I have learned that some folks are doing very well serving as corporate monitors. I doubt that many of our readers even know what a “corporate monitor” is. I must confess that I didn’t until just a few weeks ago. A corporate monitor is a person appointed by the Justice Department to oversee and enforce various deferred and non-prosecution agreements.
A number of persons have served as corporate monitors. A list of corporate monitors was recently published on the House Judiciary Committee’s web site. Interestingly, that list didn’t include the names of four persons who have been appointed since March of 2008. I understand at least two additional monitors will be appointed soon. The Government Accountability Office recently released a report on corporate monitors. The title of the report is “Corporate Crime: Prosecutors Adhered to Guidance in Selecting Monitors for Deferred Prosecution and Non-Prosecution Agreements, but DOJ Could Better Communicate Its Role in Resolving Conflicts.”
The GAO found that there have been 45 monitors appointed. There has been some concern about the monitors’ cost, scope and amount of work completed. The pay scale for this work is pretty good, even by corporate standards. Some companies paid $8,000 a month for their monitors and others paid $2.1 million per month. The GAO surveyed eight companies on the cost of their monitorships. These reported costs were: $38.7 million; $12 million; $9.2 million; $5.7 million; $3.9 million; $3 million; $2.7 million; and $200,000. That’s a great deal of money. The Fraud Section at the Department of Justice “expects a work plan,” when a monitor is appointed. According to a report in Corporate Crime Reporter the amount of fees disclosed may only be the tip of the iceberg when it comes to the total costs of monitors.
Source: Corporate Crime Reporter
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