Investigations of public companies by government agencies have become more aggressive and are employing new tactics and techniqes. With recent market events and increased financial regulatory activity, funds and other financial firms are not immune from this renewed scrutiny. K&L Gates has published a short memorandum alerting clients and others of some of the techniqes regulators and investigators are using. Directors and executives should be aware of these tactics, but not fear them.
If executives are prepared for this type of encounter, they are less likely to acquiesce to the government’s demands because of uncertainty and the pressure exerted by the government agents. The decisions that executives must make under these difficult and trying circumstances can have profound effects on their own liberty and the company’s viability.
This brief memo acts as a "heads up" about how vital is is to be aware of new techniques that may be employed should your fund or firm become the subject of a governmental investigation or regulatory action.
The full text of the memorandum is available at: http://www.klgates.com/companies-need-to-prepare-for-aggressive-governmental-investigative-tactics-08-11-2010/