On May 12, 2025, the U.S. Department of Justice (DOJ) issued an important policy memorandum titled "Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime."
This memo signals a strategic shift in how white-collar crime is investigated and prosecuted, providing clear guidance for federal prosecutors while highlighting new risks and opportunities for corporations, executives, and individuals under scrutiny.
In other words, the DOJ revealed its new plan for prosecuting white-collar and corporate crime. They announced their enforcement priorities for the Criminal Division and introduced a series of changes aimed at bringing greater focus and efficiency to corporate investigations and prosecutions.
These changes are crucial to understand for any member of a corporate legal or compliance department responsible for running a corporate compliance program, facing a DOJ investigation, or laboring under an existing corporate integrity agreement or other corporate resolution.
Simply put, the DOJ Criminal Division issued a memorandum outlining the Division's enforcement priorities and policies, along with a revised Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP), the Selection of Monitors in Criminal Division Matters, and updates to the Corporate Whistleblower Awards Pilot Program.
If you are facing a potential federal investigation or charges involving white-collar crimes, let's look at some key takeaways you need to know.
Revised Enforcement Polices
The memorandum confirms that while the Criminal Division remains committed to white-collar and corporate enforcement, it will pursue enforcement in a manner that minimizes unnecessary burdens on American enterprise.
This includes prioritizing certain "high-impact areas," an expressed intention to conduct investigations more efficiently, providing greater benefits to companies that self-report misconduct, and a more targeted use of independent compliance monitors. These changes are designed to minimize unnecessary burdens on American enterprise and provide a more favorable environment for businesses.
The memorandum also makes clear that the Criminal Division will pursue corporate enforcement in a manner that aligns with overall administration priorities, with an emphasis on the public fisc, tariffs, cartels, and transnational criminal organizations, as well as the southern border.
The fact that the Criminal Division is providing financial incentives through its expanded Whistleblower Program for individuals to come forward and report misconduct in these priority areas likely means that prosecutors will pursue new federal criminal investigations. Here are some key takeaways from the memorandum and updated policies:
- New benefits for United States businesses.
- Foreign Corrupt Practices Act shifts overseas.
- Targeting cartels and terrorist organizations.
- Prioritizing evasion of tariff policies.
- Focus on defrauding the government.
- Immigration and corporate enforcement.
- Encouraging self-reporting by corporations.
White-Collar Focus
The new memo outlines a list of priorities for white-collar enforcement, focusing on crimes that pose a significant threat to U.S. interests.
The guidance emphasizes that prosecutors should prioritize fairness and efficiency through streamlined investigations. It outlines specific areas of focus that the Criminal Division believes pose the most urgent threats to citizens and companies, such as the following:
- Healthcare fraud and federal program and procurement fraud.
- Trade and customs fraud, including tariff evasion.
- Elder fraud, securities fraud, and other market manipulation schemes.
- Fraud that victimizes U.S. investors, individuals, and markets.
- Ponzi schemes, investment fraud, and service member fraud.
- Conduct that threatens the country's national security.
- Threats to the U.S. financial system, such as financial institutions.
- Violations that enable transactions by Cartels and foreign terrorists.
- Money laundering funds that are used in the manufacturing of illegal drugs.
- Violations of the Controlled Substances Act, such as the unlawful manufacture and distribution of chemicals and equipment used to create counterfeit pills laced with fentanyl and the unlawful distribution of opioids by medical professionals and companies.
- Violations of the Federal Food, Drug, and Cosmetic Act (FDCA).
- Bribery that enriches foreign corrupt officials.
- Digital assets crimes in furtherance of other criminal conduct.
The DOJ intends to enlist resources that have traditionally been dedicated to the investigation of white-collar and corporate crime in the fight against drug cartels. This shift in focus could mean that resources previously used to investigate white-collar crimes may now be directed towards drug cartel investigations. If your case involves drug cartel-related offenses, this shift could significantly impact the resources and attention your case receives.
One priority area that is more traditionally domestic is fraud affecting public programs, such as Medicare or Medicaid, as well as other government programs. This approach is consistent with the administration's broader efforts to attempt to identify and eliminate waste, fraud, and abuse in the federal government.
