Corporate investigations are getting riskier and more difficult, experts say | Financial Regulatory Forum

Corporate investigations are getting riskier and more difficult, experts say | Financial Regulatory Forum:

'via Blog this'The SEC focuses mostly on books-and-records, internal controls and false-certification violations, some of which can also be treated as criminal violations by the Justice Department. Most cases that reach the enforcement stage are resolved by DPAs and NPAs, the panelists said.

Remediating harm, voluntarily disclosing the misconduct, cooperating in the investigation and improving the entity’s compliance program can significantly reduce the sanctions. A disclosure may not be voluntary if the entity has a legal obligation to do so, and cooperation includes providing evidence against agents, contractors and employees, whatever their level in the hierarchy, the panelists said.

A global body, the Organization for Economic Cooperation and Development, reported that 150 cases were under U.S. investigation in 2010, mostly in pharmaceuticals, medical devices, and oil and gas. The SEC is focused on financial services firms’ deals with sovereign wealth funds and with entertainment deals in China, the panelists said.