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
Under the DOJ's Corporate Enforcement Policy, what is required for a company to receive the maximum cooperation credit?
Answer: The company must voluntarily disclose, fully cooperate, remediate, and disgorge all profits
To receive maximum cooperation credit, the DOJ requires voluntary self-disclosure, full cooperation including providing all facts about individuals involved, timely remediation, and disgorgement of profits.
What does 'obstruction of justice' in a corporate investigation context most commonly involve?
Answer: Destroying documents, coaching witnesses, or impeding government access to evidence
Obstruction of justice typically involves actions like document destruction, witness tampering, or any effort to impede the government's ability to gather evidence in an investigation.
When should a company's compliance team involve outside legal counsel during a government investigation?
Answer: As early as possible, ideally upon receipt of any government inquiry, CID, or subpoena
Outside counsel should be engaged early—ideally upon first notice of a government inquiry—to ensure privilege protection, provide strategic guidance, and manage communications with regulators.
What is a 'civil investigative demand' (CID) and which agency commonly uses it?
Answer: A pre-litigation discovery tool used by agencies like the DOJ and FTC to compel document production
A CID is a compulsory pre-suit discovery tool used by agencies such as the DOJ and FTC that requires recipients to produce documents, answer interrogatories, or provide testimony without filing a lawsuit.
What is the significance of the 'McNulty Memo' in the context of corporate privilege during investigations?
Answer: It limited DOJ prosecutors from routinely requesting privilege waivers as a condition of cooperation credit
The McNulty Memo (2006) and subsequent Filip Memo (2008) restricted prosecutors from routinely demanding privilege waivers, recognizing that such demands threatened the integrity of the attorney-client relationship.
In an SEC enforcement action, what is a 'Wells Notice' and what does it signal?
Answer: A preliminary notice informing a party that SEC staff intends to recommend enforcement action, allowing a response
A Wells Notice informs the recipient that SEC staff plans to recommend enforcement action and invites a Wells Submission—the recipient's opportunity to argue against bringing charges.
What is the primary role of a compliance monitor appointed as part of a DPA or NPA settlement?
Answer: To independently assess and report on the company's compliance program and remediation efforts
A compliance monitor independently evaluates whether the company is meeting its obligations under the agreement, reporting findings to the government without managing company operations.