gir - dla piper › ~ › media › files › insights › ...amanda raad, sean seelinger, jaime...

The Practitioner’s Guide to Global InvestigationsVolume I: Global Investigations in the United Kingdom and the United StatesFourth Edition

EditorsJudith Seddon, Eleanor Davison, Christopher J Morvillo, Michael Bowes QC, Luke Tolaini, Ama A Adams, Tara McGrath

The Practitioner’s G

uide to Global Investigations

Volume I: G

lobal Investigations in the United K

ingdom and the U

nited StatesFourth Edition

2020

2020

GIR

GIR

Global Investigations ReviewThe law and practice of international investigations

Global Investigations ReviewThe law and practice of international investigationsGIR Global Investigations ReviewThe law and practice of international investigations

© Law Business Research 2020

The Practitioner’s Guide to Global Investigations

Fourth Edition

EditorsJudith Seddon

Eleanor Davison

Christopher J Morvillo

Michael Bowes QC

Luke Tolaini

Ama A Adams

Tara McGrath


Published in the United Kingdomby Law Business Research Ltd, LondonMeridian House, 34-35 Farringdon Street, London, EC4A 4HL, UK© 2019 Law Business Research Ltdwww.globalinvestigationsreview.com

No photocopying: copyright licences do not apply.

The information provided in this publication is general and may not apply in a specific situation, nor does it necessarily represent the views of authors’ firms or their clients. Legal advice should always be sought before taking any legal action based on the information provided. The publishers accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of November 2019, be advised that this is a developing area.

Enquiries concerning reproduction should be sent to: [email protected] Enquiries concerning editorial content should be directed to the Publisher: [email protected]

ISBN 978-1-83862-228-2

Printed in Great Britain byEncompass Print Solutions, DerbyshireTel: 0844 2480 112


Dedicated to the memory of Rod Fletcher, one of the United Kingdom’s most highly respected white-collar crime lawyers and a

cherished friend.


i

ADDLESHAW GODDARD LLP

ALLEN & OVERY LLP

ANAGNOSTOPOULOS

ASSOCIATION OF CORPORATE INVESTIGATORS

BAKER MCKENZIE LLP

BCL SOLICITORS LLP

BDO USA, LLP

BOFILL MIR & ALVAREZ JANA

BORDEN LADNER GERVAIS LLP

BROWN RUDNICK LLP

BRUNSWICK GROUP LLP

CADWALADER, WICKERSHAM & TAFT LLP

CLIFFORD CHANCE

CLOTH FAIR CHAMBERS

CMS CAMERON MCKENNA NABARRO OLSWANG LLP SCP

CONOR REARDON ESQ

CORKER BINNING

CRAVATH, SWAINE & MOORE LLP

DEBEVOISE & PLIMPTON LLP

DECHERT LLP

DLA PIPER LLP

FORNARI E ASSOCIATI

FOUNTAIN COURT CHAMBERS

FOX WILLIAMS LLP

FRESHFIELDS BRUCKHAUS DERINGER

Acknowledgements


ii

GLEISS LUTZ

GOODWIN

GÜN + PARTNERS

HERBERT SMITH FREEHILLS LLP

HOMBURGER

JAMES P LOONAM ESQ

JENNER & BLOCK LLP

KINGSLEY NAPLEY LLP

KNOETZL

LATHAM & WATKINS

LAW OFFICES OF PANAG AND BABU

LINKLATERS LLP

MARVAL O’FARRELL & MAIRAL

MATHESON

MATRIX CHAMBERS

MILLER & CHEVALIER CHARTERED

NAVACELLE

OUTER TEMPLE CHAMBERS

PHILIPPI PRIETOCARRIZOSA FERRERO DU & URÍA – PPU

PINSENT MASONS LLP

RAJAH & TANN SINGAPORE LLP

REBAZA, ALCÁZAR & DE LAS CASAS

REED SMITH LLP

ROPES & GRAY LLP

RUSSELL MCVEAGH

SKADDEN, ARPS, SLATE, MEAGHER & FLOM (UK) LLP

SLAUGHTER AND MAY

SOFUNDE OSAKWE OGUNDIPE & BELGORE

SULLIVAN & CROMWELL LLP

TRENCH ROSSI WATANABE

VON WOBESER Y SIERRA, SC

WALDEN MACHT & HARAN LLP


iii

Publisher’s Note

The Practitioner’s Guide to Global Investigations is published by Global Investigations Review (www.globalinvestigationsreview.com) – a news and analysis service for lawyers and related professionals who specialise in cross-border white-collar crime.

The Guide was suggested by the editors to fill a gap in the literature – namely, how does one conduct such an investigation, and what should one have in mind at various times?

It is published annually as a two-volume work and is also available online, as an e-book and in PDF format.

The volumesThis Guide is in two volumes.

Volume I takes the reader through the issues and risks faced at every stage in the life cycle of a serious corporate investigation, from the discovery of a potential problem through its exploration (either by the company itself, a law firm or government officials) all the way to final resolution – be that in a regulatory proceeding, a criminal hearing, civil litigation, an employment tribunal, a trial in the court of public opinion, or, just occasionally, inside the company’s own four walls. As such it uses the position in the two most active jurisdictions for investigations of corporate misfeasance – the United States and the United Kingdom – to illustrate the approach and thought processes of those who are at the cutting edge of this work, on the basis that others can learn much from their approach, and there is a read-across to the position elsewhere.

Volume I is then complemented by Volume II’s granular look at the detail of various jurisdictions, highlighting, among other things, where they vary from the norm.

OnlineThe Guide is available at www.globalinvestigationsreview.com. Containing the most up-to-date versions of the chapters in Volume I of the Guide, the website also allows visitors to quickly compare answers to questions in Volume II across all the jurisdictions covered.

The publisher would like to thank the editors for their exceptional energy, vision and intellectual rigour in devising and maintaining this work. Together we welcome any comments or suggestions from readers on how to improve it. Please write to us at:[email protected].


v

The history of the global investigationOver the past decade, the number and profile of multi-agency, multi-jurisdictional regula-tory and criminal investigations have risen exponentially. Naturally, this global phenomenon exposes companies and their employees to greater risk of potentially hostile encounters with foreign law enforcement authorities and regulators than ever before. This is partly owing to the continued globalisation of commerce, the increasing enthusiasm of some prosecutors to use expansive theories of corporate criminal liability to exact exorbitant penalties against corporations as a deterrent and public pressure to hold individuals accountable for the mis-conduct. The globalisation of corporate law enforcement, of course, has also spawned greater coordination between law enforcement agencies domestically and across borders. As a result, the pace and complexity of cross-border corporate investigations has markedly increased and created an environment in which the potential consequences, both direct and collateral, for individuals and businesses are of unprecedented magnitude.

The GuideTo aid practitioners faced with the myriad and often unexpected challenges of navigating a cross-border investigation, this book brings together for the first time the perspectives of leading experts from across the globe.

