U.S. Senators Josh Hawley (R-Mo.) and Peter Welch (D-Vt.) have introduced bipartisan legislation, the Hold Corporate Criminals Accountable Act, to direct the Department of Justice (DOJ) to crack down on corporate wrongdoing by America’s biggest businesses.
“More and more big businesses are receiving a slap on the wrist by the DOJ for corporate misbehavior, allowing corporations to skirt litigation fees while incentivizing repeated offenses. This bipartisan legislation has the teeth to hold Corporate America accountable and would crack down on DOJ’s sweetheart deals,” said Senator Hawley.
“All wrongdoers should be held accountable for their actions—plain and simple. Yet federal prosecution of white-collar crimes has fallen to record lows in recent years, making it easier for ultra-wealthy executives to game the system and avoid responsibility when they hurt hardworking people. It’s also making it harder for the victims of corporate crimes to get justice, and that’s unacceptable,” said Senator Welch. “Our bipartisan bill will ensure a level playing field and provide needed accountability.”
Senator Hawley’s bill introduction comes in response to one of the most egregious and highest-profile examples of corporate misbehavior: The DOJ in 2021 had arranged a deferred prosecution agreement (DPA) for Boeing after the company exhibited safety lapses contributing to two airplane crashes. Boeing then took advantage of the DOJ’s deal by committing a follow-up felony—conspiring to deceive the Federal Aviation Administration about the safety of the 737 MAX aircraft.
Boeing will consequently pay approximately $250 million in corporate penalties.
Senator Hawley’s new bipartisan legislation would raise the standards required to offer DPAs in the first place.
Specifically, the Hold Corporate Criminals Accountable Act would:
- Require corporations entered into a DPA or on probation to use effective compliance monitoring rather than skirting oversight, as in the case of Boeing’s recent agreement.
- Require federal agencies to keep a list of the deferred and non-prosecution agreements they enter, so they can be accessible to the public.
- Extend all statutes of limitations related to corporate criminal offenses by five years to provide prosecutors more time to bring complex cases.
- Redefine substantial assistance for a sentencing reduction for corporate offenders to ensure actual assistance in identifying and prosecuting individual bad actors within a corporation.
Read the full text of the bill here.