NEW YORK (Reuters) – The U.S. Justice Department said on Thursday it will make it harder for companies to enter into multiple settlements that defer or waive prosecutions, part of a shift toward tougher enforcement of white-collar crime.
At an event at New York University, Deputy Attorney General Lisa Monaco will announce steps the department plans to take to make it more attractive for companies to pay for corporate penalties by clawing back executive compensation rather than burdening shareholders, the department said.
Companies that voluntarily report misconduct and cooperate with investigators will not be required to plead guilty in most cases, Monaco will announce, an effort to encourage companies to invest in compliance. The department will also require companies that choose to cooperate with prosecutors to do so more quickly.
The announcement comes as the Justice Department shifts its approach toward corporate offenders under Democratic President Joe Biden after white-collar prosecutions fell to an all-time low during Republican former President Donald Trump’s administration.
(Reporting by Luc Cohen in New York; Editing by Aurora Ellis)
Copyright 2022 Thomson Reuters.