The chapters that follow in Volume I of the Guide cover in depth the broad spectrum of the law, practice and procedure applicable to cross-border investigations in both the United Kingdom and United States. Volume I tracks the development of a serious allegation (whether originating from an internal or external source) through its stages of development, considering the key risks and challenges as matters progress; it provides expert insight into the fact-gathering stage, document preservation and collection, witness interviews, and the complexities of cross-border privilege issues; and it discusses strategies to successfully resolve cross-border probes and manage corporate reputation throughout an investigation.

Preface


Preface

vi

In Volume II, local experts from national jurisdictions respond to a common set of questions designed to identify the local nuances of law and practice that practitioners may encounter in responding to a cross-border investigation.

In the first edition, we signalled our intention to update and expand both parts of the book as the rules evolve and prosecutors’ appetites change. The Guide continues to grow and extend its reach, in both substance and geographical scope. By its third edition, it had out-grown its original single-book format; the two parts of the Guide now have separate covers, although the hard copy of the Guide should still be viewed – and used – as a single reference work. All chapters are, of course, made available online and in other digital formats. Volume I also features tables of cases and legislation along with an index.

In this fourth edition, we have revised extant chapters to keep up with recent develop-ments. To reflect an increased prosecutorial focus on individual accountability and on tone at the top, we have added US and UK chapters on the duties of directors to Volume I, outlining quite divergent corporate governance models. The questionnaire for Volume II authors has been extensively revised and reviewed by the editors and GIR staff. New questions zero in on the growing importance of technology in carrying out and investigating misconduct. There are also questions on economic sanctions, an area of heightened enforcement activity, which GIR has responded to this year with the launch of Just Sanctions (https://globalinvestiga-tionsreview.com/just-sanctions). Volume II also carries regional overviews giving insight into cultural issues and regional coordination by authorities.

Volume II covers 25 jurisdictions, increasing the global coverage, particularly in South America, which continues to rake over recent corruption scandals. As corporate investiga-tions and enforcer co-operation crosses more borders, we anticipate Volume II will become increasingly valuable to our readers: external and in-house counsel; compliance and account-ing professionals; and prosecutors and regulators operating in this complex environment.

AcknowledgementsThe Editors gratefully acknowledge the insightful contributions of the following lawyers from Clifford Chance: Oliver Pegden in London, Amy Montour and Mary Jane Yoon in New York, and Hena Schommer and Michelle Williams in Washington, DC. The Editors would also especially like to thank Clifford Chance associate Kaitlyn Ferguson in Washington, DC, Chris Stott, senior attorney at Ropes & Gray LLP in London, and Zoe Osborne, partner at Steptoe & Johnson in London.

Judith Seddon, Eleanor Davison, Christopher J Morvillo, Michael Bowes QC, Luke Tolaini, Ama A Adams, Tara McGrathDecember 2019London, New York and Washington, DC


vii

Contents

Preface .........................................................................................................................vTable of cases �� xixTable of legislation �� xlvii

VOLUME I GLOBAL INVESTIGATIONS IN THE UNITED KINGDOM

AND THE UNITED STATES

1 Introduction .....................................................................................................1Judith Seddon, Eleanor Davison, Christopher J Morvillo, Michael Bowes QC, Luke Tolaini, Ama A Adams and Tara McGrath

1.1 Bases of corporate criminal liability 11.2 Double jeopardy 91.3 The stages of an investigation 21

2 The Evolution of Risk Management in Global Investigations.........................27William H Devaney and Joanna Ludlam

2.1 Sources and triggers for investigations 272.2 Responding to internal events 282.3 Considerations for investigations triggered by external events 45

3 Self-Reporting to the Authorities and Other Disclosure Obligations: The UK Perspective.........................................................................................54Judith Seddon, Amanda Raad, Sarah Lambert-Porter, Chris Stott and Matthew Burn

3.1 Introduction 543.2 Culture and whistleblowing 563.3 The evolution of the link between self-reporting and a DPA 603.4 Key self-reporting requirements in the United Kingdom 633.5 Voluntary self-reporting to the SFO 683.6 Practical considerations, step by step 81


Contents

viii

4 Self-Reporting to the Authorities and Other Disclosure Obligations: The US Perspective .........................................................................................85Amanda Raad, Sean Seelinger, Jaime Orloff Feeney and Zaneta Wykowska

4.1 Introduction 854.2 Mandatory self-reporting to authorities 864.3 Voluntary self-reporting to authorities 874.4 Risks in voluntarily self-reporting 964.5 Risks in choosing not to self-report 97

5 Beginning an Internal Investigation: The UK Perspective ..............................99Jonathan Cotton and Holly Ware

5.1 Introduction 995.2 Decision whether to notify any relevant authorities 995.3 Decision whether and when to launch an internal investigation 1015.4 Oversight and management of the investigation 1035.5 Determining the internal investigation’s scope 1035.6 Document preservation, collection and review 105

6 Beginning an Internal Investigation: The US Perspective .............................110Bruce E Yannett and David Sarratt

6.1 Introduction 1106.2 Assessing if an internal investigation is necessary 1106.3 Identifying the client 1136.4 Control of the investigation: in-house or external counsel 1146.5 Determining the scope of the investigation 1146.6 Document preservation, collection and review 1176.7 Documents located abroad 120


Contents

ix

7 Witness Interviews in Internal Investigations: The UK Perspective ..............122Caroline Day and Louise Hodges

7.1 Introduction 1227.2 Types of interviews 1237.3 Deciding whether authorities should be consulted 1237.4 Providing details of the interviews to the authorities 1267.5 Identifying witnesses and the order of interviews 1307.6 When to interview 1327.7 Planning for an interview 1347.8 Conducting the interview: formalities and separate counsel 1367.9 Conducting the interview: whether to caution the witness 1387.10 Conducting the interview: record-keeping 1387.11 Legal privilege in the context of witness interviews 1397.12 Conducting the interview: employee amnesty and self-incrimination 1467.13 Considerations when interviewing former employees 1477.14 Considerations when interviewing employees abroad 1487.15 Key points 148

8 Witness Interviews in Internal Investigations: The US Perspective ..............151Anne M Tompkins, Jodi Avergun and J Robert Duncan

8.1 Introduction 1518.2 Preparation for the interview 1518.3 Upjohn protections 1538.4 Protecting work-product and attorney–client privilege 1538.5 Note-taking and privilege 1548.6 Interactions with witnesses 1568.7 Document review and selection 1578.8 Cost considerations 1578.9 Reporting the results of interviews 1588.10 Conclusion 158

9 Co-operating with the Authorities: The UK Perspective ...............................159Ali Sallaway, Matthew Bruce, Ben Morgan and Nicholas Williams

9.1 To co-operate or not to co-operate? 1599.2 The status of the corporate and other initial considerations 1609.3 Could the corporate be liable for the conduct? 1629.4 What does co-operation mean? 1639.5 Co-operation can lead to reduced penalties 1749.6 Other options besides co-operation 1779.7 Companies tend to co-operate for a number of reasons 1789.8 Multi-agency and cross-border investigations 1799.9 Strategies for dealing with multiple authorities 1829.10 Conclusion 184


