Yesterday , Attorney General Loretta Lynch announced a revised Justice Department strategy with respect to prosecutions of corporate entities that emphasizes the  prosecution of both the entity and its executives.  The Attorney General stated:

“We’re not going to be accepting a company’s cooperation when they just offer up the vice president in charge…”

This makes it imperative for corporate executives who become aware of a federal agency’s investigation to consult with independent counsel at the first opportunity.

Too often, corporate executives rely on general counsel or corporate counsel to tell them whether and when to consult with independent counsel.  But that advice usually comes long after the internal investigation is complete; and the executive has given counsel statements which can be used against him or her.

The Justice Department’s new policies are an inducement for the corporation to lay fault for any transgression at the feet of executives at the highest level.  Reliance on corporate counsel to look out for the company’s executives’ interests could turn out to be woefully misplaced.

Read the full NY Times Article