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Justice Dept. Avoiding Corporate Prosecutions with Questionable, Secretive Deals

HeadlineApr 09, 2008

And the New York Times is reporting the Justice Department has avoided prosecuting more than fifty major corporations accused of wrongdoing over the past three years. The decline in prosecutions is seen as a deliberate and dramatic shift in policy. Rather than take companies to court for high-profile cases, the Bush administration has relied on “deferred prosecution agreements” that impose fines and appoint an outside monitor to enforce internal changes at the companies involved. The outside monitoring came under scrutiny this year after it was revealed former Attorney General John Ashcroft’s consulting firm won a $50 million government contract to oversee an agreement. Terms of the deals are often kept secret. Companies recently avoiding prosecutions include Monsanto, American Express and Merrill Lynch. Legal experts say the deferred prosecutions may encourage companies to commit wrongdoing, knowing they will likely be able to avoid a costly and public trial if they’re caught. Experts also say the agreements could become even more prevalent as the Justice Department takes on companies accused of wrongdoing in the subprime mortgage crisis.

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