tion o" an indi)id%al#
&ill a)e an impa$t on inno$ent tird parties# and te mere e1isten$e o" s%$ an e""e$t is not
s%""i$ient to pre$l%de prose$%tion o" te $orporation( Tere"ore# in e)al%ating te se)erity o"
$ollateral $onse/%en$es# )ario%s "a$tors already dis$%ssed# s%$ as te per)asi)eness o" te
$riminal $ond%$t and te ade/%a$y o" te $orporation0s $omplian$e programs so%ld also 'e
$onsidered in determining te &eigt to 'e gi)en to tis "a$tor( .or instan$e# te 'alan$e
may tip in "a)or o" prose$%ting $orporations in sit%ations &ere te s$ope o" te mis$ond%$t
in a $ase is &idespread and s%stained &itin a $orporate di)ision 6or spread tro%go%t
po$*ets o" te $orporate organi,ation7( +n s%$ $ases# te possi'le %n"airness o" )isiting
p%nisment "or te $orporation0s $rimes %pon sareolders may 'e o" m%$ less $on$ern
&ere tose sareolders a)e s%'stantially pro"ited# e)en %n*no&ingly# "rom &idespread or
per)asi)e $riminal a$ti)ity( Similarly# &ere te top layers o" te $orporation0s management
or te sareolders o" a $losely-eld $orporation &ere engaged in or a&are o" te
&rongdoing and te $ond%$t at iss%e &as a$$epted as a &ay o" doing '%siness "or an
e1tended period# de'arment may 'e deemed not $ollateral '%t a dire$t and entirely
appropriate $onse/%en$e o" te $orporation0s &rongdoing(
Te appropriateness o" $onsidering s%$ $ollateral $onse/%en$es and te &eigt to 'e gi)en
tem may depend on te spe$ial poli$y $on$erns dis$%ssed in se$tion +++#supra(

-! C"ar#in# a Corporation: Non%Cri,inal Alternati(es

A( General Principle3 Alto%g non-$riminal alternati)es to prose$%tion o"ten e1ist#
prose$%tors may $onsider &eter s%$ san$tions &o%ld ade/%ately deter# p%nis# and
rea'ilitate a $orporation tat as engaged in &rong"%l $ond%$t( +n e)al%ating te ade/%a$y
o" non-$riminal alternati)es to prose$%tion# e.g(# $i)il or reg%latory en"or$ement a$tions# te
prose$%tor may $onsider all rele)ant "a$tors# in$l%ding3
>( Te san$tions a)aila'le %nder te alternati)e means o" dispositionD
:( te li*eliood tat an e""e$ti)e san$tion &ill 'e imposedD and
;( te e""e$t o" non-$riminal disposition on .ederal la& en"or$ement interests(
B( Comment( Te primary goals o" $riminal la& are deterren$e# p%nisment# and rea'ilitation(
Non-$riminal san$tions may not 'e an appropriate response to an egregio%s )iolation# a
pattern o" &rongdoing# or a istory o" non-$riminal san$tions &ito%t proper remediation( +n
oter $ases# o&e)er# tese goals may 'e satis"ied &ito%t te ne$essity o" instit%ting
$riminal pro$eedings( +n determining &eter "ederal $riminal $arges are appropriate# te
prose$%tor so%ld $onsider te same "a$tors 6modi"ied appropriately "or te reg%latory
$onte1t7 $onsidered &en determining &eter to lea)e prose$%tion o" a nat%ral person to
anoter 2%risdi$tion or to see* non-$riminal alternati)es to prose$%tion# i(e(# te strengt o"
te reg%latory a%tority0s interestD te reg%latory a%tority0s a'ility and &illingness to ta*e
e""e$ti)e en"or$ement a$tion# te pro'a'le san$tion i" te reg%latory a%tority0s en"or$ement
a$tion is %peld# and te e""e$t o" a non-$riminal disposition on .ederal la& en"or$ement
interests( See USA! EE <-:8(:=9# <-:8(:@9(

