Ex-Prosecutor Dishes Up Advice to GCs on Government Probes

• Posted by Geoffrey G. Gussis on December 12th, 2007


• Filed in Risk Management & Compliance

Roscoe C. Howard Jr., a Washington-based partner with Troutman Sanders and former federal prosecutor, gave a presentation recently that focused on government probes - a topic of interest to many GCs as they look ahead to 2008.  Here are a few of the tips he provided:

1. Look closely at compliance. “They will give you a break if you have an effective compliance program. But it has to be effective. Enron had a compliance program. Arthur Andersen had a compliance program. You’ve got to have one that works. … They are looking for what you are doing to keep your house in order.”2. Divide the duties. “For larger companies, try not to have the compliance officer be your in-house counsel. If you ask me about my kids, I’m going to tell you they are beautiful and they are great people, but I’m invested in them… If your in-house counsel is also your compliance officer, he may say, ‘Hell yeah, it’s legal. I’ve looked at it.’ You want somebody who isn’t invested.”

3. Watch the tone at the top. “People at the top of an organization tell what’s important. What are you telling people about what’s important? Make sure your employees are prepared.”

4. Know the rules before you need to know them, including the U.S. Department of Justice policies. [He included copies of the Thompson memo and the McNulty memo in the handout book. Written by former deputy attorney general Larry Thompson and his successor, Paul J. McNulty, these memos explain the government’s practice and principles in business prosecutions.] “Nobody calls and tells you they are coming,” Howard said. “If you’re trying to get your act together during the investigation, it is too late. They want to catch you off guard.”

Interested in more tips? Head over to Ex-Prosecutor Dishes Up Advice to GCs on Government Probes for the rest of the article.