• Michael Giudicissi

The Answer You've Been Waiting For...

For my many clients and readers who have asked "How does that rep (or agency) get away with doing those things to generate referrals?", my answer has been "They won't....not for very long anyway."

Please read the story below by Elizabeth Hogue for details on the Yates Memo and what it might mean for individuals who are attempting to do business outside of the rules in the home care industry.

If you have questions about this article, please contact Elizabeth at

(877) 871-4062 ElizabethHogue@ElizabethHogue.net

If you have questions about how to mount a professional, LEGAL sales effort, please call us at 877-798-2530 or email michaelg@powershottraining.com

Yates....or perhaps, Yikes!

The so-called "Yates Memo," entitled "Individual Accountability for Corporate Wrongdoing," makes it clear that fraud enforcers now aggressively take action against individual executives of healthcare companies even if they did not know about the fraudulent conduct. Companies are now required to disclose all relevant facts related to individuals responsible for misconduct so that action can be taken against these individuals. No credit for cooperation that may reduce providers' civil or criminal penalties will be given unless all responsible individuals are identified to enforcers.

The U.S. Department of Justice (DOJ) previously made it clear in The Holder Memo that "prosecution of a corporation is not a substitute for the prosecution of criminally culpable individuals within or without the corporation." The rationale for this policy is that criminal liability of individuals is a strong deterrent against future corporate wrongdoing. In other words, the Yates Memo makes it clear that the federal government now means business!

Specifically, the Yates Memo establishes six requirements for federal prosecutors regarding individual prosecutions:

  1. Providers must give the DOJ all relevant facts related to individuals responsible for misconduct.

  2. Criminal and civil corporate investigation must focus on individuals from the inception of investigations.

  3. Civil and criminal attorneys handling corporate investigations on behalf of the government should routinely communicate with each other.

  4. The DOJ will not ordinarily release culpable individuals from civil or criminal liability when resolving allegations of misconduct with corporations.

  5. The DOJ should have clear plans about how to resolve individuals' cases before they resolve matters with corporations.

  6. Civil enforcement attorneys must consistently focus on individuals and evaluate whether to bring suit against them based on considerations other than the ability to pay.

The Yates Memo reinforces these requirements in the following language:

"Effective immediately, we have revised our policy guidance to require that if a company wants any credit for cooperation, any credit at all, it must identify all individuals involved in the wrongdoing, regardless of their position, status or seniority in the company and provide all relevant facts about their misconduct. It's all or nothing. No more picking and choosing what gets disclosed. No more partial credit for cooperation that doesn't include information about individuals."

The Yates Memo is certainly "strong stuff." Individuals' lives are now at stake!

©2017 Elizabeth E. Hogue, Esq. All rights reserved.

No portion of this material may be reproduced in any form without the advance written permission of the author.

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