Dollar Risks, Repayments, Exclusion, Criminal and Civil Penalties for Non- Compliance

Based fines are generally established by determining the seriousness of the offense.  Courts may look at the extent to which the organization became unjustly enriched, the loss to a victim, or by looking at a fine established in an "Offense Level Fine Table."   The culpability score may take into account the involvement of upper level management in the decision making or activity, evidence of indifference or widespread corporate knowledge of the activity, prior similar conduct, and whether anyone in the organization took steps which might be an "obstruction of justice."  w The court may also consider evidence that is favorable to your organization.  This can include whether you reported the violation voluntarily, whether you cooperated in the investigation, and whether you have an "effective compliance program" in place.  An "effective compliance program" is described in the sentencing guidelines as one which "has been reasonably designed, implemented and enforced so that it generally will be effective in preventing and detecting criminal conduct."  w A properly constructed and implemented compliance program will meet the requirements of the sentencing guidelines and can lower the culpability score.  Base fines can range from $5,000 to $782.5 million with culpability multipliers from 95% reductions to double the base fine.  The results can be dramatic.  So your operations cost for an effective compliance program can affect your bottom-line in relationship toward any financial benefits. w Allow us to help your operation in designing your compliance program, re-designing or performing for you a compliance audit to evaluated your overall operation. w James K. Walker, Jr Corporate Compliance Consultant Chief Financial Officer Office: Yucca Valley, California w Click To Corporate Compliance: Examples. Click To Request: Compliance Program -- Audits.