On November 29, a local people's procuratorate made a decision not to prosecute a large enterprise and the personnel involved in the suspected crime of bid-rigging in accordance with the law. This is another successful experience of King&Capital in fully practicing the two-way empowerment of criminal defense and criminal compliance.
Case Background
In 2022, a large enterprise was suspected of bid-rigging and two key personnel of the enterprise were subject to compulsory measures. Mr. Li Zhiguang and Mr. Ning Yu of King&Capital Law Firm were appointed as the defenders of the persons involved in the case.
After intervening in the case, the two lawyers gave full play to their expertise, and through the study of the case, they believed that there was a possibility of applying criminal compliance not to prosecute in this case, so they introduced the compliance team of Mr. Zhang Luyue at the first time. After consulting with the enterprises involved in the case and communicating fully with the Procuratorate, the Procuratorate finally made the decision of not approving the arrest, and the suspect was released on bail pending trial, and at the same time, initially adopted the compliance rectification suggestions put forward by the defense and the compliance team.
Compliance Rectification Process
I. Actively promoting the launch of special compliance rectification
The compliance team conducted research and judgment on the overall situation of the enterprise involved in the case, analyzed and demonstrated the causes of the crime, based on the analysis of the causes of the crime and the enterprise's own mode of operation, discussed with the enterprise and formulated a preliminary compliance and rectification plan, and synchronously assisted the enterprise involved in the case in submitting to the procuratorial authorities the "Application for Special Compliance and Rectification in Criminal Matters," "Special Compliance and Rectification Plan" and other relevant documents. The procuratorial authorities, after full demonstration, recognized the feasibility of the enterprise's rectification program, agreed to the enterprise's gradual implementation of rectification measures based on the rectification program, to start the criminal compliance rectification, and selected a third-party supervision and evaluation team of five relevant experts to supervise the enterprise's compliance rectification work.
Second, make every effort to ensure that the rectification measures are effective
Based on the preliminary rectification plan, the compliance team formulated a more detailed and targeted rectification plan by combining the actual operation mode, business situation, governance structure and other factors of the enterprise involved in the case, and counseled the enterprise to complete the rectification matters one by one. By adjusting the organizational structure of the enterprises involved in the case, adding and improving the management system, organizing training and publicity and other measures, we assisted the enterprises in building a compliance system in the field of bidding, forming a long-term operational mechanism for compliance management, repairing and eliminating the governance deficiencies and management hazards of the enterprises, and realizing the compliance and rectification purpose of preventing the recurrence of illegal and criminal activities in the field of bidding, so as to enable the enterprises involved in the case to be able to comply with the law, sustained, healthy, and orderly forward development.
III. Successfully passed the acceptance inspection and prosecutorial hearing, and the whole case was not prosecuted
In November 2023, five experts and prosecutors of the third party supervision and evaluation visited the enterprise involved in the case to conduct the third compliance inspection, the compliance consultant on-site carried out a comprehensive elaboration and introduction of the compliance rectification of the enterprise involved in the case, and the implementation of the rectification measures was fully recognized by the experts in the meeting. After the meeting, the expert group issued the "Compliance Rectification Inspection Report", unanimously agreed that, under the guidance of the compliance consultant, Beijing King&Capital Law Firm, the enterprise in question has been strictly in accordance with the special compliance rectification program for the amount of compliance rectification, compliance rectification "qualified".
In the same month, the procuratorial authorities held a public hearing in accordance with the law, the procuratorial authorities proposed not to prosecute the recommendation, the hearing officers listened to the third-party supervision and evaluation agencies, compliance consultants, representatives of the enterprises involved in the case and the two suspects of the relevant report, the hearing officers closed-door discussion, confirmed that the procuratorial authorities do not prosecute the recommendation in accordance with the provisions of the law. The procuratorial authorities made a decision not to prosecute the two suspects and the enterprise involved in the case.
Reflections on the case
This case is the first in the region to carry out compliance work involving the enterprises involved in the case. The good result of the case is attributed to the prosecuting authority's action and responsibility in the process of handling the case, adhering to the equal importance of punishing crimes and assisting the development of enterprises, applying treatment according to the case, relying on the special compliance to promote the improvement of the governance mechanism of the private enterprises, and enhancing the core competitiveness of the enterprises; and it is also indispensable to the professionalism and perseverance of the defense team and compliance team of the King&Capital Institute, which are active in innovation, tailored to the local situation and giving full play to the two-way empowerment of the criminal defense and compliance and rectification of the enterprises involved, through the effective implementation of the case, which is the first case in the region to carry out compliance work. Two-way empowerment, through the effective implementation of rectification measures, real rectification, real compliance, to help private enterprises in accordance with the law, benign development, to achieve a win-win situation in terms of legal effects and economic and social benefits.
