PA 07 · Practice area
Internal investigations
For boards, audit committees and general counsel: an independent look at what happened, done under privilege, with an eye on what the government will ask next.
When a hotline complaint, an auditor's question or a government subpoena raises a serious concern, a company needs facts it can rely on. We conduct internal investigations for boards, audit committees and general counsel, report findings plainly, and advise on remediation and whether to self-report.
Usually for
Boards, audit and special committees, general counsel and compliance leaders of private companies and nonprofits.
You are reading: Is this you?
Is this you?
It may be time to call if…
- A hotline or whistleblower complaint alleges fraud, bribery or false records.
- Your auditors have raised a question they want answered before signing off.
- The company received a grand jury subpoena or a regulator's inquiry.
- Allegations involve senior management, so the usual reporting line is conflicted.
Where this sits in a federal case
Where this work usually happens.
Marked on the rail: investigation and grand jury. Select any stage to read what it means in our plain-language guide.
What we do
Five things, in roughly this order.
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1
Scope it with the right people
We agree the questions, the reporting line and the budget with the board or committee, and confirm our independence from those involved.
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2
Preserve and collect
A legal hold goes out the first day, and data is collected forensically so it holds up if the government later asks for it.
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3
Interview carefully
Each interview starts by explaining that we represent the company, not the employee, and that the company may choose to share what is said.
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4
Report plainly
Findings are delivered orally or in writing as the committee decides, with the evidence for each conclusion and the gaps we could not close.
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5
Fix and decide
We recommend controls and discipline, and advise the board on whether, when and how to bring findings to the government.
This week
What to do, and what to leave alone.
Do
- Issue a document hold before anything else.
- Keep the investigation's reporting line away from anyone involved.
- Protect the person who raised the concern from any retaliation.
Avoid
- Letting management investigate itself.
- Promising employees their interviews will stay confidential.
- Making public statements before the facts are known.
General information, not legal advice for your situation. Speak with a lawyer before acting.
An audit committee asks about a vendor-payment complaint
Modest result
- Situation
- An anonymous hotline report alleged a manager was steering payments to a related vendor.
- What we did
- Over ten weeks we collected email and payment data, interviewed 14 employees and traced the payments.
- How it ended
- We found control failures but no intentional fraud. The committee adopted new approval rules, and no government inquiry followed.
An illustration with details changed and no names, courts or cases. Every matter turns on its own facts; past results do not guarantee any outcome. See all example matters, including ones that went against us.
Questions
What people ask us first.
Should our regular outside counsel run the investigation?
Sometimes. If the concern involves senior management, or the regular firm advised on the transactions in question, independent counsel usually gives the board more credible findings.
Will employee interviews stay confidential?
The interviews are privileged, but the privilege belongs to the company, which may decide to share findings with the government. Employees are told this at the start.
Does the company have to report what we find?
Not always. Whether to self-report is a judgment that weighs legal duties, likely government interest and the benefits that some agencies give for voluntary disclosure.
Confidential consultation
Talk to us about internal investigations.
A short, confidential call is often enough to learn where you stand and what to leave alone this week. Do not send details through the form; we will cover them by phone.
Please do not send case details through any website form or by email. We cover them by phone or in person, under privilege.
Consultation line: 7 days, 7:00 a.m. to 10:00 p.m. If a search or an arrest is happening now, call at any hour.