White Collar Attorneys Author Article on Recovering Internal Investigation Fees

Law360 | April.08.2013

This article, authored by white collar and corporate investigations partner Mark Mermelstein and white collar and corporate investigations of counsel Mona Amer, discusses the ability of corporate crime victims to recover internal investigation fees incurred as a result of a financial crime, as well as the resulting implications for white collar criminal defense lawyers in evaluating whether to try to reach a plea agreement or go to trial. An excerpt from the article is included below.

For corporate crime victims deciding how to recover losses associated with a perpetrator's wrongdoing, the fact the legal fees incurred during the investigation and prosecution may be recoverable as part of the perpetrator's criminal sentencing is a concept worthy of note: While a corporate victim suing a perpetrator in civil court can recover the losses directly attributable to the crime, such as embezzled proceeds, it is unlikely the corporate victim could recover the attorneys' fees spent investigating and suing the perpetrator. Therefore, as white collar criminal defense lawyers evaluate whether to plead out their solvent white collar clients or roll the dice at trial, they need to be aware that their clients could be on the hook for the attorneys' fees their former employers incurred investigating their client's wrongdoing.​