WASHINGTON (AP) - Despite challenges in bringing such cases, the Justice Department is renewing its commitment to prosecuting corporate executives for financial misdeeds, Deputy Attorney General Sally Yates said Thursday.
In a warning shot to Wall Street, Yates unveiled new policies to guide federal prosecutors in bringing more criminal cases against individuals. She also acknowledged the Justice Department has, at times, struggled to hold executives accountable for fraud that occurs at their companies.
"Crime is crime. And it is our obligation at the Justice Department to ensure we are holding lawbreakers accountable regardless of whether they commit their crimes on the street corner or in the boardroom," Yates said at New York University's law school.
"Americans should never believe, even incorrectly, that one's criminal activity will go unpunished simply because it was committed on behalf of a corporation."
The new policies come amid persistent criticism that the department, even while negotiating multi-billion-dollar settlements with large banks, has not been aggressive enough in prosecuting individuals for financial misconduct - including after the mortgage crisis that devastated the U.S. economy.
Some of the directives already are in practice, and it's not clear whether they will actually result in additional prosecutions. But taken together, the policies are designed to put the government in a stronger bargaining posture in corporate fraud investigations and to reduce leverage companies have in shielding individual executives.
Perhaps the biggest change mandates companies that want credit for cooperating with the government must turn over evidence of wrongdoing against specific individuals. Previously, companies could be credited for disclosing improper practices at the corporate level even if they didn't identify individuals suspected of wrongdoing.
"It's all or nothing. No more picking and choosing what gets disclosed," Yates said.
The department also is directing its civil and criminal lawyers to work together on corporate investigations and to begin with a focus on individuals. The department will generally not agree in corporate settlements to shield individuals from criminal or civil liability.