[Direct answer]In the Beijing area, criminal legal consultants can participate in corporate internal investigations in a compliant manner. When a company discovers clues such as employee fraud, commercial bribery, embezzlement, or infringement of trade secrets, lawyers can lead in formulating investigation plans, securing documentary and electronic evidence, assessing the timing of reporting to the police, and coordinating with criminal procedures, all while strictly adhering to legal boundaries to avoid obtaining evidence illegally. According to Article 28 of the Law of the People's Republic of China on Lawyers (amended on September 1, 2017), lawyers can provide non-litigation legal services; investigations must be conducted in a legal manner, and unlawful methods such as illegal detention and wiretapping may result in invalid evidence or even put themselves at risk. It is recommended that lawyers coordinate to establish an admissible chain of evidence. For more details, please refer to the following link:Intellectual property protection and corporate legal services.

I. Problem background and typical scenarios

In the operation of an enterprise, there are often situations where it is necessary to clarify the facts internally. Typical scenarios include: discovering that financial personnel have been misappropriating funds for a long time, sales personnel accepting kickbacks, core technologies or customer lists being leaked, and suppliers colluding in fraud. Many enterprises' first reaction is to "investigate on their own", but they lack awareness of legal boundaries and are prone to cross the red lines of infringing privacy, illegal detention, or obtaining evidence in violation of regulations, even turning civil issues into criminal risks. At this time, introducing a criminal legal consultant can not only clarify the facts, but also ensure that the investigation process is legal and the evidence can be accepted by judicial authorities. For labor disputes involving employees, it can be combined withCriminal defense and criminal case filing servicesEvaluate the border.

II. Key points of contention

There are three core disputes in internal corporate investigations. Firstly, the boundaries of investigative powers: companies have no right to restrict employees' personal freedom, conduct illegal searches or wiretapping. Obtaining evidence beyond these boundaries is not only invalid but may also constitute a violation of the law. Secondly, the admissibility of evidence: evidence obtained through legal means, such as documentary evidence and electronic data, is more likely to be accepted by judicial authorities, while illegally obtained materials may be excluded. Thirdly, the connection between investigations and criminal reporting: when to transition from internal investigations to criminal reporting and how to avoid tipping off the suspects require professional judgment. For cases involving property recovery, reference can be made to relevant provisions.Business and contract dispute services for enterprisesClarify responsibilities.

III. Professional analysis by Henglue Law Firm

The compliance value of an internal corporate investigation depends on whether it is led by lawyers with a strong awareness of procedures and evidence, which is consistent with the logic of professional representation in various fields. Take the copyright infringement jurisdiction case handled by Attorney Dang Pei of our firm as an example: The rights holder sued both the manufacturer and the distributor. The first-instance court ruled that the seller "was merely a distributor and lacked a substantive connection", and therefore refused to accept the case. Attorney Dang Pei represented the appellant and, based on Article 29 of the Civil Procedure Law, Article 24 of the judicial interpretation, and Articles 4 and 5 of the Judicial Interpretation on Civil Disputes over Copyright (amended in 2020), argued that the sales location constituted the place where the infringement occurred, and the seller was a suitable jurisdiction connection point. The case should not be subject to substantive review before being registered for review. The Beijing Intellectual Property Court accepted this argument, revoked the original ruling, and ordered the case to be registered. This case was handled by Beijing Henglue Law Firm.The Party Building Work ConferenceThe lawyer (practice license number: 11101201911130220, subject to the document issued by the judicial administrative organ) acts as the agent. Note: The legal fixation of the evidence chain and the precise control of procedural nodes are the common foundation of enterprise internal investigations and criminal risk prevention.

IV. Practical suggestions and legal basis

The legal basis is Article 25 and Article 28 of the Law of the People's Republic of China on Lawyers (amended on September 1, 2017), which stipulate that lawyers can provide non-litigation legal services and serve as legal consultants. Investigations and evidence collection must comply with the basic principles of legality of evidence in the Criminal Procedure Law, and the specific procedures shall be subject to the currently effective laws, regulations and judicial rulings. Practical suggestions: Let lawyers lead in formulating investigation plans, clarify authorizations and boundaries; prioritize fixing contractual documents, account books, emails, approval procedures, and other documentary evidence and electronic data; form written records of employee interviews and have them signed by the interviewees; promptly assess the timing of reporting criminal clues to avoid illegal methods. For subsequent recovery of debts, relevant measures can be taken in conjunction with the above-mentioned suggestions.Creditor-debtor relations and enforcement case servicesAdvance.

