Extra CH 18,19,20,24 Flashcards
(24 cards)
Importance of Documenting an investigation
Ch 18
Can lead to disappointing conclusion and damage to investigators reputation
Determine whether a formal comprehensive report is expected and the form and timing
Conduct investigation as if later you will be asked to create a report
Types of Reports
Ch 18
Written:
- Report of investigation
- Expert report filed in a civil litigatiion
- Affadavits (given under penalty of perjury)
- Informat reports
Oral Reports
- report to board, committe, or management
- Report to Counsel or other professional
- Depositions
- Testimony
- Infomal reports
Importance of Adequate Preparation
All reports deserve adequate prep time and presentation - regardless of informal or formal
Can;t control distribution when document leaves your hands - must treated official
Important consideration for report on Investigation
- Client
- Parties in litigation
- Objective of Investifation
- Scope
- Restriction of use
- Prf standard
- Exclusion
- Noall all fraud may have been detected
- Exec summary
- Detailed Findings
Written Report of Expert Witness
Take direction from client counsel preparing a written report that meets all reqs
Usually investigatornot expert testimony, rather testify as a fact witness
What are informal Reports?
Memos to file: standard approach to the documentation of important events and understandings at point of time in work papers
Presentations providing updates to counsel: attributes of written and oral reports
Professional care should be taken to ensure that all communications are accurate and comply with the relevant reporting standards
Giving a deposition
Testimony in the presence of a court reporter - take seriously
- form of discovery
Be prepared
Other side is measuring you - be confident
Review deposition Transcript: can redact statements as they can be used against you later
Mistakes to Avoid in Reporting
- Avoid Overstatement
- Avoid opinion - unless engaged as an expert
- Simple straightforward language focus on fact
- Listen carefully to the question and only answer questions asked
Working Papers
Signed Engagement Letter - only begin engagement after signed
Adress the scope of services, timing of the work, deliverable, fee structure jurisdiction, and limit of liability (unlike audits)
Review Relationship of Engagement
Ensure no conflict of interest with the relationship with another client
- date on review of relationship
- individual who cleared it
- Pertinent discussion in clearing current and prior relationship
- Date on which assignment was accepted
Each Working paper should stand on its own
Secured to only members of immediate engagement access to working paper
can be typed and do not need to be formal
Facotrs facoring referral to law enforcement vs disfavoring
Favoring referral
- Deterrent effect
- Leniency in corp punishment
Disfavoring:
- Expense of support
- Potential outcomes do not sufficiently punish or deter
- Public attention
What to consider when referral consideration?
- Timing
- State local, or fed prosecuters
- Priotization of cases by prosecuter
- Investigative support may increase the success of a refferal
- Reputational Benefits
What are plea agreements when are they used?
- Defense attorney attempt to minimize clients jail time
- Means case was too strong and trial more risky
- Prosecuters have a limited time and resources may determine prosection is risky
Filing a Civil Lawsuit
Advantageous for comp to pursue a civil suit, when substantial financial recovery is possible
Ability to take discovery and obtain info the company would not received voluntarily
Working with attorneys
Foreinsic investigator often works with counsel
When fraud is supected who is contacted
Inhouse councel
Confidentiality requirements
Investigations - confidentiality is important to prevent damaging leaks
Forming the Investigative Team
Includes:
- Indep counsel
- Forensic Investigators
- Forensic technology experts
who investigators take direction from: counsel
- work at counseld direction
- immediately assess independence
- identify roles immediately
When is investigators work protected fromsubpoena
When investigator is directly employed by attorney bc considered an extension of attorney
- unless waiver of privilege
What should forensic investigator should avoid:
- providing legal advice or making legal assetions
- providing actuarila or valuation guidance
- Acting as a judge or jury by making judgements
- expressiong audit opinon on FS
- Creating legal exposure as result of comments leading to defamation or slander
Documentation
- Approp Docummentation practices are critical
- Counsel often assumes primary responsibility for document management
- Investigator should prepare and retain documentation to support reports or deliverable
- When presented to 3rd paties, duplicate copies esential
Civil litigation
Ongoing and investigative team can use discovery process to again acces to various types of personal info from the charged individual - not typical in investigations
Ponzi Scheme Red flags
- Unknown or unregulated manager: no good referrals, minimal experience, or questionable background
- Control of funds: manager wants check made to themselves or a company they control
- Guaranteed high return: Promises of consitent high performance with little to no risk
- Vague investment strategy: Unclea, overly compex, secrative about the investment of money
- Lack of credible audits: use of small or non indep audit firms
- Centralized Control: Firm or investment controlled by a single indiv or tightly help group
- Lavish Lifestyle: Manger shows off wealth (car, homes, clothes) funded by investor money
- Excuses for not return funds: delays or refusal when investors ask for their money back
- No Investment Statements: Lack or regular of rformal documentation of performance or holdings
- Too good to be True: Return high and consisten despite of market condition
