Federal Corporate Fraud Defense Attorney

Federal corporate fraud investigations are aggressively pursued by agencies such as the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC).

These cases often involve allegations of bribery, corruption, accounting manipulation, insider trading, and other forms of white-collar misconduct within corporations.

Corporate fraud investigations can be extremely complex because they often involve multiple federal statutes, large volumes of financial records, and extensive government investigations.

Business executives, officers, directors, and employees may face both criminal prosecution and civil enforcement actions if investigators believe corporate misconduct occurred.

If you are under investigation for corporate fraud or financial misconduct, the consequences can be severe, including prison sentences, massive financial penalties, asset forfeiture, and permanent damage to your professional reputation.

An experienced federal criminal defense attorney can help protect your rights, analyze the allegations, and develop a strategy designed to minimize legal exposure.

Your best chance for a positive outcome is to work with an experienced California federal criminal defense attorney at Eisner Gorin LLP. To set up a consultation, feel free to call us at (818) 781-1570 or reach out to us here.

What Is Corporate Fraud?

Corporate fraud generally refers to illegal activities carried out by individuals within a company to obtain financial gain or conceal financial losses through deception or manipulation.

These crimes are commonly categorized as white-collar crimes, meaning they involve financial misconduct committed by individuals in positions of trust.

Corporate fraud can involve a wide range of activities, including:

falsifying financial records
misleading investors or regulators
manipulating corporate accounting data
bribery or corruption schemes
insider trading
corporate espionage
embezzlement or misuse of company funds

Because corporations operate across state and international boundaries, many corporate fraud investigations fall under federal jurisdiction.

For pharmaceutical executives, federal obstruction of justice can occur when internal communications or clinical data are deleted during an ongoing or anticipated investigation by the Food and Drug Administration (FDA) or the Department of Justice (DOJ).

Federal Laws Commonly Used in Corporate Fraud Cases

Corporate fraud investigations often involve several federal statutes and regulatory laws.

Foreign Corrupt Practices Act (FCPA)

The Foreign Corrupt Practices Act prohibits U.S. companies and individuals from bribing foreign officials to gain business advantages. Violations may result in both criminal prosecution and civil penalties.

Securities Exchange Act

The Securities Exchange Act of 1934 regulates securities markets and prohibits fraudulent practices such as insider trading and misleading financial disclosures.

Sherman Antitrust Act

The Sherman Antitrust Act prohibits anticompetitive practices such as price-fixing, bid-rigging, and market allocation among competitors.

Internal Revenue Code (IRC)

The Internal Revenue Code contains provisions that criminalize tax fraud, false tax returns, and other financial misconduct involving corporate finances.

Food, Drug, and Cosmetic Act (FDCA)

The FDCA regulates the safety and marketing of food, drugs, and medical devices. Corporate fraud allegations may arise when companies misrepresent product safety or compliance.

International Traffic in Arms Regulations (ITAR)

ITAR governs the export of defense-related technologies and materials. Violations can lead to criminal charges when companies illegally export restricted items.

Key Federal Criminal Statutes Used in Corporate Fraud Prosecutions

Federal prosecutors frequently rely on several criminal statutes when pursuing corporate fraud cases.

18 U.S.C. § 1001 – False Statements

This statute makes it a crime to knowingly make false statements to federal agencies during investigations or regulatory filings.

18 U.S.C. § 1031 – Major Fraud Against the United States

This law targets large-scale fraud schemes involving government contracts or federal programs.

18 U.S.C. § 1341 – Mail Fraud

Mail fraud involves using postal services as part of a scheme to defraud victims.

18 U.S.C. § 1343 – Wire Fraud

Wire fraud applies when electronic communications such as emails, phone calls, or internet transmissions are used in a fraudulent scheme.

18 U.S.C. § 1347 – Healthcare Fraud

Healthcare fraud criminalizes schemes designed to defraud healthcare benefit programs.

18 U.S.C. § 1348 – Securities and Commodities Fraud

This statute targets fraudulent schemes involving securities markets or commodities trading.

