Justice Department, SEC Investigations Often Rely On Companies' Internal Probes

May 24, 2011

May 24, 2011 (Mountain View, CA) - Susan Muck, partner in the Securities Litigation Group of Fenwick & West, was quoted in the Washington Post article "Justice Department, SEC Investigations Often Rely On Companies' Internal Probes."

With government investigations of companies suspected of foreign corruption and accounting fraud on the rise, the SEC and Department of Justice are increasingly relying on internal measures within corporations to offset the costs of these expensive probes.

Occasionally at the request of the government, corporations hire attorneys and accountants to conduct employee interviews and collect electronic records and documents that are then turned over to the government for review. This process saves the government money and gives corporations control over the evidence the government receives.

"If the SEC does bring charges, it will oftentimes be based on the work the company did itself," said Susan Muck, a lawyer at Fenwick & West who specializes in internal FCPA investigations. In many instances, the SEC decides not to bring charges after their review, she added.

Ms. Muck also stated that lawyers conducting internal investigations have a good reason not to withhold smoking-gun evidence, as they cannot be sure the government wouldn't obtain that information elsewhere.

Click here to read the full Washington Post article.