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Can You? Should You? Must You?
As general counsel of a small public company, you discover that, for 2 years, a department head approved sending false invoices to customers, resulting in profits of at least $2 million. Although it stopped a year ago and is well concealed, the practice was intentional, and a half-dozen current employees were involved. You fear that the false invoices constitute at least mail and wire fraud. Moreover, if the victims find out, they might sue. What do you do?
Getting a Handle on the Problem
After discovering illegal conduct by company employees, in-house counsel must ensure that the conduct has stopped, and that he or she understands its nature and scope. An adequate internal investigation is required.
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