Corporate Criminal Liability

In January, the Second Circuit affirmed the conviction of Ionia Management S.A. (Ionia) for criminal acts of its non-management employees. United States v. Ionia Mgmt. S.A., Nos. 07-5801-cr & 08-1387-cr, 2009 U.S. APP. LEXIS 902, 2009 WL 116966 (2d Cir. Jan. 20, 2009) (per curiam). While the affirmance of a conviction is commonplace, what set this appeal apart is that the Association of Corporate Counsel, the Chamber of Commerce of the United States of America, and other prestigious amici supported Ionia's argument that the Second Circuit should revisit its long-standing rule that a company can be held criminally liable for acts of even low-level employees. Although the court refused to alter the standard for vicarious criminal liability, the Ionia appeal raises an important policy issue that warrants consideration by Congress and the courts.