NCJ Number
185248
Journal
Criminal Justice Policy Review Volume: 10 Issue: 4 Dated: 1999 Pages: 547-559
Date Published
1999
Length
13 pages
Annotation
Section 8C3.3 of the U.S. Sentencing Guidelines for organizations allows for a reduction or elimination of the guideline-prescribed fine if the organization is unable to pay it; this research examined the extent to which 8C3.3 has affected whether a convicted organization's statutorily mandated minimum fine is reduced or eliminated because of the organization's inability to pay it.
Abstract
The U.S. Sentencing Commission collected the data through Federal probation officers in U.S. District Courts. The information reflects the Commission's recorded population of convicted organizations sentenced under Chapter 8 of the sentencing guidelines through 1996, a total of 405 cases. The "sentencing event" was the unit of analysis, which included the sentencing of a single organization convicted of one or more offenses in the instant case. The following three variables were used in the analyses: whether an organization was deemed to fall under 8C3.3; the minimum fine calculated by the court; and the actual fine imposed by the court. Findings show that most of the offending organizations that could not pay the minimum fine they deserve come away without paying one dollar, and the rest enjoy a substantial reduction in the amount they otherwise would have to pay. Virtually all of these convicted organizations are closely held organizations. Owner-offenders of these closely held organizations can avoid paying fines of hundreds of thousands of dollars, or even millions of dollars, by convincing a U.S. district court judge that they have no money. If possible, a sanction of forced organizational sale should be ordered for "can't pay" offending organizational owners. The proceeds of the sale can be used to offset the fine, innocent employees can maintain their sources of livelihood, creditors can be paid, and the owner-offenders will be separated from the company he/she used to commit the offense. 8 notes and 7 references