DOJ updates white collar enforcement policy to balance corporate oversight
The Department of Justice is shifting its prosecutorial strategy to balance corporate accountability with American enterprise, introducing new guidelines for self-disclosure and monitor duration.
The United States Department of Justice (DOJ) announced on 12 May 2025, new investigative and policy priorities, as well as changes to current DOJ guidance, that could have a significant impact on the prosecution of white-collar crime. The shift, directed by the head of the Department’s Criminal Division, Matthew Galeotti, explicitly cautions prosecutors against overreach that punishes risk-taking and hinders innovation
, signaling a departure from previous enforcement strategies. The memorandum represents the clearest statement yet of the current administration's approach, seeking to strike a balance between pursuing wrongdoing and minimizing burdens on American enterprise.
Core Shifts in Enforcement Policy
The new guidance mandates that corporate criminal resolutions should generally not exceed a duration of three years, with prosecutors instructed to review existing agreements to determine if early termination is appropriate. A central pillar of this policy is a revised Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP). Under these updated terms, corporations that proactively self-disclose misconduct and cooperate with federal investigators have a clearer pathway to avoiding prosecution entirely through a formal declination. For those instances where prosecution remains necessary, the Department has moved to disfavor the use of independent corporate compliance monitors, insisting that any such oversight must be narrowly tailored
to minimize expense and operational interference.
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Refined Investigative Priorities
The Department identified 10 high-impact areas for prosecutors, stating that focusing on these will have the greatest impact in protecting American citizens and companies and promoting U.S. interests.
These include:
- Healthcare fraud
- Money laundering
- Customs fraud and tariff evasion
- Cartels and transnational criminal organizations
- Gatekeepers, such as financial institutions, that enable illicit transactions by
foreign adversary companies
The DOJ also announced the immediate expansion of its Corporate Whistleblower Awards Pilot Program. Whistleblowers may now qualify for awards if their tips lead to forfeiture in these focus areas, including violations of federal immigration law or international cartels. While the policy emphasizes civil and administrative remedies for low-level misconduct, the memorandum clarifies that the Department's first priority
remains the prosecution of individual criminals, including executives, officers, and employees.
Controversy Surrounding Food and Drug Oversight
Reporting indicates that the Department has recently softened its stance on cases involving the Food, Drug and Cosmetic Act. Multiple sources familiar with the matter suggest that investigations into major corporations have been closed or resolved with civil settlements rather than criminal charges, despite concerns from career prosecutors regarding potential consumer harm. This includes the closure of a long-running investigation into Abbott Laboratories concerning bacterial contamination at a Michigan facility, a move that overruled earlier support for the case from leaders within the Criminal Division. A senior DOJ official maintained that the department considers a civil False Claims Act resolution to be the best mechanism to achieve accountability, deterrence and protection of the public.
Additionally, the Department's internal Health and Safety Unit reportedly faced a new litmus test from Assistant Attorney General Tysen Duva, who instructed staff to pursue only cases that would stir outrage and could be explained in two minutes.
A department spokesperson stated,
. The spokesperson added that both civil and criminal options remain on the table to hold bad actors accountable. However, this has led to friction; for instance, federal prosecutors in the Eastern District of Pennsylvania have continued to pursue an investigation into Philips concerning recalled breathing machines, even after Washington officials dropped the department's support for the case."this Department of Justice does not believe in regulation by prosecution"
Department of Justice, spokesperson, via CBS News
What to Watch Next
Stakeholders and legal analysts are monitoring several developments to see how these policies manifest in practice:
| Area of Focus | Expected Trajectory |
|---|---|
| Individual Accountability | Consistent emphasis on prosecuting individual criminals as the primary target. |
| SEC Cooperation | Monitoring how the SEC under Chair Paul Atkins interprets the DOJ’s new encouragement of self-disclosure. |
| Congressional Inquiry | Democratic Senator Adam Schiff has launched an inquiry into the closure of the Abbott Laboratories criminal investigation. |
| Philips Investigation | Whether the Eastern District of Pennsylvania continues to pursue the case independently against corporate resistance. |
Acting Attorney General Todd Blanche, who is scheduled to appear for his Senate confirmation hearing on 15 July 2025, for his nomination to serve as attorney general permanently, is expected to field questions from Democrats concerned about the closure of the Abbott case. As these policies take effect, the Department insists that all corporate cases resolved this year were driven by facts and evidence, rather than a preference for a specific outcome.
