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corporate crime database act
Democrats, Progressive Groups Push DOJ to Publish Database of 'Corporate Lawbreaking'
"The Corporate Crime Database Act will bring transparency to the corporate crime crisis so that the DOJ and other law enforcement agencies can better reckon with this greed-driven menace," said one advocate.
Nov 30, 2022
After three congressional Democrats on Tuesday unveiled the Corporate Crime Database Act, which would direct the U.S. Department of Justice to make information about corporate wrongdoing and efforts to curb it publicly available, dozens of progressive organizations and individuals implored federal lawmakers to pass the legislation as quickly as possible.
"The runaway consequences of rogue corporations are nothing short of catastrophic."
Introduced by Senate Majority Whip Dick Durbin (D-Ill.), Sen. Richard Blumenthal (D-Ct.), and Rep. Mary Gay Scanlon (D-Pa.), the bicameral legislation would, according to the lawmakers, require the Justice Department "to collect, aggregate, analyze, and publish comprehensive data on federal corporate criminal enforcement actions."
As the trio--which sent a letter to Attorney General Merrick Garland last month urging him to begin systematically tracking the DOJ's attempts to crack down on corporate crime--noted on Tuesday, people in the U.S. currently lack access to this crucial information.
"While the Department of Justice regularly collects data on nearly every type of street-level crime, there is very little reporting of corporate and white-collar crimes, with the last thorough DOJ report on corporate crime being in 1979," said Scanlon. "Without data or transparency, lawmakers, journalists, and the public are left in the dark about the size and scope of corporate crime in America and the effectiveness of the federal government's response."
Durbin argued that "comprehensive, national data collection and a searchable public database of the results of federal enforcement actions against corporations and individual actors engaging in corporate misconduct would provide better oversight, inform DOJ's corporate criminal prosecution practices, and demonstrate the effectiveness of corporate sanctions."
Blumenthal echoed his colleague, saying that the legislation would "aid efforts to fight criminal corporate conduct."
"Collecting and reporting data on enforcement actions against white-collar criminals are essential to holding wrongdoers accountable," said Blumenthal. "By providing this critical information, the Corporate Crime Database Act will deter future crimes and protect victims."
The new bill was welcomed by a coalition of more than three dozen progressive advocacy groups and scholars. In a letter to members of Congress, the coalition wrote that "this legislation would address a shocking gap in public knowledge about corporate lawbreaking--and the federal government's actions to address it."
The letter continues:
Corporate lawbreaking harms millions upon millions of Americans every year... A Harvard Business School analysis recently concluded that major firms are engaging in misconduct at least twice a week. Health and safety violations sicken, injure, and kill countless Americans, while data security violations place individuals' finances and personal safety at risk. Investors and shareholders, meanwhile, are lured into fraudulent schemes.
The annual cost of corporate and white-collar crime to Americans is estimated at between $300 and $800 billion a year, while street-level crimes cost about $16 billion. Yet, while the FBI releases a detailed report on crime in the United States every year focusing on street-level crimes, the Department of Justice has not released a report on corporate crime since 1979. This information asymmetry mirrors outdated enforcement priorities that concentrate disproportionate resources toward arresting low-level offenders while turning a blind eye to the crimes of the powerful.
"The Corporate Crime Database act would begin to correct this historic oversight by requiring the DOJ to release an annual report on corporate crime," according to the coalition, which includes Public Citizen, Food and Water Watch, the Institute for Policy Studies, and Oxfam America.
As the letter points out: "Enforcement agencies penalize numerous lawbreaking corporations every year. But the lack of a unified authority on corporate enforcement data when corporations break different laws in different enforcement jurisdictions--such as when a single company violates consumer protection laws, employment laws, and environmental laws--means corporate recidivism goes unnoticed."
"Between 10% and 20% of the DOJ's criminal resolutions against large corporations involve repeat offenders," the letter continues, citing an estimate from Deputy Attorney General Lisa Monaco. "Inconsistencies across how agencies report enforcement against corporate lawbreaking is a barrier to understanding the scope and scale of these corporate misdeeds. A whole-of-government approach is needed."
Signatories argued that "the Corporate Crime Database Act would introduce much-needed consistency to how federal agencies report corporate wrongdoing in a way that would be particularly effective for holding corporate recidivists accountable."
After summarizing the devastating effects of corporate wrongdoing, Public Citizen president Robert Weissman made the case for why he thinks this new legislation would make a positive difference in the lives of ordinary people.
"Corporate crime sickens consumers, rips off investors, and robs workers of their livelihoods," said Weissman. "It pollutes our environment, exploits our private data, and corrupts our government. It crashes planes, smashes automobiles, and devastates struggling communities."
"The runaway consequences of rogue corporations are nothing short of catastrophic--yet more than four decades have passed since the DOJ has released any kind of comprehensive report on corporate crime," Weissman continued. "Enough is enough."
"The Corporate Crime Database Act will bring transparency to the corporate crime crisis so that the DOJ and other law enforcement agencies can better reckon with this greed-driven menace," he added. "That data will help the public hold these agencies accountable if enforcement efforts fall short."
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Corporate Criminal Law Heading for Extinction?
People laugh when they hear politicians solemnly declare that “no one is above the law,” extol “the rule of law” and “equal justice under the law.”
May 29, 2022
Crimes without criminals was not a subject for study when I was in law school. The two were seen as part of the same illegal package. That was before notorious corporate lawyers and a cash register Congress combined to separate economic, health and safety crimes from corporate accountability, incarceration and deterrence.
