A Deferred Prosecution Agreement, often shortened to DPA, is a powerful legal tool used by U.S. prosecutors to resolve criminal cases without a conviction—if strict conditions are met. Under federal law, DPAs play a critical role in white-collar crime enforcement, corporate compliance, and individual accountability. Understanding how DPAs work, who qualifies, and what happens if terms are violated can make the difference between freedom and a permanent criminal record.
According to the U.S. Department of Justice (DOJ), DPAs are designed to promote accountability, encourage compliance, and protect the public without imposing unnecessary collateral damage, especially in complex corporate cases.
Between 2010 and 2023, the DOJ entered into over 500 DPAs and Non-Prosecution Agreements (NPAs), with monetary penalties exceeding $300 billion, according to data compiled by Stanford Law School’s Corporate Prosecution Registry.
What Is a Deferred Prosecution Agreement?
A Deferred Prosecution Agreement is a formal legal agreement between a prosecutor and a defendant. The prosecutor files criminal charges but agrees to delay prosecution for a fixed period, usually 12 to 36 months, while the defendant fulfills specific conditions.
Key Legal Definition
Under U.S. federal practice, a DPA means:
- Criminal charges are filed in court
- Prosecution is paused
- The defendant must meet clearly defined obligations
- Charges are dismissed if all terms are satisfied
Failure to comply triggers automatic prosecution, using the original charges.
Who Uses Deferred Prosecution Agreements in the U.S.?
DPAs are used at two levels in the United States:
1. Federal Level
Used by:
- U.S. Department of Justice (DOJ)
- U.S. Attorney’s Offices
- Specialized divisions such as:
- Criminal Fraud Section
- Antitrust Division
- National Security Division
2. State Level
State Status of Deferred Prosecution/Diversion
| State | Uses DPA/Diversion? | Common Legal Terminology in that State |
| Alabama | Yes | Pre-trial Diversion |
| Alaska | Yes | Suspended Entry of Judgment |
| Arizona | Yes | Deferred Prosecution / TASC |
| Arkansas | Yes | Pre-trial Diversion |
| California | Yes | Pre-trial Diversion / PC 1000 |
| Colorado | Yes | Deferred Judgment and Sentence |
| Connecticut | Yes | Accelerated Rehabilitation (AR) |
| Delaware | Yes | Probation Before Judgment (PBJ) |
| Florida | Yes | Pre-trial Intervention (PTI) |
| Georgia | Yes | Pre-trial Diversion |
| Hawaii | Yes | Deferred Acceptance of Plea (DAG) |
| Idaho | Yes | Withheld Judgment |
| Illinois | Yes | Deferred Prosecution |
| Indiana | Yes | Pre-trial Diversion |
| Iowa | Yes | Deferred Judgment |
| Kansas | Yes | Diversion Agreement |
| Kentucky | Yes | Pre-trial Diversion |
| Louisiana | Yes | Pre-trial Diversion |
| Maine | Yes | Deferred Disposition |
| Maryland | Yes | Probation Before Judgment (PBJ) |
| Massachusetts | Yes | Continuance Without a Finding (CWOF) |
| Michigan | Yes | HYTA (Youth) / Deferred Prosecution |
| Minnesota | Yes | Stay of Adjudication |
| Mississippi | Yes | Pre-trial Intervention |
| Missouri | Yes | Suspended Imposition of Sentence (SIS) |
| Montana | Yes | Deferred Prosecution |
| Nebraska | Yes | Pre-trial Diversion |
| Nevada | Yes | Deferred Prosecution |
| New Hampshire | Yes | Pre-trial Diversion |
| New Jersey | Yes | Pre-trial Intervention (PTI) |
| New Mexico | Yes | Pre-trial Diversion |
| New York | Yes | Adjournment in Contemplation of Dismissal (ACD) |
| North Carolina | Yes | Deferred Prosecution |
| North Dakota | Yes | Deferred Imposition of Sentence |
| Ohio | Yes | Diversion Program |
| Oklahoma | Yes | Deferred Sentence |
| Oregon | Yes | Diversion (DUI) / Deferred Sentencing |
| Pennsylvania | Yes | Accelerated Rehabilitative Disposition (ARD) |
| Rhode Island | Yes | Deferred Sentence |
| South Carolina | Yes | Pre-trial Intervention |
| South Dakota | Yes | Suspended Imposition of Sentence |
| Tennessee | Yes | Judicial Diversion |
| Texas | Yes | Deferred Adjudication |
| Utah | Yes | Plea in Abeyance |
| Vermont | Yes | Diversion |
| Virginia | Yes | Deferred Disposition |
| Washington | Yes | Deferred Prosecution |
| West Virginia | Yes | Pre-trial Diversion |
| Wisconsin | Yes | Deferred Prosecution Agreement (DPA) |
| Wyoming | Yes | Deferred Prosecution |
Deferred Prosecution Agreements for Corporations
Why DPAs Are Common in Corporate Cases?
