[ Signed on June 16, 1999 ]

M EMORANDUM TO: FROM: All Component Heads and United States Attorneys THE DEPUTY ATTORNEY GENERAL

SUBJECT: Bringing Criminal C arges Against Corporations !ore and more o"ten# "ederal prose$%tors are "a$ed &it $riminal $ond%$t $ommitted 'y or on 'e al" o" $orporations( T e Department is $ommitted to prose$%ting 'ot t e $%lpa'le indi)id%als and# & en appropriate# t e $orporation on & ose 'e al" t ey a$ted( T e atta$ ed do$%ment# Federal Prosecution of Corporations# pro)ides g%idan$e as to & at "a$tors s o%ld generally in"orm a prose$%tor in ma*ing t e de$ision & et er to $ arge a $orporation in a parti$%lar $ase( + 'elie)e t ese "a$tors pro)ide a %se"%l "rame&or* in & i$ prose$%tors $an analy,e t eir $ases and pro)ide a $ommon )o$a'%lary "or t em to dis$%ss t eir de$ision &it "ello& prose$%tors# s%per)isors# and de"ense $o%nsel( T ese "a$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$e t ese "a$tors in a parti$%lar $ase# nor are t ey re/%ired to do$%ment t e &eig t t ey a$$orded spe$i"i$ "a$tors in rea$ ing t eir de$ision( T e "a$tors and t e $ommentary &ere de)eloped t ro%g t e ard &or* o" an ad hoc &or*ing gro%p $oordinated 'y t e .ra%d Se$tion o" t e Criminal Di)ision and made %p o" representati)es o" United States Attorneys0 O""i$es# t e E1e$%ti)e O""i$e o" United States Attorneys# and Di)isions o" t e Department &it $riminal la& en"or$ement responsi'ilities( E1perien$e &it t ese g%idelines may lead to $ anges or ad2%stments in t e te1t and $ommentary( T ere"ore# please "or&ard any $omments a'o%t t e g%idelines# as &ell as instan$es in & i$ t e "a$tors pro)ed %se"%l or not %se"%l in spe$i"i$ $ases to S ira Neiman# Dep%ty United States Attorney# So%t ern Distri$t o" Ne& Yor*# and P ilip Uro"s*y# Trial Attorney# .ra%d Se$tion# Criminal Di)ision( + loo* "or&ard to earing $omments "rom t e "ield as to t e appli$ation o" t ese "a$tors in pra$ti$e( En$l(

Federal Prosecution of Corporations

! C"ar#in# Corporations: $eneral

A(

General Principle3 Corporations s o%ld not 'e treated leniently 'e$a%se o" t eir arti"i$ial nat%re nor s o%ld t ey 'e s%'2e$t to ars er treatment( 4igoro%s en"or$ement o" t e $riminal la&s against $orporate &rongdoers# & ere appropriate# res%lts in great 'ene"its "or la&