Contents

x

10 Co-operating with the Authorities: The US Perspective ...............................185John D Buretta, Megan Y Lew and Courtney A Gans

10.1 What is co-operation? 18510.2 Key benefits and drawbacks to co-operation 19410.3 Special challenges with multi-agency and cross-border investigations 201

11 Production of Information to the Authorities ...............................................205Hector Gonzalez, Rebecca Kahan Waldman, Caroline Black and Lisa Foley

11.1 Introduction 20511.2 Production of documents to the authorities 20611.3 Documents obtained through dawn raids, arrest and search 22511.4 Disclosure of results of internal investigation 22711.5 Privilege considerations 23311.6 Protecting confidential information 23611.7 Concluding remarks 237

12 Production of Information to the Authorities: The In-house Perspective .....238Femi Thomas and Tapan Debnath

12.1 Introduction 23812.2 Initial considerations 23812.3 Data collection and review 23912.4 Principal concerns for corporates contemplating production 24012.5 Obtaining material from employees 24212.6 Material held overseas 24312.7 Concluding remarks 244

13 Employee Rights: The UK Perspective ..........................................................246James Carlton, Sona Ganatra and David Murphy

13.1 Contractual and statutory employee rights 24613.2 Representation 25013.3 Indemnification and insurance coverage 25213.4 Privilege concerns for employees and other individuals 254

14 Employee Rights: The US Perspective ..........................................................256Milton L Williams, Avni P Patel and Jacob Gardener

14.1 Introduction 25614.2 The right to be free from retaliation 25714.3 The right to representation 25914.4 The right to privacy 26114.5 Indemnification 26314.6 Situations where indemnification may cease 26714.7 Privilege concerns for employees 267


Contents

xi

15 Representing Individuals in Interviews: The UK Perspective........................269Jessica Parker and Andrew Smith

15.1 Introduction 26915.2 Interviews in corporate internal investigations 26915.3 Interviews of witnesses in law enforcement investigations 27315.4 Interviews of suspects in law enforcement investigations 276

16 Representing Individuals in Interviews: The US Perspective ........................279John M Hillebrecht, Lisa Tenorio-Kutzkey and Eric Christofferson

16.1 Introduction 27916.2 Kind and scope of representation 27916.3 Whether to be interviewed 28216.4 Preparation for interview 28316.5 Procedures for government interview 28516.6 Conclusion 289

17 Individuals in Cross-Border Investigations or Proceedings: The UK Perspective.......................................................................................290Richard Sallybanks, Ami Amin and Jonathan Flynn

17.1 Introduction 29017.2 Cross-border co-operation 29017.3 Practical issues 29117.4 Extradition 29817.5 Settlement considerations 30317.6 Reputational considerations 304

18 Individuals in Cross-Border Investigations or Proceedings: The US Perspective .......................................................................................306Amanda Raad, Michael McGovern, Meghan Gilligan Palermo, Zaneta Wykowska and Sara Berinhout

18.1 Introduction 30618.2 Preliminary considerations 30718.3 Extradition 30918.4 Strategic considerations 31718.5 Evidentiary issues 32518.6 Asset freezing, seizure and forfeiture 32718.7 Collateral consequences 32918.8 The human element: client-centred lawyering 329


Contents

xii

19 Whistleblowers: The UK Perspective ............................................................330Jillian Naylor, Alison Wilson, Sinead Casey and Elly Proudlock

19.1 Introduction 33019.2 The legal framework 33119.3 The corporate perspective: representing the firm 34019.4 The individual perspective: representing the individual 347

20 Whistleblowers: The US Perspective .............................................................351Daniel Silver and Benjamin A Berringer

20.1 Overview of US whistleblower statutes 35120.2 The corporate perspective: preparation and response 35620.3 The whistleblower’s perspective: representing whistleblowers 36120.4 Filing a qui tam action under the False Claims Act 365

21 Whistleblowers: The In-house Perspective ....................................................370Steve Young

21.1 Initial considerations 37021.2 Identifying legitimate whistleblower claims 37221.3 Employee approaches to whistleblowers 37221.4 Distinctive aspects of investigations involving whistleblowers 373

22 Forensic Accounting Skills in Investigations .................................................375Glenn Pomerantz, Nicole Sliger and Michael Barba

22.1 Introduction 37522.2 Preservation, mitigation and stabilisation 37622.3 e-Discovery and litigation holds 37622.4 Violation of internal controls 37722.5 Forensic data analysis 37822.6 Analysis of financial data 38222.7 Analysis of non-financial records 38322.8 Use of external data in an investigation 38522.9 Review of supporting documents and records 38722.10 Tracing assets and other methods of recovery 38822.11 Development bank forensic audit 38922.12 Investigations involving national security interests 39122.13 Conclusion 395


Contents

xiii

23 Negotiating Global Settlements: The UK Perspective ...................................396†Rod Fletcher and Nicholas Purnell QC

23.1 Introduction 39623.2 Initial considerations 40023.3 Legal considerations 41623.4 Practical issues arising from the negotiation of UK DPAs 41723.5 Resolving parallel investigations 422

24 Negotiating Global Settlements: The US Perspective ...................................424Nicolas Bourtin

24.1 Introduction 42424.2 Strategic considerations 42424.3 Legal considerations 42824.4 Forms of resolution 43224.5 Key settlement terms 43624.6 Resolving parallel investigations 445

25 Fines, Disgorgement, Injunctions, Debarment: The UK Perspective ...........448Kelly Hagedorn, Robert Dalling and Matthew Worby

25.1 Criminal financial penalties 44825.2 Compensation 44925.3 Confiscation 44925.4 Fine 45125.5 Guilty plea 45225.6 Costs 45325.7 Director disqualifications 45425.8 Civil recovery orders 45525.9 Criminal restraint orders 45725.10 Serious crime prevention orders 45825.11 DPAs 46125.12 Debarment 46125.13 Regulatory financial penalties and other remedies 46325.14 Withdrawing a firm’s authorisation 46625.15 Senior Managers and Certification Regime 46725.16 Restitution orders 46825.17 The Office of Financial Sanctions Implementation 46925.18 The Information Commissioner’s Office 47025.19 Disclosure to other authorities 471


Contents

xiv

26 Fines, Disgorgement, Injunctions, Debarment: The US Perspective ............472Gayle E Littleton, Charles D Riely, Amanda L Azarian and Grace C Signorelli-Cassady

26.1 Introduction 47226.2 Standard criminal fines and penalties available under federal law 47426.3 Civil penalties 47726.4 Disgorgement and prejudgment interest 47826.5 Injunctions 48226.6 Other consequences 48326.7 Financial penalties (and prison terms) under specific statutes 48426.8 Conclusion 489

27 Global Settlements: The In-house Perspective ..............................................490Claire McLeod

27.1 Introduction 49027.2 Senior management 49027.3 Shareholders 49327.4 Employees 49327.5 Customers 49427.6 Regulators and enforcement agencies 49527.7 Conclusion 496

