UK prosecutors handed power to use plea bargains for corporates
BRITISH prosecutors will have new powers from today to offer US-style plea bargains to companies accused of corporate crimes, in return for penalties and concessions.
Deferred Prosecution Agreements (DPAs) will allow firms to avoid prosecution for crimes including corruption and fraud if they agree to certain conditions.
These could includes fines, compensation for any victims, repayment of any profits linked to criminal activities, and promises of corrective action.
They are likely to be used by prosecutors including the Serious Fraud Office (SFO), which pursues complex fraud, bribery and corruption convictions. But lawyers warned that the new legislation could pose risks to businesses.
“There are considerable risks for a company in entering into negotiations for a DPA which then fail,” said Stephen Parkinson, head of criminal litigation at Kingsley Napley. “The SFO can then use, in a subsequent prosecution, any investigation reports or evidence that have been provided by the company during the negotiations.”