B(

en"or$ement and t e p%'li$# parti$%larly in t e area o" & ite $ollar $rime( +ndi$ting $orporations "or &rongdoing ena'les t e go)ernment to address and 'e a "or$e "or positi)e $ ange o" $orporate $%lt%re# alter $orporate 'e a)ior# and pre)ent# dis$o)er# and p%nis & ite $ollar $rime( Comment3 +n all $ases in)ol)ing $orporate &rongdoing# prose$%tors s o%ld $onsider t e "a$tors dis$%ssed erein( .irst and "oremost# prose$%tors s o%ld 'e a&are o" t e important p%'li$ 'ene"its t at 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 t at is per)asi)e t ro%g o%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 t e $%lt%re o" t e indi$ted $orporation and t e 'e a)ior o" its employees( .inally# $ertain $rimes t at $arry &it t em a s%'stantial ris* o" great p%'li$ arm#e.g.# en)ironmental $rimes or "inan$ial "ra%ds# are 'y t eir nat%re most li*ely to 'e $ommitted 'y '%sinesses# and t ere may# t ere"ore# 'e a s%'stantial "ederal interest in indi$ting t e $orporation( C arging a $orporation# o&e)er# does not mean t at indi)id%al dire$tors# o""i$ers# employees# or s are olders s o%ld not also 'e $ arged( Prose$%tion o" a $orporation is not a s%'stit%te "or t e prose$%tion o" $riminally $%lpa'le indi)id%als &it in or &it o%t t e $orporation( .%rt er# 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 $rimes( Under t e do$trine o" respondeat superior# a $orporation may 'e eld $riminally lia'le "or t e illegal a$ts o" its dire$tors# o""i$ers# employees# and agents( To 'e eld lia'le "or t ese a$tions# t e go)ernment m%st esta'lis t at t e $orporate agent0s a$tions 6i7 &ere &it in t e s$ope o" is d%ties and 6ii7 &ere intended# at least in part# to 'ene"it t e $orporation( +n all $ases in)ol)ing &rongdoing 'y $orporate agents# prose$%tors s o%ld $onsider t e $orporation# as &ell as t e 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 t e 'ene"it o" t e $orporation# and a $orporation may 'e eld lia'le as long as one moti)ation o" its agent is to 'ene"it t e $orporation( T %s# in nited States !. "utomated #edical $a%oratories# 889 .(:d ;<< 6=t Cir( ><?@7# t e $o%rt a""irmed t e $orporation0s $on)i$tion "or t e a$tions o" a s%'sidiary0s employee despite its $laim t at t e employee &as a$ting "or is o&n 'ene"it# namely is 5am'itio%s nat%re and is desire to as$end t e $orporate ladder(5 T e $o%rt stated# 5Part%$$i &as $learly a$ting in part to 'ene"it A!L sin$e is ad)an$ement &it in t e $orporation depended on A!L0s &ell-'eing and its la$* o" di""i$%lties &it t e .DA(5 Similarly# in nited States !. Cincotta# A?< .(:d :;?# :=>-=: 6>st Cir( ><?:7# t e $o%rt eld# 5$riminal lia'ility may 'e imposed on t e $orporation only & ere t e agent is a$ting &it in t e s$ope o" is employment( T at# in t%rn# re/%ires t at t e agent 'e per"orming a$ts o" t e *ind & i$ e is a%t ori,ed to per"orm# and t ose a$ts m%st 'e moti)ated -- at least in part -- 'y an intent to 'ene"it t e $orporation(5 Applying t is test# t e $o%rt %p eld t e $orporation0s $on)i$tion# not&it standing t e s%'stantial personal 'ene"it reaped 'y its mis$reant agents# 'e$a%se t e "ra%d%lent s$ eme re/%ired money to pass t ro%g t e $orporation0s treas%ry and t e "ra%d%lently o'tained goods &ere resold to t e $orporation0s $%stomers in t e $orporation0s name( As t e $o%rt $on$l%ded# 5!ysti$--not t e indi)id%al de"endants--&as ma*ing money 'y selling oil t at it ad not paid

"or(5 !oreo)er# t e $orporation need not e)en ne$essarily pro"it "rom its agent0s a$tions "or it to 'e eld lia'le( +n "utomated #edical $a%oratories# t e .o%rt Cir$%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# & et er t e agent0s a$tions %ltimately redo%nded to t e 'ene"it o" t e $orporation is less signi"i$ant t an & et er t e agent a$ted &it t e intent to 'ene"it t e $orporation( T e 'asi$ p%rpose o" re/%iring t at an agent a)e a$ted &it t e intent to 'ene"it t e $orporation# o&e)er# is to ins%late t e $orporation "rom $riminal lia'ility "or a$tions o" its agents & i$ 'e inimi$al to t e interests o" t e $orporation or & i$ may a)e 'een %nderta*en solel& to ad)an$e t e interests o" t at agent or o" a party ot er t an t e $orporation( 'd( at =98 6emp asis 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$%tors s o%ld apply t e same "a$tors in determining & et er to $ arge a $orporation as t ey do &it respe$t to indi)id%als( See U(S(A(!( E <-:8(::9# et se)( T %s# t e prose$%tor s o%ld &eig all o" t e "a$tors normally $onsidered in t e so%nd e1er$ise o" prose$%torial 2%dgment3 t e s%""i$ien$y o" t e e)iden$e# t e li*eli ood o" s%$$ess at trial# t e pro'a'le deterrent# re a'ilitati)e# and ot er $onse/%en$es o" $on)i$tion# and t e ade/%a$y o" non-$riminal approa$ es( See id. Ho&e)er# d%e to t e nat%re o" t e $orporate 5person#5 some additional "a$tors are present( +n $ond%$ting an in)estigation# determining & et er to 'ring $ arges# and negotiating plea agreements# prose$%tors s o%ld $onsider t e "ollo&ing "a$tors in rea$ ing a de$ision as to t e proper treatment o" a $orporate target3 >( T e nat%re and serio%sness o" t e o""ense# in$l%ding t e ris* o" arm to t e p%'li$# and appli$a'le poli$ies and priorities# i" any# go)erning t e prose$%tion o" $orporations "or parti$%lar $ategories o" $rime 6see se$tion +++,infra7D :( T e per)asi)eness o" &rongdoing &it in t e $orporation# in$l%ding t e $ompli$ity in# or $ondonation o"# t e &rongdoing 'y $orporate management 6see se$tion +4# infra7D ;( T e $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 =( T e $orporation0s timely and )ol%ntary dis$los%re o" &rongdoing and its &illingness to $ooperate in t e in)estigation o" its agents# in$l%ding# i" ne$essary# t e &ai)er o" t e $orporate attorney-$lient and &or* prod%$t pri)ileges 6see se$tion 4+# infra7D @( T e e1isten$e and ade/%a$y o" t e $orporation0s $omplian$e program 6see se$tion 4++# infra7D A( T e $orporation0s remedial a$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