28 Extraterritoriality: The UK Perspective .........................................................497Anupreet Amole

28.1 Overview 49728.2 The Bribery Act 2010 49828.3 Money laundering offences under Part 7 of POCA 2002 50128.4 Tax evasion and the Criminal Finances Act 2017 50628.5 Financial sanctions 50728.6 Information sharing powers under the Criminal Finances Act 51028.7 Conspiracy 51028.8 Mutual legal assistance, cross-border production and the extraterritorial

authority of UK enforcement agencies 513


Contents

xv

29 Extraterritoriality: The US Perspective..........................................................520James P Loonam and Conor Reardon

29.1 Extraterritorial reach of US laws 52029.2 Securities laws 52129.3 Criminal versus civil cases 52629.4 RICO 52829.5 Wire fraud 52929.6 Commodity Exchange Act 53129.7 Antitrust 53429.8 Foreign Corrupt Practices Act 53729.9 Sanctions 54029.10 Money laundering 54229.11 Power to obtain evidence located overseas 54429.12 Conclusion 545

30 Individual Penalties and Third-Party Rights: The UK Perspective ................546Elizabeth Robertson

30.1 Individuals: criminal liability 54630.2 Individuals: regulatory liability 55730.3 Other issues: UK third-party rights 559

31 Individual Penalties and Third-Party Rights: The US Perspective ................561Joseph Moreno and Todd Blanche

31.1 Prosecutorial discretion 56131.2 Sentencing 566

32 Monitorships ................................................................................................574Richard Lissack QC, Nico Leslie, Christopher J Morvillo, Tara McGrath and Kaitlyn Ferguson

32.1 Introduction 57432.2 Evolution of the modern monitor 57632.3 Circumstances requiring a monitor 58132.4 Selecting a monitor 58432.5 The role of the monitor 58932.6 Costs and other considerations 59732.7 Conclusion 598


Contents

xvi

33 Parallel Civil Litigation: The UK Perspective ................................................600Nichola Peters and Michelle de Kluyver

33.1 Introduction 60033.2 Stay of proceedings 60033.3 Multi-party litigation 60233.4 Derivative claims and unfair prejudice petitions 60633.5 Securities litigation 60833.6 Other private litigation 60933.7 Evidentiary issues 61733.8 Practical considerations 62033.9 Concurrent settlements 62133.10 Concluding remarks 622

34 Parallel Civil Litigation: The US Perspective ................................................623Eugene Ingoglia and Anthony M Mansfield

34.1 Introduction 62334.2 Stay of proceedings 62434.3 Class actions 62434.4 Derivative actions 62834.5 Other private litigation 62934.6 Evidentiary issues 63334.7 Practical considerations 63434.8 Concurrent settlements 635

35 Privilege: The UK Perspective .......................................................................637Tamara Oppenheimer, Rebecca Loveridge and Samuel Rabinowitz

35.1 Introduction 63735.2 Legal professional privilege: general principles 63835.3 Legal advice privilege 64235.4 Litigation privilege 65335.5 Common interest privilege 66235.6 Without prejudice privilege 66535.7 Exceptions to privilege 66835.8 Loss of privilege and waiver 67335.9 Maintaining privilege: practical issues 681


Contents

xvii

36 Privilege: The US Perspective ........................................................................687Richard M Strassberg and Meghan K Spillane

36.1 Privilege in law enforcement investigations 68736.2 Identifying the client 69636.3 Maintaining privilege 69836.4 Waiving privilege 70236.5 Selective waiver 70736.6 Disclosure to third parties 71036.7 Expert witnesses 715

37 Publicity: The UK Perspective ......................................................................718Edward Craven and Alex Bailin QC

37.1 Overview 71837.2 The common law principle of open justice 71937.3 Open justice and the European Convention on Human Rights 72037.4 Derogations from open justice 72037.5 Criminal proceedings: statutory reporting restrictions 72637.6 Public access to information and documents from criminal courts 72837.7 Libel and data protection 73037.8 Public relations 731

38 Publicity: The US Perspective .......................................................................732Jodi Avergun

38.1 Restrictions in a criminal investigation or trial 73238.2 Social media and the press 73838.3 Risks and rewards of publicity 741

39 Protecting Corporate Reputation in a Government Investigation ................744Kevin Bailey and Charlie Potter

39.1 Introduction 74439.2 Planning for the worst 74539.3 Ensuring close integration of legal and communications advisers 74639.4 The key moments in any investigation 74739.5 The impact of whistleblowers 74939.6 Managing disclosures by regulators or prosecutors 74939.7 Communications with stakeholders 75239.8 Managing leaks 75239.9 Role of third-party advocates 75339.10 To fight or not to fight 75339.11 The endgame: announcing a settlement 75439.12 Rebuilding reputation 75639.13 Summary: 10 key considerations 756


Contents

xviii

40 Data Protection in Investigations .................................................................758Stuart Alford QC, Serrin A Turner, Gail E Crawford, Hayley Pizzey, Mair Williams and Max G Mazzelli

40.1 Introduction 75840.2 Internal investigations: UK perspective 75940.3 Internal investigations: US perspective 76640.4 Investigations by authorities: UK perspective 77040.5 Investigations by authorities: US perspective 77240.6 Whistleblowers 77440.7 Collecting, storing and accessing data: practical considerations 775

41 Directors’ Duties: The UK Perspective .........................................................776Nichola Peters and Michelle de Kluyver

41.1 Introduction 77641.2 Sources of directors’ duties and responsibilities under UK law 77741.3 Conclusion 792

42 Directors’ Duties: The US Perspective ..........................................................793Timothy P O’Toole, William P Barry and Margot Laporte

42.1 Introduction 79342.2 Directors’ fiduciary duties 79342.3 Liability for breach of fiduciary duties 79642.4 Duty of oversight in investigations 80042.5 Strategic considerations for directors 802

About the Authors ...................................................................................................809Contributors’ Contact Details .................................................................................873Index ��885


279

16Representing Individuals in Interviews: The US Perspective

John M Hillebrecht, Lisa Tenorio-Kutzkey and Eric Christofferson1

IntroductionWhen representing individuals in investigations, determining whether to consent to an interview and any interview itself can be pivotal. The following sets forth some potential pitfalls and suggests certain best practices.

Kind and scope of representationEven leaving aside the multifarious sorts of industries and issues that can be rel-evant to the representation of an individual, there are various kinds of representa-tions, presenting different types of challenges.

Representing current or former employeesMost typically in sophisticated white-collar matters, a company is either conduct-ing an internal investigation into suspected misconduct or responding to a gov-ernment investigation (regulatory or criminal, or both) of similar misconduct. The former often morphs into the latter, one way or the other. In those contexts, the individual client is usually a current or former employee or board member. Inevitably, the individual’s relationship with the company is crucial, and can materially impact (for good or ill) counsel’s approach to the interview. At the most basic level, the company may or may not have an obligation to advance reasonable legal fees and expenses to the client.2 Even in the absence of a contractual or other obligation, the company will sometimes agree (or be persuaded) to do so. In either scenario, the company might impose a cap or other conditions on payments. In any event, there are significant advantages to the client establishing a co-operative

1 John M Hillebrecht, Lisa Tenorio-Kutzkey and Eric Christofferson are partners at DLA Piper.2 See, e.g., 8 Del. C. § 145 (discussing advancement).

