Deferred Prosecution Agreement Requirements

Deferred Prosecution Agreement Requirements: A Guide for Corporations

In recent years, the U.S. Department of Justice (DOJ) has increasingly used deferred prosecution agreements (DPAs) as a means of settling criminal cases against corporations. A DPA is an agreement between the DOJ and a corporation, in which the corporation agrees to certain terms in exchange for the DOJ deferring prosecution for a specified period.

If your corporation has been offered a DPA, it is important to understand the requirements you will be expected to comply with. Here is a guide to some of the key DPA requirements:

1. Admitting wrongdoing

One of the most significant requirements of a DPA is that the corporation must admit wrongdoing. This could include acknowledging that certain employees engaged in illegal conduct or that the corporation failed to adequately prevent or detect such conduct. Admitting wrongdoing can be a difficult decision, as it can expose the corporation to civil liability. However, it is a necessary step in the DPA process.

2. Implementing remedial measures

The corporation will be required to implement remedial measures to prevent similar conduct from occurring in the future. This could include creating or strengthening compliance programs, hiring independent monitors to oversee compliance, or making changes to corporate governance or management structures.

3. Paying monetary penalties

DPAs often require corporations to pay monetary penalties. The amount of the penalty will depend on the nature and severity of the conduct at issue, as well as the financial resources of the corporation. Penalties can range from the tens of thousands of dollars to millions or even billions of dollars.

4. Cooperating with ongoing investigations

Corporations entering into a DPA will be expected to cooperate fully with ongoing investigations, including providing access to documents and witnesses. This can be a difficult and time-consuming requirement, but it is critical for demonstrating the corporation`s commitment to reform and compliance.

5. Reporting regularly on compliance efforts

The corporation will be required to report regularly on its compliance efforts, including progress on remedial measures and ongoing efforts to prevent illegal conduct. This reporting will be monitored by the DOJ and failure to comply could result in termination of the DPA.

In summary, a DPA can be a useful tool for corporations facing criminal charges. However, entering into a DPA requires a significant commitment of time, resources, and cooperation. Understanding the requirements of a DPA and having a plan in place to comply with them is critical to a successful outcome.