Financial and Securities Investigations Track: Interviews and Interrogation October 20, 2010

1. Financial and Securities Investigations Track:Interviews and InterrogationOctober 20, 2010 Moderator: John McDermott, Vice President, Corporate Compliance, CA Inc. Panelist: Mark Gerber, Partner, PricewaterhouseCoopers

2. Agenda • Defining Interviews and Interrogations • Structure of an Interview • Interview Notes • Characteristics of a Successful Interviewer • Evaluating Truthfulness

3. Defining Interviews and Interrogations Definition of an Interview • A conversation with one or more purposes • To gain information and/or simultaneously impart information

4. Defining Interviews and Interrogations Elements of an Effective Interview • Clear understanding of each participant’s role • Control the flow of information • Ensure that all necessary agenda items are addressed

5. Defining Interviews and Interrogations Best Preparation for an Effective Interview • Draft interview outlines which incorporate the key documents • Attend interviews as the “second chair” • Draft interview memoranda • Conduct as many interviews as possible

6. Section II • Defining Interviews • Structure of an Interview • Interview Notes • Characteristics of a Successful Interviewer • Evaluating Truthfulness

7. Structure of an Interview Structure of an Interview • Preparation • Introduction • Rapport • Questions • Verification • Catch-all questions • Conclusion • Critique (post mortem)

8. Structure of an Interview Preparation • Review relevant documents to identify those materials that will either assist in conducting the interview or for which an explanation is needed • Understand the interviewee’s background, including current and former job positions • Prepare an outline detailing the topics to be addressed and the documents to be used in connection with each topic • Select a location that will facilitate the interview • Never conduct an interview alone – Select the attendees in order to facilitate the interview • Decide who will take notes and through what method

9. Structure of an Interview Introduction Use a standard introduction for each interview you conduct. At minimum, provide the interviewee with: • Your name and company affiliation • The name of the other attendees • The authority by which you are conducting the interview • The purpose of the interview • A basic understanding of any legal issues or implications • An opportunity to ask questions regarding the purpose of the interview

10. Structure of an Interview Building Rapport • Builds rapport: • Demonstration of knowledge • Demonstration of professionalism • Demonstration of empathy • Elements of common ground or mutual respect • Potentially destroys rapport: • Body language and facial expressions • Tone • Form or content of question

11. Structure of an Interview Form of Questioning • Direct questions involve the use of who, what, where, when, why & how • Leading questions begin with phrases like “Isn’t it true?” • Most interviews will involve a combination of direct and leading questions • Open-ended questions may be appropriate where the witness is cooperative or talkative. Pursue responses with follow-up questions, which may be direct or leading in nature • Tone and content of the questions are more important than the form

12. Structure of an Interview Verification • Paraphrase key responses to ensure mutual understanding • Enhances witness recall and demonstrates your desire to accurately record the witness’s statement • Signal to the note taker the importance of the information • Provides an opportunity to ensure accuracy

13. Structure of an Interview The use of “Catch All” Questions • Positive prompts: • “Is there anything else that we should know or discuss regarding this subject?” • “Are there any other documents that would shed light on this subject?” • “Who else would you suggest we speak with regarding this subject?” • Negative prompts: • “Is that your entire story or do you have more to add?” • “Let’s have the rest of the story, now.”

14. Structure of an Interview Conclusion of the Interview • Ensure that you have covered all topics necessary to complete the interview • If additional time is needed or a likelihood that an additional interview will be requested, advise the witness and attempt to gain his or her commitment of continued cooperation • Always express appreciation for the time and effort expended to complete the interview • If appropriate, permit the witness to ask any questions he or she may have regarding the investigative process or the subject matter of the investigation, or to express any concerns that he or she may have

15. Structure of an Interview Critique (Post Mortem) One way to gauge the effectiveness of the interview is to do the post mortem immediately following its completion. Discuss with your colleagues whether: • You covered the topics adequately and efficiently • You explored the responses provided to ensure that the witness’s perspective was clearly understood • You conducted the interview in a manner that was conducive to good note taking • You conducted the interview in a manner that built trust and garnered respect

16. Section III • Defining Interviews • Structure of an Interview • Interview Notes • Characteristics of a Successful Interviewer • Evaluating Truthfulness

17. Interview Notes Note Taking during Interview • Who takes notes and how are they recorded? • How many sets of notes? • Accuracy– less than a recording, words to that effect • Place key quotes in quotation marks • How are notes stored? • Do you reduce notes to a memorandum? • How soon after interview should a memorandum be prepared? • Who reviews the memorandum before it is placed in final form?

18. Section IV • Defining Interviews • Structure of an Interview • Interview Notes • Characteristics of a Successful Interviewer • Evaluating Truthfulness

19. Characteristics of a Successful Interviewer Characteristics of a Successful Interviewer • Prepare to listen and having a positive mental approach • Remain polite, sincere, and understanding • Remain persistent • Hold your fire and refrain from interrupting • Maintain objectivity (could this be true?)

20. Section V • Defining Interviews • Structure of an Interview • Interview Notes • Characteristics of a Successful Interviewer • Evaluating Truthfulness

21. Evaluating Truthfulness Forms of Communication There are two basic forms of communication: 1. Verbal 2. Non-verbal

22. Evaluating Truthfulness Truthful Suspect

23. Evaluating Truthfulness Deceptive Suspect

24. Key Takeaways Keys to being an Effective Interviewer • Thoroughly prepare for each and every interview • Attempt to know your subject matter as well as the individual with whom you are speaking • Listen carefully to the responses your questions illicit and be patient in pursuing each line of questioning • Seek clarification from the witness when you do not understand his or her response or the substance of the response • Remain flexible in your approach to the interview – just because your outline is written one way does not mean it is the only way to conduct the interview • Prepare to cede the questioning to your colleagues in areas that are beyond your expertise

25. Thank YouQuestions?