Corporate criminal convictions can:
- Destroy shareholder value
- Trigger mass layoffs
- Bar companies from federal contracts
- Collapse pension plans
A DPA allows punishment without economic devastation.
Common Corporate Crimes Resolved Through DPAs
Corporate DPAs frequently involve:
- Securities fraud
- Foreign Corrupt Practices Act (FCPA) violations
- Bank fraud
- Healthcare fraud
- Environmental crimes
- Antitrust violations
Example list of corporations involved in DPAs:
- Boeing
- HSBC
- Goldman Sachs
- Walmart
- Airbus
Typical Corporate DPA Requirements
A corporate DPA usually includes 6 to 10 mandatory obligations, such as:
- Payment of fines or penalties
Example: Goldman Sachs paid $2.9 billion in a DOJ DPA related to the 1MDB scandal. - Admission of facts
Companies must admit specific factual conduct, not vague wrongdoing. - Compliance program overhaul
Includes written policies, employee training, and internal controls. - Independent compliance monitor
Appointed for 18–36 months in high-risk cases. - Cooperation with ongoing investigations
Includes employee interviews and document production. - No further violations
Any new criminal activity voids the agreement.
Deferred Prosecution Agreements for Individuals
Are DPAs Common for Individuals?
DPAs for individuals are less common but still legally available. They are typically used when:
- The offense is non-violent
- The defendant has no prior felony convictions
- The individual cooperates early
- Restitution is possible
Common Individual DPA Cases
Individual DPAs often involve:
- First-time drug offenses
- Low-level financial crimes
- Tax-related violations
- Regulatory offenses
Individual DPA Conditions
An individual DPA usually requires 5 to 8 conditions, including:
- Completion of probation-like supervision
- Restitution to victims
- Community service (e.g., 100–300 hours)
- Substance abuse or mental health treatment
- Employment or education requirements
- No new arrests during the DPA period
Example:
A first-time offender charged with wire fraud involving $45,000 may enter a 24-month DPA, repay the full amount, complete 200 hours of community service, and avoid a felony conviction.
Step-by-Step: How a Deferred Prosecution Agreement Works?
Step 1: Investigation
Federal or state prosecutors investigate alleged criminal conduct.
Step 2: Charging Decision
Prosecutors determine charges but agree to defer prosecution.
Step 3: Negotiation
Defense counsel negotiates:
- Duration
- Financial penalties
- Compliance obligations
Step 4: Court Filing
Charges are filed, and the DPA is submitted to a judge.
Step 5: Supervision Period
The defendant complies with all DPA terms.
Step 6: Dismissal or Prosecution
- Compliance → charges dismissed
- Violation → prosecution resumes immediately
How Long Does a Deferred Prosecution Agreement Last?
Most DPAs last:
- 12 months for minor individual offenses
- 24–36 months for corporate cases
The average corporate DPA length in the U.S. is 31 months, according to Stanford Law data.
