Justice Dept. Defends Not Prosecuting Corporate Leaders for White-Collar Crime

Tuesday, September 18, 2012
Lanny Breuer

At a time when critics have accused the Obama administration of not being tougher on Wall Street, a top Department of Justice official publicly defended the increasing use of deferred-prosecution agreements for white-collar criminals. These agreements allow corporations and their executives who have committed fraud to avoid criminal charges in exchange for admitting wrongdoing and paying fines.

 

Lanny Breuer, chief of the Justice Department’s criminal division, said in a speech before the New York City Bar Association on September 13 that the agreements have had “a transformative effect on particular companies and, more generally, on corporate culture across the globe.”

 

Breuer acknowledged that the prosecutorial tool has “become a mainstay of white-collar criminal law enforcement” since the 1990s, before which prosecutors had only two choices with corporate executives accused of breaking the law: “indict, or walk away.” The Supreme Court ruled in 1909 that corporations can be charged with criminal offenses in the case of New York Central and Hudson River Railroad Company v. United States.

 

Critics of deferred prosecution claim that in practice it is just an easy for corporate executives to avoid personal responsibility for the actions of the companies they run.

 

Prior to joining the government, Breuer was co-chairman of the white-collar defense and investigations practice group at Covington & Burling LLP, representing such clients as Halliburton/KBR and, during the Enron scandal, Moody’s Investor Service. Later he represented President Bill Clinton during his impeachment hearings.

-Noel Brinkerhoff, David Wallechinsky

 

To Learn More:

Breuer Defends Deferred Prosecutions (Corporate Crime Reporter)

Comments

Zlocko 5 years ago
What do you call it when someone lies dnuirg a hearing? Perjury. What do you call it when a political appointee gets caught doing the same thing? Business as usual. What is wrong with this picture? What is wrong with America? What is wrong with Americans that we put up with this kind of crap from someone who is the head of The Department of Justice ? It is my contention that he should be removed from office promptly and sentenced for this flagrant act legal malfeasance. And we have not even contemplated the lives that were lost due to the misguided (at best) operation that caused him to be brought before this committee.
toggler 6 years ago
...Lanny Breuer is a bum boy for the corporatocracy....what does anybody expect him to do?
Justa Guy 6 years ago
What a joke? I thought justice was supposed to be blind? The sad truth is that the richer you are, the more you can get away with. And outside: Its America.

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