How can companies avoid criminal charges according to Manhattan's US Attorney?

Companies can avoid criminal charges by self-reporting fraud and financial misconduct, fully cooperating with law enforcement, committing to three years of ongoing disclosure, and agreeing to mitigate any harm caused.

What is the principle behind Manhattan's new self-reporting program?

The principle is that prompt corporate disclosure and cooperation in rooting out and remedying wrongdoing are in the best interest of victims, shareholders, employees, and the markets.

What is the benefit of corporate self-reporting for prosecutors?

Encouraging companies to voluntarily disclose misconduct allows the prosecutor's office to focus on prosecuting individuals responsible for the wrongdoing.

Home / Business and Economy / Companies Can Avoid Charges by Self-Reporting Fraud

Companies Can Avoid Charges by Self-Reporting Fraud

25 Feb

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Summary

Companies can avoid criminal charges by self-reporting fraud.
Self-reporting requires full cooperation and three years of disclosure.
This program allows prosecutors to focus on individual accountability.

Companies Can Avoid Charges by Self-Reporting Fraud

Manhattan's US Attorney's office has introduced a new self-reporting program designed to encourage companies to disclose fraud and financial misconduct. Under this initiative, firms that voluntarily report violations, cooperate fully with law enforcement, and commit to ongoing disclosure for three years may avoid criminal prosecution. This program, established with clear guidelines, aims to provide predictable treatment for companies taking responsibility.

US Attorney Jay Clayton stated that prompt corporate disclosure and cooperation benefit victims, shareholders, employees, and markets. He emphasized that companies doing the right thing should know their standing. This initiative builds on existing practices of favorably weighing voluntary disclosures and cooperation in charging decisions. Encouraging self-reporting allows the office to better focus on prosecuting individuals, as some executive and employee prosecutions stem from information originally obtained through corporate disclosures.

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