Internal Investigations

In the current business climate, when a company becomes aware of an allegation of misconduct by one of its employees, a responsible inquiry is the only realistic option. Indeed, as to public companies, the Sarbanes-Oxley certifications represent to the investing public that effective internal controls are in place and functioning as intended, and furthermore, that the company’s operations are free of known fraud.  Therefore, a company that intentionally declines to conduct an appropriately-calibrated inquiry when circumstances suggest improper business practices have occurred – regardless of whether they were tolerated, is to invite even worse consequences. For this reason, engaging a seasoned former (federal) prosecutor to conduct a meaningful Internal Investigation is essentially the industry standard response.  This concrete step unmistakably tells law enforcement representative that the corporation will not tolerate such misconduct and is serious about demanding ethical conduct from its employees and representatives. 

The need for an Internal Investigation may be particularly compelling when, for example, there is an allegation of bribery or corruption involving the company’s international operations and a “foreign official.”  These types of fact patterns will be pursued by the SEC, and/or the Department of Justice as potential violations of the Foreign Corrupt Practices Act (FCPA) for which sanctions are appropriate and, depending on certain factors, criminal prosecution can occur.  Few events in a corporation’s existence can be so debilitating to an otherwise profitable entity as the time and attention to respond to FCPA concerns raised by the federal government. 

For all such circumstances, the immediate retention of outside counsel to direct the company’s response, to include, assembling and preserving relevant documents, interviewing knowledgeable personnel, and coordination of other details with other company personnel or outside consultants, are related and important tasks.

Contact: K. Lawson Pedigo
214.696.2050
214.234.0440 (direct)
214.696.2482 (fax)
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