Are you prepared for a government probe?

• Author: Ifrah, A. Jeff
• Position: Ethics Corner

Government investigations are on the rise in the healthcare, defense, energy and insurance sectors. Agents from all levels of government have greater investigatory power through more inter-agency coordination and resource sharing.

Companies today thus find themselves face-to-face with government agents with greater frequency. When a company anticipates government contact, it can most effectively control that contact through a prepared response. However, what happens when a company receives an unexpected government visitor?

To prevent adverse consequences, companies should establish a response plan. By proper planning, a company can ensure full cooperation and honesty, minimize disruption to business and prevent a situation that is difficult to contain.

Employee Education. A fine line should be observed in responding to an agent: be courteous, but cautious. Investigators often form lasting impressions based on a company's willingness to cooperate from the outset. The company needs to send this message that it has nothing to hide. It thus should instruct all employees to be polite and accommodating. However, the company needs to be mindful that information provided to an agent could lead to misunderstandings, especially when employees provide inconsistent or uninformed responses. No information should be provided until the nature and the significance of the visit is established.

Employees should not respond to any question unless certain the response is complete and accurate; should politely accept a subpoena--but no statements as to company compliance should be made that are not first coordinated by the company's counsel. Employees should never provide tangible evidence during the service of a subpoena or during an interview--this may waive legal protections.

Preparing the Company Representative. Designating a single contact person to meet with government agents will help ensure that the company speaks accurately, and helps to control dissemination of information.

Identify the Investigator. Find out the agents' names and organizations. Request, review and record their credentials. And determine who, if anyone, the agents have contacted previously. Know before proceeding what, if any, contractual provision exists to authorize the visit.

Determine the Purpose of the Visit. First ask the agent the purpose of the contact. Be wary of visitors who say their purpose is "to talk" to individuals. Before serving a subpoena or search warrant...