Schleppenbach, Bernstein and Berg: DOJ White-Collar Enforcement Plan Could be Costly For Companies
Failure to comply with the U.S. Department of Justice’s (DOJ) white-collar enforcement plan could result in steep criminal penalties for companies. Companies should be aware of the plan and take steps now to be compliant, Shook Partners Jay Schleppenbach and Matt Bernstein and Senior Counsel Arianna Berg said in a Bloomberg Law article titled “Supply Chain Audits Need Fresh Look as DOJ Focuses on Trade Fraud.”
Schleppenbach, Bernstein and Berg said the plan, issued by DOJ’s Criminal Division on May 12, includes an enforcement priority that may not be commonly considered for criminal proceedings: customs and trade fraud. They said federal law allows companies to be prosecuted for acts committed by anyone in their supply chain, and companies do not need to have actual knowledge of customs or trade fraud to be prosecuted.
“As criminal liability for trade violations rises, companies will need to adapt their supply chain audits to ensure that suppliers have complied with trade laws by sharing accurate information about products and paying the correct tariffs,” they said.
