[Direct answer]In the Beijing area, after a company is subject to a criminal investigation, the key approaches to seeking leniency include: actively cooperating with the investigation, voluntarily explaining the situation, distinguishing the direct responsible persons and supervisors of the unit's crimes according to law, relying on the leniency system of pleading guilty and accepting punishment, and initiating compliance rectification for the involved enterprises when conditions permit, in order to seek non-prosecution or lenient treatment. According to Article 15 of the Criminal Procedure Law of the People's Republic of China, if a criminal suspect or defendant voluntarily makes a truthful statement, admits the facts of the charge, and is willing to accept punishment, he may be dealt with leniently according to law; the provisions of the Criminal Law on unit crimes distinguish the responsibilities of units and individuals. It is recommended that enterprises hire lawyers as soon as possible to sort out their business models and the involved links, and evaluate the feasibility of compliance rectification. For more details, please refer to the following link:Criminal defense and legal services for criminal case filing.

I. Problem Background and Typical Scenarios

Companies are often subject to criminal investigations in scenarios involving unit crimes, commercial bribery, false invoicing, infringement of intellectual property rights, environmental pollution, illegal fundraising, and other issues. Typical situations include: the investigating authorities initiating cases against both the unit and its responsible persons; the company's accounts and assets being frozen and seized; key personnel being taken away, affecting business operations; and the company's previous lack of a compliance system and long-term existence of risk points. Many business owners mistakenly believe that "paying a bit of money can resolve the issue" or delay responding, missing the opportunity for compliance rectification and lenient treatment. For cases involving corporate contracts and joint and several liabilities, it is advisable to seek legal advice in a timely manner.Business and contract dispute services for enterprisesIsolate operational risks.

II. Key points of contention

There are three key points of contention in such cases. First, the determination of corporate criminal responsibility: whether the act reflects the corporate will and whether the benefits accrue to the corporation, which directly determines whether the responsible subject is the corporation or an individual. Second, the division of responsibilities: how to define the boundaries between the direct responsible persons, supervisors, and unaware employees. Third, the choice of lenient measures: whether to plead guilty and accept the punishment, return the illegal proceeds, make compensation and obtain forgiveness, and whether the involved enterprises can implement compliance rectification and in return, avoid prosecution or receive lenient punishment. The rectification must be genuine and effective, as formalistic and perfunctory actions will not be recognized. For the involved assets, reference can be made to the relevant provisions.Creditor-debtor relations and enforcement case servicesClarify the scope of the recovery of the overdue payments.

III. Professional analysis by Henglue Law Firm

The professional defense of sentencing circumstances can be glimpsed from a criminal and civil lawsuit case of intentional homicide handled by our firm. On June 16, 2024, the defendant, Zhang Daqiang, accelerated his car and hit the laboratory after an argument at the mixing station, resulting in the death of Zhao Gang on the spot and the injuries of Zhang Bin and Li Yuanzheng. The victim's wife, Zhao Gang, entrusted Liu Liqiang, a lawyer from Beijing Henglu Law Firm, to represent her in the civil lawsuit. The lawyer carefully reviewed the case file, refuted the defendant's defense of subjective intent, voluntary surrender, victim's fault, and the nature of the crime, and argued that the crime should be identified as intentional homicide and given a heavier punishment. The core of the case lies in whether the act of driving a car and killing someone should be defined as intentional homicide or endangering public safety by dangerous means, and whether the defendant's voluntary surrender is established. The court ultimately sentenced Zhang Daqiang to death for intentional homicide. The 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. This process shows that the determination of circumstances such as voluntary surrender, pleading guilty and accepting punishment, and compensation and understanding highly depends on the lawyer's accurate grasp of evidence and legal provisions. The same is true for the mitigating argument in the process of corporate compliance rectification.

IV. Practical suggestions and legal basis

The main basis is Article 30 and Article 31 (principle of punishment for unit crimes) of the Criminal Law of the People's Republic of China (amended and implemented on December 23, 2020), Article 67 (surrendering oneself to the authorities), Article 68 (meritorious service); Article 15 (leniency for pleading guilty and accepting punishment) of the Criminal Procedure Law of the People's Republic of China (amended and implemented on October 26, 2018); and the relevant provisions of the reform of corporate compliance. For those directly responsible persons in charge and other responsible persons who plead guilty and accept punishment, and for enterprises that commit to rectifying compliance and establishing effective compliance systems, they may be given lenient punishment according to law, and those who meet the conditions may be exempted from prosecution. Practical suggestions: immediately seal and sort out the materials involved in the case, stop illegal business operations, cooperate with the investigation and refund the illegal income; entrust lawyers to evaluate the feasibility of unit crimes and compliance rectification, formulate rectification plans and accept supervision and evaluation. For intellectual property disputes, it can be combined with other legal provisions to provide legal solutions.Intellectual property protection and corporate legal servicesImprove compliance.