16.1

16.2

16.2.1

See Chapter 4 on self-reporting to authorities and Chapter 20 on whistleblowers


Representing Individuals in Interviews: The US Perspective

280

and cordial relationship with the company (including, at minimum, access to documents and other information) – although this is not always possible.

Pool counselAt times, largely for reasons of efficiency and economy, the client may be one of multiple individuals a single lawyer concurrently represent as a ‘pool’ of clients who are witnesses or potential witnesses in the same investigation – subject to the ethical rules governing conflicts of interest and confidentiality.3 This usually occurs where the members of the pool are viewed at that time as less culpable and whose interests are thought to be aligned. Such an arrangement presents obvious advan-tages to each individual. Pool counsel, by definition, obtains a broader perspective and usually has access to more documents than he or she would otherwise, has the benefit of each client’s recollection, and can use insights gleaned from the first client’s interview or interviews to prepare for subsequent client interviews. To be clear, it is usually best practice not to ‘cross-pollinate’ clients (by, for example, tell-ing one client what another said about a particular issue), but pool counsel can appropriately use such information to formulate questions and strategies. Before agreeing to represent multiple individuals, counsel must take substantial steps to ensure that there are no conflicts, document the risk of future conflicts and the waiver of any future conflicts in appropriate engagement letters, and remain hyper-vigilant for developing conflicts.4 The authors recently experienced a situ-ation in which it emerged – a year into representing a pool of individuals – that one client had negative information about a second client (information both had concealed), leading to significant issues during fraught negotiations with the gov-ernment regarding one of the two clients. Only the existence of an appropriate engagement letter forestalled more serious problems.

Joint defence agreementsAlthough ‘entering into a joint defense agreement is often, indeed generally, ben-eficial to its participants, like skating on thin ice, dangers lurk below the surface’.5 These dangers are illustrated by court rulings disqualifying counsel based on a joint defence agreement, precluding counsel from cross-examining a defector who becomes a cooperating witness, and holding that communications thought to be protected by a joint defence agreement were not in fact privileged.6 Most of these risks can be mitigated substantially if counsel for the participants consider, dis-cuss and record in some fashion the parameters of their agreement, including the

3 See generally Association of the Bar of the City of New York Committee on Professional Ethics, Formal Opinion 2019-4: Representing Multiple Individuals in the Context of a Governmental or Internal Investigation (Opinion 2019-4).

4 See generally Opinion 2019-4.5 United States v. LeCroy, 348 F. Supp. 2d 375, 387 (E.D. Pa. 2004), as amended on reconsideration

(10 January 2005).6 See generally United States v. Hatfield, 2009 WL 3806300 (E.D.N.Y. 2009).

16.2.2

16.2.3



281

consequences of one or more participants withdrawing from the agreement.7 On more than one occasion when the authors represented individuals, we received a voluminous quantity of documents from the clients’ former employers, all Bates-numbered to the effect that they were produced pursuant to a joint defence agreement, when there had been no discussion about any such agreement. The tendency of many practitioners to prefer informal joint defence agreements with no specific clarity or agreement on the consequences of withdrawal is puzzling, and the consequences can be severe.8

In some jurisdictions, including the Southern District of New York (SDNY),9 practitioners often prefer to use verbal joint defence agreements. While the agree-ment need not be recorded in writing, there are numerous advantages to doing so. Although courts may find the existence of a joint defence agreement, despite the agreement being purely verbal, the existence of a written document obviates this inquiry. In a December 2018 decision, a judge in the SDNY held that a former employee failed to establish a common interest agreement with his for-mer employer – even though the individual’s lawyer emailed company counsel a draft document with the subject line ‘Common Interest Privilege Document’, specifically noting that the draft document was being shared ‘pursuant to our common interest’, without any objection or clarification from company counsel.10 This underscores the importance of documenting explicitly the existence of such an agreement.

Companies under investigation will at times enter into a joint defence agree-ment with employees or, more commonly, former employees. We have seen such agreements stating that information disclosed to the company will not be dis-closed to the government or third parties. This practice is problematic where a company would prefer to disclose illegal or wrongful conduct to the government and minimise its exposure by obtaining co-operation credit, or where the company operates in a regulated industry that imposes a legal obligation on the company to disclose wrongdoing. As a result, counsel for a corporation typically include language in the joint defence agreement that explicitly authorises the corporation to disclose joint defence materials (or a subset of them) at its sole discretion. This kind of joint defence agreement is little more than a glorified Upjohn warning.11 In representing entities, the authors have in the past used joint defence agree-ments that protect most joint defence materials – strategy discussions, draft work

7 Unfortunately, far too often the sum total of counsels’ ‘discussion’ along these lines can be summarised as ‘This is a joint defence meeting, right?’.

8 See John M Hillebrecht and Jessica Masella, ‘Understanding Joint Defense Agreements: The Implications for White-Collar Defendants in the Second Circuit,’ New York L. J. (25 January 2019).

9 The Southern District of New York (SDNY), centred on New York City, is home to many of the US Department of Justice’s (DOJ) most significant international prosecutions and one of its largest US Attorneys’ Offices.

10 SEC v. Rashid, 17-cv-8223 (PKC) (S.D.N.Y. 13 December 2018).11 See generally Upjohn Co. v. United States, 449 U.S. 383 (1981). See also Chapter 8 on

witness interviews.

See Chapter 4 on self-reporting

to authorities



282

product, updates on interactions with the government – but specifically carve out ‘historical’ interviews of the individual, which are governed by a standard Upjohn warning. As a practical matter, however, whatever the form of the joint defence agreement, an individual may have little choice but to agree so as to obtain infor-mation (including documents) necessary to present a defence.

Whether to be interviewedInternal investigationAt times a client faces real risk in consenting to an interview by the company. Admitting misconduct, even mere violations of company policy well short of criminal violations, can result in discipline, termination and severe financial conse-quences. Also, one must assume (and advise one’s client to assume) that the com-pany will disclose its version of the interview to the government. Hence, before consenting to an interview, it is crucial to understand the facts (including the docu-ments, the context of the transaction or trading strategy etc., and the client’s version of events), as well as the views of company counsel (to the extent they can be elic-ited). That said, the client often faces a Hobson’s choice. The company’s advance-ment of fees (which the client may regard as crucial) may well be conditioned on co-operation and, more fundamentally, in the United States (as opposed to virtu-ally all EU countries) an employer can generally fire an executive who refuses to be interviewed.12 Even where there is some degree of risk, when the client wants to continue employment, protect his or her financial situation, or simply continue working for a different employer in the same regulated industry, the incentives to consent to an interview will be strong. Even leaving those concerns aside, failure to consent to an interview will almost certainly lead to a cessation of reciprocal co-operation from the company – halting the flow of documents and updates and putting an end to coordination. Obviously, there will be cases where the risks of a truthful interview are so palpable that, regardless of the consequences, declining to be interviewed is the only prudent choice. Similarly, many individual clients face close to no risk. The troublesome choices concern those clients who fall in between.

