{"id":24417,"date":"2015-02-09T02:53:33","date_gmt":"2015-02-09T01:53:33","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=24417"},"modified":"2015-02-09T02:54:03","modified_gmt":"2015-02-09T01:54:03","slug":"24417","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/24417\/","title":{"rendered":"Does the Punishment Fit the Crime?"},"content":{"rendered":"

Jed. S. Rakoff reviews Too Big to Jail by Brandon L. Garrett:\u00a0 <\/em>So-called \u201cdeferred prosecutions\u201d were developed in the 1930s as a way of helping juvenile offenders. A juvenile who had been charged with a crime would agree with the prosecutor to have his prosecution deferred while he entered a program designed to rehabilitate such offenders.<\/p>\n

The analogy of a Fortune 500 company to a juvenile delinquent is, perhaps, less than obvious. Nonetheless, beginning in the early 1990s and with increasing frequency thereafter, federal prosecutors began entering into \u201cdeferred prosecution\u201d agreements with major corporations and large financial institutions. In the typical arrangement, the government agreed to defer prosecuting the company for various federal felonies if the company, in addition to paying a financial penalty, agreed to introduce various \u201cprophylactic\u201d measures designed to prevent future such crimes and to \u201crehabilitate\u201d the company\u2019s \u201cculture.\u201d<\/p>\n

Speaking of corporate culture in an even broader way, it is worth remembering that any reasonable shareholder wants his or her company\u2019s executives to be highly energetic, characterized by initiative, competitiveness, innovativeness, and even aggressiveness, all in a quest for profitability. It may be that these lauded qualities, essential to success in any competitive company, may in some cases encourage questionable behavior.<\/p>\n

At bottom, corporate fraud amounts to little more than executives lying for business purposes, and prosecution depends on proving that the lies were intentional.<\/p>\n

The preference for deferred prosecutions reflects some less laudable motives, such as the political advantages of a settlement that makes for a good press release, the avoidance of unpredictable courtroom battles with skilled, highly paid adversaries, and even the dubious benefit to the Department of Justice and the defendant of crafting a settlement that limits, or eliminates entirely, judicial oversight of implementation of the agreement.<\/p>\n

When it comes to criminal violations involving corporations, \u201cneither individuals nor corporations should be left off the hook.\u201d One might argue that the two should not be equated and that the prosecution of high-level individuals for high-level crimes is a far more appropriate use of the criminal law than prosecution of the companies that served as their fields of operation.\u00a0 For the past decade or more, as a result of the shift from prosecuting high-level individuals to entering into \u201ccosmetic\u201d prosecution agreements with their companies, the punishment and deterrence of corporate crime has, for all the government\u2019s rhetoric, effectively been reduced.\u00a0 Deferred Prosecution<\/a><\/strong><\/p>\n

\"Deferred<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Jed. S. Rakoff reviews Too Big to Jail by Brandon L. Garrett:\u00a0 So-called \u201cdeferred prosecutions\u201d were developed in the 1930s as a way of helping juvenile offenders. A juvenile who had been charged with a crime would agree with the … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[70,22,13],"tags":[],"class_list":["post-24417","post","type-post","status-publish","format-standard","hentry","category-big-banks","category-corruption","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t