B(

&it t e rele)ant go)ernment agen$ies 6see se$tion 4+++# infra7D 8( Collateral $onse/%en$es# in$l%ding disproportionate arm to s are olders and employees not pro)en personally $%lpa'le 6see se$tion +F# infra7D and ?( T e ade/%a$y o" non-$riminal remedies# s%$ as $i)il or reg%latory en"or$ement a$tions 6see se$tion F# infra7( Comment3 As &it t e "a$tors rele)ant to $ arging nat%ral persons# t e "oregoing "a$tors are intended to pro)ide g%idan$e rat er t an to mandate a parti$%lar res%lt( T e "a$tors listed in t is se$tion are intended to 'e ill%strati)e o" t ose t at s o%ld 'e $onsidered and not a $omplete or e1 a%sti)e list( Some or all o" t ese "a$tors may or may not apply to spe$i"i$ $ases# and in some $ases one "a$tor may o)erride all ot ers( .%rt er# national la& en"or$ement poli$ies in )ario%s en"or$ement areas may re/%ire t at more or less &eig t 'e gi)en to $ertain o" t ese "a$tors t an to ot ers( +n ma*ing a de$ision to $ arge a $orporation# t e prose$%tor generally as &ide latit%de in determining & en# & om# o&# and e)en & et er to prose$%te "or )iolations o" .ederal $riminal la&( +n e1er$ising t at dis$retion# prose$%tors s o%ld $onsider t e "ollo&ing general statements o" prin$iples t at s%mmari,e appropriate $onsiderations to 'e &eig ed and desira'le pra$ti$es to 'e "ollo&ed in dis$ arging t eir prose$%torial responsi'ilities( +n doing so# prose$%tors s o%ld ens%re t at t e general p%rposes o" t e $riminal la& -- ass%ran$e o" &arranted p%nis ment# deterren$e o" "%rt er $riminal $ond%$t# prote$tion o" t e p%'li$ "rom dangero%s and "ra%d%lent $ond%$t# re a'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 t e spe$ial nat%re o" t e $orporate 5person(5

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

A(

B(

General Principle3 T e nat%re and serio%sness o" t e $rime# in$l%ding t e ris* o" arm to t e p%'li$ "rom t e $riminal $ond%$t# are o')io%sly primary "a$tors in determining & et er to $ arge a $orporation( +n addition# $orporate $ond%$t# parti$%larly t at o" national and m%ltinational $orporations# ne$essarily interse$ts &it "ederal e$onomi$# ta1ation# and $riminal la& en"or$ement poli$ies( +n applying t ese prin$iples# prose$%tors m%st $onsider t e pra$ti$es and poli$ies o" t e appropriate Di)ision o" t e Department# and m%st $omply &it t ose poli$ies to t e e1tent re/%ired( Comment3 +n determining & et er to $ arge a $orporation# prose$%tors s o%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$%tors m%st 'e a&are o" t e spe$i"i$ poli$y goals and in$enti)e programs esta'lis ed 'y t e 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 t emsel)es in# ma*ing statements against t eir penal interest# and $ooperating in t e go)ernment0s in)estigation o" t eir o&n and ot ers0 &rongdoing# t e same approa$ 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 t e $orporation0s pre-indi$tment $ond%$t# e.g(# )ol%ntary dis$los%re# $ooperation# remediation or restit%tion# in determining & et er to see* an indi$tment(

Ho&e)er# t is &o%ld not ne$essarily 'e appropriate in an antitr%st in)estigation# in & i$ antitr%st )iolations# 'y de"inition# go to t e eart o" t e $orporation0s '%siness and "or & i$ t e Antitr%st Di)ision as t ere"ore esta'lis ed a "irm poli$y# %nderstood in t e '%siness $omm%nity# t at $redit s o%ld not 'e gi)en at t e $ arging stage "or a $omplian$e program and t at amnesty is a)aila'le only to t e "irst $orporation to ma*e "%ll dis$los%re to t e go)ernment( As anot er e1ample# t e Ta1 Di)ision as a strong pre"eren$e "or prose$%ting responsi'le indi)id%als# rat er t an entities# "or $orporate ta1 o""enses( T %s# in determining & et er or not to $ arge a $orporation# prose$%tors s o%ld $ons%lt &it t e Criminal# Antitr%st# Ta1# and En)ironmental and Nat%ral Reso%r$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(

