NCJ Number
69991
Date Published
Unknown
Length
27 pages
Annotation
This paper identifies the most useful information sources for those investigating financial practices of national and multinational corporations, especially those doing business in New Jersey.
Abstract
Legislation stemming from the Watergate, Lockheed, Equity Funding, and Koreagate scandals has greatly aided law enforcement agencies' investigations of corporations. Investigators from these agencies should focus on the integrity of management and its affiliations, on legitimacy of sources of equity capital and major debt, on pending litigation, and on disclosures under the 1977 Foreign Corrupt Practices Act (FCPA). Study of audited, unqualified financial statements should be given a lower priority. If the corporation's stock is publicly traded, data may be derived from annual reports filed with the Securities and Exchange Commission. Details on present stockholders, including the identity of street name holders operating through Cede and Company, must also be otained. When using records required under FCPA standards, investigators should focus on the company's written code of conduct, internal agreements, procedures for monitoring compliance with the code of conduct, and independent auditors' findings. The FCPA's antibribery provisions apply to all U.S. business enterprises. Rules enacted under the FCPA aim to prevent off-the-books slush funds and payment of bribes. In investigating financial practices, both State and Federal governments aim to assure that national and multinational companies are conducting their affairs honestly and fairly. Given the recent revelations regarding financial scandals, law enforcement agencies should give priority to white-collar crime. A bibliography of seven citations and appendixes presenting model corporate disclosure regulations and New Jersey investigation forms are included.