USA Law and Practice Contributed by: Emily Hughes, Charles Kalil, Cori Lable and Ryan Raybould, Kirkland & Ellis
pervasiveness of the wrongdoing when fashioning a sentence. 1.7 Damages and Compensation The Crime Victims’ Rights Act provides that victims of federal crimes have the “right to full and timely res - titution as provided in law” (18 USC Section 3771 (a) (6)). The Mandatory Victims Restitution Act (MVRA) requires a sentencing judge to award full restitution to victims of crimes against property, such as wire fraud, mail fraud and many financial crimes (18 USC Section 3663A). The MVRA applies if the individual or entity suffering the loss is an “identifiable victim” that is “directly and proximately harmed as a result” of the crime. Some statutes explicitly provide for damages for vic - tims. For example, RICO provides that any person injured may sue in federal district court to recover treble damages, as well as reasonable attorneys’ fees (18 USC Section 1964). 2. Enforcement 2.1 White-Collar Enforcement Authorities Both federal and state governments can investigate, prosecute and enforce laws related to white-collar offences. Federal white-collar offences are investigated by a variety of governmental agencies. Civil investigations and enforcement actions may be initiated by (among others): • civil attorneys at the DOJ; • the Securities and Exchange Commission (SEC); • the Commodity Futures Trading Commission (CFTC); • the Federal Reserve Bank; • the Federal Trade Commission (FTC); • the Office of Foreign Assets Control (OFAC); • the Environmental Protection Agency (EPA); • the Federal Bureau of Investigation (FBI); • the United States Postal Services (USPS); and • the Internal Revenue Service (IRS).
All federal criminal offences are investigated and pros - ecuted through the DOJ, often in partnership with oth - er agencies. Both civil and criminal federal cases are heard by federal courts. Some administrative actions are litigated within the agencies themselves by admin - istrative law judges, with the possibility of appeal to the federal courts. States have a parallel set of criminal and civil laws as well as their own courts to hear cases. State prosecu - tors’ offices (often called state’s attorneys or district attorneys) bring cases based on criminal offences within their jurisdiction. State enforcement regimes for civil offences vary, but most have a series of investiga - tive agencies and a state Attorney General, who acts as chief legal officer. Self-regulatory organisations (such as the Financial Industry Regulatory Authority, the Options Clearing Corporation and the New York Stock Exchange) also enforce industry rules and professional regulations. On 9 May 2025, President Trump issued an Execu - tive Order directing federal agencies and regulators to avoid enforcing – in a criminal proceeding – vague reg - ulations or statutes, or strict-liability offences unless the individual or entity acted with criminal intent or knowledge. 2.2 Initiating an Investigation Investigations may be initiated by agencies or pros - ecutors whenever they have reason to believe that an offence has been committed within their jurisdiction. Regulatory agencies each possess their own set of standards for initiating investigations, which are based on statutes and internal guidance. Investigations vary in formality. The SEC’s Division of Enforcement, which prosecutes wrongdoing under the federal securities laws, may investigate through a relatively informal process, known as a “matter under inquiry”, or via a formal investigative order (under which a subpoena may be issued). Matter-under-inquiry investigations may arise from an entity’s self-reporting of possi - ble misconduct, in response to media reporting or a whistle-blower submission. A matter under inquiry may convert to a formal investigation.
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