Timeline for Is the CEO always accountable for any crime and fraud committed within the company?
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| Jul 28, 2021 at 15:59 | history | edited | ohwilleke | CC BY-SA 4.0 |
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| Jul 28, 2021 at 15:54 | comment | added | ohwilleke | The CEO certification rules are from the Sarbanes-Oxley Act of 2002 SEC. 302. (15 U.S.C. 7241), which requires knowledge, not Dodd-Frank of 2010. See govinfo.gov/content/pkg/COMPS-1883/pdf/COMPS-1883.pdf | |
| Jul 28, 2021 at 15:53 | vote | accept | CommunityBot | moved from User.Id=25884 by developer User.Id=44957 | |
| Jul 28, 2021 at 15:46 | comment | added | ColleenV | I would think it would be for reporting or process failures or facilitation maybe, not technically for the crime. It’s been a few years since I had to take that training and it didn’t stick with me. I take laws very seriously regardless. I was a military brat, and my parents had no trouble punishing us for looking like we were doing something wrong, because often that can have as large a negative impact on your life as actually doing something wrong. | |
| Jul 28, 2021 at 15:40 | comment | added | ohwilleke | @ColleenV Strict personal criminal liability for crimes without knowledge or participation (basically, without criminal intent) is essentially unheard of for serious crimes. Pretty much, it is limited to traffic offenses and the like. I would strongly suspect that you were mislead in compliance training. Fines, by all means, maybe even more serious personal criminal liability gross negligence that causes serious injury, or willful blindness. Entity criminal liability maybe. But I don't know of a situation that imposes strict criminal liability on senior execs without knowledge or involvement. | |
| Jul 28, 2021 at 13:10 | comment | added | ColleenV | In the financial industry our compliance training emphasized that we could go to jail under some circumstances even if we were not aware of and did not participate in a crime. I don’t think the charge would be liability for that particular crime though, and it wouldn’t be just the “boss” held liable; they could hold people throughout the company liable. Not sure how much of that was just to scare people into taking the rules seriously. @DavidSiegel | |
| Jul 28, 2021 at 0:51 | comment | added | ohwilleke | @DavidSiegel Possibly liability, not, as a general rule, criminal liability, and only arising from some very specific acts. | |
| Jul 28, 2021 at 0:50 | comment | added | David Siegel | Quite true, but if a CEO or other major official has a duty to be aware of such goings on, and fails in that duty through lack of due diligence, won't that impose some liability? Didn't Dodd-Frank impose some such duty on a CEO? | |
| Jul 28, 2021 at 0:46 | history | answered | ohwilleke | CC BY-SA 4.0 |