[Direct answer]In the Beijing area, it's possible to seek lenient treatment, but it doesn't apply to all cases. After a company is suspected of committing a crime, it can still obtain lenient treatment by admitting guilt and accepting punishment, returning illicit gains and compensating for losses, making up for tax arrears, restoring the environment and repairing the consequences of infringement, and establishing a compliance management system. If the company meets the conditions and is approved by the procuratorial organ to initiate the program, it can carry out compliance rectification for the involved company. The rectification will be evaluated by a third-party supervision and assessment organization, and the evaluation conclusion will be an important consideration for whether to not prosecute or propose lenient sentencing. Whether it can be applied depends on the nature of the crime and the severity of the circumstances, whether the company is operating normally, whether there is a possibility of reoffending, whether it can effectively make amends, and the degree of cooperation of the directly responsible personnel. Generally, it is not applicable to serious crimes and crimes endangering national security.

I. Problem Background and Typical Scenarios

Criminal cases involving enterprises are commonly seen in types such as false invoicing, illegal absorption of public deposits, illegal operation, environmental pollution, infringement of intellectual property rights, and embezzlement of duties. After the enterprise is placed under investigation, its accounts are frozen, its bidding qualifications are restricted, its core employees resign, and its business chain is disrupted. The most pressing concern for business owners is often not "how many years of imprisonment they will face", but "whether the company can still be saved and whether there is a chance to continue operating". At the same time, many enterprises involved in the case have started self-inspection and rectification before and after the incident, but they don't know at which stage they should put forward their proposals, who will review and accept them, and what results can be achieved.

II. Key points of contention

First, stage selection. In the investigation stage, evidence can be fixed in advance, remedial measures can be taken, and plea agreements can be prepared. The review and prosecution stage is the main window for applying to initiate compliance rectification, while the trial stage focuses on seeking lenient sentencing. Second, subject responsibility distinction. Corporate crimes and the directly responsible supervisors and other directly responsible personnel should be evaluated separately. It is not acceptable to replace individual legal handling with corporate rectification, nor should personal responsibility be unreasonably expanded. Third, targetedness of rectification plans. Rectification must focus on rebuilding systems around the risk points involved in the case and accept third-party supervision and evaluation. Paper-based compliance and systems posted on the wall without actual implementation will fail to pass the review. Fourth, disposal of involved assets and illegal proceeds. The order of returning embezzled funds and compensation, and handling seized and frozen assets directly affects the degree of leniency. Exaggerated claims will squeeze the space for rectification. Fifth, procedural connection. There needs to be a coherent design between the plea agreement, the decision on non-prosecution, and the sentencing recommendation. Compliance rectification does not necessarily exempt from civil compensation liability, nor does it exempt from criminal liability.

III. Professional analysis by Henglue Lawyers

The resolution of criminal cases involving enterprises follows the same methodological approach as the defense of major criminal cases: the three key factors - the chain of evidence, subjective intent, and determination of circumstances - determine the outcome. A case of intentional homicide handled by Henglue Law Firm can serve as an example: In June 2024, after a dispute with others, the defendant drove his car into a crowd, resulting in one death and two injuries. The prosecution and defense sides vigorously debated whether the act of driving into people should be characterized as intentional homicide or endangering public safety by dangerous methods, whether the defendant's voluntary call to the police constituted a voluntary surrender, and whether the victim had any fault. The attorney handling the case carefully reviewed all the evidence, including physical evidence, documentary evidence, witness testimonies, the defendant's confessions, appraisal opinions, and on-site investigation records, refuted the defense arguments one by one, and put forward opinions from the perspectives of characterization, circumstances, and repentance. The court ultimately accepted the attorney's arguments, determined that the defendant committed intentional homicide, and sentenced him to death. Although this case is not a corporate compliance case, the principles revealed here are equally applicable to cases involving enterprises: the debate over characterization and the determination of circumstances directly determine the sentencing level, while circumstances such as voluntary surrender, restitution, and obtaining a victim's forgiveness are practical means to seek leniency. This case was handled by Beijing Henglue Law Firm.Liu LiqiangThe attorney (practice license number: 11101200910454358, subject to the document issued by the judicial administrative organ) acts as the agent.

In corporate-related cases, Henglue Lawyers usually proceed along three lines: the subject line, distinguishing the responsibilities of the unit from those of the directly responsible individuals to avoid the responsibilities of the subject being unduly expanded; the amount line, verifying the involved amount, illegal income, and the approach to returning and compensating, to prevent the amount being overstated and leading to a higher sentencing level; and the rectification line, assisting the enterprise in formulating feasible compliance plans and coordinating with third-party supervision and evaluation to translate the rectification effects into written mitigating factors. Only by advancing these three lines simultaneously can there be a chance to exert a substantial impact during the review and prosecution stage.

