Thursday, March 7, 2013

Pratt & Whitney Blows Whistle on Pratt & Whitney

Aircraft parts company Pratt & Whitney, a subsidiary of United Technologies, has disclosed that an Israeli  division of the company has for years been falsifying the results of parts inspections. The disclosure obviously exposes the company to potential civil liability but may be effective in avoiding any criminal prosecution. In accordance with the publicly released 2003 Justice Department "Thompson" memo on the prosecution of Business Organizations, corporations that effectively self-police wrongdoing may encourage prosecutorial discretion in favor of leniency. If that is the case, then perhaps the memo's release has had a positive impact toward reducing corporate crime.

PDF link to Thompson memo

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