The number of companies that received sentences for at least one federal criminal offense fell in fiscal year 2013 compared to just one year earlier, according to recent data from the U.S. Sentencing Commission.

The total number of “organizational” defendants—such as companies and partnerships—that were sentenced for at least one federal criminal offense decreased 8 percent in the last year, from 187 sentenced in fiscal year 2012 to 172 sentenced in fiscal year 2013.

Additionally, the total number of organizational defendants continues to remain lower than in previous years. For example, 200 such defendants received sentences in 2003, whereas 255 received sentences in 1999, indicating that corporate criminal sentences are on the decline.

Most federal criminal cases that resulted in sentences were against individuals. Out of 80,207 federal criminal cases that resulted in sentences in fiscal year 2013, 72 involved an organizational defendant, according to the Sentencing Commission. Almost 95 percent of these defendants pled guilty to one or more charges.

The most common crimes result from environmental and fraud violations. Fraud crimes made up 9.8 percent of the total federal criminal convictions for fiscal year 2013; the losses in these cases ranged from no loss on the low end to $5.9 billion on the high end, with an average loss amount of $5.3 million, and a median loss amount of $195,649.

Monetary Penalties

In federal criminal cases involving organizational defendants (as opposed to individuals), courts imposed a monetary fine in 67 percent of cases.

In 94 cases, the sentences resulted in organizational offenders having to pay a penalty only. In an additional 21 cases, the sentences resulted in the offender having to pay restitution to the victims of the crime, in addition to having to pay a penalty. In 28 cases, the sentences resulted in the organization paying restitution only.

Twenty-nine cases ended in no fine or restitution, although other sanctions were imposed in some of these cases. Additionally, of the 172 organizational defendants that received sentences in fiscal year 2013, 134 received some term of probation, and 41 were ordered to make improvements to their compliance and ethics programs.

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