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Internal Investigations

Kostelanetz LLP has extensive experience handling internal investigations. We are often called on by organizations in need of an independent inquiry and analysis of alleged misconduct, or in need of a process to identify flaws within an organization’s operations to develop solutions internally, before they become problems externally.  The firm has conducted a diverse variety of investigations for all types of organizations, including foreign and domestic financial institutions, large, medium, and small companies, non-profit organizations, and corporate boards of directors.  We have also handled investigations with a global scope, and have conducted interviews and gathered evidence abroad.

The firm’s Director of Investigations is the former Chief of the IRS’s Criminal Investigations Unit. Several of our attorneys have served as federal prosecutors in the Southern District of New York and the U.S. Department of Justice’s (DOJ) Tax Division, and as state prosecutors in New York, Virginia, and Massachusetts. In addition, one of our partners was appointed by the Attorney General of the State of New York as Special Counsel to conduct an investigation into the New York State Police.  Our attorneys have a deep understanding of how governmental authorities operate, and the firm has the ability to assemble a seasoned team quickly, investigate matters quietly and efficiently, and report its findings and recommendations objectively.

Internal investigation of a not-for-profit affordable housing developer with respect to suspected embezzlement by an employee. Obtained evidence of embezzlement that formed basis of employee’s termination and subsequent prosecution by the Manhattan District Attorney’s Office. Recommended improvements to client’s internal policies and procedures aimed at preventing and detecting theft, waste, fraud, and abuse.

Internal investigation of a quasi-governmental corporation into allegations of embezzlement and other misconduct on the part of several employees. Investigation resulted in termination of one employee and implementation of recommendations for improving client’s policies and procedures aimed at preventing and detecting theft, waste, fraud, and abuse.

Internal investigation of a not-for-profit organization’s operations to determine its compliance with a government contract relating to job placements.  Conducted employee interviews, reviewed documents, and reported findings to the Board of Directors. Also represented the client in connection with various subpoenas and governmental inquiries.

Internal investigations of several financial institutions based in Switzerland in preparation for presentations to DOJ concerning the institutions’ compliance with U.S. tax laws. Conducted interviews in Switzerland of bank employees, and reviewed and analyzed voluminous, complex financial data.

Internal investigation for an international, privately held company concerning sexual harassment/discrimination allegations involving a senior executive. The investigation was consistent with the Supreme Court’s employment law standards in Burlington Industries, Inc. v. Ellerth, and Faragher v. City of Boca Raton. 

Internal investigation of a major engineering contractor into allegations that a former government employee conspired with company employees to manipulate cost projection data on a public works project. 

Internal investigation and report to the Board of Directors of a publicly traded financial company in connection with SEC and IRS compliance. The investigation was consistent with best practices after Dodd-Frank and Sarbanes-Oxley.

Numerous internal investigations related to corporate tax compliance, including:

  • large real estate developer with a multi-million-dollar cash payroll
  • private equity fund’s tax reporting compliance
  • a pre-IPO tax compliance review for a major defense contractor

Internal investigation of a not-for-profit organization as to whether a former employee had violated the organization’s contract with a large municipality.

Internal investigation of a trust and estates law firm after it was discovered that a partner had stolen from a trust fund under the firm’s supervision.  

Internal investigation into personnel issues at an organization responsible for major transportation project in New York City area. Made recommendations to the Board of Directors.