IV. Practical suggestions and legal basis

According to Article 30 and Article 31 of the Criminal Law of the People's Republic of China (amended on December 26, 2020 and implemented on March 1, 2021) regarding the punishment of corporate crimes and their directly responsible personnel, Article 15 of the Criminal Procedure Law of the People's Republic of China regarding leniency for guilty pleas and confessions of guilt, Article 177 regarding non-prosecution (amended on October 26, 2018 and implemented on October 26, 2018), and the currently effective documents on corporate compliance reform issued by the Supreme People's Procuratorate and other departments, it is recommended that: First, immediately stop the involved acts and fix the evidence for remedial measures. Retain complete proofs for returning embezzled funds and compensation, making tax payments, and repairing damages; Second, engage professional lawyers as soon as possible to submit applications and rectification plans for initiating compliance rectification during the review and prosecution stage; Third, the rectification plan should design systems, positions, and assessments targeting the risk points involved in the case, clarify the responsibilities and completion deadlines; Fourth, simultaneously arrange defense arrangements for directly responsible personnel to avoid conflicts of interest between the company and individuals; Fifth, communicate with victimized units, fundraising participants, tax authorities, etc. about compensation and tax payment plans, and document the leniency circumstances in writing. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Compliance rectification is not a get-out-of-jail-free card, but a system arrangement that exchanges genuine rectification for lenient treatment. Both the evaluation period and costs need to be assessed in advance. At the same time, it is necessary to avoid creating new risks during the case handling process: transferring assets, destroying account books, colluding with others, or transferring operating profits in the name of rectification will directly destroy the basis for lenient treatment. On the corporate side, it is also necessary to handle well the relationships with employees, suppliers, and financial institutions, and avoid expanding criminal risks into existential crises through chain defaults. For legal representatives and financial managers who may be held personally liable, it is necessary to evaluate defense strategies as early as possible and, if necessary, appoint separate lawyers to avoid conflicts of interest.Criminal defenseAndSpecialised legal servicesCollaboration between government departments is a common approach to handling cases involving enterprises.Beijing Henglu Law FirmIt is recommended that enterprises complete a compliance check at the early stage of the incident and resolve the problems before the process begins.

VI. Frequently Asked Questions

Q1: After applying for compliance rectification, can the suspect not be arrested or prosecuted?

It depends on the charge and circumstances, the remedial effect, and the possibility of reoffending. For minor offenses, if the defendant has completed restitution and made up for the losses, and the enterprise is operating normally and has passed the third-party evaluation, there is a relatively large chance of obtaining a non-prosecution during the review and prosecution stage. For serious offenses, the main goal is usually to strive for a lenient sentencing, and it is difficult to completely exempt the individual from responsibility through the enterprise's rectification.

Q2: What materials do I need to prepare?

The compliance rectification plan and implementation records, the materials of pleading guilty and accepting punishment, the vouchers of returning illicit gains and compensation, the victim's understanding or settlement agreement, the certificates of tax payment and employment compliance, the third-party supervision and evaluation reports, as well as the enterprise's business license, financial statements, and other materials related to the subject and its operating conditions.

Q3: Approximately how much do the rectification and attorney fees cost?

The rectification costs include the expenses required for system construction, audit evaluation, and monitoring measures. The longer the rectification period is, the higher the costs will be. Lawyer's fees are negotiated in stages, and fees for judicial audits and special appraisals are settled separately. The specific fees are subject to the terms of the contract and the quotes provided by the appraisal agencies.

Q4: How long does the entire process take?

The inspection period for compliance rectification usually lasts from several months to more than a year. After the acceptance is qualified, the procuratorial organ will make a decision on the handling of the case. From the filing of the case to the conclusion of the review and prosecution, it generally takes about a year. The longer the case is more complex and involves a larger amount of money, the longer the cycle will be.

Q5: What should I do first?

First, evaluate the charges, the amount involved in the case, and the stage of the case to determine whether the conditions for rectification are met; at the same time, stop the acts involved in the case, initiate the process of refund and make up for the arrears, and fix the relevant evidence. As soon as possible, entrust a lawyer to submit an application for rectification during the review and prosecution stage, and simultaneously arrange for independent defense for the directly responsible personnel.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific situations.

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

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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. If you encounter disputes, please consult a practicing lawyer in time.