It can be a difficult truth to accept, but sometimes, no matter how careful you may have been and how hard you may have worked, certain failures in your compliance program are simply unavoidable. When such failures occur, it then becomes necessary to conduct a thorough investigation into the source of the failure, seeking answers as to who, how, and why this breach transpired, to help penalize wrong doers as well as find a means of preventing such incidents in the future. Entering in to any investigation of fraudulent activity is never a simple matter. However, by taking one step at a time, from verifying the credibility of the claims being made to conducting interviews and collecting evidence, the whole, unpleasant ordeal can be carried out in a quick and efficient manner, and the situation put behind you as soon as possible.
To begin with, once any claim of fraudulent activity has been brought to your attention, in-house legal counsel should be notified right away in order to help advise and mediate through the preliminary steps of the investigation, with external counsel being called in as soon as any evidence is found to verify the truth of a claim. Calling upon external counsel in an investigation has the benefit of bringing in a new source of broad, alternative experience to the issue, as well as offering the invaluable benefit that is attorney-client privilege. In such a sensitive issue as a fraudulent activity investigation, no matter who the guilty party may be, it is utterly important to keep as much information as possible internalized and out of the public spotlight.
One of the primary decisions you will need to make from the outset of your investigation, is whether or not you want to take a more hands on approach by having the investigation conducted internally by well-trained and knowledgeable employees, or whether you would prefer to hire out to external investigators to assist in your case. As both routes come with their own pros and cons, the decision is entirely up to you to determine which method will best suited to meet the needs of your organization.
On the one hand, using your own employees to conduct an investigation can save both time and money, as well as the fact that your employees will have a better understanding of the organization and how it works. Despite these benefits however, many companies find it to their advantage to bring on external investigators. Cost aside, external investigators bring a wealth of experience and knowledge to your case, as well as having the added ability of take a step back from the matter and shed light on the situation in a way that you may be too close to see. Also, should special issues arise in the case, or should specific skills be required to conduct a more comprehensive investigation – e.g. digital forensics, linguistics analysis, knowledge of accounting, or understanding of foreign policies and jurisdictions – it may still become necessary to hire more extensive external help.
In part two of this article, we will look at the finer points of handling external consultants when it comes to conducting your investigation.
Published by Conselium Executive Search, the global leader in compliance search.
