White Collar Crime

First and foremost, it is impossible to have an objective investigation into white collar crime when the investigator is a member of an internal investigations team. It is hyper-common for internal investigators to address issues of executive fraud, but they still have direct or indirect stakes in the outcome and consequences of that investigation. That’s why it’s important to contract a third-party investigator to document white collar crime. A private investigator can exhaust leads in the crime that internal investigators might ignore due to professional or personal bias because of their daily contact with the organization. An outside set of eyes can also identify potential subjects in a white collar investigation that might otherwise go unexplored. In this way, perpetrators of the fraud do not have the benefit of internal bias to cover their tracks.

One of the reasons leadership might be inclined to an internal investigation of a white collar crime is the invaluable discretion they can exercise. Discretion is one of the most important aspects of a quality white collar crime investigation. Conducting a fraud investigation of any kind under the nose of misbehaving executives can be tricky, and requires the skills of an investigator with a wealth of experience in undercover operations. In crimes like Ponzi scheme, insider trading, or securities fraud, any inkling from the white collar criminal that they are about to be exposed can lead to loss of witnesses and evidence that might be the foundation of the case. At Lauth, our private investigation team is comprised of former military and law enforcement personnel with diverse experience working undercover in the field. In addition to covert interviews of witnesses, Lauth private investigators can also document crucial evidence such as internal communications, reports, and other documents with relevant information to the white collar crime.

Should the results of an investigation eventually trigger a criminal charge or some form of litigation, Lauth private investigators are also highly adept at serving as expert witnesses in both civil and criminal court. When dealing with questions of fraud, having a witness independent of both employer and employee can go a long way in the courtroom. Our independence and brand of integrity add an additional layer of objectivity to our testimony, ensuring that results of the investigation are not easily challenged by opposing counsel.

In large corporations with levels of leadership populated by executives, white collar crime might be more common than in other businesses. If a corporation is experiencing repeated instances of white collar crime, there might be a much bigger problem. Repeated instances of white collar crime means the corporation might be suffering from poor corporate culture. Corporate culture is how policy, enforcement of that policy, and engagement between employees directly effect the quality of life within a workplace. When good policy is not in place, or when good policy is not enforced is usually the crack where fraud manages to penetrate a business. The good news is that a corporate culture audit can find the source of these oversights and provide leadership with recommendations on how to improve it. Learn more about our corporate culture audit program here.

Corporate restructure without intervention or due-diligence is one of the biggest mistake a business can make following a white collar fraud. The corporate culture within any company, without question, effects their bottom-line day to day. Just to name a few avenues, this occurs through operations, interpersonal relationships between employees, and a level of engagement from leadership that requires consistent enforcement of their established mission and values. Because a corporation’s internal culture often remains hidden from consumer view, it’s not uncommon for leadership to simply restructure operations. Unfortunately, if every aspect of a company’s culture is not examined, this solution is just a band aid.