B(

General Principle3 A $orporation $an only a$t t ro%g nat%ral persons# and it is t ere"ore eld responsi'le "or t e a$ts o" s%$ persons "airly attri'%ta'le to it( C arging a $orporation "or e)en minor mis$ond%$t may 'e appropriate & ere t e &rongdoing &as per)asi)e and &as %nderta*en 'y a large n%m'er o" employees or 'y all t e employees in a parti$%lar role &it in t e $orporation# e.g(# salesmen or pro$%rement o""i$ers# or &as $ondoned 'y %pper management( On t e ot er 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 t eory "or t e single isolated a$t o" a rog%e employee( T ere is# o" $o%rse# a &ide spe$tr%m 'et&een t ese t&o e1tremes# and a prose$%tor s o%ld e1er$ise so%nd dis$retion in e)al%ating t e per)asi)eness o" &rongdoing &it in a $orporation( Comment3 O" t ese "a$tors# t e most important is t e role o" management( Alt o%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 eit er dis$o%raged or ta$itly en$o%raged( As stated in $ommentary to t e Senten$ing G%idelines3 Per)asi)eness BisC $ase spe$i"i$ and B&illC depend on t e n%m'er# and degree o" responsi'ility# o" indi)id%als B&it C s%'stantial a%t ority ( ( ( & o parti$ipated in# $ondoned# or &ere &ill"%lly ignorant o" t e o""ense( .e&er indi)id%als need to 'e in)ol)ed "or a "inding o" per)asi)eness i" t ose indi)id%als e1er$ised a relati)ely ig degree o" a%t ority( Per)asi)eness $an o$$%r eit er &it in an organi,ation as a & ole or &it in 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

B(

& et er to 'ring $riminal $ arges( 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 $%lt%re t at en$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 t e $orporation pre)io%sly ad 'een s%'2e$t to non-$riminal g%idan$e# &arnings# or san$tions# or pre)io%s $riminal $ arges# and yet it eit er ad not ta*en ade/%ate a$tion to pre)ent "%t%re %nla&"%l $ond%$t or ad $ontin%ed to engage in t e $ond%$t in spite o" t e &arnings or en"or$ement a$tions ta*en against it( +n ma*ing t is determination# t e $orporate str%$t%re itsel"# e.g(# s%'sidiaries or operating di)isions# s o%ld 'e ignored# and en"or$ement a$tions ta*en against t e $orporation or any o" its di)isions# s%'sidiaries# and a""iliates s o%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(

B(

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

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

A(

B(

General Principle3 Complian$e programs are esta'lis ed 'y $orporate management to pre)ent and to dete$t mis$ond%$t and to ens%re t at $orporate a$ti)ities are $ond%$ted in a$$ordan$e &it all appli$a'le $riminal and $i)il la&s# reg%lations# and r%les( T e Department en$o%rages s%$ $orporate sel"-poli$ing# in$l%ding )ol%ntary dis$los%res to t e go)ernment o" any pro'lems t at a $orporation dis$o)ers on its o&n( Ho&e)er# t e 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# t e $ommission o" s%$ $rimes in t e "a$e o" a $omplian$e program may s%ggest t at t e $orporate management is not ade/%ately en"or$ing its program( +n addition# t e nat%re o" some $rimes# e.g.# antitr%st )iolations# may 'e s%$ t at national la& en"or$ement poli$ies mandate prose$%tions o" $orporations not&it standing t e e1isten$e o" a $omplian$e program( Comment( A $orporate $omplian$e program# e)en one spe$i"i$ally pro i'iting t e )ery $ond%$t in /%estion# does not a'sol)e t e $orporation "rom $riminal lia'ility %nder t e do$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 $ommitted 'y its employees i" t ey &ere a$ting &it in t e s$ope o" t eir a%t ority# or apparent a%t ority# and "or t e 'ene"it o" t e $orporation# e)en i" ( ( ( s%$ a$ts &ere against $orporate poli$y or e1press instr%$tions(57( T %s# in nited States !. +ilton +otels Corp.# =A8 .(:d >999 6<t Cir( ><8:7# cert. denied# =9< U(S( >>:@ 6><8;7# t e Nint Cir$%it a""irmed antitr%st lia'ility 'ased %pon a p%r$ asing agent "or a single otel t reatening 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. T e $o%rt reasoned t at Congress# in ena$ting t e S erman Antitr%st A$t# 5intended to impose lia'ility %pon '%siness entities "or t e a$ts o" t ose to & om t ey $ oose to delegate t e $ond%$t o" t eir a""airs# t %s stim%lating a ma1im%m e""ort 'y o&ners and managers to ass%re ad eren$e 'y s%$ agents to t e re/%irements o" t e A$t(5 6=7 +t $on$l%ded t at 5general poli$y statements5 and e)en dire$t instr%$tions "rom t e agent0s s%periors &ere not s%""i$ientD 5Appellant $o%ld not gain e1$%lpation 'y iss%ing general instr%$tions &it o%t %nderta*ing to en"or$e t ose instr%$tions 'y means $ommens%rate &it t e o')io%s ris*s(5 See also nited States !. *eusch# @<A .(:d ?8># ?8? 6<t Cir( ><8<7 65BAC $orporation may 'e lia'le "or t e a$ts o" its employees done $ontrary to e1press instr%$tions and poli$ies# '%t ( ( ( t e e1isten$e o" s%$ instr%$tions and poli$ies may 'e $onsidered in determining & et er t e employee in "a$t a$ted to 'ene"it t e $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 $orporation0s de"ense t at o""i$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 $ompetitorsD 5H en t e a$t o" t e agent is &it in t e s$ope o" is employment or is apparent a%t ority# t e $orporation is eld legally responsi'le "or it# alt o%g & at e did may 'e $ontrary to is a$t%al instr%$tions and may 'e %nla&"%l(57( H ile t e Department re$ogni,es t at no $omplian$e program $an e)er pre)ent all $riminal a$ti)ity 'y a $orporation0s employees# t e $riti$al "a$tors in e)al%ating any program are & et er t e program is ade/%ately designed "or ma1im%m e""e$ti)eness in pre)enting and dete$ting &rongdoing 'y employees and & et er $orporate management is en"or$ing t e

