The U.S.Justice Department has entered into a deferred prosecution agreement with several U.S.banks on charges of mortgage fraud.The agreements provide that if the banks stay out of legal difficulties for five years then the charges will be dropped.The banks agreed to have monitors in place during the five years and pay a fine.Which of the following best describes what has been done by these arrangements with the banks?

Question

Quizplus · Accepted Answer

The arrangements described are characteristic of a corporate integrity agreement, where the banks agree to certain conditions (like having monitors and paying a fine) to avoid prosecution, without admitting guilt. This is not a guilty plea, a nolo contendere plea, or a finding of innocence.

The USJustice Department Has Entered into a Deferred Prosecution Agreement with with Several