Haynes and Boone's Newsroom
Responding to Allegations of Improper Corporate Conduct
10/31/2005
Bill Morrison, Mike Warnecke
As long as headlines of federal investigations continue to appear in newspapers across the country, corporate counselors have no choice but to understand the practical and ethical issues associated with investigating and responding to allegations of internal corporate fraud. Gone are the days when common sense and a cordial relationship with government prosecutors could guide a company through the treacherous waters of potential criminal liability. The game has changed. This article discusses two issues critical to any response to allegations of corporate wrongdoing: (1) structuring the internal corporate investigation in a manner that effectively responds to the allegations at issue without subjecting counsel to ethical problems that may appear along the way, and (2) dealing with the government once it launches an investigation into your corporate client, including the client’s obligation to protect relevant documents.