Recommendation

1. Create comprehensive policies that will keep the business and the team members free from the prying eyes of government investigators.
2. Keep accurate records and keep backup materials in cloud-based systems so they are always protected.
3. Create a well-documented process map to show the reasons behind every decision in the business.
4. Train the team members relentlessly.
5. Hire third-party auditors with appropriate levels of expertise to review corporate processes.

Some of the fallout from a government investigation includes reputational damage. Local and potentially national media will offer salacious details, fed by investigators. Internet searches may place a government’s press release at the top of a search result. Such reputational damage can lead to enormous complications for a business, and for the individuals identified in the media report. Blogs and posting boards may follow, leading to further stress.

A government investigation will likely lead to the loss of clients, business associates, and abandonment from friends. To avoid being tainted by the investigation, people will scatter and sever ties.

Our team has numerous examples that show how government investigators will taint unrelated parties. We know of a medical office that terminated a woman’s employment because authorities brought an indictment against her husband; investigators did not allege that she had anything to do with the crime. Investigators will use every tool in their arsenal to pressure people to cooperate with an investigation. As a result of their Grand Inquisitor tactics, collateral damage will follow. 

Much like business owners crave favorable press for the services they provide, investigators welcome the shock and awe of a well-publicized investigation. For this reason, they frequently favor:

1. the pre-dawn raid at a target’s home, with dozens of agents sporting massive firepower, and
2. the blitzkrieg arrest at a corporate headquarters, where scores of agents will come in with windbreakers emblazoned with branding of the government agency.

Investigators do not reserve such tactics for big-time drug dealers, Wall Street titans, or political stars. They use such aggressive tactics routinely, for strategic reasons. Investigators want targets to act irrationally. They want people to protest innocence, or to lie.

Although the target may be new to the proceeding, the investigator knows and understands that with a show of force, some people will lie to the investigators. When those people lie to a law-enforcement officer, they commit a federal criminal offense, under Title 18 of the United States Code, Section 1001. Investigators will use those lies as leverage, threatening imprisonment and other problems, to induce further cooperation.

The more people know, the better people can prepare. Our team at Compliance Mitigation will help you.