-! C"ar#in# a Corporation: Selectin# C"ar#es

A( General Principle3 On$e a prose$%tor as de$ided to $arge a $orporation# te prose$%tor
so%ld $arge# or so%ld re$ommend tat te grand 2%ry $arge# te most serio%s o""ense
tat is $onsistent &it te nat%re o" te de"endant0s $ond%$t and tat is li*ely to res%lt in a
s%staina'le $on)i$tion(
B( Comment3 On$e te de$ision to $arge is made# te same r%les as go)ern $arging nat%ral
persons apply( Tese r%les re/%ire 5a "ait"%l and onest appli$ation o" te Senten$ing
G%idelines5 and an 5indi)id%ali,ed assessment o" te e1tent to &i$ parti$%lar $arges "it
te spe$i"i$ $ir$%mstan$es o" te $ase# are $onsistent &it te p%rposes o" te .ederal
$riminal $ode# and ma1imi,e te impa$t o" .ederal reso%r$es on $rime(5 See USA! E
<-:8(;99( +n ma*ing tis determination# 5it is appropriate tat te attorney "or te
go)ernment $onsider# inter alia# s%$ "a$tors as te senten$ing g%ideline range yielded 'y
te $arge# &eter te penalty yielded 'y s%$ senten$ing range ( ( ( is proportional to te
serio%sness o" te de"endant0s $ond%$t# and &eter te $arge a$ie)es s%$ p%rposes o"
te $riminal la& as p%nisment# prote$tion o" te p%'li$# spe$i"i$ and general deterren$e#
and rea'ilitation(5 See Attorney General0s !emorand%m# dated O$to'er >:# ><<;(

-! Plea A#ree,ents /it" Corporations

A( General Principle3 +n negotiating plea agreements &it $orporations# prose$%tors so%ld
see* a plea to te most serio%s# readily pro)a'le o""ense $arged( +n addition# te terms o"
te plea agreement so%ld $ontain appropriate pro)isions to ens%re p%nisment# deterren$e#
rea'ilitation# and $omplian$e &it te plea agreement in te $orporate $onte1t( Alto%g
spe$ial $ir$%mstan$es may mandate a di""erent $on$l%sion# prose$%tors generally so%ld not
agree to a$$ept a $orporate g%ilty plea in e1$ange "or non-prose$%tion or dismissal o"
$arges against indi)id%al o""i$ers and employees(
B( Comment3 Prose$%tors may enter into plea agreements &it $orporations "or te same
reasons and %nder te same $onstraints as apply to plea agreements &it nat%ral persons(
See USA! EE <-:8(=99-@99( Tis means# inter alia# tat te $orporation so%ld 'e re/%ired
to plead to te most serio%s# readily pro)a'le o""ense $arged( As is te $ase &it
indi)id%als# te attorney ma*ing tis determination so%ld do so 5on te 'asis o" an
indi)id%ali,ed assessment o" te e1tent to &i$ parti$%lar $arges "it te spe$i"i$
$ir$%mstan$es o" te $ase# are $onsistent &it te p%rposes o" te "ederal $riminal $ode# and
ma1imi,e te impa$t o" "ederal reso%r$es on $rime( +n ma*ing tis determination# te
attorney "or te go)ernment $onsider# inter alia# s%$ "a$tors as te senten$ing g%ideline
range yielded 'y te $arge# &eter te penalty yielded 'y s%$ senten$ing range ( ( ( is
proportional to te serio%sness o" te de"endant0s $ond%$t# and &eter te $arge a$ie)es
s%$ p%rposes o" te $riminal la& as p%nisment# prote$tion o" te p%'li$# spe$i"i$ and
general deterren$e# and rea'ilitation(5 See Attorney General0s !emorand%m# dated O$to'er
>:# ><<;( +n addition# any negotiated depart%res "rom te Senten$ing G%idelines m%st 'e
2%sti"ia'le %nder te G%idelines and m%st 'e dis$losed to te senten$ing $o%rt( +n addition#
$orporations so%ld 'e made to reali,e tat pleading g%ilty to $riminal $arges $onstit%tes an
admission o" guilt and not merely a resol%tion o" an in$on)enient distra$tion "rom its
'%siness( T%s# as &it nat%ral persons# pleas so%ld 'e str%$t%red so tat te $orporation
may not later 5pro$laim la$* o" $%lpa'ility or e)en $omplete inno$en$e(5 See USA! EE
<-:8(=:96'76=7# <-:8(==9# <-:8(@99( T%s# "or instan$e# tere so%ld 'e pla$ed %pon te
re$ord a s%""i$ient "a$t%al 'asis "or te plea to pre)ent later $orporate assertions o"
inno$en$e(
A $orporate plea agreement so%ld also $ontain $ertain pro)isions tat re$ogni,e te nat%re
o" te $orporate 5person5 and ens%re tat te prin$iples o" p%nisment# deterren$e# and
rea'ilitation are met( +n te $orporate $onte1t# p%nisment and deterren$e are generally
a$$omplised 'y s%'stantial "ines# mandatory restit%tion# and instit%tion o" appropriate
$omplian$e meas%res# in$l%ding# i" ne$essary# $ontin%ed 2%di$ial o)ersigt or te %se o"
spe$ial masters( See U(S(S(G( EE ?B>(># ?C:(># et se)( +n addition# &ere te $orporation is a
go)ernment $ontra$tor# permanent or temporary de'arment may 'e appropriate( Here te
$orporation &as engaged in go)ernment $ontra$ting "ra%d# a prose$%tor may not negotiate
a&ay an agen$y0s rigt to de'ar or to list te $orporate de"endant(
+n negotiating a plea agreement# prose$%tors so%ld also $onsider te deterrent )al%e o"
prose$%tions o" indi)id%als &itin te $orporation( Tere"ore# one "a$tor tat a prose$%tor
may $onsider in determining &eter to enter into a plea agreement is &eter te
$orporation is see*ing imm%nity "or its employees and o""i$ers or &eter te $orporation is
&illing to $ooperate in te in)estigation o" $%lpa'le indi)id%als( Generally# prose$%tors
so%ld rarely negotiate a&ay indi)id%al $riminal lia'ility in a $orporate plea(
Rea'ilitation# o" $o%rse# re/%ires tat te $orporation %nderta*e to 'e la&-a'iding in te
"%t%re( +t is# tere"ore# appropriate to re/%ire te $orporation# as a $ondition o" pro'ation# to
implement a $omplian$e program or to re"orm an e1isting one( As dis$%ssed a'o)e#
prose$%tors may $ons%lt &it te appropriate state and "ederal agen$ies and $omponents o"
te J%sti$e Department to ens%re tat a proposed $omplian$e program is ade/%ate and meets
ind%stry standards and 'est pra$ti$es( See se$tion 4++# supra(
+n plea agreements in &i$ te $orporation agrees to $ooperate# te prose$%tor so%ld
ens%re tat te $ooperation is $omplete and tr%t"%l( To do so# te prose$%tor may re/%est
tat te $orporation &ai)e te attorney-$lient and &or* prod%$t pri)ileges# ma*e employees
and agents a)aila'le "or de'rie"ing# dis$lose te res%lts o" its internal in)estigation# "ile
appropriate $erti"ied "inan$ial statements# agree to go)ernmental or tird-party a%dits# and
ta*e &ate)er oter steps are ne$essary to ens%re tat te "%ll s$ope o" te $orporate
&rongdoing is dis$losed and tat te responsi'le $%lprits are identi"ied and# i" appropriate#
prose$%ted( See generall& se$tion 4+++# supra(








