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A special counsel is an attorney appointed to investigate, and possibly prosecute, a case in which the Justice Department perceives itself as having a conflict or where it's deemed to be in the public interest to have someone outside the government come in and take responsibility for a matter.
In addition to the ability to bring indictments, special counsels are vested with bread-and-butter law enforcement tools such as the power to issue subpoenas and search warrants.
In the United States, a special counsel (formerly called special prosecutor or independent counsel) is a lawyer appointed to investigate, and potentially prosecute, a particular case of suspected wrongdoing for which a conflict of interest exists for the usual prosecuting authority.
The U.S. Office of Special Counsel (OSC) is an independent federal executive agency. OSC investigates complaints alleging, among other things, prohibited personnel practices (PPPs) and violations of the Hatch Act.
The provisions were replaced by Department of Justice regulation 28 CFR Part 600, which created the successor office of special counsel.
The concept originates in state law: "state courts have traditionally appointed special prosecutors when the regular government attorney was disqualified from a case, whether for incapacitation or interest."