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( T e Department as no "ormal g%idelines "or $orporate $omplian$e programs( T e "%ndamental /%estions any prose$%tor s o%ld as* are3 5+s t e $orporation0s $omplian$e program &ell designedI5 andC 5Does t e $orporation0s $omplian$e program &or*I5 +n ans&ering t ese /%estions# t e prose$%tor s o%ld $onsider t e $ompre ensi)eness o" t e $omplian$e program# t e e1tent and per)asi)eness o" t e $riminal $ond%$tD t e n%m'er and le)el o" t e $orporate employees in)ol)edD t e serio%sness# d%ration# and "re/%en$y o" t e mis$ond%$t# and any remedial a$tions ta*en 'y t e $orporation# in$l%ding restit%tion# dis$iplinary a$tion# and re)isions to $orporate $omplian$e programs( 6@7Prose$%tors s o%ld also $onsider t e promptness o" any dis$los%re o" &rongdoing to t e go)ernment and t e $orporation0s $ooperation in t e go)ernment0s in)estigation( Prose$%tors s o%ld t ere"ore attempt to determine & et er a $orporation0s $omplian$e program is merely a 5paper program5 or & et er it &as designed and implemented in an e""e$ti)e manner( +n addition# prose$%tors s o%ld determine & et er t e $orporation as pro)ided "or a sta"" s%""i$ient to a%dit# do$%ment# analy,e# and %tili,e t e res%lts o" t e $orporation0s $omplian$e e""orts( +n addition# prose$%tors s o%ld determine & et er t e $orporation0s employees are ade/%ately in"ormed a'o%t t e $omplian$e program and are $on)in$ed o" t e $orporation0s $ommitment to it( T is &ill ena'le t e prose$%tor to ma*e an in"ormed de$ision as to & et er t e $orporation as adopted and implemented a tr%ly e""e$ti)e $omplian$e program t at# & en $onsistent &it ot er "ederal la& en"or$ement poli$ies# may res%lt in a de$ision to $ arge only t e $orporation0s employees and agents( Complian$e programs s o%ld 'e designed to dete$t t e parti$%lar types o" mis$ond%$t most li*ely to o$$%r in a parti$%lar $orporation0s line o" '%siness( !any $orporations operate in $omple1 reg%latory en)ironments o%tside t e normal e1perien$e o" $riminal prose$%tors( A$$ordingly# prose$%tors s o%ld $ons%lt &it rele)ant "ederal and state agen$ies &it t e e1pertise to e)al%ate t e ade/%a$y o" a program0s design and implementation( .or instan$e# state and "ederal 'an*ing# ins%ran$e# and medi$al 'oards# t e Department o" De"ense# t e Department o" Healt and H%man Ser)i$es# t e En)ironmental Prote$tion Agen$y# and t e Se$%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# t e .ra%d Se$tion o" t e Criminal Di)ision# t e Commer$ial Litigation Bran$ o" t e Ci)il Di)ision# and t e En)ironmental Crimes Se$tion o" t e En)ironment and Nat%ral Reso%r$es Di)ision $an assist U(S( Attorneys0 O""i$es in "inding t e appropriate agen$y o""i$e and in pro)iding $opies o" $omplian$e programs t at &ere de)eloped in pre)io%s $ases(