18 U.S.C. § 1956 – Money Laundering

Money laundering involves concealing the source of illegally obtained funds through financial transactions.

18 U.S.C. § 873 – Blackmail and Extortion

This law criminalizes obtaining money or benefits through threats of exposing wrongdoing.

18 U.S.C. § 472 – Counterfeiting

Counterfeiting involves producing or distributing fake currency or financial instruments.

Corporate fraud cases often involve multiple charges under multiple statutes, increasing the potential penalties.

Common Types of Corporate Fraud

Corporate fraud can take many forms. Federal investigators frequently focus on the following types of illegal conduct.

Accounting Fraud

Accounting fraud occurs when companies manipulate financial records to hide losses, inflate profits, or mislead investors and regulators.

Bribery and Corruption

Bribery involves offering money or benefits to influence business decisions. Corruption schemes often involve kickbacks, hidden payments, or illegal political contributions.

Insider Trading

Insider trading occurs when someone uses confidential, non-public information to gain an unfair advantage in stock market transactions.

Money Laundering

Money laundering involves disguising the origins of illegal money through complex financial transactions.

Antitrust Violations

Antitrust crimes include price-fixing, bid-rigging, or agreements between competitors to limit competition.

Corporate Espionage

Corporate espionage involves stealing trade secrets or confidential information from competitors for financial gain.

Embezzlement

Embezzlement occurs when a trusted employee or executive misappropriates company funds for personal use.

How Federal Investigators Detect Corporate Fraud

Corporate fraud investigations often begin through internal reports, regulatory audits, or whistleblower complaints.

Federal law enforcement agencies commonly involved in these investigations include:

Federal Bureau of Investigation
U.S. Securities and Exchange Commission
Internal Revenue Service
Commodity Futures Trading Commission
U.S. Department of Labor
U.S. Postal Inspection Service

Investigations often involve forensic accounting, financial audits, digital evidence analysis, and witness testimony.

What to Do If You Are Under Investigation

If you become aware that federal authorities are investigating corporate fraud involving your business or employer, it is critical to seek legal counsel immediately.

Warning signs of a federal investigation may include:

receiving a federal grand jury subpoena
agents requesting interviews
execution of a search warrant
requests for financial records or corporate documents

A federal criminal defense attorney can help by:

reviewing the allegations and potential charges
analyzing financial records and investigative evidence
communicating with investigators on your behalf
protecting your constitutional rights
negotiating with federal prosecutors
preparing a defense strategy for trial if necessary

Because corporate fraud cases often focus on intent and knowledge, the ability to challenge the government's interpretation of financial transactions is often central to the defense.

Frequently Asked Questions

What is considered corporate fraud?

Corporate fraud involves deceptive financial practices within a company to gain financial benefits or to mislead investors, regulators, or government agencies.

Who can be charged with corporate fraud?

Corporate fraud charges may be brought against executives, managers, employees, accountants, board members, or other individuals involved in the alleged scheme.

What are the penalties for federal corporate fraud?

Penalties vary depending on the charges but may include significant prison sentences, fines, asset forfeiture, restitution to victims, and permanent professional consequences.

Can corporations themselves face criminal charges?

Yes. Corporations can be charged as entities, which may result in fines, regulatory penalties, and compliance requirements.

Should I speak with investigators if contacted?

It is generally advisable to consult with an attorney before speaking with federal investigators to ensure your rights are protected.

Protecting Your Career and Reputation

Corporate fraud investigations can threaten not only your freedom but also your professional reputation and career. Federal prosecutors dedicate extensive resources to building complex white-collar cases.

An experienced federal criminal defense attorney can analyze the government's evidence, identify weaknesses in the prosecution's case, and pursue strategies designed to protect your rights and future.

If you are under investigation or facing charges related to corporate fraud, obtaining experienced legal representation early in the process is critical.

Eisner Gorin LLP is ready to assist you. Feel free to schedule your consultation today! Our friendly law firm is located in Los Angeles, and we're here to support you every step of the way.