Reply #9: The McNulty Memo, and what does it do? = Tone Down Corporate Fraud Prosecutions

[L. Coyote]

http://www.itbusinessedge.com/item/?ci=22930
New DOJ Guidelines Tone Down Corporate Fraud Prosecutions
http://www.itbusinessedge.com/item/?ci=22930

Question: What is the McNulty Memo, and what does it do?

Cellini: On Dec. 12, 2006, Paul McNulty, the incumbent Deputy Attorney General, issued a revised memorandum to prosecutors outlining the factors they should consider when deciding to charge corporate entities with wrongdoing. This memorandum replaces the Thompson Memo and will inevitably come to be known as the McNulty Memo.

The McNulty Memo chooses sides in the war between the factor that rewards companies for establishing effective internal compliance programs and the factor that punishes companies for failing to voluntarily disclose adverse information turned up by those very same programs. Specifically, the McNulty Memo dramatically limits the circumstances under which it will require corporations to waive the attorney/client privilege. In other words, the Justice Department has made a choice and has come down on the side of encouraging companies to establish compliance programs (even at the expense of giving up its power to force companies to disclose unfavorable information uncovered by those programs).

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"He has also been the principal driver of the Department’s policies and efforts to prevent corporate fraud and stop those who seek to defraud the taxpayers through fraudulent procurement practices...."


Statement of Attorney General Alberto R. Gonzales on the
Resignation of Deputy Attorney General Paul J. Mcnulty
http://www.usdoj.gov/opa/pr/2007/May/07_ag_357.html

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