Government Investigation Response Flashcards
7 cards from real CCCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Government Investigation Response flashcards as text
What does 'clawback' refer to in the context of a government investigation settlement?
Answer: Recovery of compensation previously paid to executives involved in misconduct
Clawback provisions allow companies to recover previously paid bonuses or compensation from executives who engaged in or were responsible for misconduct.
Which agency has primary jurisdiction over Securities Exchange Act violations and typically leads investigations into public company fraud?
Answer: Securities and Exchange Commission (SEC)
The SEC has primary regulatory and enforcement authority over securities law violations, including fraud, insider trading, and disclosure failures by public companies.
What is a 'parallel proceeding' in the context of government investigations?
Answer: Civil and criminal investigations conducted simultaneously by different government agencies
Parallel proceedings occur when civil and criminal investigations into the same conduct are conducted simultaneously, often by different agencies, creating complex strategic considerations for the company.
When a company employee invokes their Fifth Amendment right during a government investigation, what risk does the company face?
Answer: The government may draw adverse inferences against the company in civil proceedings
While individuals have Fifth Amendment rights, in civil proceedings the government and courts may draw adverse inferences from employee invocations in ways that can harm the company.
What is the primary purpose of a 'deferred prosecution agreement' (DPA) in a corporate investigation?
Answer: To allow a company to avoid conviction by meeting certain conditions over a set period
A DPA allows prosecutors to defer criminal charges against a company in exchange for the company meeting specific conditions such as paying fines, implementing compliance programs, and cooperating with ongoing investigations.
What is the key distinction between a 'subject' and a 'target' in a grand jury investigation?
Answer: Targets have substantial evidence of guilt against them while subjects are under investigation but guilt is less certain
A 'target' is someone for whom the grand jury has substantial evidence of guilt, while a 'subject' is someone whose conduct is within the investigation's scope but against whom there is less evidence.
What best describes the 'common interest privilege' and its application in a government investigation?
Answer: A doctrine that allows multiple parties with a common legal interest to share privileged communications without waiving the privilege
The common interest privilege extends attorney-client privilege to communications shared among parties with aligned legal interests (such as co-defendants or related entities), provided they have a common legal objective.