Prioritization of High-Impact Areas
The DOJ is focusing on specific forms of white-collar crimes that pose significant risks to U.S. taxpayers, investors, and financial markets. Specifically, as noted above, the memo outlines ten high-priority areas, including healthcare fraud, securities fraud, customs and tariff evasion, and crimes involving the exploitation of digital assets.
This means that cases involving schemes such as Ponzi schemes, elder fraud, or violations of trade sanctions are likely to receive heightened attention. If you are under investigation for one of these priority offenses, it's crucial to understand the heightened focus your case may receive.
Prosecutors are under directives to not only pursue individual wrongdoers but also uncover complex fraud networks. This increased focus could lead to more thorough investigations and potentially more severe penalties.
If you are under investigation for one of these priority offenses, it's crucial to understand the heightened focus your case may receive. Prosecutors are under directives to not only pursue individual wrongdoers but also uncover complex fraud networks.
Scrutiny of Individual Accountability
The memo reinforces that individuals, not just corporations, are often at the heart of white-collar crimes. Executives, officers, and employees suspected of misconduct will be the primary focus of investigations. The DOJ has made it clear that corporate settlements or resolutions will not shield individuals from prosecution, and it intends to pursue criminal charges where appropriate.
For someone under investigation, this point highlights the importance of making careful and strategic decisions. Cooperation with authorities might help mitigate penalties, but it could also increase personal exposure.
It's essential to recognize that while cooperation can lead to reduced penalties, it can also result in increased scrutiny and potential additional charges. Consult with experienced legal counsel before engaging with investigators, as every action and statement can have significant consequences.
Cooperation and Voluntary Disclosure
The memo devotes considerable attention to the benefits of corporate disclosure, cooperation, and remediation, but these principles also apply to individuals. Prosecutors are instructed to reward proactive and transparent behavior.
For companies, this may mean voluntary self-disclosure of misconduct. For individuals, cooperating with authorities during an investigation can sometimes lead to reduced penalties, but it must be approached with caution.
The DOJ is also incentivizing companies that promptly report misconduct by their employees. If you are under investigation, understand that your employer might disclose information to the authorities to protect the company's interests.
Shortened Timelines for Investigations
White-collar investigations have a reputation for dragging on for years, causing significant stress and uncertainty for those involved.
To address this, prosecutors are being directed to conclude investigations more swiftly and avoid letting cases linger unnecessarily. This urgency highlights the importance of thorough preparation and readiness for potential investigations.
If you become the subject of an investigation, act quickly. Seek qualified legal representation immediately, as early intervention is often crucial in shaping the course of the investigation.
Monitorships and Compliance Programs
For organizations, the DOJ intends to limit the imposition of corporate monitors to cases where they are necessary to prevent future misconduct. If a monitor is deemed necessary, the scope and cost of their role will be narrowly tailored.
This reflects the DOJ's broader commitment to minimizing unnecessary burdens on businesses, as well as on their employees and stakeholders. This change might impact employees accused of misconduct within larger organizations.
Companies may be incentivized to demonstrate compliance measures and pin responsibility on specific individuals to avoid invasive measures, such as monitorships. If you are implicated in such cases, be aware that your situation might play into broader corporate strategies designed to secure leniency for the organization.
Consult with a Federal Defense Lawyer
If you are under investigation for a suspected white-collar crime, this DOJ memo underscores the high stakes involved for you. Federal charges frequently result in convictions because prosecutors typically don't indict unless they already have a strong case.
Likewise, a conviction can result in substantial fines and lengthy prison sentences. Investigators are being urged to take a more targeted and aggressive approach to uncovering and prosecuting these crimes, which also increases the likelihood that you may be wrongly targeted.
If you find yourself under federal scrutiny, or if you have reason to believe you might be, make sure you understand the DOJ's focus areas and assess whether your case aligns with their highest priorities. Be mindful of the emphasis on personal accountability and the role of cooperation in shaping outcomes.
Lastly, act quickly and strategically by retaining an experienced federal criminal defense attorney who can guide you through the process, help you interpret the government's actions, and build a strong defense. For additional information, contact our federal criminal defense law firm, Eisner Gorin LLP, based in Los Angeles, CA.
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