Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Business Crimes BulletinFeaturesKickerLJN NewslettersNewsSections

Judicial Oversight of Corporate Deferred Prosecution Agreements

By Jodi Misher Peikin and Peter Janowski

Earlier this year, the Department of Justice (DOJ) and a subsidiary of a Dutch aerospace technology company, Fokker Services B.V. (Fokker), reached an agreement to resolve charges that the company had conspired to unlawfully export goods originated in the United States to Iran, Burma, and Sudan ' countries on the U.S. sanctions list. The terms of the agreement were unremarkable: Fokker would pay a fine equal to the profits it earned in the unlawful export transactions, implement a compliance program, and comply with U.S. export laws for 18 months. If Fokker met the terms of the deferred prosecution agreement (DPA) for the period of deferral, the criminal charges that were to be filed in federal court along with the DPA would be dismissed. As is the case for virtually all corporate prosecutions in the United States, the matter appeared to have been resolved by settlement.

United States District Judge Richard Leon of the District of D.C. had a different view. In United States v. Fokker Services B.V., ' F. Supp. 3d ', 2015 WL 729291 (D.D.C. Feb. 5, 2015), Judge Leon rejected the terms of the DPA. In his view, the agreement did not impose a sufficient punishment for the level of misconduct engaged in by the company. The decision has obvious effects on the government's case against Fokker, but it also could have repercussions that extend far beyond the case, including the potential to alter DOJ's policy on deferred prosecution agreements; the creation of critical uncertainty for white collar defense practitioners; and the raising of interesting questions about the role of the judiciary in corporate criminal negotiations and settlements.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.