Internal Corporate Investigations, Compliance Investigations

Reasons for an Internal Investigation

The obligation of company management to investigate specific grounds for suspicion is enshrined in law. Typical circumstances that require an immediate internal investigation include:

• White-collar crimes: Suspected corruption, fraud, embezzlement, theft, money laundering, or anti-competitive collusion.
• Violations of labor law: In particular, allegations of sexual harassment in the workplace, discrimination, or bullying.
• Data Breaches: Suspected data misuse, data theft, or violations of the GDPR.
• Compliance violations: Breaches of internal policies (e.g., Code of Conduct) or legal requirements.
• Whistleblower Protection Act (HinSchG): Reports received through internal or external channels that indicate serious misconduct.
• Disclosure of trade secrets.

Goals & Benefits of a Professional Examination

An investigation conducted by external specialists serves more than just to shed light on the matter. It is a strategic tool that offers clear benefits for your company and its governing bodies:

1. Comprehensive investigation of the facts: Obtaining an objective and complete picture of the events.
2. Minimizing Liability: Compliance with the legal duty to provide information and protection of management and compliance officers against personal liability (officer liability/guarantor liability).
3. Protecting Reputation: Demonstrating a commitment to transparency and responsible conduct toward customers, business partners, the public, and investigative authorities.
4. Preservation of Evidence: Audit-proof documentation of evidence for potential labor or civil law proceedings.
5. Basis for targeted sanctions: Establishing a solid foundation for labor law measures (written warnings, termination) or the assertion of claims for damages.
6. Benefits in Dealing with Government Agencies: A proactive and thorough investigation can lead to significant reductions in penalties during investigations by the public prosecutor’s office or the antitrust authority.
7. Prevention: Identifying systemic vulnerabilities within the company and addressing them to prevent future violations.

The Process: Our Examination Process Meets the Highest Standards

We conduct internal investigations using a clearly structured and field-tested process that is based on international standards (ISO/TS 37008) and the German DICO Standard S 04.

1. Engagement & Investigation Plan

Following a strictly confidential initial consultation, we will work with you to define the scope of the investigation and its objectives, and draw up a detailed investigation plan.

2. Data Preservation and Analysis (E-Discovery)

We identify all relevant data sources (emails, files, digital documents) and secure them using forensic methods. We then—where appropriate—systematically analyze the data using specialized software to efficiently identify relevant information and evidence. This process is conducted in strict compliance with data protection regulations.

3. Employee Interviews

Interviewing witnesses and suspects is a key—but also sensitive—part of the investigation. Our interviews are conducted in accordance with the principles of due process. This means:

• Clear information about the purpose of the meeting.
• Explicit notification to the accused that their statement is voluntary and that they have the right to consult an attorney.
• No use of undue pressure or deception.
• Careful and precise recording of the statements.

4. Preparation of the Final Report

All findings are summarized in a comprehensive yet easy-to-understand final report. This report presents the facts, evaluates the evidence from a legal perspective, and provides a clear legal assessment of the events. It is designed to serve as a solid, admissible basis for your future decisions.

5. Advice on Follow-up Measures (Remediation)

Our work does not end with the report. We provide you with comprehensive advice on the possible and necessary next steps—from the implications under labor law to asserting claims for damages and strategic communication with government agencies.

Costs & Duration of an Internal Examination

The duration and cost of an internal investigation depend largely on the scope and complexity of the case—in particular, on the number of people involved, the volume of data to be reviewed, and the willingness of those involved to cooperate. Transparency is particularly important to us in this regard. Based on the investigation plan, we prepare a clear cost estimate and coordinate the budget closely with you.

Who appoints us.

We have extensive experience conducting internal investigations in medium-sized companies, nonprofit organizations (including sports, cultural, and educational institutions), and government agencies. These investigations are commissioned by the organizations’ executive management, compliance officers, or supervisory boards.

Attorney Dr. ROSTALSKI serves as a trusted legal advisor (compliance ombudsman) for, among others, ARD ZDF Deutschlandradio Beitragsservice, ROLAND Rechtsschutz-Versicherungs-AG, and numerous other organizations. He also provides advice on establishing compliance management systems in accordance with ISO 37301.

Attorney Dr. ROSTALSKI regularly serves as an expert for the TÜV Rheinland Academy, the Academy of the German Civil Servants' Federation, and the German Lawyers' Academy, where he gives lectures on conducting internal investigations in compliance with the law.

FAQ - Internal Investigations

Why should an outside attorney conduct the investigation? Only an outside attorney offers the necessary independence and objectivity and is bound by attorney-client privilege. This protects the results of the investigation (“legal privilege”) and ensures their acceptance by government agencies and courts. Hiring a lawyer specializing in criminal law also ensures that facts relevant to criminal law are correctly assessed.

What about data protection (GDPR)? Data protection is a key issue. We review every investigative measure—particularly the review of employee data—in advance to ensure it complies with data protection laws and document it carefully. Close involvement of the data protection officer is standard practice.

What rights do employees have? Employees have extensive rights, and compliance with these rights is crucial to the success of the investigation. These include the principles of due process, the right to a fair hearing, and, for those accused, the right to legal counsel. We clearly explain the rights and obligations of all parties involved.

Does the works council need to be involved? Yes, the works council has co-determination rights regarding many investigative measures. Involving the works council early on and in a strategic manner is essential to ensure that the investigation is not jeopardized and is conducted in compliance with the law. We have extensive experience in negotiating such company agreements.

Why are standards such as ISO 37008 and the DICO Standard important? These standards define the “state of the art” for professional investigations. They provide a clear, transparent framework for methodology, documentation, and fairness. Compliance with these standards is a mark of quality that significantly enhances the reliability and acceptance of investigation results by courts and government agencies.