CCCP Government Investigation Response 3

Question 1

What does 'clawback' refer to in the context of a government investigation settlement?

Accepted Answer

Recovery of compensation previously paid to executives involved in misconduct

Answer

Clawback provisions allow companies to recover previously paid bonuses or compensation from executives who engaged in or were responsible for misconduct.

Question 2

Which agency has primary jurisdiction over Securities Exchange Act violations and typically leads investigations into public company fraud?

Accepted Answer

Securities and Exchange Commission (SEC)

Answer

The SEC has primary regulatory and enforcement authority over securities law violations, including fraud, insider trading, and disclosure failures by public companies.

Question 3

What is a 'parallel proceeding' in the context of government investigations?

Accepted Answer

Civil and criminal investigations conducted simultaneously by different government agencies

Answer

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.

Question 4

When a company employee invokes their Fifth Amendment right during a government investigation, what risk does the company face?

Accepted Answer

The government may draw adverse inferences against the company in civil proceedings

Answer

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.

Question 5

What is the primary purpose of a 'deferred prosecution agreement' (DPA) in a corporate investigation?

Accepted Answer

To allow a company to avoid conviction by meeting certain conditions over a set period

Answer

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.

(CCCP) Certified Corporate Compliance Professional Practice Test

(CCCP) Certified Corporate Compliance Professional Practice Test

CCCP Government Investigation Response 3