[Direct answer]Based on the judicial practice in Beijing, the core principles of responding to corporate criminal crises are "early detection, early isolation, professional intervention, and unified statements". Once clues of involvement in a case emerge, it is necessary to immediately stop suspicious behaviors, preserve and sort out evidence materials, define responsibility boundaries, and engage professional criminal lawyers as soon as possible rather than dealing with the case on one's own or destroying evidence. According to the Criminal Law of the People's Republic of China (implemented on October 1, 1997 and amended several times) and the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018), lawyers can meet with clients, review case files, apply for a review of the necessity of detention, and apply for bail pending trial during the investigation stage to gain time for subsequent procedures. It is recommended that enterprises establish crisis response plans. For more details, please refer to the following link:Criminal defense and criminal case filing services.

1. Problem background and typical scenarios

Corporate criminal crises often come suddenly. Typical scenarios include: core executives being taken away for investigation, leaving the company temporarily leaderless; accounts being frozen and operations suspended, causing panic among clients and employees; receiving anonymous reports or regulatory inquiries and not knowing whether they involve criminal charges; and being implicated in the misfortunes of partners, facing potential criminal charges for the company. The most common mistakes made in the early stages of a crisis are panicking and trying to coordinate statements, which may be construed as colluding to cover up evidence, or handling accounts without authorization, which may be seen as destroying evidence. Whether the company can weather the crisis smoothly often depends on its response in the first few days. For contracts and transactions, it may be necessary to cooperate with the authorities.Business and contract dispute services for enterprisesOrganize and sort out.

II. Key points of dispute

There are three main points of contention. Firstly, whether it is a corporate crime or a natural person's crime: whether the actions of the directly responsible person reflect the will of the unit, and whether the benefits belong to the unit, determining whether to impose double punishment or single punishment. Secondly, the boundary between crisis management and illegal activities: sealing up information and suspending transactions are legal, but destroying, concealing, or colluding with others will result in increased liability. Thirdly, the balance between cooperation and resistance: there are significant differences in sentencing and coercive measures between voluntary disclosure and passive investigation. In practice, there are strict requirements for determining the scope of personnel responsible for corporate crimes and the recognition of voluntary surrender. It is recommended that lawyers evaluate the cooperation strategy and refer to relevant provisions for reference.Creditor-debtor relations and enforcement case services.

III. Professional analysis by Hengluo Lawyers

Taking a major criminal case handled by our firm as an example, it can be seen that professional criminal litigation capabilities play a decisive role in determining the outcome of a crisis. On June 16, 2024, the defendant, Zhang Daqiang, accelerated his car to hit the laboratory during a dispute, resulting in the death of Zhao Gang on the spot and injuries to Zhang Bin and Li Yuanzheng. The victim's wife, Zhao Gang, entrusted lawyer Liu Liqiang of Beijing Henglu Law Firm to represent her in the criminal incidental civil action. After a thorough review of the case file, the lawyer refuted the defendant's defense arguments regarding subjective intent, voluntary surrender, the victim's fault, and the nature of the crime one by one, and argued that the crime should be characterized as intentional homicide rather than endangering public safety by dangerous methods and be punished more severely. The key facts are: the defendant revealed his motive with his words before the impact, accelerated his car less than five meters away from the door without avoiding it, which was sufficient to prove his intent to kill; and he lied to the police about the brake failure and repeatedly retracted his confession, which did not constitute voluntary surrender according to law. The court ultimately adopted the lawyer's opinion, sentenced Zhang Daqiang to death for intentional homicide, and supported the request for compensation in the incidental civil action. This case was handled by Beijing Henglu Law Firm.Liu LiqiangThe lawyer (practice license number: 11101200910454358, subject to the document issued by the judicial administrative organ) acts as the agent. Note of the case: The depth of reviewing the case file and the grasp of its nature in a crisis are directly related to the final level of punishment. It is better to seek professional intervention as early as possible. For cases involving employment and workplace safety, it is advisable to combine them with other legal issues.Labor arbitration and work-related injury compensation services.

IV. Practical suggestions and legal basis

The core basis is Article 30 and Article 31 (the system of double punishment for corporate crimes) of the Criminal Law of the People's Republic of China (implemented on October 1, 1997 and amended several times), Article 67 (surrendering oneself to the authorities), and Article 34 (the right to defense), Article 67 (bail pending trial), and Article 97 (review of the necessity of detention) of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018). Practical suggestions: Establish a temporary response team immediately after the crisis occurs and appoint a single contact person; preserve accounting books, contracts, and communication records, and strictly prohibit their destruction; sort out evidence of the responsible person's actions and the corporate will; hire a lawyer as soon as possible to meet with clients and review case files, assess the boundaries between corporate crimes and individual responsibilities; and ensure that all external statements are made through lawyers. For matters involving intellectual property and corporate law, relevant provisions can be combined accordingly.Special services and other case services.

