CFE-LAW practice question 7 of 25
Which of the following is generally one of the goals of deferred prosecution agreements?
Full set: 158 questionsA primary goal of a deferred prosecution agreement (DPA) is to foster corporate reform and prevent future misconduct. DPAs typically require the accused organization to implement and maintain robust internal controls, ethics, and compliance programs. By mandating these remedial measures, often under the supervision of an independent monitor, the government aims to address the root causes of the illegal behavior and reduce the likelihood of future violations. This approach seeks to reform the organization's culture and practices without imposing the severe collateral consequences of a criminal conviction, such as debarment from government contracts.
B. This describes a plea bargain. In a DPA, the defendant does not plead guilty; prosecution is deferred and may be dismissed upon successful completion of the agreement's terms.
C. While an internal investigation is often a prerequisite for a DPA, the agreement's purpose is comprehensive corporate reform, not merely to postpone prosecution pending an investigation.
D. This is a potential consequence of breaching a DPA, not its primary goal. The main objective is remedial and preventative, aiming to avoid future misconduct altogether.
1. U.S. Department of Justice, Justice Manual, § 9-28.300 - Factors to Be Considered. This section outlines factors prosecutors consider when charging a corporation. Factor 6, "the corporation’s remedial actions, including any efforts to implement an effective corporate compliance program or to improve an existing one," directly supports the goal of using resolutions like DPAs to reduce future illegal practices.
2. Garrett, B. L. (2007). "Structural Reform Prosecution." Virginia Law Review, 93(4), 853-962. This article analyzes DPAs as tools for organizational reform. It states, "These agreements aim to reform the organization from within... by requiring that companies adopt internal compliance programs, cooperate with ongoing investigations, and accept court-appointed or independent monitors." (p. 860).
3. Alexander, C. S., & Cohen, M. A. (2015). "The Evolution of Corporate Criminal Settlements: An Empirical Study of Non-Prosecution, Deferred Prosecution, and Plea Agreements." American Criminal Law Review, 52(3), 537-598. The study notes that a key feature of DPAs is the imposition of "compliance and governance reforms designed to prevent and detect future misconduct." (p. 540). This reinforces that a central goal is the prevention of future illegal acts.
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