David Bogoslaw, 9/22/15
Justice Department's latest effort to increase convictions of individuals for corporate misconduct could backfire if firms see no benefit from sharing incomplete information
A strict missive from the US Department of Justice (DoJ) regarding tougher targeting of individual executives for criminal misconduct has brought an abrupt end to that leisurely summer feeling that often extends past Labor Day. And some governance experts warn that the memorandum issued by Deputy Attorney General Sally Quillian Yates on September 9 could have a ‘chilling effect’ on companies’ co-operation with federal investigations.
‘The Yates Memorandum has been heralded as a sign of a new resolve at the DoJ, and follows a series of public statements made by DoJ officials indicating that they intend to adopt a more severe posture toward flesh-and-blood corporate criminals, not just corporate entities,’ Gibson Dunn & Crutcher notes in a client alert on September 11. The alert goes on to speculate about the intentions and likely impacts of six guidelines formalized by the memo that are meant to strengthen the DoJ’s pursuit of corporate misconduct. These could have both intended and unintended consequences for companies’ co-operation with DoJ investigations.
Read the full article here.