DOJ Revises Guidelines for Prosecuting Corporate Fraud
The Department of Justice announced changes to its corporate charging guidelines for federal prosecutors. The new guidance revises the Department's Principles of Federal Prosecution of Business Organizations, which governs how federal prosecutors investigate, charge, and prosecute corporate crime. The changes address issues concerning the attorney-client privilege and cooperation credit.
First, the revised guidelines state that credit for cooperation will not depend on the corporation's waiver of the attorney-client privilege or attorney work product protection. Rather, credit will depend on a corporation's timely disclosure of relevant facts. Corporations that timely disclose relevant facts may receive due credit for cooperation, regardless of whether they waive attorney-client privilege or work product protection in the process.
Second, prosecutors are instructed not to consider a corporation's advancement of attorneys' fees to employees when evaluating cooperativeness. In addition, the mere participation in a joint defense agreement will not render a corporation ineligible for cooperation credit.
The revised guidelines are located here.
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