Tips For Conducting Internal Fraud Investigations

“It’s a moment every general counsel dreads,” writes Katherine A. Lemire, president of investigations and risk management at Lemire LLC.  “Out of the blue, an employee walks into your office, closes the door, and drops the ‘F’ word. Fraud.” Decisions made from that point on, starting at the beginning of the investigation, can either enhance the possibility of a swift and successful resolution or pave the way for a costly and drawn out legal battle that could paralyze the company. Among the tips for avoiding critical mistakes: Think carefully about when you want to hand the matter over to law enforcement, because once you do you it’s out of your control, and get the general counsel in charge early. That shouldn’t be difficult, the writer says, because virtually everyone from the CEO to mid-level managers is probably going to want to get the matter off their plate.