Deferred Prosecution Agreement vs Plea Deal vs NPA
DPA vs Plea Agreement
| Feature | DPA | Plea Deal |
|---|---|---|
| Criminal conviction | No | Yes |
| Charges filed | Yes | Yes |
| Admission of guilt | Limited | Full |
| Jail time | No | Possible |
| Criminal record | Avoidable | Permanent |
DPA vs Non-Prosecution Agreement (NPA)
| Feature | DPA | NPA |
|---|---|---|
| Charges filed | Yes | No |
| Court oversight | Yes | No |
| Public disclosure | Required | Sometimes limited |
| Severity of misconduct | Higher | Lower |
Benefits of a Deferred Prosecution Agreement
Benefits for Corporations
- Avoids criminal conviction
- Preserves business operations
- Protects employees and shareholders
- Reduces regulatory bans
Benefits for Individuals
- Avoids jail time
- Prevents permanent criminal record
- Maintains employment eligibility
- Preserves housing and licensing
Risks and Downsides of DPAs
DPAs are not “easy exits.”
Key Risks
- High financial penalties
- Strict compliance obligations
- Public disclosure and reputational harm
- Immediate prosecution upon violation
Example:
A corporation that violates a DPA can face enhanced penalties, including obstruction charges.
What Happens If a DPA Is Violated?
Violation triggers:
- Immediate prosecution
- Use of admitted facts as evidence
- No statute of limitations defense
In United States v. HSBC (2012), DOJ warned that failure to comply would reinstate charges for money laundering violations.
Judicial Oversight of DPAs in the U.S.
Federal judges review DPAs under:
- Speedy Trial Act (18 U.S.C. § 3161)
Courts ensure:
- Agreement serves public interest
- Terms are specific and enforceable
However, judges cannot rewrite DPAs.
Are Deferred Prosecution Agreements Legal in All States?
No. DPAs are:
- Explicitly authorized in many states
- Limited or informal in others
States with formal DPA frameworks include:
- New York
- California
- Texas
- Florida
- 72% of corporate DPAs involve financial crimes
- 18% involve healthcare fraud
- 10% involve environmental or export violations
Average corporate DPA fine: $180 million
Final Thoughts
Deferred Prosecution Agreements strike a deliberate balance. They punish wrongdoing, protect the public, and preserve economic stability without defaulting to incarceration or corporate collapse. For corporations, DPAs enforce compliance and reform. For individuals, DPAs offer accountability without lifelong consequences.
Understanding DPAs is not optional anymore. In modern U.S. criminal law, they are a central enforcement tool—used carefully, enforced strictly, and backed by the full authority of the justice system.
FAQs
How is a DPA different from a Plea Bargain?
In a standard plea bargain, you plead guilty, a conviction goes on your record, and you are sentenced. In a DPA, you generally do not have to plead guilty immediately. If you follow the rules, the case is dropped, and you avoid a permanent criminal conviction record.
What are the common conditions of a DPA?
The requirements vary based on the crime, but they usually include:
Restitution: Paying back any money stolen or damages caused.
Community Service: Completing a set number of hours.
Good Behavior: Not getting arrested for any new offenses.
Treatment: Attending drug, alcohol, or mental health counseling.
Corporate Oversight: For companies, this often involves hiring an independent monitor to oversee business practices.
Who is eligible for a DPA?
DPAs are most common for:
First-time offenders who committed non-violent crimes.
White-collar defendants and large corporations.
Juveniles or young adults where the court wants to avoid “branding” them with a criminal record early in life.
Note: Eligibility is entirely at the discretion of the prosecutor. You cannot “demand” a DPA; you must negotiate for it.
What happens if I violate the DPA?
If you break the rules (e.g., you fail a drug test or get arrested again), the prosecutor can “resume” the prosecution. Because most DPAs require you to sign a statement of facts admitting to the conduct, the government can use your own signed confession to convict you very easily if the deal falls through.
Will a DPA show up on a background check?
Yes and no. While the case is active, a background check will show “Pending Charges.” Once you successfully complete the DPA and the charges are dismissed, it will show as “Dismissed.” However, the arrest record may still exist unless you take the extra step to have the record expunged or sealed.
Does a DPA mean I’m admitting I’m guilty?
Legally, it is not a “judgment of guilt.” However, most DPAs require the defendant to admit to a “Statement of Facts” detailing what happened. While this isn’t a formal conviction, it is a recorded admission of the underlying behavior.
