U.S. Sentencing Guidelines Require "Effective" Compliance Programs: What Does That Mean?

In 1991, the United States Sentencing Commission issued the first Federal Sentencing Guidelines applicable to the sentencing of "organizations" convicted of federal crimes. Until then, the Sentencing Guidelines applied only to individuals. The Commission has just proposed new amendments to the "organizational guidelines," which will become effective later this year in the absence of action by Congress.

The organizational guidelines - codified as "Chapter Eight" of the Sentencing Guidelines - establish a "culpability score" for each offense. The culpability score, in turn, dictates a narrow range of possible punishments. The sentencing judge may depart up or down (an "upward" or "downward" departure) from this range based upon aggravating or mitigating circumstances. The final score determines the sentence, and a small variance can mean millions of dollars in fines to a corporation convicted of a federal crime.