Where criminal activity is committed by an employee, the company may suffer a double blow. Although it may be clear to directors that an individual’s actions were outside the scope of their authority, law enforcement agencies may take a different view. A company may then face time-consuming investigations aimed at establishing its complicity in the employee's offending behaviour.
We offer a sophisticated service to such companies in order to establish what has taken place. We provide clear and practical advice as to the company's reporting obligations and vicarious liability, and the pitfalls ahead. We create a safe space under the veil of privilege in which to explore legal strategies for damage limitation.
Our service covers a wide variety of situations including those where employees have carried out cash transactions in breach of money laundering regulations, offered or received inducements for contracts, or engaged in insider trading.
Where there are significant financial losses we also recommend that our business client employs a fraud tracing and recovery team. We are partnering several major city firms in such work, advising on how best to deploy the criminal justice machinery to ensure it supports the company’s goals rather than placing them in jeopardy.
We can also design systems and approaches to prevent and counter different kinds of fraud. Precautionary action of this nature will protect the companies’ interests both against unscrupulous employees and against regulatory action.