A Justice Manual Deferred Prosecution Agreement: A Guide for Businesses

Businesses are built on trust, and trust is fragile. When a business faces allegations and investigations of wrongdoing, it not only impacts the reputation of the company but also puts the trust of its customers and stakeholders at risk. In such times, the Department of Justice (DOJ) has provided a tool called the Deferred Prosecution Agreement (DPA) that can be a way forward.

The Justice Manual is a document that lays out the policies and procedures that guide the DOJ. It includes a section on DPAs, which provides guidance on the principles and considerations that federal prosecutors should consider when entering into a DPA with a business. A DPA is an agreement between a prosecutor and a company that suspends criminal proceedings in exchange for the company meeting certain conditions.

The benefits of a DPA are many. Most importantly, it allows a company to avoid a criminal conviction and the reputational damage that comes with it. It also provides an opportunity for companies to implement measures to prevent the recurrence of the wrongdoing, enhancing the company’s compliance program. A DPA also allows the DOJ to hold a company accountable for its actions while avoiding the collateral consequences of a corporate conviction, such as the loss of jobs or the destabilization of the economy.

To qualify for a DPA, a company must take proactive measures to address the allegations of wrongdoing, cooperate with the DOJ’s investigation, and agree to pay penalties or restitution. This is a reflection of the DOJ’s commitment to holding companies accountable for their actions while offering them a fair and reasonable way forward.

When considering a DPA, it’s important for businesses to work with legal counsel experienced in dealing with the DOJ. The process can be complex, with negotiations that require careful attention to detail and a keen understanding of the pertinent legal standards. The company must also be prepared to make significant changes to its operations, including changes to its corporate culture, policies, and procedures.

In conclusion, a Justice Manual Deferred Prosecution Agreement can be a valuable tool for companies that find themselves facing allegations of wrongdoing. By taking proactive steps to address the issue and working with the DOJ to implement changes, a company can avoid the debilitating consequences of a criminal conviction while still being held accountable for its actions. However, it’s important for businesses to take the process seriously and work with experienced legal counsel to ensure the best possible outcome.