Question 1

Signs that company leaders should conduct an internal corporate investigation include:

Accepted Answer

Accounting irregularities in the company’s financial statements Supplies, equipment, or other company property going missing Misuse of corporate credit cards or company bank accounts Unauthorized access or use of private data, including personal and financial information of employees, clients, customers, vendors, or others Unusual employee behavior or unexpected employee departures Employees voicing concerns about suspected misconduct No company leader wants to uncover criminal activities within their workforce, but identifying issues proactively is far better than being accused of willfully ignoring and enabling fraud or misconduct. The sooner you take action, the better a position you are in to protect yourself, fellow company leaders, and the organization as a whole from the harshest consequences that can be imposed in matters of white-collar crime.

Question 2

When does an employee’s fraud implicate their employer?

Accepted Answer

Just because someone happens to work for your company doesn’t mean that you’re responsible for their personal conduct at all times. However, your company may be implicated in their misconduct in several different circumstances, including:

Fraud perpetrated while performing their job duties or in the scope of their work
The use of company resources, including IT systems, emails, accounts, or letterhead, to conduct or further fraudulent activities
Complicity in the misconduct by executives or managers, including covering up the worker’s actions or knowing about employee fraud but failing to address it
Benefits to the employer, which can include direct or indirect corporate gain, such as payments obtained through fraudulent billing or reduced tax payments that constitute tax evasion
Failure of the employer to maintain controls or provide adequate supervision, such as neglecting to perform internal audits or apply reasonable fraud detection mechanisms for their industry
Strict liability enforced in highly regulated industries, including the financial industry, the healthcare industry, and government contracting

The more systemic the issues that contributed to the misconduct and the broader the employee involvement in fraud, the more likely it is that regulators, courts, and the public will see the issue as a company-wide scandal rather than the crime of a rogue employee. For that reason, addressing suspected fraud early and appropriately is important for protecting your company.

Question 3

What steps should companies take after an internal investigation reveals fraud or misconduct?

Accepted Answer

A thorough investigation is only the first step in addressing misconduct within your corporation. If fraud, financial irregularities, or other signs of misconduct are brought to light through this internal investigation, you need to be prepared to take immediate action by putting a stop to any further misconduct and preserving evidence of the unlawful activities.

Internally, your company needs to take appropriate disciplinary actions, which could include terminating employees and potentially removing executives who contributed to the misconduct. You should put into place all necessary internal remediation measures, such as revising any policies that contributed to the misconduct, requiring training programs for employees, and introducing stronger systems for financial oversight, IT security, and auditing practices.

In misconduct that constitutes criminal activity or regulatory noncompliance, you need to report the fraud or wrongful conduct to external agencies, including law enforcement and regulators. Voluntary self-reporting of wrongdoing within your organization can result in your company receiving more leniency in legal and regulatory matters.

How you communicate about the misconduct uncovered through internal corporate investigations, both internally and externally, matters. To avoid speculation and public scandals, you need to approach these communications with both strategy and a reasonable degree of transparency.

You don’t have to manage the aftermath of fraud detection on your own. With knowledgeable counsel guiding you through the process, you’re prepared to face these legal challenges with confidence.

Question 4

Do you need a lawyer to conduct an internal corporate investigation?

Accepted Answer

When you begin seeking help for an internal investigation, an attorney may not be the type of professional who first comes to mind. Instead, you might initially think of hiring an auditor or forensic accounting firm, a digital forensics specialist, or even a consulting firm. However, given the serious legal implications of potential fraud or misconduct, it’s critical to incorporate into this process a strategic approach that protects your interests.

Because I defend clients accused of white-collar crimes, I understand the procedures and best practices necessary to conduct a detailed investigation and identify fraud. I can provide tailored advice based on the findings of this investigation to help you manage civil and criminal liability, regulatory noncompliance issues, and crisis communications.

Having a lawyer on your side who handles both criminal defense work and matters of civil litigation can help you undertake an investigation with a focus on not only unearthing misconduct but also on protecting your rights.

Miami Internal Investigations Lawyer

Corporate Compliance Attorney in Miami, FL, Conducting Internal Investigations and Implementing Practical Compliance Programs for Clients in South Florida and Nationwide

How an Investigation by a Corporate Compliance Attorney in Miami, FL, Can Protect Your Company

How Criminal Misconduct Impacts Corporations

The Difference That Proactive Internal Investigations Can Make

Professional Guidance for Internal Corporate Investigations in South Florida and Beyond

How Forge Litigation Group Can Help

Why Choose Forge Litigation Group as Your Miami Internal Investigations Lawyer?

Extensive Experience That Informs My Investigative Approach

Swift Action to Support Your Company Through a Turbulent Time

Help Preserving Your Company’s Image Through Crisis Management

Contact a Miami Internal Investigations Lawyer at Forge Litigation Group Today for a consultation

Frequently Asked Questions About Internal Investigations for Corporations and Executives

Q. Signs that company leaders should conduct an internal corporate investigation include:

Q. When does an employee’s fraud implicate their employer?

Q. What steps should companies take after an internal investigation reveals fraud or misconduct?

Q. Do you need a lawyer to conduct an internal corporate investigation?