When a trusted employee is discovered to have committed fraud, embezzlement, or other forms of white collar crime, the business is often left dealing with more than just the immediate financial loss. A lawyer, like a general counsel lawyer, knows that there are legal, operational, and reputational issues that must be addressed quickly and carefully. This blog is thanks to our friends at Volpe Law LLC, who assist companies with legal issues tied to internal misconduct, fraud investigations, and business risk management.
Acting Quickly To Protect Your Business
Once misconduct is discovered or suspected, one of the most important steps is securing legal guidance immediately. General counsel—whether in-house or retained externally—can help assess the situation, determine what evidence needs to be preserved, and guide the company through the next steps. General counsel can help protect the company’s interests by advising on employee interviews, internal investigation procedures, and when to involve law enforcement or regulatory agencies. This kind of support is particularly valuable when the conduct could lead to government scrutiny or civil litigation.
Reviewing Internal Controls And Contracts
White collar crime often highlights gaps in internal processes, such as a lack of oversight in accounting, weak approval chains, or overly broad access to financial systems. General counsel can help review those vulnerabilities and propose changes to reduce the chances of future misconduct.
They also examine employment agreements, confidentiality clauses, and any relevant internal policies to determine how the company can respond to the conduct, whether through termination, recovery of assets, or litigation. A clear and lawful response is important not only for resolving the issue at hand but for setting a standard within the organization.
Working With Law Enforcement Or Regulators
If the crime involves significant financial harm or triggers regulatory reporting obligations, general counsel can coordinate with law enforcement or government agencies. This might include preparing reports, responding to subpoenas, or assisting with interviews.
In some cases, the business may need to take a formal position as a victim in a criminal proceeding. In other cases, the company may be required to cooperate with broader investigations. General counsel helps manage these responsibilities while protecting the company’s interests throughout the process.
Addressing Reputational And Internal Fallout
Allegations of employee fraud or theft can affect the morale of other team members, damage relationships with clients, and raise concerns with investors or partners. A general counsel can work with leadership to develop internal communication strategies that are accurate, legally sound, and focused on restoring trust.
They also help evaluate the risk of civil claims from customers or vendors, and can guide the company in deciding whether to pursue legal action against the former employee or others involved.
Getting The Right Legal Support In Place
When employee misconduct turns into a legal issue, it’s important for business owners to take immediate and strategic action. Hiring general counsel allows your business to respond confidently, protect its interests, and reduce long-term damage. Our friends at Volpe Law LLC discuss how legal support during these moments can help businesses recover, correct internal issues, and move forward with better safeguards in place, so give their office a call today