5. Henglue Law Firm's Reminder

When a company is under criminal investigation, its attitude and actions will determine the outcome. It is crucial not to conceal or destroy accounting records, obstruct the investigation, or encourage employees to give false testimony, as these actions may aggravate the company's liability. Instead, the company should actively cooperate with the investigation, repay illegal proceeds, and provide truthful explanations. Compliance rectification is not a get-out-of-jail-free card; it must involve genuine and verifiable system reconstruction, and the company must accept third-party supervision and evaluation. It is advisable to engage a lawyer who is familiar with corporate crime and compliance matters as early as possible, as this can help clarify the responsible parties and secure more lenient punishments. For further assistance, please contact us.Criminal defense and legal services for criminal case filingInitiate the compliance rectification assessment.

VI. Frequently Asked Questions

Q1: If a company is under criminal investigation, can it really secure a non-prosecution or lenient punishment by conducting compliance rectification?

There is indeed legal room for leniency in compliance rectification, but it is not inevitable. According to the relevant provisions on compliance reform of the involved enterprises, if the directly responsible person in charge and other responsible persons in the unit crime plead guilty and accept punishment, and the enterprise makes a commitment and effectively establishes a compliance system, they may be given leniency according to law, and those who meet the conditions may be exempted from prosecution. Whether this can be implemented depends on: the connection between the criminal act and the lack of compliance, whether the rectification is genuine and effective, and whether the illegal income is refunded and the losses are compensated. Formal and perfunctory rectifications are hard to gain recognition. It is recommended to develop verifiable rectification plans under the guidance of lawyers and accept third-party supervision and evaluation.

Q2: What materials and evidence do I need to prepare for corporate compliance rectification?

The core materials include: a description of the enterprise's operations and organizational structure, information on the entire process of the business involved in the case and financial books, proof of the discontinued illegal business, a summary of the illegal proceeds and the withdrawal and payment vouchers, the injured party's understanding or compensation agreement, and the proposed establishment of a compliance system (compliance manual, risk list, training and audit mechanisms) and a rectification schedule. The lawyer will assess the compliance foundation based on these materials and assist in coordinating with regulatory or third-party supervision and evaluation organizations. The materials must be authentic and verifiable, and it is strictly prohibited to forge rectification records, otherwise, the possibility of leniency will be lost and the responsibility will be aggravated.

Q3: Approximately how much does it cost to conduct corporate compliance rectification and defense?

The fees are usually negotiated based on the size of the enterprise, the complexity of the case, and the amount of remedial work. They can be calculated on a piecework or hourly basis in stages (investigation and response, rectification and construction, supervision and evaluation, and follow-up defense), with the specific terms subject to the contract of engagement and without a unified standard. According to regulations, risk-based fees are prohibited in criminal litigation, so be cautious of promises of percentage-based commissions. It is recommended that enterprises clarify the fees for each stage, third-party expenses such as third-party evaluations, and refund conditions before engaging a lawyer. They should choose a team with experience in corporate crime and compliance to sign a written contract, and start the work after evaluating the input and output first.

Q4: How long does it usually take from being investigated to obtaining the results of compliance rectification?

The duration of the process varies from case to case. The investigation and review of prosecution may take several months; compliance rectification generally needs to be completed within the probation period set by the procuratorial organ, with a common probation period of several months to one year. During this period, the company will be subject to supervision and evaluation and submit interim reports. After the evaluation is passed, the procuratorial organ will make a decision on lenient treatment. Overall, it often takes more than half a year or even a year from the start of rectification to obtaining a non-prosecution or lenient result. Enterprises should plan rectification simultaneously at the early stage of the investigation to avoid making up for it after prosecution, as the window of opportunity will become narrower as time goes by.

Q5: After a company is subject to a criminal investigation, what should the responsible person do first?

There are four steps: First, immediately stop the illegal business involved in the case and seal up relevant materials to prevent the loss of evidence or the expansion of responsibilities; Second, as soon as possible, entrust lawyers who are familiar with corporate crime and compliance business to sort out the business model and the links involved in the case, and define the responsible subjects; Third, actively cooperate with the investigation, truthfully explain and return the illegal income, and express the willingness to rectify; Fourth, with the assistance of lawyers, develop a genuine and verifiable compliance rectification plan, cooperate with regulatory authorities or third-party supervision and evaluation, and strive for lenient treatment. Throughout the whole process, avoid such acts as colluding with others to give false testimony, destroying account books, or obstructing the investigation.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

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, so as to avoid missing the statutory time limit. →Criminal defense legal services·Beijing Henglue 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. If you encounter disputes, please consult a practicing lawyer in time.