Examples include those relating to suspected fraud or theft perpetrated directly against the business, clients, or third parties; regulatory breaches such as insider trading; or failure to abide by internal rules and policies. Here are some general tips for those caught up in such as investigation:
Don't take it personally
If you are innocent, being investigated for fraud can feel like an insult. Remember that the nature of financial fraud and the sophistication of perpetrators in covering their tracks mean that it is not unusual for there to be a large pool of potential suspects. Moreover, businesses carrying out internal investigations may deliberately include a large number of employees in order to avoid accusations of discrimination or harassment by individuals.
Don't panic
Workplace fraud and white-collar crime suspects often make grave errors when panicking in the period just after learning about an official investigation. These include asking friends and colleagues to hide the truth, and altering or destroying documents. If such acts come to light this could encourage the authorities to pursue further investigations or prosecute you, and they might constitute crimes in their own right.
Don't assume you are in the clear because you have done nothing "wrong"
The law on financial crimes like insider trading, anti-corruption and market manipulation can be highly technical. It is possible to breach these laws without doing anything that you would consider to be morally wrong. Of course this, and not realising that what you did was illegal, is not normally a defence.
Consult a solicitor as soon as possible
Fraud and financial crime is a highly complex area. While you can find information from a number of sources, you can only rely on a solicitor to give accurate advice on your position from a legal perspective. What's more, from a strategic and tactical point of view, a solicitor with relevant experience will be able to bring this to bear when advising you how to deal with investigators and what to disclose. This could have a huge impact on the results of the investigation and any process that occurs subsequently.
Choose a solicitor carefully
Using a solicitor with the appropriate specialisation and experience is always important and this is especially so with fraud matters given the level of complexity involved. This is not just because of the legal knowledge that the solicitor has, but also because of their experience of workplace fraud investigations which can be just as important. Some solicitors will have a brief chat to you over the phone for free or a relatively cheap initial consultation, so take advantage of this to shop around until you find a solicitor you feel comfortable with.
There is no doubt that being caught up in a fraud investigation is a frightening and stressful experience. The key to maximising the chances of a favourable outcome is to stay calm and get legal advice at the earliest opportunity.
Dominic Higgins graduated from University College London in 2005 with a degree in law. In the past Dominic has worked as a legal adviser in the South Africa and the UK; he currently works for Contact Law. If you'd like to more on finance laws, or any other area of law, then please visit Contact Law to find out how we can help you today.