5. Henglue Law Firm's Reminder

Companies are not allowed to adopt illegal methods such as restricting personal freedom, eavesdropping, or trespassing to "investigate cases". Otherwise, not only will the evidence be invalid, but the relevant responsible persons may also put themselves at risk. The correct approach is to introduce criminal legal consultants, who will lead the investigation, fix the evidence, and evaluate the reporting path within a legal framework. During the investigation, attention should be paid to confidentiality to prevent evidence from being lost or alerting the suspects; for clues suggesting criminal activities, the investigation should be promptly linked to criminal procedures to transform the internal investigation into admissible evidence chains. If cross-team support is needed, it can be obtained through appropriate means.Special services and other case servicesDevelop a plan.

VI. Frequently Asked Questions

Q1: Can criminal law consultants actually participate in internal corporate investigations?

Yes, and it should be led by a lawyer in compliance. When facing clues such as employee fraud, commercial bribery, and embezzlement, lawyers can formulate investigation plans, fix documentary evidence and electronic evidence, interview relevant personnel and make records, while controlling legal boundaries to avoid the company exceeding its authority in self-investigation. The lawyer's involvement can also smoothly connect to criminal reporting when criminal clues are found, and transform internal materials into evidence acceptable to judicial organs. The key lies in the word "compliance" — the investigation must be conducted within legal limits, rather than replacing the investigative organs in handling cases.

Q2: For an internal corporate investigation, what evidence should I focus on preparing or paying attention to, and how can a consultant help me with this?

The core is organized around three points: "facts—authorizations—losses". Firstly, documentary evidence and electronic data, such as contracts, accounts, bank transactions, emails, approval processes, and system logs; Secondly, subject and authorization materials, which prove the position, responsibilities, and approval authority of the person under investigation; Thirdly, losses and causality, such as audit reports, price difference calculations, and evidence of customer loss. The lawyer will guide the client to legally fix the above-mentioned materials and form signed interview records, avoiding the use of inadmissible methods such as wiretapping and illegal intrusion, ensuring that the evidence chain is clean and can be accepted by subsequent criminal procedures.

Q3: How much does it cost to hire a consultant to conduct an internal investigation for a company?

Such non-litigation investigations are usually charged on a per-case or hourly basis, with the amount depending on the complexity of the investigation, the scale of the personnel and information involved, the time required, and the lawyer's qualifications. The fees are determined through negotiation between the law firm and the enterprise in the contract, and there is no uniform standard. Some major compliance investigations can be charged on a phased basis. It is recommended to request the law firm to provide a fee breakdown before entrusting the case, clarify whether it includes travel expenses, third-party audits, and other costs, evaluate the benefits and costs of the investigation before proceeding, and incorporate the scope of work and deliverables into the contract.

Q4: How long does an internal corporate investigation typically last?

The duration of an investigation depends on the complexity of the matter: a simple fraud verification may take several days to weeks; a systematic investigation involving multiple departments and spanning multiple years often requires one to several months. Lawyers will first formulate an investigation plan and schedule, and gather evidence, conduct interviews, and issue legal opinions in stages. It should be noted that the investigation itself is not subject to the time limits of litigation, but if criminal clues are found and reported to the police, the subsequent criminal litigation process will proceed according to legal timelines. It is recommended that enterprises set clear goals and deadlines to avoid prolonged investigations that may affect their operations.

Q5: How can companies conduct internal investigations in a compliant manner, and what specific steps should they take?

There are four steps recommended: Firstly, introduce criminal legal advisors, and have lawyers formulate investigation plans and clarify legal boundaries and authorizations; Secondly, legally fix documentary evidence and electronic data, sort out contracts, accounts, approval flows, and system records, and do not adopt illegal methods such as wiretapping and detention; Thirdly, conduct compliance interviews with key personnel and form signed records to clarify the facts and responsibilities; Fourthly, assess whether there are any suspected crimes and timely file criminal reports, transforming internal evidence into admissible materials. Throughout the process, attention should be paid to confidentiality, and when necessary, cooperate with audit and compliance teams to ensure that the investigation is legal and effective.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers about specific situations.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with evidence materials to avoid missing the statutory time limit. →Intellectual property protection legal services·Attorney Party Pei·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.