'

! C"ar#in# t"e Corporation: Restitution and Re,ediation

A(

General Principle3 Alt o%g neit er 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 t e $orporation0s &illingness to ma*e restit%tion and steps already ta*en to do so# as &ell as ot er remedial a$tions s%$ as implementing an e""e$ti)e $orporate $omplian$e program# impro)ing an e1isting one# and dis$iplining &rongdoers# in determining & et er to $ arge t e $orporation(

B(

Comment3 +n determining & et er or not a $orporation s o%ld 'e prose$%ted# a prose$%tor may $onsider & et er meaning"%l remedial meas%res a)e 'een ta*en# in$l%ding employee dis$ipline and "%ll restit%tion( 6A7A $orporation0s response to mis$ond%$t says m%$ a'o%t its &illingness to ens%re t at s%$ mis$ond%$t does not re$%r( T %s# $orporations t at "%lly re$ogni,e t e serio%sness o" t eir mis$ond%$t and a$$ept responsi'ility "or it s o%ld 'e seen to 'e ta*ing steps to implement t e personnel# operational# and organi,ational $ anges ne$essary to esta'lis an a&areness among employees t at $riminal $ond%$t &ill not 'e tolerated( Among t e "a$tors prose$%tors s o%ld $onsider and &eig are & et er t e $orporation appropriately dis$iplined t e &rongdoers and dis$losed in"ormation $on$erning t eir illegal $ond%$t to t e go)ernment( Employee dis$ipline is a di""i$%lt tas* "or many $orporations 'e$a%se o" t e %man element in)ol)ed and sometimes 'e$a%se o" t e seniority o" t e employees $on$erned( Ho&e)er# & ile $orporations need to 'e "air to t eir employees# t ey m%st also 'e %ne/%i)o$ally $ommitted# at all le)els o" t e $orporation# to t e ig est standards o" legal and et i$al 'e a)ior( E""e$ti)e internal dis$ipline $an 'e a po&er"%l deterrent against improper 'e a)ior 'y a $orporation0s employees( +n e)al%ating a $orporation0s response to &rongdoing# prose$%tors may e)al%ate t e &illingness o" t e $orporation to dis$ipline $%lpa'le employees o" all ran*s and t e ade/%a$y o" t e dis$ipline imposed( T e prose$%tor s o%ld satis"y imsel" or ersel" t at t e $orporation0s "o$%s is on t e integrity and $redi'ility o" its remedial and dis$iplinary meas%res rat er t an on t e prote$tion o" t e &rongdoers( +n addition to employee dis$ipline# t&o ot er "a$tors in e)al%ating a $orporation0s remedial e""orts are restit%tion and re"orm( As &it nat%ral persons# t e de$ision & et er or not to prose$%te s o%ld not depend %pon t e target0s a'ility to pay restit%tion( A $orporation0s e""orts to pay restit%tion e)en in ad)an$e o" any $o%rt order is# o&e)er# e)iden$e o" its 5a$$eptan$e o" responsi'ility5 and# $onsistent &it t e pra$ti$es and poli$ies o" t e appropriate Di)ision o" t e Department entr%sted &it en"or$ing spe$i"i$ $riminal la&s# may 'e $onsidered in determining & et er to 'ring $riminal $ arges( Similarly# alt o%g t e inade/%a$y o" a $orporate $omplian$e program is a "a$tor to $onsider & en de$iding & et er to $ arge a $orporation# t at $orporation0s /%i$* re$ognition o" t e "la&s in t e program and its e""orts to impro)e t e program are also "a$tors to $onsider(

