CCEP Investigations and Enforcement 2 — Questions and Answers
Question 1: When an internal investigation reveals potential criminal conduct, which action should a compliance officer take FIRST?
- Immediately notify law enforcement
- Consult with legal counsel to assess reporting obligations (Correct answer)
- Terminate the implicated employee
- Disclose findings to the board of directors publicly
Correct answer: Consult with legal counsel to assess reporting obligations
Consulting legal counsel first ensures the organization properly evaluates its mandatory reporting obligations before taking further action.
Question 2: Which principle requires that an investigation remain confidential to protect both the subject and the integrity of the process?
- Transparency principle
- Need-to-know principle (Correct answer)
- Chain of custody principle
- Proportionality principle
Correct answer: Need-to-know principle
The need-to-know principle limits investigation information to those who must be involved, protecting integrity and privacy.
Question 3: A compliance team is conducting an investigation involving a senior executive. What is the most critical step to ensure objectivity?
- Allow the executive to review all interview notes
- Engage outside counsel or independent investigators (Correct answer)
- Have the executive's direct reports lead the investigation
- Limit the scope to financial irregularities only
Correct answer: Engage outside counsel or independent investigators
Engaging outside counsel or independent investigators removes potential conflicts of interest when investigating senior leadership.
Question 4: Under the False Claims Act, qui tam provisions allow which of the following?
- Employees to sue competitors on behalf of the government
- Private individuals to file suits on behalf of the government and share in any recovery (Correct answer)
- Government agencies to file anonymous complaints
- Compliance officers to bypass mandatory reporting requirements
Correct answer: Private individuals to file suits on behalf of the government and share in any recovery
Qui tam provisions allow private whistleblowers to file suit on behalf of the government and receive a portion of any financial recovery.
Question 5: What is 'spoliation of evidence' in the context of a compliance investigation?
- Deliberate destruction or alteration of evidence relevant to a legal proceeding (Correct answer)
- Sharing confidential investigation findings with regulators
- The proper archiving of completed investigation records
- Failure to notify employees of an ongoing investigation
Correct answer: Deliberate destruction or alteration of evidence relevant to a legal proceeding
Spoliation is the intentional destruction, mutilation, or alteration of evidence and can result in severe legal sanctions.
Question 6: Which document should be issued at the start of an investigation to preserve electronically stored information (ESI)?
- Subpoena
- Legal hold notice (Correct answer)
- Search warrant
- Discovery request
Correct answer: Legal hold notice
A legal hold notice (litigation hold) is issued to suspend normal document destruction and preserve potentially relevant ESI.
Question 7: When closing an investigation with insufficient evidence to substantiate allegations, what is best practice?
- Destroy all investigative files immediately
- Document the findings, rationale for closing, and retain records per policy (Correct answer)
- Notify the alleged wrongdoer that they were suspected
- Publicly announce the investigation was unfounded
Correct answer: Document the findings, rationale for closing, and retain records per policy
Documenting findings and rationale for closure, then retaining records, ensures accountability and supports future reference.
CCEP Investigations and Enforcement 2
When an internal investigation reveals potential criminal conduct, which action should a compliance officer take FIRST?