I 

110TH CONGRESS 

2D SESSION H. R. 5086 

To require the Attorney General to issue guidelines delineating when to 

enter into deferred prosecution agreements, to require judicial sanction 

of deferred prosecution agreements, and to provide for Federal monitors 

to oversee deferred prosecution agreements. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 22, 2008 

Mr. PALLONE introduced the following bill; which was referred to the 

Committee on the Judiciary 

A BILL 

To require the Attorney General to issue guidelines delineating when to enter into deferred prosecution agreements, to require judicial sanction of deferred prosecution agreements, and to provide for Federal monitors 

to oversee deferred prosecution agreements. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. DEFERRED PROSECUTION AGREEMENT GUIDE4 LINES. 

5 (a) IN GENERAL.—The Attorney General shall issue 

6 guidelines delineating when United States attorneys 

7 should enter into deferred prosecution agreements, includVerDate Aug 31 2005 06:35 Jan 23, 2008 Jkt 069200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5086.IH H5086

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1 ing appropriate factors for United States attorneys to con2 sider in determining whether to enter such agreements as 

3 described in subsection (b). 

4 (b) APPROPRIATE FACTORS FOR CONSIDERATION.— 

5 Appropriate factors for consideration in the determination 

6 of whether to enter into a deferred prosecution agreement 

7 include— 

8 (1) the potential harm of entering into a de9 ferred prosecution agreement to employees, share10 holders, and other stakeholders of the corporation 

11 that is to enter into the deferred prosecution agree12 ment who are not potential parties to litigation rel13 ative to the corporate wrongdoing; 

14 (2) the degree of cooperation by a corporation 

15 that is to enter into a deferred prosecution agree16 ment with investigators including the corporation’s 

17 willingness to provide documents and make available 

18 for questioning employees, officers, and directors of 

19 the corporation; 

20 (3) remedial action taken by the corporation 

21 that is to enter into a deferred prosecution agree22 ment in response to wrongdoing such as internal in23 vestigation, dismissal of employees, acknowledgment 

24 of wrongdoing, payment of restitution, and other 

25 structural, management, and policy changes; 


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1 (4) availability of criminal charges against spe2 cific employees who may have engaged in illegal acts 

3 relative to the corporate wrongdoing; and 

4 (5) availability of sufficient alternative punish5 ments or remedial actions pursuant to a deferred 

6 prosecution agreement. 

7 SEC. 2. JUDICIAL APPROVAL OF DEFERRED PROSECUTION 

8 AGREEMENTS. 

9 (a) IN GENERAL.—A deferred prosecution agreement 

10 shall be approved by a United States district court judge 

11 or a United States magistrate judge in the United States 

12 district court where criminal charges would be prosecuted 

13 by a United States attorney. 

14 (b) SUBMISSION OF DEFERRED PROSECUTION

15 AGREEMENT.—A deferred prosecution agreement shall be 

16 submitted to the appropriate United States district court 

17 where criminal charges would be prosecuted by a United 

18 States attorney to receive judicial sanction. 

19 (c) JUDICIAL REVIEW AND SANCTION.—A United 

20 States district court judge or a United States magistrate 

21 judge shall review the terms of a deferred prosecution 

22 agreement to ensure that the agreement comports with 

23 public interest and all applicable laws and legal precedent 

24 before authorizing the deferred prosecution agreement to 

25 be entered into by the parties. 


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1 SEC. 3. FEDERAL MONITORS. 

2 (a) IN GENERAL.—A Federal monitor shall oversee 

3 a deferred prosecution agreement. 

4 (b) APPOINTMENT OF FEDERAL MONITORS.—A Fed5 eral monitor shall be appointed by an independent third 

6 party (a United States district court judge or a United 

7 States magistrate judge) from a pool of pre-qualified firms 

8 or individuals (or both). 

9 (c) QUALIFICATIONS OF FEDERAL MONITORS.—A 

10 Federal monitor shall have experience in criminal and civil 

11 litigation. 

12 (d) PAYMENT OF FEDERAL MONITORS.—A Federal 

13 monitor shall be paid according to a pre-determined fee 

14 schedule set by the United States district court. 

15 (e) REPORT REQUIREMENT IN DEFERRED PROSECU16 TION AGREEMENT.— 

17 (1) A deferred prosecution agreement shall in18 clude a requirement that a Federal monitor submit 

19 reports to the United States attorney and to the 

20 United States district court. 

21 (2) A deferred prosecution agreement shall in22 clude the number and frequency of reports required 

23 by a Federal monitor. 


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1 SEC. 4. BREACH OF DEFERRED PROSECUTION AGREE2 MENTS. 

3 Upon request from a United States attorney, the pre4 siding judge in the district court where a deferred prosecu5 tion agreement was approved shall determine if the de6 ferred prosecution agreement has been breached. 

Æ 


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