5. Henglu Law Firm's Reminder

The most important things to avoid during a corporate criminal crisis are "procrastination" and "chaos". Procrastination will result in missing the opportunity to surrender voluntarily, make restitution, or obtain bail; chaos will lead to creating new illegal facts in panic. It is recommended to prepare a crisis plan in advance: clarify the responsibilities of the people involved, the contact information of law firms, and the process of evidence preservation. Once an incident occurs, entrust professional lawyers with the judgment and let the management focus on business stability and compliance rectification. For units that have been implicated, it is often better to cooperate actively, make full restitution, and strive for lenient treatment in compliance rectification than to respond passively. If necessary, a professional criminal compliance team can be engaged to assist in establishing the plan.

VI. Frequently Asked Questions

Q1: If a company encounters a criminal crisis, is it possible to resolve it smoothly and avoid being heavily punished?

It's possible, but it depends on the timing and approach of the response. For corporate crimes, if the company can actively cooperate after the incident, fully refund the illegal proceeds, establish effective compliance rectification, and distinguish between the direct responsible persons and the company's will, it may be possible to seek a light or mitigated punishment, or even a relative non-prosecution. For individuals, surrendering voluntarily, admitting guilt and accepting punishment, and making restitution and reaching a settlement can significantly broaden the scope for leniency. However, the crisis should not be "smoothed over", but rather the mitigating circumstances should be fully utilized in accordance with the law. The outcome will vary depending on the specific circumstances of the case, and the value of a lawyer lies in identifying these circumstances as early as possible, rather than promising a certain outcome.

Q2: What materials need to be prepared and preserved to deal with a criminal crisis in a company?

The core materials are those that can "prove the unit's will and responsibility boundaries": company charters, resolutions, and authorization documents; business contracts and transaction records; financial ledgers and fund flow; the job descriptions and communication records of the involved personnel; and the received reports, inquiries, or regulatory documents. At the same time, it is necessary to preserve rather than destroy evidence, and to seal the original accounting books and electronic data. The more clearly the materials can distinguish between the unit's actions and individual actions, and between normal operations and illegal operations, the more favorable the subsequent qualification will be, and it will also be easier for lawyers to develop defense or compliance plans.

Q3: How much does it typically cost for a company to hire a lawyer to deal with a criminal crisis?

The fees depend on the scale of the crisis, the personnel involved, and the stages of the process. They are typically charged on a per-project or per-stage basis, and the specific fees are subject to the contract terms. There is no nationwide standard pricing. For cases involving multiple suspects, cross-regional issues, or requiring extensive document review and evidence collection, the fees will be higher; while for cases involving only crisis assessment and contingency planning, the costs will be relatively manageable. It is recommended to request a service list and fee breakdown, specifying which stages of the investigation, review, prosecution, and trial are covered, and whether third-party costs are included. This should be weighed against the enterprise's risk exposure and the cost of business interruption. Under no circumstances should intervention be delayed due to cost concerns.

Q4: How long does it typically take for an enterprise to handle a criminal crisis from its outbreak to its basic resolution?

Crisis management runs through the entire process of investigation, review and prosecution, and trial. The investigation, detention, and verification often take several months, the review and prosecution take one and a half to several months (with two opportunities for supplementation), and the first-instance ordinary procedure takes six months, while the simplified procedure takes three months. If the unit carries out compliance rectification or the natural person strives for leniency, the period may be longer but the outcome may be better. The "golden period" of the initial stage of the crisis often falls within 37 days after detention. Hiring a lawyer to apply for bail or review the necessity of detention as soon as possible can create crucial opportunities for subsequent efforts. Overall, it often takes several months to more than a year.

Q5: What should a company do first when facing an unexpected criminal crisis?

Five suggestions: First, immediately appoint a single contact person to avoid the risk of collusion due to multiple people making conflicting statements. Second, preserve accounting books, contracts, electronic data, and communication records, and strictly prohibit their destruction or tampering. Third, sort out the responsibilities of the involved personnel and evidence of the company's intent, and preliminarily determine the company's criminal liability or individual responsibility. Fourth, engage a professional criminal lawyer as soon as possible to review the case, consult with the client, and coordinate external statements. Fifth, evaluate strategies for repayment, regulatory compliance, and cooperation to turn the crisis into a manageable legal process. It is advisable to prepare a crisis response plan in advance.

The above answer is based on the judicial practice in Beijing. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limit. →Criminal defense legal services·Attorney Liu Liqiang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in time.