Government investigationConsenting to a government interview obviously carries additional risks. Therefore, assessing the client’s exposure in advance is even more crucial in this context. In addition to assessing the facts and documents, prudent counsel will seek the views of company counsel, speak to counsel for other potential witnesses (whom company counsel will usually identify), and if applicable review public record documents, related civil lawsuit filings and media reports (and, increasingly, blogs and other internet commentaries). Equally important are the views, if they can

12 See Gilman v. Marsh & McLennan, 826 F. 3d 69 (2d Cir. 2016); see also Michael D Hynes, Brett Ingerman, John M Hillebrecht, ‘Second Circuit Affirms Employers’ Right to Terminate Employees Who Fail to Cooperate With Internal Investigations,’ DLA Piper Client Alert (1 July 2016), https://www.dlapiper.com/en/us/insights/publications/2016/06/second-circuit-affirms-employers/.

16.316.3.1

16.3.2



283

be obtained, of the government lawyers seeking the interview. The United States Department of Justice (DOJ) has a formal taxonomy between ‘target’, ‘subject’ and (less formally) witness.13 Often, but not always, counsel representing an indi-vidual can at minimum get an Assistant US Attorney to answer a question regard-ing the client’s formal status (although it is imperative that the client understand that the status can always shift). Other agencies – for example the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) – usually will not provide even such minimal information, but there are frequently exceptions.

Of course, even when contemplating a government interview there are often similar employment-related considerations – an obligation to co-operate to avoid a cut-off of legal fees, termination of employment, or even attempted clawbacks of vested bonuses, etc. And, again, certain executives in regulated industries (e.g., registered broker-dealers) can be easily placed between a rock and a hard place. Also, unlike company counsel, the government can always threaten to use grand jury or other subpoenas.14

Preparation for interviewFor both internal and government interviews, the typical preparation is much the same. This is where having a good relationship with company counsel becomes so important. If company counsel has provided the key documents, identified counsel for other individuals and shared (within reason) the focus of the investi-gation (from the company’s perspective or that of the government), counsel for the individual client will be well positioned to prepare the client for the interview. Conversely, if company counsel has not been co-operative, preparing the client becomes more difficult. Counsel should in any event push the interviewer (com-pany counsel or the government) to identify in advance the topics to be covered and to share in advance the documents to be used during the interview. How much of this is actually made available varies enormously, based on a number of factors. Sometimes everything requested is supplied; sometimes next to nothing is forthcoming; but usually the requests are partially satisfied. As a very general observation, certain government entities (e.g., the CFTC) are usually more forth-coming than others (e.g., the DOJ). But in any event, there is no harm in asking, if necessary repeatedly.

Even where company counsel shares ‘all’ the key documents, more often than not crucial – unfortunately, at times the most crucial – documents are omitted. Often, company counsel will produce to the individual client’s counsel ‘all’ the

13 See generally Justice Manual § 9-11.151.14 The foregoing discussion focuses on the US perspective for individuals located in the United

States. For clients located abroad, the calculus may differ in nuanced ways. Among other things, the ability of companies to compel co-operation is markedly less in other jurisdictions (e.g., the European Union) and the ability of US agencies to effectively subpoena persons abroad (through mutual legal assistance treaties or otherwise) is much more limited. (See Chapter 11 on production of information to authorities and Chapter 28 on extraterritoriality.)

See Chapter 14 on employee

rights

16.4



284

documents the client saw in real time that have been produced to the government and a separate subset of the most important documents. One should never rely on the company’s selection. Instead, counsel should run targeted searches on the broader universe of documents. Even then, counsel must bear in mind that that universe (1) obviously does not include documents produced by other entities (which are frequently encountered for the first time when the client is confronted with them during a government interview or SEC testimony); (2) might not include all documents produced by the company; and (3) might also not include other documents (texts, instant messages, WhatsApp messages, private emails, etc.) that may have escaped the company’s net. In this regard, it is important to remember to ask the individual client early on whether he or she has access to any pertinent documents or communications (including texts and other messages on a work or personal cellphone or other device).

Recognising these limitations and risks, the documents are typically an essen-tial part of preparing for an interview. It is often helpful to conduct a preliminary debriefing of the client without delving too deeply into large numbers of docu-ments. Then, armed with the context and insights provided by that preliminary conversation, counsel typically spends substantial time alone with the documents – reviewing, highlighting, annotating, cross-referencing and generally striving to internalise the pertinent documents. While the initial cut of such a review will typically be performed by junior lawyers on whatever electronic document review platform they favour, depending on volume and lawyer predilections it is often easier for the senior lawyer to review and annotate the most significant documents in hard copy, in binders, with highlighters and post-it flags. Every lawyer’s meth-odology will differ, but the point of the exercise should be a constant: identify those documents that are central to the narrative; flag the phrases, paragraphs and emoticons that will grab the attention of a prosecutor, regulator or company counsel; and put together a comprehensible chronology.

A written chronology is often a helpful vehicle to identify salient points and, at a minimum, provides a helpful tool to refresh recollections. During the life of many investigations, there will often be dormant periods where months go by without much or any activity. When the SEC subsequently calls, having a detailed chronology document to reference is a good way to get back up to speed quickly. In building out a chronology, the precise time of day a message was sent is often overlooked. At times, such details support inferences, good or bad, and the reviewing attorneys must be sensitive to that.

Once counsel has done their level best to carefully scrutinise and organise all the relevant documents available, they should be reviewed in detail with the client. In some cases, there are multiple discrete issues (e.g., a revenue-recognition matter raising different issues for a company’s different customers) and some where there is really a single issue (e.g., an insider trading investigation focused on a single trade by one trading desk). In the former situation, one would generally break up the documents by issue, whereas, in the latter, chronological order usually makes most sense. Even in a case involving multiple different issues, it is important not to be too rigidly siloed. Often, the fact that an email or text regarding one subject



285

was sent shortly before a seemingly-unrelated message regarding another can loom large as to the client’s state of mind or other important issues.15

After the documents are reviewed and organised, the client should be walked through them. It often makes sense to provide the client with a collection of the pertinent documents in advance. (On occasion, company counsel will put restrictions on the use of the documents it has provided, including precluding the individual client from reviewing the documents outside the presence of counsel. Where required, clients can review the documents with a junior lawyer or parale-gal in the room.)

An important goal of such preparation is to refresh the client’s recollection as to documents and events that often are from years earlier. But almost invariably, portions of some documents will suggest improper conduct as to which the client must be prepared (if possible) to offer a cogent explanation. Sometimes what looks bad to an outside observer turns out to be perfectly proper when put in the context of the industry or transaction at issue. Sometimes what looks bad is truly a joke or sarcasm. And sometimes what looks bad is, frankly, bad.

