Is Voluntary Self-Disclosure a Good Move in a Pennsylvania Fraud Case?
When an executive or corporate officer discovers internal misconduct or fraud, the initial instinct might be to cover it up or simply hope that federal regulators and law enforcement never notice. Both strategies carry significant legal risk that can result in stiff fines and asset forfeiture. On the other hand, professionals often fear that self-reporting will result in quicker penalties with zero benefit.
To combat this dilemma, the Philadelphia-based United States Attorney’s Office (USAO) for the Eastern District of Pennsylvania (EDPA) has begun implementing the national Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP). If your company self-reports and meets CEP’s requirements, the EDPA’s prosecutors will not prosecute a company for criminal conduct. Additionally, companies that self-disclose but fail to meet the CEP’s standards are still eligible for benefits, such as Non-Prosecution Agreements (NPAs),
The decision to self-report carries profound legal consequences that can ruin your business and your professional reputation. If you or your company are facing potential white-collar criminal exposure, you need to contact the LLF Law Firm Criminal Defense Team to determine whether you qualify for the CEP’s benefits or whether there are more effective ways to handle the situation.
Call our team today at 888-535-3686 or message our team online.
The DOJ’s Four-Part Test for Declining Prosecution
Under the March 2026 CEP guidelines, the EDPA offers a powerful incentive: the primary benefit of self-disclosure is that the office will decline to prosecute a company for criminal conduct if specific conditions are met. To achieve full CEP participation and avoid prosecution, an applicant must meet every element of a four-part test:
- Voluntary and Timely Self-Disclosure. You must voluntarily and timely self-disclose the conduct. This means coming forward before there is an imminent threat of a government investigation or public disclosure, and acting promptly after discovering the issue.
- Full Cooperation. You must fully cooperate with the office’s investigation. This requires producing all relevant documents, identifying the individuals involved, and providing complete, truthful information.
- Timely and Appropriate Remediation. You must timely and appropriately remediate the misconduct. This often involves terminating bad actors, overhauling internal compliance programs, and paying financial restitution to victims.
- No Aggravating Circumstances. There must be no aggravating circumstances related to the misconduct, such as a history of corporate recidivism.
The LLF Law Firm Criminal Defense Team Protects Your Future
Even though corporate prosecutions are ostensibly against the company rather than you as an individual, investigations frequently open the door to criminal prosecutions against individuals involved. Commonly, this is done through embezzlement charges. That means that self-disclosure must be done in a way that protects your freedom and liberty, not just the company’s finances.
The LLF Law Firm Team has many years of experience helping professionals and business leaders understand the best way to self-report potential fraud to the federal government. We can help you determine the best path forward while keeping both your personal and professional interests in mind.
Mitigate potential criminal penalties today. Call the LLF Law Firm at 888-535-3686 or send our white-collar Criminal Defense Team an online message.