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Planning Investigations and Legal Background for Tough Interviews 193

• Criminal prosecution: This is neither an easy nor necessarily a cost-effective option. It is true
to say that most victims of fraud who prosecute are disappointed with the results. However,
community responsibilities are important and it is morally indefensible to let fat cat fraud-
sters escape unpunished.

• Civil litigation: This again can be a costly and difficult process, but your chances of success
are generally much higher through the civil, rather than the criminal, courts. You may also
consider taking civil action to recover assets, to discover evidence in the possession of the
suspects or third parties, to block funds or for some other reason. If civil action is an objec-
tive, you should instruct specialist litigation lawyers, as soon as possible, and follow their
advice.

• Recovery of the amounts lost: This should be a primary objective and may be achieved, at
the appropriate time, by negotiating with the criminals and their associates, through civil
recovery or by claiming under fidelity or computer crime insurance. However, check your
coverage now, before you need it and make sure it is appropriate.

• Getting back to business: Investigations take time and, unless properly controlled, they can be
disruptive and costly. It is thus important to keep management of the investigation separate
from ongoing business. Under no circumstances should the line manager responsible for
the operation or area in which the problem is suspected be put in charge of the investiga-
tion. It is imperative that all serious investigations are professionally handled using speci-
fied procedures and skilled resources. The time to get these in place is now, before the worst
happens.

• Improving controls: As soon as possible, controls should be reviewed and, where necessary,
improved but do nothing before the first step that might alert the suspects and allow them
to escape.

In most cases, the victims of fraud should take the toughest line necessary to get their money
back and get rid of the crooks.

You should also consider the adverse consequences of pursuing your objectives. For exam-
ple, the suspects may make allegations about, or threaten to expose other problems in, your
organization, with the objective of stopping the investigation. The fact is that if you give in to
blackmail you are headed on the path to failure and you should remember that the media is
not interested in fraud unless it concerns Buckingham Palace or some sexual scandal.

Publicity of fraud cases is very rare and transient

Authority to act

You must have the clearest understanding of your right to ask questions and the legal frame-
work, bearing in mind your objectives, and consider:

• Is the subject required to answer questions under the terms of his employment or some other
contract?

• Can the subject demand that a colleague, union representative or lawyer is present7?

7 In most investigatory interviews the answer is usually ‘No’ (see page [xref])