Philadelphia partner Ronald Sarachan and associate Nicholas Feltham wrote an article for Inside Counsel titled, “Regulatory: Antitrust Division modifies ‘carve-out’ policy for corporate plea agreements.”
In April of this year, the Justice Department’s Antitrust Division announced two key changes to its “carve out” policy for individuals employed by corporations entering criminal antitrust plea agreements. Ronald and Nicholas discuss how the modification has finally brought the policy in line with the policies of the rest of the Justice Department.
First, the division will no longer publicly release the names of individual employees who have been “carved out” of the non-prosecution protection in the company’s plea agreement. Second, the Antitrust Division will carve out only employees whom it has reason to believe were involved in criminal wrongdoing and who are potential targets of the investigation.
Although the division will “continue to demand the full cooperation of anyone who seeks to benefit from the non-prosecution protection of a corporate plea agreement,” it “will no longer carve out employees for reasons unrelated to culpability.”
This policy change will remove the cloud of doubt and negative stigma that presently plagues these employees, as the division will now carve out only those it believes are culpable or those still under investigation.