Federal white-collar crime investigations often begin long before criminal charges are formally filed. In many cases, individuals and businesses may not initially realize they are under investigation until federal agents begin gathering evidence with particular fervor.
Recognizing the warning signs of a white-collar crime investigation early can be helpful because actions taken on the part of those whose behavior is under scrutiny during this stage of a potential criminal case may significantly affect the outcome of the case itself.
Receipt of “telling” documentation
One of the clearest signs of a federal investigation is receiving a formal target letter from the U.S. Attorney’s Office. A target letter typically indicates that prosecutors believe there is substantial evidence connecting the recipient to possible criminal activity.
Requests for interviews from federal investigators are another major warning sign of an investigation underway. Agents from agencies such as the Federal Bureau of Investigation or Internal Revenue Service may contact individuals directly or appear unexpectedly at homes or workplaces. Investigators sometimes present interviews as informal conversations, but they are anything but.
Receiving a grand jury subpoena for financial records, emails or business documents may also signal a serious federal investigation. Grand juries are commonly used in white-collar investigations to gather evidence and determine whether criminal charges should be filed. Subpoenas may request large volumes of records involving banking activity, accounting information, communications or internal company operations.
Additional turn-of-events scenarios to treat with concern
Other warning signs may be less obvious in re: why things are evolving in the ways they are. Some individuals discover that bank accounts or assets have suddenly been frozen due to federal seizure actions or financial investigations. Others learn that federal agents have contacted employees, business partners or customers seeking information.
Unexpected visits to coworkers or staff members may indicate that investigators are building a case quietly behind the scenes as well. Employees may be questioned about accounting practices, transactions, internal policies or specific business activities. Surveillance activity may also occur in some cases, including monitoring communications, reviewing financial transactions or conducting physical surveillance.
Anyone who suspects they may be under federal investigation should avoid destroying documents, altering records or attempting to explain the situation directly to investigators without legal guidance. What is said and done right now can make or break a defense strategy later.