by A&O Shearman Opinion Team at A&O Shearman
A new U.S. DOJ memo published on May 12 announces significant changes to the DOJ’s white-collar crime enforcement priorities, aligning the DOJ’s approach with the Trump Administration’s “America First” agenda.
Additionally, the Memo revised three policies related to corporate enforcement that had been issued by prior administrations, aligning those policies with the newly announced priorities and providing additional benefits to companies that self-disclose potential misconduct and fully cooperate with DOJ investigations.
The memo was issued by Matthew Galeotti, serving as Head of the Criminal Division of the Department of Justice (DOJ) in the absence of a nominee to serve as Assistant Attorney General, issued a memorandum titled “Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime” (Memo). The Memo, which was accompanied by a speech by Galeotti on the same day in Washington, is the first memo from the Criminal Division under the Trump Administration.
Notably, the Memo emphasized the substantial threats posed by white-collar crime and the impact of such crimes, including the exploitation of government programs, the erosion of public trust in financial markets, and threats to national security. At the same time, the Memo cautioned against overly aggressive enforcement that burdens legitimate business and harms U.S. economic interests. Consistent with the more measured approaches to corporate enforcement announced thus far by other U.S. enforcement agencies, the Memo observed that the “vast majority of American businesses are legitimate enterprises working to deliver value for their shareholders and quality products and services for customers.” Galeotti instructed Criminal Division prosecutors to “strike an appropriate balance between the need to effectively identify, investigate, and prosecute corporate and individuals’ criminal wrongdoing” while “avoid[ing] overreach that punishes risk-taking and hinders innovation… [and] minimize[s] unnecessary burdens on American enterprise.”