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

A(

B(

General Principle3 Prose$%tors may $onsider t e $ollateral $onse/%en$es o" a $orporate $riminal $on)i$tion in determining & et er to $ arge t e $orporation &it a $riminal o""ense( Comment3 One o" t e "a$tors in determining & et er to $ arge a nat%ral person or a $orporation is & et er t e li*ely p%nis ment is appropriate gi)en t e nat%re and serio%sness o" t e $rime( +n t e $orporate $onte1t# prose$%tors may ta*e into a$$o%nt t e possi'ly s%'stantial $onse/%en$es to a $orporation0s o""i$ers# dire$tors# employees# and s are olders# many o" & om may# depending on t e si,e and nat%re 6e.g.# p%'li$ly !s. $losely eld7 o" t e $orporation and t eir role in its operations# a)e played no role in t e $riminal $ond%$t# a)e 'een $ompletely %na&are o" it# or a)e 'een & olly %na'le to pre)ent it( .%rt er# prose$%tors s o%ld also 'e a&are o" non-penal san$tions t at may a$$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 $are( H et er or not s%$ non-penal san$tions are appropriate or re/%ired in a parti$%lar $ase is t e responsi'ility o" t e rele)ant agen$y# a de$ision t at &ill 'e made 'ased on t e appli$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 t ird parties# and t e mere e1isten$e o" s%$ an e""e$t is not s%""i$ient to pre$l%de prose$%tion o" t e $orporation( T ere"ore# in e)al%ating t e se)erity o" $ollateral $onse/%en$es# )ario%s "a$tors already dis$%ssed# s%$ as t e per)asi)eness o" t e $riminal $ond%$t and t e ade/%a$y o" t e $orporation0s $omplian$e programs s o%ld also 'e $onsidered in determining t e &eig t to 'e gi)en to t is "a$tor( .or instan$e# t e 'alan$e may tip in "a)or o" prose$%ting $orporations in sit%ations & ere t e s$ope o" t e mis$ond%$t in a $ase is &idespread and s%stained &it in a $orporate di)ision 6or spread t ro%g o%t po$*ets o" t e $orporate organi,ation7( +n s%$ $ases# t e possi'le %n"airness o" )isiting p%nis ment "or t e $orporation0s $rimes %pon s are olders may 'e o" m%$ less $on$ern & ere t ose s are olders a)e s%'stantially pro"ited# e)en %n*no&ingly# "rom &idespread or per)asi)e $riminal a$ti)ity( Similarly# & ere t e top layers o" t e $orporation0s management or t e s are olders o" a $losely- eld $orporation &ere engaged in or a&are o" t e &rongdoing and t e $ond%$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" t e $orporation0s &rongdoing( T e appropriateness o" $onsidering s%$ $ollateral $onse/%en$es and t e &eig t to 'e gi)en t em may depend on t e spe$ial poli$y $on$erns dis$%ssed in se$tion +++#supra(

-!

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

A(

B(

General Principle3 Alt o%g non-$riminal alternati)es to prose$%tion o"ten e1ist# prose$%tors may $onsider & et er s%$ san$tions &o%ld ade/%ately deter# p%nis # and re a'ilitate a $orporation t at as engaged in &rong"%l $ond%$t( +n e)al%ating t e ade/%a$y o" non-$riminal alternati)es to prose$%tion# e.g(# $i)il or reg%latory en"or$ement a$tions# t e prose$%tor may $onsider all rele)ant "a$tors# in$l%ding3 >( T e san$tions a)aila'le %nder t e alternati)e means o" dispositionD :( t e li*eli ood t at an e""e$ti)e san$tion &ill 'e imposedD and ;( t e e""e$t o" non-$riminal disposition on .ederal la& en"or$ement interests( Comment( T e primary goals o" $riminal la& are deterren$e# p%nis ment# and re a'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 &it o%t proper remediation( +n ot er $ases# o&e)er# t ese goals may 'e satis"ied &it o%t t e ne$essity o" instit%ting $riminal pro$eedings( +n determining & et er "ederal $riminal $ arges are appropriate# t e prose$%tor s o%ld $onsider t e same "a$tors 6modi"ied appropriately "or t e reg%latory $onte1t7 $onsidered & en determining & et er to lea)e prose$%tion o" a nat%ral person to anot er 2%risdi$tion or to see* non-$riminal alternati)es to prose$%tion# i(e(# t e strengt o" t e reg%latory a%t ority0s interestD t e reg%latory a%t ority0s a'ility and &illingness to ta*e

e""e$ti)e en"or$ement a$tion# t e pro'a'le san$tion i" t e reg%latory a%t ority0s en"or$ement a$tion is %p eld# and t e 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(