In identifying potentially problematic aspects of documents, it is important for counsel to put his or her prosecutor’s cap on and cast a jaundiced eye on the documents. To the extent possible, it is also important to speak with counsel for other individuals who received the same document to try to elicit the other indi-viduals’ understanding of it and the views of the government or company counsel (to the extent there have already been interviews).

One strategic issue that sometimes arises has to do with whether ignorance is bliss. There may be times when not refreshing the client’s recollection or, more frequently, not educating him or her about an issue (e.g., an accounting rule, a regulatory requirement) makes sense.

Once the client is as well versed in the documents and other information at issue as can be expected, it is sometimes a good idea to pressure-test his or her explanations and recollection by conducting what is tantamount to a mock cross-examination. This enables the client to become familiar with limiting answers to what he or she knows and remembers, to avoid speculation or characterisations, and to make what was known and understood at the time as opposed to now (fol-lowing focused review of documents and awareness of the investigation).

Procedures for government interviewAfter tentatively deciding to consent to a government interview, it may be pru-dent to preface the actual client interview with an attorney proffer. These are more commonly used with some government agencies than others. For example, they are commonly welcomed by the Antitrust Division of the DOJ. Although practices differ among jurisdictions and government regulators, typically counsel

15 At least some of the authors have had the unpleasant experience of realising such a connection only in the middle of a DOJ interview, a situation that should be avoided at all costs.

16.5



286

would prepare a detailed outline of a proffer, vetted and approved by the client, and stick to it while presenting to the government.

Counsel should inform the government that the proffer is hypothetical but that the information is what counsel expects the client would say. Counsel should then recount the information prepared in advance and typically not answer any questions the government asks with additional information not vetted with the client. The purpose of such a proffer is to gauge the government’s view of the client’s exposure. Typically, an attorney proffer is used in the context of DOJ crim-inal investigations where counsel believes the client is in some degree of jeopardy. Often the proffer will conclude with some version of: ‘If the client tells you what counsel has just summarised, would you agree that a non-prosecution agreement would be proper?’16

Some years ago, such proffers were very common in criminal cases, particu-larly where counsel was seeking a co-operation agreement or non-prosecution agreement. Many US Attorney’s Offices have in recent years taken the position that an attorney proffer is no different from a client proffer in that the attorney’s statements are treated as statements of the client for purposes of the Jencks Act and therefore must be disclosed to defence counsel if the client becomes a govern-ment witness.17 Accordingly, prosecutors have been more reticent about agreeing to attorney proffers.

Assuming the decision is made (either given positive feedback from an attor-ney proffer or otherwise) to go forward with the government interview or proffer, a number of important preliminary matters must be resolved in advance. Perhaps most importantly, counsel must clearly explain to the client – and document – all the risks and benefits of making a proffer, and that it would be voluntary and the Fifth Amendment generally precludes anything but a voluntary proffer.18 Equally fundamentally, counsel must confirm which agencies, and what offices from each agency, will be attending; not only may the risk profiles differ, but each agency may have different ground rules, including different proffer agreements or no proffer agreements at all.

Although, as discussed below, many proffer agreements today provide imper-fect protections, they do provide some protection. Accordingly, one crucial requirement of any proffer agreement is a ‘most-favoured nation’ clause – a com-mitment from the government agency that it will not share the substance of any proffer with any other agency (foreign or domestic) not bound by the agreement. In this regard, the standard proffer agreement used by the SEC and the typical proffer agreement used by many US Attorney’s offices provides that they will not

16 Some jurisdictions (such as SDNY) often use non-prosecution agreements for individuals, while others (such as the District of Massachusetts) never do.

17 18 U.S.C. § (Jencks Act); see generally United States v. Triumph Capital Group, 544 F. 3d 149, 161 to 165 (2d Cir. 2008) (reversing conviction because government failed to produce government notes of an attorney proffer).

18 Curiously, if a proffer does not produce the desired result, some clients have a tendency to forget that the risks were clearly explained to them.



287

share the proffer with another enforcement agency unless that agency agrees to be bound by the terms of the proffer agreement.

The most common types of proffer agreements (such as those used by the SEC and most US Attorney’s offices, including the SDNY) have become longer and more complicated over the years. But the basic minimal protection provided by such an agreement has long ensured that the government cannot use the words the client says in the proffer as direct evidence in seeking an indictment (or filing a civil complaint) or as proof in the government’s case-in-chief. This is a material benefit to the client. Absent the proffer agreement (or the agreement by the gov-ernment to take a proffer subject to the plea-negotiation protections of Federal Rule of Criminal Procedure 11 or Evidence Rule 410 – which the authors have never known to have happened), the government could simply treat the client’s statements as a confession and use them accordingly.

But the exceptions that have been added to these typical proffer agreements over the years, largely supported by the courts, have denuded this basic protec-tion of much of its robustness. Indeed, many savvy practitioners as a matter of near uniform policy will virtually never advise their clients to proffer. One thing is patently clear: if the strategy of consenting to a proffer does not succeed and the client ends up getting indicted, the fact that the client proffered will almost invariably put the client in a worse position.

Assuming the client told a version of his or her state of mind or other issues inconsistent with the government’s view of those matters, the typical proffer agreement permits the government to prosecute the client for false statements – basically, for denying culpability or contradicting what others say.19

More commonly, the government uses various terms of the typical proffer agreement to essentially eviscerate the ability a defendant who has proffered to defend himself or herself. Years ago, the typical agreement allowed the govern-ment to impeach a defendant who takes the stand with arguably inconsistent statements from the proffer session. That baseline exception has been expanded throughout the years. It is now broadly accepted that if defence counsel makes an argument in opening statement arguably contrary to the proffer statements or cross-examines government witnesses in the wrong way, the government can use the proffer statements – an obviously devastating piece of evidence.20 Even something as simple as offering documentary evidence tending to show that the defendant was not at the scene of the crime can have the same effect.21 In at least

19 See, e.g., United States v. Percoco, 16 Cr. 776 (VEC) (S.D.N.Y. 11 December 2017) (individuals who proffered exculpatory explanations during meeting with government after being ‘told that they were “subjects” of the investigation’, not ‘targets’, subsequently indicted for false statements.)

20 See generally United States v. Barrow, 400 F. 3d 109, 113 to 119 (2d Cir. 2005) (where proffer agreement stated that statements could be used ‘as substantial evidence to rebut any evidence offered or elicited, or factual assertions made by’ defence, assertion in opening that another person made certain specific narcotics sales opened the door to prosecution using proffer statements in case-in-chief which discussed drug dealing more broadly; ‘proper rebuttal is not limited to direct contradiction’).

21 See generally United States v. Roberts, 660 F. 3d 149 (2d Cir. 2011).



288

one case, omissions from a proffer statement were deemed admissible based on cross-examination of a government witness.22

So the risks of a proffer, and the loopholes in standard proffer agreements, are very substantial. Again, counsel must make a risk assessment, weigh the pros and cons, and explain all of this clearly to the client and document it.