.ootnotes
>( +n addition# te Senten$ing G%idelines re&ard )ol%ntary dis$los%re and $ooperation &it a red%$tion
in te $orporation0s o""ense le)el( See U(S(S(G( E ?C:(@6g7(
BRet%rn To Te1tC
:( Tis &ai)er so%ld ordinarily 'e limited to te "a$t%al internal in)estigation and any
$ontemporaneo%s ad)i$e gi)en to te $orporation $on$erning te $ond%$t at iss%e( E1$ept in %n%s%al
$ir$%mstan$es# prose$%tors so%ld not see* a &ai)er &it respe$t to $omm%ni$ations and &or* prod%$t
related to ad)i$e $on$erning te go)ernment0s $riminal in)estigation(
BRet%rn To Te1tC
;( Some states re/%ire $orporations to pay te legal "ees o" o""i$ers %nder in)estigation prior to a "ormal
determination o" teir g%ilt( O')io%sly# a $orporation0s $omplian$e &it go)erning la& so%ld not 'e
$onsidered a "ail%re to $ooperate(
BRet%rn To Te1tC
=( Alto%g tis $ase and *asic Construction are 'ot antitr%st $ases# teir reasoning applies to oter
$riminal )iolations( +n te +ilton $ase# "or instan$e# te Nint Cir$%it noted tat Serman A$t )iolations
are $ommer$ial o""enses 5%s%ally moti)ated 'y a desire to enan$e pro"its#5 t%s 'ringing te $ase
&itin te normal r%le tat a 5p%rpose to 'ene"it te $orporation is ne$essary to 'ring te agent0s a$ts
&itin te s$ope o" is employment(5 =A8 .(:d at >99A G n(=( +n addition# in nited States !.
"utomated #edical $a%oratories# 889 .(:d ;<<# =9A n(@ 6=
t
Cir( ><?@7# te .o%rt Cir$%it stated tat
*asic Construction states a generally appli$a'le r%le on $orporate $riminal lia'ility despite te "a$t tat
it addresses )iolations o" te antitr%st r%les(5
BRet%rn To Te1tC
@( .or a detailed re)ie& o" tese and oter "a$tors $on$erning $orporate $omplian$e programs#see
United States Senten$ing Commission# $uidelines Manual# E ?A>(:# $omment( 6n( ;6*77 6No)( ><<87(
See also U(S(S(G( E ?C:(@6"7(
BRet%rn To Te1tC
A( .or e1ample# te Antitr%st Di)ision0s amnesty poli$y spe$i"i$ally re/%ires tat 5B&Cere possi'le# te
$orporation Bma*eC restit%tion to in2%red parties ( ( ( (5
BRet%rn To Te1tC