B(

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

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

A(

B(

General Principle3 +n negotiating plea agreements &it $orporations# prose$%tors s o%ld see* a plea to t e most serio%s# readily pro)a'le o""ense $ arged( +n addition# t e terms o" t e plea agreement s o%ld $ontain appropriate pro)isions to ens%re p%nis ment# deterren$e# re a'ilitation# and $omplian$e &it t e plea agreement in t e $orporate $onte1t( Alt o%g spe$ial $ir$%mstan$es may mandate a di""erent $on$l%sion# prose$%tors generally s o%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$ers and employees( Comment3 Prose$%tors may enter into plea agreements &it $orporations "or t e same reasons and %nder t e same $onstraints as apply to plea agreements &it nat%ral persons( See USA! EE <-:8(=99-@99( T is means# inter alia# t at t e $orporation s o%ld 'e re/%ired to plead to t e most serio%s# readily pro)a'le o""ense $ arged( As is t e $ase &it indi)id%als# t e attorney ma*ing t is determination s o%ld do so 5on t e 'asis o" an indi)id%ali,ed assessment o" t e e1tent to & i$ parti$%lar $ arges "it t e spe$i"i$ $ir$%mstan$es o" t e $ase# are $onsistent &it t e p%rposes o" t e "ederal $riminal $ode# and ma1imi,e t e impa$t o" "ederal reso%r$es on $rime( +n ma*ing t is determination# t e attorney "or t e go)ernment $onsider# inter alia# s%$ "a$tors as t e senten$ing g%ideline range yielded 'y t e $ arge# & et er t e penalty yielded 'y s%$ senten$ing range ( ( ( is proportional to t e serio%sness o" t e de"endant0s $ond%$t# and & et er t e $ arge a$ ie)es s%$ p%rposes o" t e $riminal la& as p%nis ment# prote$tion o" t e p%'li$# spe$i"i$ and

general deterren$e# and re a'ilitation(5 See Attorney General0s !emorand%m# dated O$to'er >:# ><<;( +n addition# any negotiated depart%res "rom t e Senten$ing G%idelines m%st 'e 2%sti"ia'le %nder t e G%idelines and m%st 'e dis$losed to t e senten$ing $o%rt( +n addition# $orporations s o%ld 'e made to reali,e t at pleading g%ilty to $riminal $ arges $onstit%tes an admission o" guilt and not merely a resol%tion o" an in$on)enient distra$tion "rom its '%siness( T %s# as &it nat%ral persons# pleas s o%ld 'e str%$t%red so t at t e $orporation may not later 5pro$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# t ere s o%ld 'e pla$ed %pon t e re$ord a s%""i$ient "a$t%al 'asis "or t e plea to pre)ent later $orporate assertions o" inno$en$e( A $orporate plea agreement s o%ld also $ontain $ertain pro)isions t at re$ogni,e t e nat%re o" t e $orporate 5person5 and ens%re t at t e prin$iples o" p%nis ment# deterren$e# and re a'ilitation are met( +n t e $orporate $onte1t# p%nis ment and deterren$e are generally a$$omplis ed '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)ersig t or t e %se o" spe$ial masters( See U(S(S(G( EE ?B>(># ?C:(># et se)( +n addition# & ere t e $orporation is a go)ernment $ontra$tor# permanent or temporary de'arment may 'e appropriate( H ere t e $orporation &as engaged in go)ernment $ontra$ting "ra%d# a prose$%tor may not negotiate a&ay an agen$y0s rig t to de'ar or to list t e $orporate de"endant( +n negotiating a plea agreement# prose$%tors s o%ld also $onsider t e deterrent )al%e o" prose$%tions o" indi)id%als &it in t e $orporation( T ere"ore# one "a$tor t at a prose$%tor may $onsider in determining & et er to enter into a plea agreement is & et er t e $orporation is see*ing imm%nity "or its employees and o""i$ers or & et er t e $orporation is &illing to $ooperate in t e in)estigation o" $%lpa'le indi)id%als( Generally# prose$%tors s o%ld rarely negotiate a&ay indi)id%al $riminal lia'ility in a $orporate plea( Re a'ilitation# o" $o%rse# re/%ires t at t e $orporation %nderta*e to 'e la&-a'iding in t e "%t%re( +t is# t ere"ore# appropriate to re/%ire t e $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 $ons%lt &it t e appropriate state and "ederal agen$ies and $omponents o" t e J%sti$e Department to ens%re t at a proposed $omplian$e program is ade/%ate and meets ind%stry standards and 'est pra$ti$es( See se$tion 4++# supra( +n plea agreements in & i$ t e $orporation agrees to $ooperate# t e prose$%tor s o%ld ens%re t at t e $ooperation is $omplete and tr%t "%l( To do so# t e prose$%tor may re/%est t at t e $orporation &ai)e t e attorney-$lient and &or* prod%$t pri)ileges# ma*e employees and agents a)aila'le "or de'rie"ing# dis$lose t e res%lts o" its internal in)estigation# "ile appropriate $erti"ied "inan$ial statements# agree to go)ernmental or t ird-party a%dits# and ta*e & ate)er ot er steps are ne$essary to ens%re t at t e "%ll s$ope o" t e $orporate &rongdoing is dis$losed and t at t e responsi'le $%lprits are identi"ied and# i" appropriate# prose$%ted( See generall& se$tion 4+++# supra(

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