Attorney General Merrick Garland held a press conference on October 3, 2023, where he addressed the issue of corporate prosecutions under President Joe Biden’s Department of Justice. According to a new analysis published by Public Citizen, the number of corporate prosecutions in 2022 was among the lowest in decades.
In 2022, federal prosecutors concluded only 99 criminal cases against corporations, matching the same number during Donald Trump’s second year in office. This figure showed a modest increase from the 90 cases prosecuted in 2021 but revealed a decline in enforcement since the start of the Clinton administration.
The report issued a warning about the consequences of this “light-touch approach to enforcement.” It argued that such leniency provides opportunities for corporate wrongdoing, risking the public’s health, safety, environment, finances, and communities, all in the pursuit of maximizing profits.
Despite Joe Biden’s pledge to hold major sectors accountable for corporate abuses, there has not been a significant shift in enforcement. Although Attorney General Merrick Garland expressed interest in prosecuting corporate crime, the pace of new prosecutions remains slow. This continues a two-decade decline in corporate prosecutions, with today’s numbers being three times lower than in 2000.
The Biden administration has also seen a decline in deferred prosecution agreements and non-prosecution agreements, which are alternatives to filing charges for corporate malfeasance. In 2022, there were only 11 of these agreements, which typically involve large multinational companies.
Furthermore, the Biden DOJ has expanded a policy that allows corporations to self-report misconduct in exchange for immunity from prosecution. Originally applicable only to violations of the Foreign Corrupt Practices Act, this policy now covers any potential criminal violation. Critics argue that this leniency allows corporations to flout the law and only come forward when they can no longer hide their criminality, especially considering that many declinations remain secret.
Overall, the analysis suggests that the current approach to corporate prosecutions under the Biden administration raises concerns about deterring corporate crime and holding corporations accountable for their actions.
