Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Department of Justice Calling for Rule Change to Pursue Foreign Businesses
Author: Scarinci Hollenbeck, LLC
Date: April 24, 2013
Key Contacts
Back
The federal government has recently stepped up its efforts to pursue legal action against foreign businesses that have broken U.S. laws. After a series of legal setbacks, the Department of Justice (DOJ) is looking to amend the Federal Rules of Criminal Procedure.
Companies and individuals may be held liable to breaking U.S. criminal laws without ever stepping foot in this country. However, the Federal Rules of Criminal Procedure require the government to serve an organizational defendant by delivering a summons to a representative of the entity as well as mailing the summons to the defendant’s last-known domestic address or principal place of business. Problems arise when a foreign company does not maintain either an office or mailing address in the United States.
Most recently, the rules threatened an economic espionage case against four Chinese corporations accused of purchasing DuPont trade secrets. A similar issue arose in the criminal copyright infringement case against Megaupload and its founder, Kim Dotcom.
Accordingly, the DOJ has recommended that Rule 4 be amended to remove the requirement that a copy of the summons be sent to the organization’s last known mailing address within the district or principal place of business within the United States. The agency has also requested that Rule 4 be amended to provide the means to serve a summons upon an organization located outside the United States.
As explained by the DOJ, “The proposed amendments are necessary to ensure that organizations that commit domestic offenses are not able to avoid liability through the simple expedients of declining to maintain an agent, place of business and mailing address within the United States.”
Prosecutors maintain that it would be absurd to let foreign companies evade the U.S. justice system by simply failing to open a post office box. However, the remedy that they are requesting—amending the rules of criminal procedure—is also a tall order.
If you have any questions about the DOJ’s proposal or how it may impact your operations, please contact me, Jay Surgent, or the Scarinci Hollenbeck attorney with whom you work.
- Practices: Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.