Internal Investigations & Corporate Compliance

Businesses today are frequently challenged by the need to conduct internal investigations to examine allegations of wrongdoing. These inquires, and their aftermath, can pose serious risks to companies and their employees, damaging their reputation, interfering with their business operations and exposing them to heightened government scrutiny and potential criminal, civil and regulatory liability.

 Internal Investigations 

Mark Krum and the lawyers on his team have an impressive record of resolving these difficult and sensitive matters discreetly and favorably without prosecution. Our lawyers have represented organizations and their officers, boards and senior management in all phases of civil and criminal investigations, actions and prosecutions. We assist clients with responding to government and regulatory investigations, negotiating with and litigating against the Department of Justice, the SEC, FINRA and the various stock exchanges and state regulatory bodies. Whether allegations of misconduct arise internally, or as a result of a government investigation, whistleblower claims, an audit or from civil or criminal litigation, our lawyers act promptly, investigating the allegations and offering strategic solutions to resolve the situation and limit our clients’ exposure.

Our national white collar defense and securities team is headed by Mr. Krum, a nationally renowned former Assistant U.S. attorney and federal prosecutor. We provide experienced guidance, determining the facts, assessing legal exposure and recommending appropriate action, including development of, or modifications to, compliance programs.

When investigations uncover misconduct that may require notification to law enforcement authorities, we will strategize with clients to determine their reporting obligations and the best ways to limit their liability when reporting is required or advisable. With extensive experience in the litigation, regulatory and corporate governance matters that often parallel or arise as a result of internal investigations, our team can seamlessly and efficiently navigate the complexities which may occur.

Compliance Programs 

In the wake of corporate scandals, increased legislative and regulatory scrutiny, whistleblower actions and cross-border cooperation among law enforcement entities, companies need to establish and enforce active and effective corporate compliance programs to deter, detect and correct misconduct. Our lawyers work with clients to establish these programs and the internal controls necessary to support accuracy, accountability and transparency. Partnering with clients, we assist them in developing and implementing corruption compliance programs sufficient to cover conduct occurring anywhere in the world and aimed at minimizing the risk of violations of securities laws, accounting principles, company policy and regulatory schemes that govern their businesses.

Our internal investigations and corporate compliance team lead by Mr. Krum regularly assists clients with:

  • Crisis management
  • Responding to allegations of financial fraud and accounting irregularities, antitrust violations, breach of fiduciary duty and a host of other challenges
  • Conducting internal audits and forensic investigations
  • Recovering assets taken through illegal schemes
  • Conducting due diligence investigations to prevent and detect inappropriate conduct by officers, directors, employees and agents
  • Establishing special litigation and other board committees designated to investigate and address allegations of potential wrongdoing
  • Handling derivative, class action and other litigation related to alleged corporate misconduct
  • Monitoring and auditing systems to detect prohibited conduct
  • Counseling boards of directors and corporate officers in transactions with controlling stockholders
  • Addressing whistleblower allegations
  • Defending companies in federal and state government investigations, criminal prosecutions and civil enforcement actions

US Foreign Corrupt Practices Act (FCPA) 

The FCPA prohibits individuals and companies from making corrupt payments to foreign officials in order to secure an improper business advantage. Under the UK’s Bribery Act, it is not only illegal to bribe foreign officials, but commercial bribery and facilitation payments are prohibited as well. Numerous other governments have followed suit and have implemented their own anti-corruption legislation.

Since 1977, the anti-bribery provisions of the FCPA have applied to all US persons and certain foreign issuers of securities. With the enactment of certain amendments, the anti-bribery provisions of the FCPA now also apply to foreign firms and persons who cause, directly or through agents, an act in furtherance of such a corrupt payment to take place within the territory of the United States.

Companies and individuals doing business around the world face a substantial legal and economic challenge in trying to navigate these anti-corruption laws and regulations. Failing to navigate these regulatory waters can result in enormous costs and possible criminal prosecutions that can potentially devastate a company and its important reputation. Enhanced enforcement of anti-corruption laws, particularly by the US Department of Justice and the Securities and Exchange Commission, has resulted in a significant number of investigations and prosecutions for violations of the FCPA.

This robust enforcement of the FCPA has required both privately and publicly-held companies operating abroad to identify, evaluate and address corruption risks when doing business abroad. 

The Law Offices of Mark Jay Krum can provide FCPA due diligence and FCPA investigative services to address FCPA and anti-corruption concerns worldwide. Our dedicated anti-corruption team will promptly answer the important questions:  Is your company at risk?  How should your company increase its prevention efforts?  What voluntary disclosures should you make?  What sort of anti-corruption compliance program is recommended?