Bus Law7 - Chapter 6 1 Corporate responsibility in the...

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Chapter 6 1) Corporate responsibility in the context of a criminal indictment is best looked at in terms of direct and collateral consequences. The direct consequence is, of course, criminal liability. Everyone in the corporate hierarchy can be indicted for criminal activity--officers, directors, employees, even the corporation itself. The collateral consequences of a criminal prosecution can transcend the financial liability resulting from a criminal trial. Among these collateral consequences are loss of government contracts and shareholder lawsuits. Moreover, a federal contract can be suspended based on modest evidence of fraud or theft. According to a 1991 American Bar Association Report, the collateral consequences of corporate criminal activity can also include the following: 1) Revocation of the corporate charter by state authorities; 2) Civil penalties under the False Claims Act; 3) Cease and desist orders for financial institutions accompanied by temporary or permanent loss of deposit insurance, conservatorship and
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This note was uploaded on 11/13/2011 for the course BUS 201, 222, taught by Professor Green during the Spring '11 term at University Of Southern Mississippi .

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Bus Law7 - Chapter 6 1 Corporate responsibility in the...

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