Assistant AG Urges Supply Chain Due Care

Corporations need be careful and exercise due care when establishing their supply chains, said Assistant Attorney General Todd Kim while speaking Dec. 14 at the American Bar Association's National Environmental Enforcement Conference's Section on Environment, Energy and Resources. Kim discussed the DOJ's enforcement approach and mentioned the Lacey Act as an example. "If a corporate supply chain originates from a criminally-tainted source, then my division will consider the criminal responsibility of all parts of that supply chain," Kim said. "A corporation seeking credit for cooperation will need to identify all individuals involved in misconduct, including individuals outside the company in a supply chain. ... A corporation would be well advised to protect itself and its investments by exercising due care over its supply chain in light of the prospect of criminal sanction; the potential seizure and forfeiture of illegally-sourced timber, goods, vessels and other equipment; and the unavailability of an innocent owner defense."