On May 12, 2025, the head of the Department of Justice's Criminal Division released a memorandum, applicable only to Division attorneys, outlining priorities and policies for prosecuting white-collar crime.
The memo suggests that the DOJ will continue to prosecute white-collar fraud and crimes that harm government programs, citizens, and U.S. investors and markets. The memo also notes that not all corporate misconduct will warrant prosecution.
The memo explains that the Division's focus is on protecting American citizens and companies, as well as promoting U.S. interests. It identifies high-impact areas that will be prioritized for action.
Notably, the areas of focus include waste, fraud, and abuse, which encompass healthcare and federal program procurement fraud. Another area of focus includes trade and customs fraud, including tariff evasion.
Fraud in the securities and commodities markets is also a high priority. Other offenses of interest include Ponzi schemes, investment scams, and other types of fraud that victimize U.S. investors and consumers. Others are frauds perpetrated by Chinese entities and other foreign companies listed on U.S. exchanges, including “ramp and dump” schemes and other forms of market manipulation.
Still other areas of focus include foreign bribery and money laundering. Additionally, conduct that threatens national security interests, such as aiding or transacting with cartels, terrorist organizations, or hostile nation-states, is prohibited.
Notably, tips that lead to the forfeiture of laundered money, narcotics, immigration, terrorism, corporate sanctions, trade or tariff fraud, or corporate procurement fraud are now eligible for awards under the DOJ's Corporate Whistleblower Awards Pilot Program.
Key Takeaways
- The DOJ issued an important policy memorandum titled "Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime."
- The DOJ introduced a series of changes aimed at bringing greater focus and efficiency to corporate investigations and prosecutions.
- This memo signifies a significant shift in the DOJ's strategy for investigating and prosecuting white-collar crime.
- The memo highlights the new risks and opportunities that corporations, executives, and individuals under scrutiny will face.
- The memo outlines high-priority areas, including healthcare fraud, securities fraud, and crimes involving the exploitation of digital assets.
- Executives, officers, and employees suspected of misconduct will be the primary focus of investigations.
- The memo devotes considerable attention to the benefits of corporate disclosure, cooperation, and remediation.
- It emphasizes the DOJ's encouragement of self-reporting, empowering corporations to take proactive measures.
- Prosecutors are being directed to conclude investigations more swiftly and avoid letting cases linger unnecessarily.
- The DOJ Criminal Division issued a revised Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP), the Selection of Monitors in Criminal Division Matters, and updates to the Corporate Whistleblower Awards Pilot Program.
If you are facing a federal investigation or charges involving white-collar crimes, let's look at some key information below.
Guidance on Dealing With Corporate White Collar Misconduct
The memo underscores the DOJ's focus on investigating and prosecuting individuals in cases of corporate misconduct, a factor that could have significant implications for corporate executives and employees.
Companies that identify and self-report individual misconduct to the DOJ, cooperate with the government, and remediate to address the misconduct may be eligible for corporate leniency. Federal prosecutors are encouraged to consider all forms of resolutions when charges are necessary, such as:
- Nonprosecution agreements,
- Deferred prosecution agreements, and
- Guilty pleas.
Notably, the Division is reassessing the length of terms for all existing agreements to determine if they should be terminated early. For all new agreements with companies, the memo states that terms should not exceed three years, except in exceedingly rare cases.
The memo also promotes the importance of prosecutors conducting efficient investigations and making prompt charging decisions, fostering a culture of timely case resolution.
Enforcement Polices are Revised
The memo confirms that the Criminal Division is committed to white-collar and corporate enforcement, but will pursue enforcement in a manner that minimizes unnecessary burdens on American enterprise.
This includes prioritizing certain "high-impact areas," along with the intent to conduct investigations more efficiently. The changes are designed to minimize unnecessary burdens on American enterprise and provide a more favorable environment for businesses.
The memorandum also makes clear there is an emphasis on the public fisc, tariffs, cartels, and transnational criminal organizations, as well as the southern border.
The Criminal Division will offer financial incentives through its expanded Whistleblower Program to encourage individuals to come forward and report misconduct. Some key takeaways from the memorandum and updated policies include:
- Encouraging self-reporting by corporations.
- New benefits for United States businesses.
- Foreign Corrupt Practices Act shifts overseas.
- Targeting cartels and terrorist organizations.
- Immigration and corporate enforcement.
Focus on White Collar Offenses
The new memo has a list of priorities for white-collar enforcement and crimes that pose a significant threat to U.S. interests. It outlines specific areas of focus that the Criminal Division believes pose the most urgent threats to citizens and companies, such as the following:
- Fraud that victimizes U.S. investors, individuals, and markets.
- Health care fraud and federal program and procurement fraud.
- Trade and customs fraud, including tariff evasion.
- Money laundering funds for the manufacture of illegal drugs.
- Elder fraud, securities fraud, and other market manipulation schemes.
- Threats to the U.S. financial system, such as financial institutions.
- Violations that enable transactions by Cartels and foreign terrorists.
- Violations of the Controlled Substances Act,
- Unlawful manufacture and distribution of chemicals and equipment.
- Counterfeit pills laced with fentanyl and the unlawful distribution of opioids.
- Violations of the Federal Food, Drug, and Cosmetic Act (FDCA).
- Digital assets crimes in furtherance of other criminal conduct.
- Fraud affecting public programs, such as Medicare or Medicaid.
How a Federal Defense Lawyer Can Help
Suppose you are under investigation for a suspected white-collar crime. In that case, the DOJ memo underscores the high stakes involved for you. Federal charges often result in convictions because prosecutors typically don't indict unless they already have a strong case.
A conviction can result in substantial fines and lengthy prison sentences. Federal investigators are urged to take a more targeted and aggressive approach to uncover and prosecute white collar crimes, which also increases the chances that you may be wrongly targeted.
If you believe you might be under federal scrutiny, you need to make sure you understand the DOJ's focus areas and assess whether your case aligns with their highest priorities. You need to act quickly and strategically by retaining our federal criminal defense attorneys who can guide you through the process, help you interpret the government's actions, and build a strong strategy.
For more information, contact our federal criminal defense law firm, Cron, Israels & Stark, located in Los Angeles, CA.
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