For Immediate Release
Ashley Woolheater, 202-224-2292
Senator Warren Unveils Bill to Expand Criminal Liability to Negligent Executives of Giant Corporations
She Also Reintroduces the Ending Too Big to Jail Act to Hold Wall Street Executives Criminally Accountable
WASHINGTON - United States Senator Elizabeth Warren (D-Mass.) today introduced the Corporate Executive Accountability Act, which holds executives of large corporations criminally responsible when their companies commit crimes, harm large numbers of Americans through civil violations, or repeatedly violate federal law. The Senator also reintroduced the Ending Too Big to Jail Act, a comprehensive bill to hold big bank executives accountable when the banks they lead break the law.
These two measures come one week after the retirement of a second Wells Fargo CEO who held a senior position in the bank while millions of fake accounts were opened, thousands of cars were unlawfully possessed, and hundreds of homeowners were inappropriately foreclosed.
"Corporations don't make decisions, people do, but for far too long, CEOs of giant corporations that break the law have been able to walk away, while consumers who are harmed are left picking up the pieces," said Senator Warren. "These two bills would force executives to responsibly manage their companies, knowing that if they cheat their customers or crash the economy, they could go to jail."
Executives at large corporations often escape prosecution because it is hard to demonstrate that they are personally aware of all their company's actions -- and establishing knowledge is a critical element of proving most crimes. However, some federal laws, including the Food, Drug, and Cosmetic Act and the Clean Air Act, already impose criminal liability on corporate leaders when a company's negligence causes massive harm -- regardless of whether leaders personally approved actions that broke the law.
The Corporate Executive Accountability Act builds on these existing federal statues and makes it easier to send executives to jail for serious crimes by expanding criminal liability to negligent executives of corporations with more than $1 billion in annual revenue that:
- Are found guilty, plead guilty, or enter into a deferred or non-prosecution agreement for any crime.
- Are found liable or enter a settlement with any state or Federal regulator for the violation of any civil law if that violation affects the health, safety, finances, or personal data of 1% of the American population or 1% of the population of any state.
- Are found liable or guilty of a second civil or criminal violation for a different activity while operating under a civil or criminal judgment of any court, a deferred prosecution or non-prosecution agreement, or settlement with any state or Federal agency.
Punishment for such a violation will be up to a year in jail, while a second violation carries up to three years in jail, consistent with the Food, Drug and Cosmetic Act.
The Corporate Executive Accountability Act has been endorsed by Public Citizen, Americans for Financial Reform, Take On Wall Street, and the Consumer Federation of America.
The Ending Too Big to Jail Act makes it easier to hold financial executives accountable by:
- Creating a permanent investigative unit for financial crimes within the Treasury Department by giving the Special Inspector General for the bailout a new mission -- prosecuting financial crimes.
- Requiring executives at big banks larger than $10 billion to certify that there is no criminal conduct or civil fraud within the institution, making it easier to prove wrongdoing if it is later discovered.
- Putting deferred prosecution agreements under the jurisdiction of judges so that they can ensure that the agreements are in the public interest and can supervise their implementation.
The Ending Too Big to Jail Act, which was first introduced by Senator Warren in March 2018, has been endorsed by Public Citizen, Americans for Financial Reform, Take On Wall Street, the Communications Workers of America, and Professor Brandon Garrett of Duke Law School, author of Too Big to Jail: How Prosecutors Compromise with Corporations.
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Senator Elizabeth Warren, a Democrat and fearless consumer advocate who has made her life's work the fight for middle class families, was elected to the United States Senate on November 6, 2012, by the people of Massachusetts.