In mid-February, the Department of Justice’s Fraud Section issued a publication entitled “Evaluation of Corporate Compliance Programs,” (“Compliance Memorandum”) which highlighted important topics and reoccurring problems in the compliance arena. This is the first such guidance that this Section has published on this topic since President Donald J. Trump assumed office.
This publication considers the “Filip Factors,” named for a Deputy Assistant Attorney General, who wrote the memorandum entitled “Principles of Federal Prosecution of Business Organization.” The Filip Memo highlighted 10 separate factors that federal prosecutors analyze when making charging decisions with respect to corporate officers. One of the main factors used is an analysis of “the existence and effectiveness of the company’s pre-existing compliance program.” The DOJ drafted the new Compliance Memorandum to provide more transparency to corporate officers regarding how federal prosecutors will undertake particularized evaluations of corporations’ unique compliance programs when making charging decisions in the wake of potential corporate wrongdoing. Continue reading The Department of Justice Speaks on the Adequacy of Corporate Compliance Programs