New Report: The Continued Rise of Deferred Prosecution Agreements

U.S. Government entered into a record-breaking 100 DPAs in 2015—over twice as many as in any prior year.

NEW YORK, NY – Deferred and non-prosecution agreements—settlements that allow businesses to avoid prosecution for alleged crimes by paying hefty fines and agreeing to changes in business practices—have become increasingly common in the last decade. Just last year, companies such as GM and Deutsche Bank paid more than $6 billion in fines under such agreements.

A new report by the Manhattan Institute’s James R .Copland and Rafael Mangual chronicles the rise of such agreements and the problems they present. They find that 2015 was a record year for DPAs and NPAs largely because of a program to target Swiss banks that may have been involved in U.S. tax evasion. The U.S. entered into 100 DPAs and NPAs in 2015, 75 of which were part of the Swiss Bank Program.

The report provides detailed analysis of some of the highest-profile events from the past year, including GM’s $900 million settlement, the ongoing case with FedEx, and attempts for reform. Copland and Mangual argue that while the government certainly should have a strong interest in preventing tax evasion or corporate misconduct such as the GM ignition switch scandal, penalizing these actions through DPAs raises important policy concerns.

Click here to read the full report.