Lawlessness is now so rampant that a group of realistic law professors, led by Professor Mihailis E. Diamantis of the University of Iowa Law School, claim there is no corporate criminal law. I say "realistic" because their assertion that corporate criminal law, does not in fact, exist is not widely acknowledged by their peers.
What are Congress and the White House saying and doing about this growing corporate crime wave? Saying little and doing almost nothing.
Most Americans know that none of the executives on Wall Street who are responsible for the lies, deception, and phony investments they sold to millions of trusting investors were prosecuted and sent to jail. "They got away with it," was the common refrain during the 2008-2009 meltdown of Wall Street that took our economy down and into a deep recession that resulted in massive job loss and the looting of savings of tens of millions of Americans.
Not only did the Wall Street Barons escape the Sheriff but they got an obedient Congress, White House and Federal Reserve to guarantee trillions of dollars to bail them out, implicitly warning that the big banks, brokerage firms and other giant financial corporations were simply "too big to fail." They had the economy by the throat and taxpayer dollars in their pockets. Moreover, Wall Streeters made out like bandits while people on Main Street suffered.
All this and much more made up a rare symposium organized by Professor Diamantis last year at Georgetown Law School. (See: https://www.corporatecrimereporter.com/news/200/imagining-a-world-without-corporate-criminal-law-symposium/). He wrote that the "economic impact of corporate crime is at least twenty times greater than all other criminal offenses combined," quoting conservative estimates by the FBI. It's not just economic, he continued: "Scholars, prosecutors and courts increasingly recognize that brand name corporations also commit a broad range of 'street crimes': homicide, arson, drug trafficking, dumping and sex offenses."
The litany of corporate wrongdoing ranges from polluting the air and drinking water, dumping microplastics that end up inside human beings, promoting lethal opioids that caused hundreds of thousands of deaths, providing millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers' identities, (Wells Fargo), manufacturing defective motor vehicles, producing contaminated food, allowing software failures resulting in crashes of two Boeing 737 MAX's with 346 deaths. (See, Why Not Jail? By Rena Steinzor).
People don't need law professors to see what's happening to them and their children. People laugh when they hear politicians solemnly declare that "no one is above the law," extol "the rule of law" and "equal justice under the law."
By far the greatest toll in preventable fatalities and serious injuries in the U.S. flows from either deliberate, negligent or corner-cutting corporate crime under the direct control and management of CEOs and company presidents, many of whom make over $10,000 an hour over a 40-hour week.
Five thousand people a week die in hospitals due to "preventable problems," documents a Johns Hopkins University School of Medicine study. The EPA estimates some 65,000 deaths a year from air pollution; OSHA has estimated about 60,000 work-related fatalities from diseases and traumas in the workplace. This carnage does not include the far greater numbers of people suffering from illnesses and injuries.
This range of corporate destruction was pointed out thirty-four years ago by Russell Mokhiber in his classic book, Corporate Crime and Violence: Big Business Power and the Abuse of the Public Trust (Sierra Club, 1988).
What are Congress and the White House saying and doing about this growing corporate crime wave? Saying little and doing almost nothing. Corporate criminal law enforcement budgets are ridiculously paltry. The Department of Health and Human Services recovers less than three percent of the estimated $100 billion a year stolen from Medicare and Medicaid. There are too few cops on the corporate crime beat and the White House and Congress are unwilling to remedy this problem.
Congress doesn't hold broad hearings on corporate crime, except when a dustup gets headlines like the recent contaminated baby formula from the unsanitary Abbott factory in Sturgis, Michigan.
This is remarkable because since January 2021, two of the rare outspoken lawmakers against corporate criminality, Senator Richard Blumenthal (D-CT) and Senator Sheldon Whitehouse (D-RI), both are chairs of subcommittees in the Senate Judiciary Committee.
There are large gaps to be filled and updated in the inadequate federal corporate criminal law. Some regulatory agencies, such as the FAA (aviation) and NHTSA (auto safety) have no criminal penalty whatsoever for willful and knowing violations that directly result in fatalities.
Then there is the patsy Department of Justice (DOJ). For years we've asked DOJ officials to ask Congress to fund a corporate crime database (like the street crime database). Attorney General Merrick Garland won't even respond to letters about this issue. For years, specialists like Columbia Law professor John Coffee have been urging the DOJ to stop settling the few cases they bring against corporate crooks with weak "deferred prosecution agreements" or "non-prosecution agreements." These deals involve modest fines, no jail time for the corporate bosses and a kind of temporary probation for the corporation.
Corporate attorneys play the DOJ like a harp knowing that the Department has a small budget for prosecuting corporate crime and that many DOJ attorneys are looking for lucrative jobs in these corporate law firms, after a few years of government service. Any one of many giant corporate law firms has more attorneys than all the lawyers working on corporate crime in the Department of Justice.
Professor Diamantis, W. Robert Thomas and their colleagues are prolific writers of law review articles. They argue for a range of effective penalties that will deter recidivism, which is rampant. They probe restructuring the corporate hierarchies of privileges and immunities from the law. They argue for updating the antiquated federal criminal code to match new technological/Internet/artificial intelligence (AI) violations.
Until, however, these scholars can make it into the mainstream media to reach enough citizens and get this "law and order" agenda adopted by candidates campaigning for elective office, the ideas they advance will circulate mostly among themselves indefinitely.
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