Managing Partner
Facing a federal investigation? That can be one of the most serious situations a person finds themselves in. One option that may arise in certain federal cases is a non-prosecution agreement, often called an “NPA.” While these agreements can prevent formal criminal charges from being filed, they come with serious obligations and risks that should never be approached without guidance from an experienced federal criminal defense lawyer.
What Is a Non-Prosecution Agreement?
A non-prosecution agreement (NPA) is a contract between a government agency, such as the Department of Justice (DOJ) or the Securities and Exchange Commission (SEC), and a company or individual under criminal or civil investigation. Under the agreement, the government agrees to refrain from filing charges, provided the other party fulfills certain conditions.
Unlike a plea bargain, an NPA occurs before any formal charges are filed and does not require the individual to plead guilty or be convicted. NPAs are not filed with or reviewed by a court, and they are not made public unless required by law or chosen by the parties involved.
What Does an NPA Typically Require?
In exchange for avoiding prosecution, the government commonly requires the individual or company to:
- Pay a fine
- Admit to relevant facts or offenses
- Cooperate fully with the government’s investigation
- Waive the statute of limitations
- Commit to compliance and reform measures
If the party complies with all terms, no charges are filed when the agreement expires. If the party breaches the NPA, the government can restart the case and may use the admissions already made as evidence in a subsequent prosecution.
Why the Federal Government Uses NPAs
Non-prosecution agreements became more common after the collapse of Arthur Andersen LLP following its prosecution in the Enron investigation. Although the company’s conviction was later overturned by the Supreme Court, the damage to the business had already been done.
Since then, federal prosecutors have increasingly used NPAs to secure cooperation and accountability without causing the destruction that can follow formal criminal charges, particularly in corporate investigations.
Historically, NPAs were primarily used for corporations. However, in April 2024, the Department of Justice introduced a pilot program expanding the possibility of NPAs for individuals who voluntarily disclose certain types of corporate misconduct.
The program applies to matters involving:
- Financial institution crimes
- Healthcare fraud
- Federal contracting fraud
- Foreign Corrupt Practices Act violations
- Domestic bribery
- Market integrity offenses
Eligibility requirements are strict. The disclosure must be voluntary, original, and made before the government begins investigating the matter. Certain individuals, including company executives and organizers of the scheme, may not qualify.
Timing Is Critical
Under the Department of Justice’s 2024 pilot program, timing can determine whether an NPA is even available.
The disclosure must occur before:
- A federal inquiry begins
- Another party reports the conduct
- An existing reporting obligation is triggered
- Disclosure becomes imminent
In many cases, companies involved in internal investigations may contact federal authorities before employees even realize it has happened. Once the government already knows about the conduct, the opportunity for voluntary disclosure may disappear. Acting early, with the guidance of an experienced Non-Prosecution Agreements Attorney, can be the difference between resolving your exposure and facing prosecution.
What an NPA Cannot Do
It is important to understand that a non-prosecution agreement has limits. An NPA resolves federal criminal exposure only. It does not:
- Resolve state criminal charges
- Eliminate civil liability
- Prevent regulatory consequences
- Keep your name out of court filings related to others’ prosecutions
- Restore your reputation to its prior condition
For many people, an NPA is not about avoiding all consequences. It is about minimizing the damage and avoiding the life-changing impact of a federal conviction.
Speak With The Fast Law Firm Today
Federal investigations move fast, and so must your response. At The Fast Law Firm, we understand how non-prosecution agreements work, what the government is looking for, and how to position our clients for the best possible outcome. Whether you are exploring voluntary disclosure or already under investigation, we are ready to help. Call us today to schedule a free confidential consultation.
Frequently Asked Questions About Non-Prosecution Agreements
What is the difference between an NPA and a plea bargain?
A plea bargain occurs after charges are filed and requires the defendant to plead guilty. An NPA is reached before any formal charges are filed and does not require a guilty plea or conviction.
What happens if I breach a non-prosecution agreement?
If you fail to comply with the terms of your NPA, the government can restart the case against you. Any admissions made during the agreement can be used as evidence in a subsequent prosecution, making compliance critically important.
Who qualifies for an NPA under the 2024 pilot program?
Individuals who voluntarily disclose original information about specific categories of corporate crime before any federal inquiry begins, fully cooperate, and return any proceeds of misconduct may qualify. CEOs, CFOs, government officials, and scheme organizers are excluded. Consulting a federal criminal defense lawyer is the best way to assess your eligibility.
