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LEGAL REPORT/FORENSICS & CRIMINAL LAW in the field for help and guidance to get them through it, because there are a lot of potential risks of unintended consequences when you don't think about everything you need to be think- ing about." In fact, one of the aspects that should be top of mind is for the in-house counsel not to underestimate how far-reaching the fraud may be and the number of stakeholders affected. Steger says the list of constituents may be "longer than you think and includes the company's custom- ers, suppliers, staff, auditors, insurance company, joint venture partners, the pub- lic, lenders, and shareholders." Steger says that when a fraud is first alleged, the first hope of most companies is that it's a small issue, that it only affects one person, and is an isolated incident. STAY ON TOP OF LEGISLATIVE DEVELOPMENTS NEW EDITION ONTARIO LABOUR & EMPLOYMENT LEGISLATION 2011-2012 PREPARED IN CONSULTATION WITH THE LAW FIRM McARTHUR VERESCHAGIN & BROWN LLP Stay up-to-date on the significant changes in labour and employment law. Fully revised, Ontario Labour and Employment Legislation 2011-2012 includes important Acts and selected regulations. • Accessibility for Ontarians with Disabilities Act, 2005 • • Crown Employees Collective Bargaining Act, 1993 • Human Rights Code • Pay Equity Act Employment Standards Act, 2000 Labour Relations Act, 1995 • Occupational Health and Safety Act • Ontarians with Disabilities Act, 2001 • • Public Service of Ontario Act, 2006 ONE TIME PURCHASE ORDER # 950196-64437 $95 Softcover approx. 1292 pages June 2011 1195-0196 ON SUBSCRIPTION ORDER # 950196-64437 $85 Softcover approx. 1292 pages June 2011 1195-0196 Multiple copy discounts available • Workplace Safety and Insurance Act, 1997 • plus important regulations, rules and information bulletins NEW IN THE 2011 EDITION Under the Employment Protection for Foreign Nationals Act (Live-In Caregivers and Others), 2009 • New Procedural Guide, Information Bulletin, and Form A-114 Under the Human Rights Code • New Rules of Procedure for applications under Part IV of the Code AVAILABLE RISK-FREE FOR 30 DAYS Order online at www.canadalawbook.ca Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800 Shipping and handling are extra. Prices subject to change without notice and subject to applicable taxes. CANADA LAW BOOK® "However, what's incumbent upon the company — its fiduciary duty to both the internal constituents as well as share- holders and their customers and suppli- ers — is to get to the bottom of it and to understand how extensive this potential fraud is. Is it just the one guy in purchas- ing or is it the entire department going all the way up to the senior vice president or even the CFO or CEO? And from the external side of things, if there are colluding vendors you need to be sure that you've cast out the net wide and far enough that you've stopped the bleeding, you've plugged the hole, and that you've caught everyone that was involved." A large part of the quarterback's job, says Steger, deals with communication to external parties, a portion of it obviously deals with the legal rights of the compa- ny, the suspect, potential colluding out- side parties, and other parties that need to be directed and managed. Steger says the forensic accountants are the ones to help determine how it was done, when it was done, who it was done by, how much is involved, and figuring out all the par- ties and their relationships. Another key question is to determine if this is really fraud as opposed to mismanagement. "Once you know, or at least have a good feel for what happened, there's no point candy coating it or backing away from it. It is what it is." Stitt advises that once an allegation is made, a number of wheels are set in motion. She says if loss is occurring, it has to be stopped. There is the need to preserve evidence and do timely inter- views so that recollections are captured while the events are fresh. And there is the need to deal with reputational con- cerns. In addition, the outside lawyer can set up the appropriate claims for solicitor-client privilege so the confiden- tiality of the investigation is maintained. "Having an external counsel involved and having information flowing to them and getting their advice as you go along is quite critical to setting up a claim for solicitor-client privilege right from the outset. It has a very high level of protec- tion in Canada," she says. The other thing that an external legal counsel brings to the table, says Stitt, 52 N O VEMBER / D ECEMBER 2011 www. CANADIAN Lawyermag.com