|  | | 2006 News and Press Releases | | |
HEADLINE NEWS:
Shift in Corporate Prosecution Ahead; Government to Stiffen Rules On Indicting Companies
Carrie Johnson
Washington Post. November 30, 2006
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EXCERPT: Justice Department officials are revising controversial guidelines for criminal prosecutions of companies in response to pressure from business groups, civil liberties lobbyists and an influential lawmaker who is expected to introduce legislation on the issue early next week. The changes, which could require local U.S. attorneys to obtain input from high-level Justice Department officials before seeking corporate indictments, could be unveiled by Deputy Attorney General Paul J. McNulty next month, according to sources briefed on the issue who spoke on condition of anonymity because the deliberations are not yet complete. The administrative revisions also may forbid government lawyers from forcing companies to stop paying attorney fees to employees ensnared in investigations, a move that was declared unconstitutional in June by a federal judge in New York. Separately, Senate Judiciary Chairman Arlen Specter (R-Pa.) is drafting legislation that would bar prosecutors from forcing companies to waive their attorney-client privilege over internal documents in order to avoid criminal charges, a key part of the current guidelines. Specter, who has received support from Sen. Patrick J. Leahy (D-Vt.), could release the bill as early as Monday. Debate about the appropriate use of prosecutorial power over business has simmered for years, reigniting in 2002 when the Justice Department charged Arthur Andersen LLP with obstruction of justice, a move that prompted partners and clients to flee and hastened the death of the audit firm. |
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