White Collar Crime:
Corporate Victim Representation
Through the creation of its Corporate Victim Representation practice, Faruki has effectively pioneered a new sub-practice within the traditional white collar area.
Faruki has secured monetary recoveries for corporate clients who have suffered loss as a result of the criminal actions of others (employees, agents, competitors, etc.). While the process is novel, creative, and complex, the goal is straightforward: to secure significant monetary recoveries on behalf of clients through expert use of the federal and state criminal laws and their corresponding restitutive components in order to avoid the significant risk, and often astronomical cost, of civil litigation.
At its core, Faruki’s Corporate Victim Representation practice is grounded in the criminal restitution laws. While these laws have existed for decades, most civil practitioners – those to whom most clients turn to seek monetary recovery when they have been illegally or tortuously harmed – are not familiar with these laws or lack the background, relationships, and know-how to make use of them. The point of restitution laws is to allow victims, including corporate victims, to be made whole. When appropriately utilized, these restitution laws provide a tremendous opportunity for corporate victims. Because the law requires the prosecuting authority to pursue restitution on behalf of victims, a corporation can utilize the restitution laws and save the expense of hiring private counsel to pursue monetary recovery through civil proceedings.
A primary reason why the restitution laws have been historically underutilized and largely ignored is because while federal and state prosecuting authorities are empowered and often obligated to seek restitution on behalf of victims, they have little incentive to. This is because their primary focus is understandably given to the criminal side. Criminal prosecutors are traditionally judged on the number of convictions, the length of sentencing, etc. – not their ability to recover funds on behalf of victims. This is particularly the case when the victim is a nameless, faceless, and often profitable corporation. However, the lack of victim focus can be overcome if corporate victims are able to interface with prosecutors and investigative agents in the appropriate manner. This requires counsel to possess two critical qualifications: knowledge of the restitution laws, and credibility with the prosecutors and investigative agents.