December 15, 2024 • Posted In Criminal Defense
Federal investigations for white-collar crime are often detailed and methodical, involving significant scrutiny of financial records, communications, and professional activities. Agencies such as the Internal Revenue Service (IRS), Securities and Exchange Commission (SEC), and Federal Bureau of Investigation (FBI) are responsible for identifying and addressing misconduct.
White-collar crime can include offenses such as fraud, embezzlement, and insider trading. These cases often lead to extensive inquiries that may involve subpoenas, interviews, and even physical searches. Here is more about what you can expect during a federal investigation and the phases involved in building a case.
Federal agencies prioritize cases involving significant financial harm, widespread societal impact, or threats to national security. Crimes such as fraud, embezzlement, and insider trading are frequently investigated due to their potential to disrupt economic systems and undermine public trust.
Cases requiring federal-level criminal defense often fall under federal jurisdiction since they are often far more complex and may involve considerable sums of money. Below are some of the most common offenses investigated at the federal level:
Fraud under 18 U.S.C. Ch. 63 involves intentional deception to secure unlawful financial benefits. Common examples include securities fraud, wire fraud, and healthcare fraud, each of which targets different industries or financial systems. For instance, falsifying financial documents or submitting false insurance claims constitutes fraudulent activity.
Embezzlement under 18 U.S.C. Ch. 31 occurs when individuals divert money or assets they are trusted to manage for personal use. This offense is often associated with employees or executives misusing company funds. Examples include falsifying expense reports or redirecting payroll to unauthorized accounts.
Insider trading under 18 U.S.C. § 1348 refers to buying or selling securities based on material, non-public information. This practice undermines the integrity of the market by giving an unfair advantage to those with access to confidential data. For example, an employee trading shares based on unreleased financial reports would be engaging in insider trading.
Federal investigations for white-collar crimes follow a structured process designed to gather and assess evidence thoroughly. Crimes such as fraud, embezzlement, and racketeering often involve extensive inquiries that proceed through distinct stages. The phases of a federal investigation include:
Investigations often begin with tips, whistleblower reports, or irregularities identified during audits. Federal agencies discreetly collect initial information to determine whether further action is warranted. This may involve reviewing public records, analyzing financial data, or consulting with industry experts.
Federal investigators issue subpoenas to compel the surrender of documents, communications, and financial records. These legally binding requests are a key tool for gathering critical evidence related to the case. Investigators analyze the materials provided to uncover discrepancies or patterns indicative of unlawful activity.
Investigators conduct interviews and depositions to gather statements from witnesses, employees, and others connected to the case. These sessions aim to clarify evidence, establish timelines, or identify additional leads. Witnesses and subjects are typically questioned under oath, and their testimony becomes part of the official case record.
Federal investigators frequently monitor financial transactions, communication logs, and physical movements to gather evidence. These surveillance techniques allow agencies to track patterns of behavior that may indicate misconduct.
Searches and seizures occur when investigators obtain warrants to access physical spaces, digital devices, or specific records. These actions are authorized by courts based on probable cause and are conducted to uncover direct evidence of a crime. During a search, federal agents may collect documents, computers, phones, and other materials relevant to the case.
If investigators gather sufficient evidence, the case is presented to a grand jury to determine whether formal charges should be filed. An indictment marks the beginning of the prosecution phase. At this stage, you may face court hearings, plea negotiations, or preparation for trial.
