The Organizational Guidelines: R.I.P.?

Abstract:     
The U.S. Department of Justice now uses deferred and non-prosecution agreements in cases of corporate wrongdoing rather than filing charges against the company that will lead to a guilty plea or trial. This new approach means that the sentencing analysis under the Organizational Guidelines, which focus on calculating the appropriate fine, are largely meaningless because the determination of a fine is of minimal importance to the potential corporate defendant. While fines are still imposed, they are negotiated outside the context of the Organizational Guidelines. Of greater importance to the corporation being investigated will be the terms of a deferred/non-prosecution agreement that can mandate extensive changes in corporate governance. This article argues that while the Organizational Guidelines served a useful purpose, time has largely passed them by and they should be dropped from the Federal Sentencing Guidelines.

Number of Pages in PDF File: 7

Keywords: Sentencing, White Collar Crime, Federal Sentencing Guidelines, Corporate Crime

JEL Classification: K14, K22

Accepted Paper Series