Probably the last significant preliminary matter (other than pressing, yet again, for advance notice of the documents and topics the government expects to cover) is to determine in what fashion the government agency intends to record the interview. At least some government agencies (in our experience, often Inspectors General of various executive branch agencies) have a policy of seeking to audio-record voluntary interviews. Counsel and client should only consider consenting if the agency agrees to share the recording.

In the ordinary course (and certainly in the typical DOJ and SEC interviews), the government will have a designated note-taker (generally a law enforcement agent in a DOJ investigation) using a laptop or pen and paper. It is crucial that counsel for the client has a note-taker who has clear instructions as to what he or she should be doing. Unlike notes of a preparation session protected by attorney–client privilege, notes of a proffer to the government are protected only as work product. The note-taker in that context should strive to record all sub-stance, even at times in ‘Q and A’ fashion and including interjections, objections, and clarifications by counsel for the client. While in the authors’ experience it happens rarely, there are times when the government’s notes as to a proffer are completely wrong on crucial issues (e.g., state of mind ‘at the time’ of the conduct in question) and the existence of painstakingly detailed notes proved to be an essential weapon in arguments with the DOJ and the SEC. Accurate, detailed note-taking is a must.

Every proffer interview is different. Government lawyers are only human, so the approaches and temperaments of those lawyers run the gamut. Some ask almost entirely respectful open-ended questions. Some start an aggressive cross-examination shortly after initial introductions. Some are respectful and even-keeled but relentlessly ask the same exact question over and over again in an effort to get the client to shift his or her answer and adopt a specific formula-tion or term that is important to the prosecutor’s theory. All of these happen – often during the same interview – because in a typical sophisticated white-collar matter, there can be two, three, four or more government lawyers asking ques-tions. When this is the case, the individual client’s lawyer must not be ‘a potted plant’. The practitioner has a duty to stop a client answering unfair questions, to rephrase questions that are formulated in a misleading fashion, and to challenge the government lawyers when they misstate the client’s earlier answers or mislead-ingly summarise documents or ask questions about one document while ignoring another equally relevant one (which counsel will hopefully know because he or she is conversant with all the documents that have been produced). A good proffer is

22 United States v. Vella, 2011 WL 652752 (3d Cir. 2011).

See Chapter 36 on privilege



289

one where counsel largely stands mute. But one cannot be shy when shenanigans like those summarised above are playing out. To be clear: the government lawyers will not like it. They will accuse you of ‘coaching’ the client. They may ask you to step out of the conference room and tell you (in essence) to shut up. That is them doing their job. But you have to keep doing your job – respectfully, strategi-cally and within reason. Counsel will, of course, have prepared the client for this potential dynamic.

ConclusionRepresenting individuals in white-collar matters is always fraught with risk. The interview – whether by company counsel or the government – is a key step in any investigation, and one that typically crystallises the risks to the client. Advising a client on whether or not to consent to such an interview is thus something that must reflect your considered judgement. A well-prepared client, whose context you fully understand and whose documents you are confident have been reviewed, may materially advance his or her position by consenting to such an interview. But these risks should always be in the forefront of your mind.

16.6


809

John M HillebrechtDLA Piper LLP

John M Hillebrecht is the US national co-chair of DLA Piper’s white collar, corporate crime and investigations practice. Immediately prior to joining DLA Piper in 2010, John served for 15 years as an Assistant United States Attorney in the Southern District of New York (SDNY), garnering extensive trial, appellate and supervisory experience.

He has served as lead or sole counsel in more than 20 jury trials and approximately 50 Second Circuit appeals. John has represented entities and individuals in the crosshairs of some of the highest-profile criminal investigations of recent years, including the ‘expert network’ insider trading cases, RMBS fraud prosecutions, the SDNY investigation regarding possible corruption in Governor Cuomo’s ‘Buffalo Billion’ and related development projects, numerous rate-fixing cases (including the LIBOR, FX and ISDAfix manipulation cases), the GM ignition switch case, the ongoing Fiat Chrysler emissions control ‘defeat device’ investigation, and various FCPA investigations (including the ‘Sons and Daughters’ DOJ and SEC investigation into banks’ hiring practices in China and an ongoing investigation involving one of the world’s largest petroleum companies) and False Claims Act matters. He also regularly represents pharmaceutical and medical device companies and individuals in various kinds of investigations.

John is recommended in The Legal 500 United States and recognised in The Best Lawyers in America. In December 2015, The National Law Journal recognised John as one of the top white-collar practitioners in the country.

Appendix 1

About the Authors


About the Authors

810

Lisa Tenorio-KutzkeyDLA Piper LLP

Lisa Tenorio-Kutzkey (LT-K) focuses exclusively on white-collar matters in all phases of US federal government prosecution and investigation, with a focus on criminal antitrust defence, FCPA and complex internal investigations.

Lisa is a leader of DLA Piper’s global cartel practice, a former trial attorney with the US Department of Justice’s Antitrust Division and a former Special Assistant US Attorney for the US Attorney’s Office for the Northern District of California. Fortune and Global Fortune 100, 200 and 500 companies and their executives routinely turn to Lisa for assistance in price-fixing, bid rigging and market allocation conspiracy matters. For more than a decade, she has successfully prosecuted or defended clients in nearly every major criminal cartel investigation by the Antitrust Division. Lisa has represented companies and individuals in a variety of sectors, including the automotive, aircraft and ocean transportation, telecommuni-cations, semi-conductors, pharmaceuticals, construction, chemicals, industrial products, real estate and technology, and other electronic components industries.

In addition, Lisa has extensive experience in all facets of FCPA investigations, defence and compliance. She has directed and conducted cross-border investigations of FCPA and other anti-corruption and related compliance matters. Her practice is global in scope, with experience in Argentina, Belize, Brazil, Canada, Chile, China, Costa Rica, Ghana, Honduras, Hong Kong, India, Korea, Mexico, the Philippines, Russia, Thailand and Venezuela.

Eric ChristoffersonDLA Piper LLP

Eric Christofferson is an experienced litigation and compliance lawyer in DLA Piper’s Boston office and is a member of the firm’s white-collar group. He represents corporations and individuals in government investigations, internal investigations, criminal and regula-tory proceedings, and civil litigation. Prior to joining DLA Piper, Eric served as an Assistant US Attorney in the District of Massachusetts, primarily prosecuting economic and other white-collar crime. Eric, whose practice focuses on the life sciences and financial services sectors, is an experienced courtroom lawyer who has tried more than 15 criminal and civil jury trials during his career.

DLA Piper LLP1251 Avenue of the AmericasNew York, NY 10020-1104United StatesTel: +1 212 335 4500Fax: +1 212 335 [email protected]@dlapiper.com [email protected]


The Practitioner’s G

uide to Global Investigations

Volume I: G

lobal Investigations in the United K

ingdom and the U

nited States

Visit globalinvestigationsreview.comFollow @giralerts on Twitter

Find us on LinkedIn

ISBN 978-1-83862-228-2

Fourth Edition

2020
