Earlier this month, Manhattan District Attorney Cyrus Vance, Jr., announced three new policies to further streamline the criminal justice system and reduce the backlog of cases in New York County’s Criminal Courts. As of February 1, 2018, the Manhattan DA’s Office began declining to prosecute, with certain exceptions, all New York City subway farebeat (“turnstile jump”) and unlicensed general vendor cases. That same date, the Manhattan DA’s office instituted a sweeping desk appearance ticket policy in which first-arrestees who are issued tickets for low-level, non-violent misdemeanor charges are given the option of attending a two to four-hour “pre-arraignment diversion program” in lieu of being formally prosecuted in a court of law. Upon proof of program completion, the Manhattan DA’s Office promises to then decline to prosecute entirely – meaning, no formal charges will be brought. Only those who opt out of the program (or otherwise fail to complete it) will be directed to appear in court to face prosecution. Simply put – first arrestees for low-level offenses will now have the option of going to class instead of court.
While this new policy would appear to be a noble effort on the part of the Manhattan District Attorney to benefit all, this new first-arrest policy will have an unintended but disastrous effect on arrestees who (a) work for FDIC-insured banks or intend to do so in the future, and (b) are charged with petit larceny (or any theft-related offense). Whereas our lawyers normally strive to secure adjournments in contemplation of dismissal (“ACD”) for first-arrestee clients charged with low-level theft-related offenses, these delayed dismissals can have a disastrous effect on current or prospective employees of FDIC-insured institutions.
As we have explained carefully in a previous blog, Section 19 of the Federal Deposit Insurance Act prohibits, without the prior written consent of the Federal Deposit Insurance Corporation, a person convicted of a criminal offense involving dishonesty, breach of trust, money laundering,