Former U.S. Attorney David Kelley, a partner with law firm Cahill, Gordon & Reindel, has been appointed to monitor Toyota’s compliance efforts under the terms of the company’s deferred prosecution agreement.
Kelley’s appointment as Toyota’s independent compliance monitor follows a record $1.2 billion criminal penalty—the largest of its kind in the auto industry—that Toyota reached with the Justice Department in March for intentionally concealing and misleading the public about safety defects in its automobiles. “Toyota confronted a public safety emergency as if it was a public relations problem,” Attorney General Eric Holder said in announcing the settlement. “Other companies should not repeat Toyota’s mistake.”
Kelley served as U.S. attorney for the Southern District of New York from 2003 to 2005. Prior to that, he co-chaired the Justice Department’s investigation of the Sept. 11, 2001, terrorist attacks.
Under the terms of the DPA, the role of the independent monitor will be to:
Assess whether Toyota’s policies, practices, or procedures ensure that Toyota’s public statements in the United States related to motor vehicle safety are true and accurate;
Review and assess the effectiveness of Toyota’s practices, or procedures, for making information relating to accidents that take place in the United States available to Toyota’s engineers, Toyota’s chief quality officer for North America, and Toyota’s regional product safety executive for North America; and
Review and assess whether Toyota’s policies, practices, or procedures regarding the generation of field technical reports—as opposed to other internal reporting mechanisms—in the United States ensure compliance with applicable law.
Full terms of Toyota’s DPA can be found here.