CCEP Investigations and Enforcement 3 — Questions and Answers
Question 1: Which factor most strongly indicates that an internal investigation requires escalation to outside counsel?
- The allegation involves a low-level employee
- The matter involves potential criminal liability or government inquiry (Correct answer)
- The complaint was submitted anonymously
- The incident occurred in a foreign country
Correct answer: The matter involves potential criminal liability or government inquiry
Potential criminal liability or a government inquiry significantly raises legal complexity, warranting involvement of outside counsel.
Question 2: Under the Upjohn warning, employees being interviewed during an internal investigation must be informed that:
- They are entitled to union representation during questioning
- The attorney represents the company, not the employee personally (Correct answer)
- All statements will remain confidential from regulators
- The interview is voluntary and they may refuse to participate
Correct answer: The attorney represents the company, not the employee personally
An Upjohn warning clarifies that corporate counsel represents the company, so the employee understands attorney-client privilege belongs to the company.
Question 3: What is the primary purpose of maintaining a chain of custody during an investigation?
- To ensure all employees are interviewed in order of seniority
- To document who handled evidence and when, preserving its integrity (Correct answer)
- To establish the timeline of the alleged misconduct
- To prioritize which documents to review first
Correct answer: To document who handled evidence and when, preserving its integrity
Chain of custody documentation ensures evidence is handled properly and can be authenticated as unaltered if used in legal proceedings.
Question 4: A compliance officer discovers that a manager retaliated against an employee who reported misconduct. What is the most appropriate immediate action?
- Counsel the manager privately and document the conversation
- Address the retaliation through HR and escalate to senior leadership or legal (Correct answer)
- Transfer the reporting employee to a different department
- Wait to see if the employee files a formal complaint
Correct answer: Address the retaliation through HR and escalate to senior leadership or legal
Retaliation undermines the compliance program; it must be promptly addressed through HR and escalated to prevent further harm and legal exposure.
Question 5: Which of the following best describes 'prosecutorial discretion' as it applies to corporate enforcement?
- A company's right to choose which internal misconduct to investigate
- A government agency's authority to decide whether and how to pursue charges (Correct answer)
- A court's ability to reduce penalties for cooperative defendants
- A compliance officer's power to impose internal sanctions
Correct answer: A government agency's authority to decide whether and how to pursue charges
Prosecutorial discretion refers to the government's authority to decide whether to bring charges, what charges to bring, and how aggressively to pursue a case.
Question 6: What is a 'deferred prosecution agreement' (DPA) in corporate enforcement?
- An agreement where a company permanently avoids all charges by paying a fine
- An agreement suspending prosecution if the company meets specified conditions over a period of time (Correct answer)
- A deal allowing executives to avoid prison in exchange for testimony
- A court order requiring a company to delay its legal defense
Correct answer: An agreement suspending prosecution if the company meets specified conditions over a period of time
A DPA suspends prosecution contingent on the company fulfilling obligations such as paying penalties, cooperating, and improving compliance programs.
Question 7: Which element of cooperation credit does the DOJ most emphasize when evaluating corporate self-disclosure?
- Speed of the initial self-report
- Voluntary disclosure before government investigation begins (Correct answer)
- Size of the remediation payment offered
- Number of employees terminated for misconduct
Correct answer: Voluntary disclosure before government investigation begins
Voluntary self-disclosure before a government investigation is a key factor the DOJ considers when awarding cooperation credit and reduced penalties.
CCEP Investigations and Enforcement 3
Which factor most strongly indicates that an internal investigation requires escalation to outside counsel?