Inspector General Investigations

The various Offices of Inspector General (OIG) investigate waste, fraud and abuse within government agencies and report their findings to the United States Congress. Since the Inspector General Act of 1978 was enacted, the number of federal offices of inspectors general has increased from 12 to more than 75—resulting in robust and aggressive enforcement activity. Government employees, government contractors and recipients of grants, loans or subsidies can be subjects of investigations.

An OIG can also subpoena entities that may have relevant information, regardless of whether they received either government funding or a government contract. There are potentially serious collateral consequences to being investigated by an OIG or receiving an OIG subpoena. An OIG can refer potential violations of federal criminal law to the Department of Justice (DOJ).

For potential civil violations, the OIG may also refer the matter to the DOJ for alleged false claims or other violations, impose civil penalties under federal law and/or refer the matter to their respective agencies for administrative action, including suspension or debarment. OIG investigations otherwise may be coordinated or overlap with investigations by Congress, the DOJ, State Medicaid Fraud Control Units (MFCUs) and other law enforcement agencies.

Akin’s global investigations & compliance practice has a dedicated inspector general investigations team with deep experience in specific sectors. We have led important investigations, both in private practice and in government service, in connection with OIG investigations across the various federal agencies.

Our team includes lawyers who have spent years conducting, interfacing with and representing clients in connection with inspector general investigations, as well as navigating parallel congressional and other related investigations.

Within the government, our team has served in senior level positions at agencies with the most active inspectors general—such as the DOJ, the Department of Defense (DOD) and the Department of Health and Human Services (HHS). Through our team’s experience on both sides of high-profile investigations, we:

Have developed strategies that address broader reputational and business considerations, including the investigation’s potential impact on parallel criminal, civil and regulatory proceedings.
Have a thorough understanding of the Inspector General Act and the investigative powers and authorities it provides OIGs.
Understand how OIGs conduct investigations and make decisions regarding referral and resolution.
Understand the unique relationship between OIG investigations and Congress.

Services In-Depth

Inspector General Investigations

Government investigations, including inspector general investigations, are part of Akin’s core areas of experience. Our inspector general investigations team harnesses its extensive public and private sector experience in representing corporations, institutions and individuals to help our clients develop strategies and respond to the challenges they face when confronted with inspector general investigations.

Our team assists clients with investigations initiated by any OIG. Our in-depth understanding of the workings of OIGs, regulatory and law enforcement agencies and Congress allows us to help clients comply with OIG subpoenas appropriately, including:

Negotiating their scope to mitigate burden.
Reaching appropriate resolutions of investigations.
Addressing related investigations or inquiries that arise in Congress, the DOJ or other law enforcement agencies.
Implementing measures either to prevent noncompliance or to detect and correct instances of noncompliance.

CARES Act Investigations

Given Akin’s direct involvement in the development and consideration of the $2.2-trillion Coronavirus Aid, Relief and Economic Security (CARES) Act—the largest stimulus legislation in U.S. history—we are intimately familiar with the provisions and eligibility.

From our broad experience with OIGs generally, and from our specific experience with prior stimulus efforts, including the 2008 Troubled Assets Relief Program (TARP), we know that the recipients of funds and other relief under the CARES Act will be subject to significant scrutiny that could result in years of investigations into fraud, waste, abuse and misconduct by inspectors general, congressional committees and other agencies.

Borrowers and lenders should also be aware of the potential for liability under the False Claims Act (FCA), including the potential for FCA qui tam actions. We expect oversight of all COVID-19-related stimulus to continue for years.

As part of its comprehensive oversight structure, among other mechanisms, the CARES Act established the Office of the Special Inspector General for Pandemic Recovery (SIGPR), granting extensive oversight of the $500-billion corporate relief fund—including the authority to carry out audits, reviews and investigations, issue administrative subpoenas, execute warrants and refer civil and criminal matters to the DOJ and other law enforcement agencies.

We’re ready to help our clients prepare for investigations, as well as with navigating all CARES Act compliance requirements and applicable regulations.

Representative Matters

Represented a major insurance and financial services company in regulatory and congressional investigations stemming from the financial crisis and consequent federal intervention, including by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The investigations that followed the company’s receipt of TARP funds covered various issues, including executive compensation,
company events and alleged insider trading. This high-profile investigation included one of the first congressional hearings related to the financial crisis of 2008 and, in many respects, set the table for the dialogue—legal, regulatory and otherwise—that would follow.
Represented a regional bank in a SIGTARP investigation, successfully convincing SIGTARP to close the investigation with no enforcement action or referral.
Successfully represented a Big Four consulting firm in a State Department OIG investigation, resulting in no enforcement action taken against the company.
Represented a senior General Services Administration (GSA) official in connection with congressional and GSA OIG investigations, including a high-profile congressional hearing regarding GSA spending practices.
Represented a defense contractor supporting operations in Iraq in a Department of the Army OIG investigation into bribery and FCA allegations.
Assisted a major defense contractor with response to a subpoena from the DOD OIG for records concerning previously disclosed potential Buy American Act (BAA) violations by a subcontractor.

Represented a major global freight forwarder in a qui tam lawsuit and associated Anti-Kickback Act investigation by the DOD OIG Criminal Investigative Service into allegations of overcharging for transportation of U.S. Army equipment to Iraq.
Represented a provider of addiction treatment services in an investigation by a state MFCU into the provider’s billing practices.
Responded to subpoenas from the MFCU regarding how nursing homes in New York responded to the COVID-19 crisis in providing care to patients.
Represented a highway products manufacturer in resolving a suspension and debarment show cause notice issued by the U.S. Federal Highway Administration (FHWA) following a judgment entered against the company in a FCA qui tam action, which was overturned in our client’s favor. The show cause notice was resolved through an administrative settlement agreement and a three-year monitorship, affirming that the company is a responsible federal contractor and confirming that there will not be any suspension or debarment action. The FCA judgment also triggered an OIG investigation of the FHWA in which the company provided information.