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The Obvious Logical Gap In The DOJ’s “New” FCPA “Pilot Program”

logical gap

This post is short, but to the point.

According to the DOJ, its Foreign Corrupt Practices Act “pilot program” “is intended to encourage companies to disclose FCPA misconduct to permit the prosecution of individuals whose criminal wrongdoing might otherwise never be uncovered by or disclosed to law enforcement.”

The above objective suffers from an obvious logical gap in that for years the DOJ has had the opportunity to do just what the “pilot program” seeks to accomplish.

Indeed, since 2011 19 corporate DOJ FCPA enforcement actions originated with voluntary disclosures. However, in only five of those instances (26%) was there a related DOJ prosecution of individuals.

If the goal of the FCPA “pilot program” is to encourage voluntary disclosures to permit the DOJ to prosecute individuals” then why have 74% of corporate DOJ FCPA enforcement actions over the past five years that originated with a voluntary disclosure not resulted in any related DOJ prosecution of individuals?

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