Last year, following Deputy Attorney General Lisa Monaco’s directive, the DOJ unveiled a voluntary self-disclosure policy for corporate criminal enforcement across all U.S. attorney’s offices. This policy incentivizes corporations to report individual misconduct by offering significant reductions in fines and the possibility of avoiding guilty pleas for timely self-reporting.
According to the DOJ directive, a voluntary self-disclosure must occur before an imminent threat of the misconduct being exposed or a government investigation begins. For companies that meet the criteria, fully cooperate, and implement appropriate remediation, U.S. attorney’s offices will not seek a guilty plea from the corporation, barring aggravating factors. In such cases, options like deferred prosecution agreements and nonprosecution agreements are available.
Even companies with aggravating factors, such as widespread misconduct or involvement of senior executives, may avoid a guilty plea. Voluntary self-reporting can also lead to no monetary penalty, subject to the discretion of the U.S. attorney’s office. If penalties are imposed, they will not exceed 50% below the low end of the advisory sentencing guidelines range.
