Commonwealth v. Beneficial Finance Co. case brief

 

Commonwealth v. Beneficial Finance Co. Individual and corporate defendants were convicted of bribing, and conspiring to bribe, state banking officials in order to obtain favorable treatment for the state Small Loans Regulatory Board. Corporation argues that a corporation should not be held criminally liable for the conduct of its servants or agents unless such conduct was performed, authorized, ratified, adopted or tolerated by the corporations’ directors, officers or other “high managerial agents.” [Defendant wants MPC § 2.07 standard]

• Who is a “high Managerial Agent: Having a title is not enough . . . must prove that the individual was placed in a position by the corporation where he had enough power, duty, responsibility and authority to act for and in behalf of the corporation to handle the particular business.
• HELD: The quantum of proof necessary to sustain the conviction of a corporation for the acts of its agents is sufficiently met if it is shown that the corporation has placed the agent in a position where he has enough authority and responsibility to act for and in behalf of the corporation in handling the particular corporate business, operation or project in which he was engaged at the time he committed a criminal act.