Co-written by Christopher Myers
Since the implementation in 1991 of Federal Sentencing
Guidelines for organizations, there has been much discussion concerning the
impact of a voluntary corporate compliance program on sentencing, especially in
the setting of fine amounts. While the existence of an "effective"
corporate compliance program provides an express mitigating factor under the
Guidelines, the usefulness of a compliance program goes far beyond the fine
reduction mechanism under the Guidelines.
A compliance program can be the catalyst for: avoiding
criminal conduct by the corporation; dissuading prosecutorial authorities from
pursuing criminal charges; limiting or preventing findings of liability at
trial; as well as establishing a less onerous sentence should there be a finding
of guilt. A voluntarily established program can also be an effective tool in
preventing and defending potential civil liability after the threat of criminal
liability has been eliminated.
