Government goes ahead with plea bargaining

The MoJ announced this morning that it is going ahead with US-style plea bargaining in cases where companies are investigated for crimes such as fraud, bribery and money laundering.

The move would allow the SFO to impose potentially huge fines on companies through deferred prosecution agreements (DPAs), without the need for complex and often expensive court cases.

Under DPAs firms would admit liability and agree to comply with tough conditions, such as paying large fines, making reparation to victims, undertaking reforms to prevent such conduct occurring again and submitting to regular reviews and monitoring.

A spokesman for the MoJ said the process would be scrutinised by an independent judge and the threat of prosecution would remain during the period of the agreement.

The new law will be introduced through an amendment to the Crime and Courts Bill, currently going through the House of Lords.

'Economic crime is a serious issue,' minister for justice Damian Green said. 'Fraud alone is estimated to cost the UK £73 billion each year, yet far too few serious cases are brought to justice.

'It is clear we must find new and better ways of ensuring organisations who commit criminal wrongdoing do not get away with it.

'Deferred Prosecution Agreements will give prosecutors an effective new tool to tackle what has become an increasingly complex issue.

'It will ensure that more unacceptable corporate behaviour is dealt with including through substantial penalties, proper reparation to victims, and measures to prevent future wrongdoing.'

A spokesman for the MoJ added that final agreements would be published in open court and published.

He said that if, at the end of the DPA, prosecutors were satisfied that the organisation had fulfilled its commitments, there would be no prosecution. If, on the other hand, the organisation failed to meet its obligations, it could face prosecution.

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